Maintains Strong Relationships with Communities

Is the company connected to its local community? According to our 2015 Survey, at least 77% of respondents selected community-related issues as important to measure JUST community well-being. This included topics such as partnering with schools, communicating effectively with local citizens, supporting local businesses and taking the community into consideration in its decisions.

METRICS

Commitment to Community Development Practices

Description: Commitment to community development practices, comprising assessments of:

  1. whether the company has a policy to improve its corporate citizenship;
  2. the strength of the company's local community development programmes. It does not focus on cash donations, but formal programmes that promote long-term economic development among communities directly affected by the company’s operations. (Strong program: 100, adequate program: 75, weak program: 50, some activities, but no evidence of a formal program: 25, does not have a program: 0); and
  3. the company's mechanisms to consult with local communities potentially affected by its operations. (Strong program: 100, adequate program: 75, weak program: 50, some activities, but no evidence of a formal program: 25, does not have a program: 0).

Data point 1 assigned 10 if True and 0 if False.  All three data points are averaged, with data point 2 and data point 3 divided by 10.

Data Source(s):

  1. ASSET4
  2. Sustainalytics
  3. Sustainalytics

Metric Type: Management
Geography: Global
Unit of Measurement: Score (0-10)

Controversies in Community

Description: Number of severe and very severe cases (major scandals or systematic risk incidents) in influential and highly influential news sources occurring globally over the past three years that pertain to a company's impact on communities.

Data Source(s): RepRisk
Metric Type: Controversy
Geography: Global
Unit of Measurement: Number