Food Safety Magazine found that there were 626 reported food recalls in 2015 alone. Americans believe that the reliability of their purchases are a matter of JUSTness, not just safety. Beliefs about JUSTness are affected if a company’s products cause harm—directly or indirectly—or don’t provide fair value for the price.
Below are the Components that Americans defined as important in measuring JUST products, and how we are measuring corporate performance for each of them. Click on the Component metrics to learn more.
Makes Products That Are Beneficial to Health, Environment, or Society
Does the company make intrinsically beneficial products? Over 75% of respondents to our 2015 survey indicated that offering innovative products, healthy products, and/or products that have a low environmental impact were important in measuring JUST product attributes.
Commitment to Producing Beneficial and Non-Harmful Products
Description: Industry-specific assessment of products and services that are beneficial to Health, Environment, or Society. The final score is an aggregate of individual ratings on four product categories (Clean Tech, Renewable Energy, Water Tech, Tobacco) and six product attributes (Eco-design, Health & Nutrition, Financial Product Safety, Access to Finance, Access to Health, Access to Communication). Individual ratings can be either positive (Clean Tech) or negative (Tobacco) and are either based on activity levels (e.g. percent of tobacco-related revenue, percent of renewable energy capacity) or on qualitative assessment from one of the major ESG ratings firms.
Data Source(s): JUST analysis: MSCI; Sustainalytics; ASSET4; Bloomberg
Metric Type: Management
Unit of Measurement: Score
Makes Quality Products
Are products well-made? In our 2015 Survey, 97% of respondents indicated that offering reliable and safe products were important in measuring JUST product attributes.
Description: Whether the company has announced a mass recall of products or has completely withdrawn a product due to defects or safety reasons.
Data Source(s): ASSET4
Metric Type: Performance
Unit of Measurement: True or False
Description: The extent to which the company manages product quality, comprising assessments of:
- whether it applies quality management systems, such as ISO 9000, Six Sigma, Lean Manufacturing, Lean Sigma, TQM or any other similar quality principles; and
- the extent to which companies are at risk of facing major product recalls or losing customer trust through major product quality concerns. Companies that proactively manage product quality by achieving certification to widely acceptable standards, undertaking extensive product testing and building processes to track raw materials or components score higher. Companies that take a reactive approach to managing recalls and product quality concerns score lower.
Data point 1 assigned 10 if True and 0 if False. Data point 2 is scored on 0-10 scale. Data Point 1 and Data point 2 are averaged.
Metric Type: Management
Unit of Measurement: Score (0-10)