Legislators and other financial rule-makers across the world are telling companies and institutional investors to say what part, if any, social responsibility plays in their business plans. Here are some of the most significant measures to date:
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A new global study among opinion elites, released today by APCO Worldwide, demonstrates a growing need for greater communication of companies’ corporate social responsibility (CSR) initiatives. While corporations are making considerable efforts to report social and environmental practices, an overwhelming majority of the individuals surveyed still have limited awareness of companies’ contributions to their communities.
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Independent investment research firm Innovest has released the latest of its sector-based assessments of how companies perform on corporate social responsibility. The report ranks 33 companies in the oil and gas industry.
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Results of the latest FTSE4Good index review are released today by global index provider, FTSE Group. A total of 79 new companies worldwide have met the SRI index criteria and will be added to the index series at close of business on Friday 17 September. 23 companies will be deleted from the index on the same day as they no longer meet these criteria.
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Businesses worldwide are failing to produce enough sustainability reports, while governments are doing little to encourage such reporting – which would have a direct benefit for business and the environment, a global survey by ACCA (the Association of Chartered Certified Accountants) and CorporateRegister.com has found.
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SAM today announced the results of the annual review for the Dow Jones Sustainability Indexes (DJSI). Effective with the opening of equity markets on September 20, 2004 the Dow Jones Sustainability World Index will again include over 300 companies from 24 countries that lead their industries in terms of corporate sustainability. The pan-European sustainability benchmark – the Dow Jones STOXX Sustainability Index – will include 167 companies from 13 countries. Both indexes will continue to closely mirror the sector distribution of the corresponding mainstream equity benchmarks.
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Companies are currently facing a great variety of approaches and requirements concerning the implementation of sustainability strategies and the provision of sustainability reports. Questions focus on the relative significance ascribed to environmental protection and product orientation compared to -new issues” such as social aspects in the supply chain or employee interests. Of course, social issues are not new, but until recently they have been discussed separately.
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For the first time, the SAM/SPG Sustainability Leadership Award, which acknowledges personal excellence in implementing the principles of sustainability in the corporate sector, has gone to a leader as well as to a pioneer. The jury has singled out Antony Burgmans, Chairman of Unilever N.V., as a leader who, during his years at the helm of the big multinational, has successfully championed sustainability. Robin Cornelius, the founder and CEO of Switcher, has been honoured as a pioneering entrepreneur. A total of 51 candidates were nominated for this year’s award, compared with 43 last year.
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The main objective and primary social responsibility of a firm or a company is to maximize its profits and remain financially successful. This priority is widely accepted in the textbooks and corporate executive offices in the United States and other industrialized capitalist countries. I am confident that most employees of a corporation would also agree with this priority.
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(Published in The Financial Times of August 18, 2004).
Your article “Exchange acts to end burden of governance” (FT.com, August 16) illustrates that, even though fatigued and reticent, companies feel compelled to respond to the growing number of ad-hoc surveys seeking transparency in corporate governance and social responsibility matters. The pressure shows that the growing interest in environmental and social balance sheets is a sign of our times and here to stay, and the London Stock Exchange is to be commended for recognising the issue.
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(Published in The Financial Times of August 18, 2004).
Sir, It is encouraging to see the London Stock Exchange becoming involved in corporate social responsibility matters, with its new online disclosure tool, the Corporate Responsibility Exchange (“Exchange acts to end burden of governance”, August 16).
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In four out of ten industry sectors, Nordic companies perform better on environment, human rights and corporate governance than their European competitors, according to a new study from GES Investment Services. But overall, British companies are outstanding.
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