CSR Data Tied to Better Scores
CSR Data Tied to Better Scores
By Bahar Gidwani
The subject of this post could be summarized as (for those who know Latin) scientia potentas est. This is a quote from Francis Bacon that means, “in knowledge is power.” We recently contributed knowledge from our sustainability information system, that helps substantiate some ground-breaking research. Both studies showed a connection between strong social performance and a commitment to sharing data and knowledge. We hope these research studies will be powerful tools for influencing corporate behavior.
On March 6, Cora Lee Mooney, in conjunction with the BrownFlynn team, published a report called “GRI Application Levels: Why Strive for an A?” Brown Flynn is a both a well-known sustainability consulting firm and one of only a few GRI-certified training partners. They wanted to understand if companies benefit from receiving the A level for their Global Reporting Initiative (GRI) report. Do they get credit for the hard work this accomplishment requires, from outside stakeholders? With a lot of hard work, they confirmed that there was a positive relationship between GRI application level and CSRHub’s sustainability rating score.
The folks at Brown Flynn were careful not to claim that the simple act of reporting information caused companies to be more positively viewed. It is possible (and perhaps even likely?) that companies that adopt GRI reporting are good corporate citizens, even before they start the reporting process. For instance, the following graph shows that the distribution of ratings on the CSRHub system for companies who commit to the UN Global Compact, is much better than those who do not.
To read more about CSR data and CSR scores, visit the CSRHub blog >>
Bahar Gidwani is a Cofounder and CEO of CSRHub. Formerly, he was the CEO of New York-based Index Stock Imagery, Inc, from 1991 through its sale in 2006. He has built and run large technology-based businesses and has experience building a multi-million visitor Web site. Bahar holds a CFA, was a partner at Kidder, Peabody & Co., and worked at McKinsey & Co. Bahar has consulted to both large companies such as Citibank, GE, and Acxiom and a number of smaller software and Web-based companies. He has an MBA (Baker Scholar) from Harvard Business School and a BS in Astronomy and Physics (magna cum laude) from Amherst College. Bahar races sailboats, plays competitive bridge, and is based in New York City.
CSRHub provides access to corporate social responsibility and sustainability ratings and information on nearly 5,000 companies from 135 industries in 65 countries. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.
CSRHub rates 12 indicators of employee, environment, community and governance performance and flags many special issues. We offer subscribers immediate access to millions of detailed data points from our 140-plus data sources. Our data comes from six socially responsible investing firms, well-known indexes, publications, “best of” or “worst of” lists, NGOs, crowd sources and government agencies. By aggregating and normalizing the information from these sources, CSRHub has created a broad, consistent rating system and a searchable database that links each rating point back to its source.