What it involves
Corporate Responsibility Index model
The Corporate Responsibility Index was developed to help improve corporate responsibility by providing a systematic process that assists companies to identify their non-financial risk, as well as develop and improve corporate responsibility in line with their business strategy. It provides a benchmark for companies which are committed to managing, measuring and reporting their impact on society and the environment.
The Index is based on a framework of four core components shown in the following model:
The Corporate Strategy section looks at the inclusion of corporate responsibility commitments within the values and principles of the company and how these fit into strategy.
The Integration section looks at how companies organise, manage and integrate corporate responsibility throughout their operations. Is it integrated into the strategic decision-making processes of the company and linked through into internal governance and risk management systems? Is it an integral part of the company culture?
The Management section looks at what the key issues are for the business in relation to the Community, Environment, Marketplace and Workplace. It reviews objectives and targets set to manage these issues and how the company communicates, implements and monitors its policies, objectives and targets.
Community relates to the interface between business and society that can be impacted by a project, product or investment on a local or global level.
Environment is the ecosystems and natural resources that can be directly and indirectly affected by a company’s operation, products and services.
Responsibility in the Marketplace is maintaining the highest standards of business practice when developing, purchasing, marketing and selling products and services. It relates to how companies influence the rules of the marketplace in which they operate.
Workplace is the environment into which individuals are recruited and developed both professionally and personally, with full entitlement to employment rights.
The Performance & Impact section looks at companies’ performance across a range of social and environmental impact areas. Companies are asked to complete a total of six impact areas comprising:
- Three Environmental Impact areas: Climate Change and Waste & Resource Management and either Biodiversity or a Self-Selected Environmental Impact area.
- Three Social Impact areas selected from: Health Safety & Wellbeing, Employee Development, Equality Diversity and Inclusion in the Workplace, Community Investment or a Self-Selected Social Impact.
The Assurance & Disclosure section ensures the accuracy, relevance and reliability of information provided by companies within the survey and scores companies on their willingness to disclose their submission and results with external stakeholders.