2006 results - corporate responsibility index

Take up of Corporate Responsibility in Australia on the rise

Companies representing 1.25 million employees and a total turnover of AU$520 billion have voluntarily demonstrated their commitment to corporate responsibility by participating in the fourth Corporate Responsibility Index (CR Index).

View the results of the 2006 Corporate Responsibility Index.

Results of the fourth Corporate Responsibility Index released today show that 83% of participants now evaluate community, workplace, marketplace and environmental issues within their formal risk management processes.

The groundswell of public awareness on Corporate Responsibility Indexsis issues of climate change and water shortage, and clear government support for voluntary initiatives has moved more companies to initiate corporate responsibility policies.

In 2006 the Parliament and Government of Australia conducted inquiries into corporate responsibility. Both the Parliamentary Joint Committee and the CAMAC reports advocated that the business community take the voluntary lead in responsible business practice, in lieu of a regulatory approach.

“Irrespective of who wins the Federal election, it is likely that community expectations of responsible business conduct will continue to sharpen and deepen” says Dr Simon Longstaff, Executive Director of St James Ethics Centre.

Companies want a framework to work from, the public expects transparency to inform its choice, and voluntary initiatives are on the rise.

CEO of Minter Ellison Lawyers Guy Templeton says “We adopted the Index as an internal management tool to guide the growth of our program – and to utilise a framework that would help us achieve best practice”.

The companies scoring 95% or above in 2006 were, Westpac, Toyota, BHP Billiton, Rio Tinto and ANZ. “In 2007 we will be engaging with these top performing Corporate Responsibility Index companies to look at what the next challenges on the journey toward sustainability might be” said Emily Albert, Corporate Responsibility Index Manager at SJEC.

“The greater challenge remains engaging the large number of companies who are not yet voluntarily reporting or benchmarking their corporate responsibility practices” says Dr Longstaff “At our end, we have tried to make the Corporate Responsibility Index more attractive by allowing companies to complete modules, or engage in private bench-marking as a first step to full participation”.

In 2006 these new entry options resulted in 34 companies, comprising 11 new companies, voluntarily engaging in this rigorous assessment of the integration of corporate responsibility principles into core business practices.

“Each year the number of companies engaging in the Index has grown, with this the average score of companies continuing to participate also increases” says Emily Albert “Over the four years of the Corporate Responsibility Index in Australia the average score of the 16 companies participating each year has increased from 80.2% to 88.7%”.

“There is still work to be done” says Emily Albert “Some of the key challenges for companies remain in engaging stakeholders, setting and monitoring performance targets, and engaging their suppliers in sustainable practices”.

The Corporate Responsibility Index is the only voluntary benchmarking tool that assists business in setting the fundamental management frameworks for corporate responsibility. A critical element to ensure quality and consistency is that all submissions are validated by an independent, professional firm, Ernst & Young. Standing behind that report, St James Ethics Centre operates as trustee of the Corporate Responsibility Index overseeing the integrity of the process.

“Corporations only flourish in flourishing communities. Australian businesses no longer ask if they should be responsible; only about how best to be so. The Corporate Responsibility Index is not a tool of measurement for measurement’s sake. First and foremost, it is a management tool – a roadmap for building sustainable prosperity” said Dr Simon Longstaff.

The 2006 Corporate Responsibility Index Awards will be announced at the 8th National Business Leaders Forum on Sustainable Development Dinner to be held on Monday 21 May 2007. www.sustainableforum.com.au

> 2006 Corporate Responsibility Index results table ... (PDF)

> Executive Summary with 2006 results table and detailed information ... (PDF)

> Simon Longstaff's foreword to the 2006 Executive Summary ...

> Publication in The Sydney Morning Herald and The Age ...

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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.