Community Well-Being

Americans shared that their perceptions of a corporation’s JUSTness were also shaped by how it relates to its local community, in terms of charitable efforts, communication, and more.


Components

The components form the basis for our ranking.


Maintains Strong Relationships with Communities

Americans believe that minimizing pollution is an important component of JUSTness. Below are JUST Capital’s metrics for Does the company work to reduce environmental pollution? According to our 2015 Survey, Americans said that environmental accidents (94%) and emissions (87%) were important in measuring JUST environmental impact.

Commitment to Community Development Practices

Commitment to community development practices based on the following assessments:

  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).
  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

Controversies in Community

The 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


Contributes to Charitable Causes

Does the company practice philanthropy? According to our 2015 survey, at least 79% of respondents felt that philanthropy related topics were important to measuring community well-being, such as contributions to disaster relief, overall giving, and local sponsorships.

Charitable Giving Ratio

Description: 

  1. Charitable giving, including in-kind donations.
  2. Pre-tax profit.

Charitable Giving Ratio is calculated as follows:
Data point 1 / Data point 2

Data Source(s): 

  1. Chronicle of Philanthropy; Bloomberg
  2. Bloomberg

Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio