why an index for corporate responsibility?

With corporate responsibility (CR) now a key performance indicator underpinning management practices of the world’s leading companies, it is important that there is an accurate methodology for tracking performance in this area.

A study undertaken by the NSW State Chamber of Commerce in 2001 (Now the NSW Business Chamber) found that a major disincentive for Australian businesses in engaging in corporate responsibility is the complexity surrounding the measurement of returns from investment in CR activities.

The pedigree of the Corporate Responsibility Index and the structures designed to support its introduction will ensure the delivery of an index that is credible – both in terms of underlying methodology and the integrity of the process.

In 2002, Business in the Community, the creator of the Corporate Responsibility Index, commissioned research amongst 200 chief executives across Europe to assess the extent and perceived value of integrating responsible practice into the mainstream business. This research also sought to identify the role and impact of leadership in driving forward corporate responsibility and the key issues perceived to have the most impact on business over the next five years.

Click here to view key findings.

The research found that senior business leaders realise more than ever that responsible business practice enhances creativity and could significantly improve profitability.

It also highlights the need for an integrated approach to the management of environmental, social and economic issues - 78% of respondents believed that competitiveness would only be increased if responsible business practice was integrated throughout the organisation.

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The Corporate Responsibility Index is funded by the Australian Federal Government. The Index, developed and maintained by Business in the Community in the UK, is a project of St James Ethics Centre supported by Ernst & Young. Our media partners are The Sydney Morning Herald and The Age. Project catalyst: Pilotlight Australia.