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Governance and policy. TOTAL AVALIABLE SCORE: 7.5 pts. 1. Existence of a published sustainable development (SD) or CSR national strategy. Why this is important It is important for government to take the lead in creating CSR incentives for business.

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slide2

Governance and policy

TOTAL AVALIABLE SCORE: 7.5 pts

1. Existence of a published sustainable development (SD) or CSR national strategy

Why this is important

  • It is important for government to take the lead in creating CSR incentives for business.
  • This involvement raises public awareness of the issue and raises the significance of CSR within the policy/ government sphere.
  • Criteria / description of indicator
  • CSR/SD national strategy prepared through a consultative process with main stakeholders and adopted by the respective government body (e. g. Council of Ministers);
  • Existing action plan and budget;
  • Existence of a national body, e. g. a National Consultative Council constituting of all stakeholders which coordinates the elaboration, promotes the cooperation among the stakeholders, and monitors and evaluates the implementation of the state CSR policy.
  • Definition of a sustainable development strategy: According to Chapter 8 of the UN’s Agenda 21, the goal of a national SD strategy is to “build upon and harmonise the various... economic, social and environmental policies and plans that are operating in the country.” Applying this more specifically to CSR, one can begin to understand a CSR strategy as providing a framework for the private sector to fit into the sustainable development strategy. This would work by facilitating the development of policies and plans that businesses have already developed and offering guidance for businesses that have yet to enter this arena. The Danish government provides a good example of a national CSR strategy and how it can be used to support existing CSR initiatives and develop new CSR initiatives. The link to the Danish system is provided in the country report.

2.5 pts

+

2.5 pts

+

2.5 pts

TOTAL SCORE:

Data sources & contacts

Evidence in this category can be a report, a web page, or any sort of document covering CSR or sustainable development

The information can be obtained by contacting – by phone email or in person – the relevant government department(s) and/or online research.

7.5

slide3

Governance and policy

TOTAL AVALIABLE SCORE: 7.5 pts

2. Existence of a named government department or other government body leading on CSR issues.

Importance: This indicator establishes a base level of awareness that a government should have in order for CSR and sustainable development to gain credence within a society.

  • Criteria / description of indicator
  • A stand-alone department or body within government whose status and functions are fully dedicated to developing and coordinating CSR/SD strategies and policies.
  • Relevant data to collect includes:
  • a unit dealing with CSR
  • a particular person/ particular people dealing with CSR
  • the size of a CSR team
  • the percentage of funding used on the CSR function as a proportion of the overall department or ministry budget

7.5 pts

Data sources & contacts

Evidence in this category can be a report, a web page, or any sort of document covering CSR or sustainable development.

The information can be obtained by contacting – by phone email or in person – the relevant government department(s) and or online

TOTAL SCORE:

7.5

slide4

Governance and policy

TOTAL AVALIABLE SCORE: 5 pts

3. Existence of specific legislation to promote the wide adoption of good CSR practices

  • Importance: - SHORTEN
  • While the European Union has established that CSR should remain a voluntary initiative and excessive legislation is not desirable, it is important for governments to create incentives for businesses to adopt CSR practices. In particular, it is important for a directive to come from government in a region where there is a tradition of government leadership in driving policy initiatives
  • These lawsrequirecompanies to report on how they are accounting for social and environmental considerations in their business conduct. While the reporting legislation does not prescribe a particular standard of social and environmental conduct, it does prompt companies to think about how they set their own standards in this regard, thus creating a business environment more conducive to CSR practice.

Criteria / description of indicator

A series of legislative areas are listed below. The scoring system is as follows

KEY

1 of the laws

2 of the laws

3 of the laws

4 of the laws

5 + of the laws

(SOURCE: European Parliament resolution of 13 March 2007 on corporate social responsibility: a new partnership (2006/2133(INI))

1 pt

2 pts

3 pts

4 pts

5 pts

Data sources & contacts

Documentation can be collected by tracing the number of amended and/or drafted legal acts that reflect the provisions of CSR promotion. This could be anti-corruption legislation and/or reporting legislation pertaining to sound accounting standards.

The information is to be found in published legal act drafts and amendments, but it may also be useful to establish contact with government experts who can assist on a regular basis (annually).

TOTAL SCORE:

5

slide5

Governance and policy

TOTAL AVALIABLE SCORE: 5 pts

4. Percentage of green procurement as part of total public sector procurement

  • Importance:
  • This indicator is quantifiable and embedded in the way that government does business.
  • Green public procurement means that public purchasers take account of environmental factors when buying products, services or works
  • Every year, the European public authorities spend the equivalent of 17% of the EU GDP on public procurement
  • The sheer size of government expenditure can play a pivotal role in shaping production and consumption patterns towards sustainability.
  • The EC encourages Member States to draw up publicly available National Action Plans (NAPs) for greening their public procurement.
  • The EC, together with stakeholders, has developed common GPP criteria for 10 products and services.
  • Criteria / description of indicator
  • National Action Plan (NAP) developed and adopted by relevant public sector bodies. In line with EC expectations, the NAP contains:
  • an assessment of the existing situation;
  • ambitious targets for the next three years;
  • a clear statement of the measures taken to achieve the targets;
  • an understanding that the NAP should be revised every three years
  • Additional points available when environmental criteria applied to:
  • ≥10% - <30% of total public procurement
  • ≥30% - <50% of total public procurement
  • ≥50% - <70% of total public procurement
  • ≥70% of total public procurement

+

1 pt

1 pt

2 pts

3 pts

4 pts

TOTAL SCORE:

Data sources & contacts

We are looking for a statistic showing the percentage of public procurement that incorporates environmentally responsible criteria. These estimates should be provided by the Government Public Procurement Office or its equivalent.

Some contacts for each individual country are availiable in Apendix.1

5

slide6

Stakeholder engagement and communication

TOTAL AVALIABLE SCORE: 5 pts

5. Percentage of active National Global Compact and other CSR networks members

  • Importance:
  • This indicator represents quantifiable stakeholder engagement with a credible standard and organisation.
  • Its standards are rooted in international law and it has affiliates at the national level
  • The Global Compact is a leadership platform, endorsed by Chief Executive Officers, and offering a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship.

Criteria / description of indicator

Percentage of top 100 companies by turnover that are national signatories to the UN Global Compact. Points are allocated as follows:

*However companies that are classified as "Non-communicating", i.e. failing to develop a Communication on Progress by the relevant deadline, shall not be counted.

KEY

Membership: <5%

Membership: ≥5% - <10%

Membership: ≥10% - <20%

Membership: ≥20% - <30%

Membership: ≥30% - <40%

Membership: ≥40%

0 pts

1 pt

2 pts

3 pts

4 pts

5 pts

TOTAL SCORE:

5

Data sources & contacts

The National Global Compact website lists the names of corporate members and their reports submitted to the network.

http://www.unglobalcompact.org/participants/search

slide7

Stakeholder engagement and communication

TOTAL AVALIABLE SCORE: 5 pts

6. Percentage of business associations having implemented sectoral CSR-related activities and/or tools

  • Importance:
  • This indicator is quantifiable and is important to account for sector-specific CSR needs, which can vary substantially.
  • CSR learning and collaboration are best addressed at an industry level, where businesses have many common needs but can benefit from a consolidated approach to common challenges.

Criteria / description of indicator

Business associations located within the country that have adopted industry codes of conduct and/or organised CSR activities, e.g. research & surveys, seminars & workshops, outreach activities and stakeholder engagement.

Scores are allocated as follows:

KEY

Prevalence: <5%

Prevalence: ≥5% - <20%

Prevalence: ≥20% - <40%

Prevalence: ≥40% - <60%

Prevalence: ≥60% - <80%

Prevalence: ≥80%

0 pts

1 pt

2 pts

3 pts

4 pts

5 pts

TOTAL SCORE:

5

Data sources & contacts

Data to be collected annually by email/phone using a questionnaire. Alternatively, association websites display commitments to industry codes or post social or environmental activities.

slide8

Stakeholder engagement and communication

TOTAL AVALIABLE SCORE: 5 pts

7. Percentage of local companies that do regular structured CSR/SD reporting (Top 100 by turnover)

  • Importance:
  • A high percentage of companies producing CSR reports suggests a high level of awareness pertaining to CSR within the country.
  • The frequency of the reports will indicate how active the CSR re-evaluation process is.

Criteria / description of indicator

Assessment of top 100 companies, stratified according to turnover, to see whether they have produced an annual, dedicated CSR report, or a dedicated CSR section within the annual report. The reporting can be purely web-based. The indicator refers to local CSR/SD reports, not to global reports produced by multinational companies. Or at least there should be a country specific paragraph if the report is global.

Scores allocated as follows:

Prevalence: <5%

Prevalence: ≥5% - <10%

Prevalence: ≥10% - <20%

Prevalence: ≥40% - <60%

Prevalence: ≥60% - <80%

Prevalence: ≥80%

More advanced considerations for inclusion at later stages could be:

1. what percentage of companies use GRI or another set of established reporting guidelines in producing their reports?

2. what percentage of companies issue CSR reports separate from annual reports?

3. what percentage of companies report on their websites?

0 pts

1 pt

2 pts

3 pts

4 pts

5 pts

TOTAL SCORE:

Data sources & contacts

The information can be obtained by browsing the latest annual report and/or the latest CSR/Sustainability reporting from the company’s website. If such information does not exist on the website, contact the external/investor relations department and make an assessment based on the criteria above.

Information to be obtained annually.

5

slide9

Civic Society

TOTAL AVALIABLE SCORE: 7.5 pts

8. Percentage of higher education institutions offering specific programs and/or courses in CSR/ sustainable development and/or ethics

Importance: This indicator reflects a good way to embed the concept in society. It also reflects a good way to engage in debate around the issue and to engage with the public through seminars and lectures.

Criteria / description of indicator

Higher education institutions have degrees in CSR and/or sustainability. Higher education institutions offer courses in CSR and/or sustainability.

KEY

0-5%

5-10%

10-15%

15-30%

30-60%

≥60%

More advanced considerations for inclusion at later stages could be:

1. the number of students enrolled in CSR courses and degrees

2. whether CSR/SD courses are requirements for degree completion or just electives

1.5 pts

0 pts

3 pts

4.5 pts

6 pts

7.5 pts

TOTAL SCORE:

7.5

Data sources & contacts

Information to be collected by distributing a questionnaire to all higher education institutions in the country, excluding irrelevant vocational institutions such as nursing, veterinary and teaching academies.

Alternatively, consult university websites for information on CSR and/or sustainability offerings.

slide10

Civic Society

TOTAL AVALIABLE SCORE: 7.5 pts

9a. Number of mentions of CSR concept in public media/year - Option 1

Importance: Number of mentions in the media specifically of the “CSR concept” (by any of its names) is meaningful evidence of the success of the Government in raising CSR awareness.

Criteria / description of indicator – OPTION 1: provides a fuller picture, but requires 3rd party assistance and incur costs

The mainstreaming of CSR in the public domain can be tracked as it appears in media outlets, including print, web and broadcast.

Hire media scanning service.

2. Briefing to media scanning service: scan public media sources for (i) number and (ii) source of mentions of 5 agreed key terms describing the CSR concept within the past year, e.g.:

“CSR/Corporate Social Responsibility”

“Corporate Responsibility”

“Responsible business”

“(Business) Sustainability”

“Social business responsibility”

4. Calculate total number of mentions within print, web and broadcast respectively.

5. Allocation of scores (to be performed for each of the three media categories above and then added up):

KEY

Number of mentions down >5%

Number of mentions up/down ≤5%

Number of mentions up >5% - <10%

Number of mentions up ≥10%

Changes are measured against previous year.

SCORE?

1 pts

0 pts

2 pts

2.5 pts

+

TOTAL SCORE:

7.5

ONLY COMPLETE 9a OR 9b NOT BOTH

slide11

Civic Society

TOTAL AVALIABLE SCORE: 7.5 pts

9b. Number of mentions of CSR concept in public media/year – Option 2

Importance: Number of mentions in the media specifically of the “CSR concept” (by any of its names) is meaningful evidence of the success of the Government in raising CSR awareness.

  • Criteria / description of indicator- – OPTION 2: free
  • The mainstreaming of CSR in the public domain can be tracked as it appears in media outlets, including print, web and broadcast.
  • Decide on five specific CSR terms and perform Google News analysis for mentions of these terms in the past year.
  • Add the total number of hits together.
  • EDIT TO 1 or 2 less?? - Allocation of scores:
  • Number of mentions down >5%
  • Number of mentions down ≤5%
  • Number of mentions up <5%
  • Number of mentions up ≥5% - <10%
  • Number of mentions up ≥10% - <15%
  • Number of mentions up ≥15% - <20%
  • Number of mentions up ≥20% - <30%
  • Number of mentions up ≥30% - <40%
  • Number of mentions up ≥40%
  • Changes are measured against previous year.
  • Local experts to decide on best search terms in the local language.
  • Exercise to be repeated annually.

2 pts

1 pt

7.5 pts

0 pts

4 pts

5 pts

6 pts

7 pts

3 pts

TOTAL SCORE:

7.5

ONLY COMPLETE 9a OR 9b NOT BOTH

slide12

Environment

TOTAL AVALIABLE SCORE: 5 pts

10. Percentage of listed companies using environmental management systems

Importance: This indicator is quantifiable and focuses on systems development, which is a good way to embed CSR in business practice.

Criteria / description of indicator

Percentage of listed companies using environmental management systems, namely:

ISO 14001

EMAS

KEY

<5%

5-15%

15-30%

30-50%

50-70%

≥70%

1 pts

0 pts

2 pts

3 pts

4 pts

5 pts

TOTAL SCORE:

5

Data sources & contacts

This information can be obtained from certification or membership data from system bodies. Alternatively, check for CSR reports mentioning the use of environmental management systems.

slide13

Environment

TOTAL AVALIABLE SCORE: 5 pts

11. GHG emissions and renewable energy use

  • Importance:
  • Governments play a big role in reducing GHG emissions and driving the transition towards renewable energy.
  • It might well be relative by country but will be an important indicator of year-on-year progress in each country.

IS PUTTING THESE AS ½ and not asking them to multiply ok?

Criteria / description of indicator

This is an aggregate score, consisting of two indicators

Indicator 1: Country level GHG emissions

KEY

CO2 emissions (metric tons per capita): ≥17 = 0 points

CO2 emissions (metric tons per capita): ≥12 - <17 = 1 point

CO2 emissions (metric tons per capita): ≥9 - <12 = 2 points

CO2 emissions (metric tons per capita): ≥7 - <9 = 3 points

CO2 emissions (metric tons per capita): ≥5 - <7 = 4 points

CO2 emissions (metric tons per capita): ≤5 = 5 points

Indicator 2: Electricity generated from renewable sources measured as % of gross electricity consumption.

KEY

0-5% = 0 points

5-10% = 1 point

10-15% = 2 points

15-25% = 3 points

25-35% = 4 points

>35% = 5 points

0.5 pts

0 pts

1 pts

1.5 pts

2.5 pts

2 pts

0 pts

1 pts

1.5 pts

2 pts

2.5 pts

0.5 pts

+

Data sources & contacts

Indicator 1: As up-to-date, country-level GHG emissions are not currently available from any single information resource, the best option would be to obtain this information from the Government’s environment department. If this cannot be obtained, the best proxy is CO2 emissions (metric tons per capita) from the World Bank’s World Development Indicators although it is not fully up to date: http://data.worldbank.org/indicator/EN.ATM.CO2E.PC

Indicator 2:   This indicator is the ratio between the electricity produced from renewable energy sources and the gross national electricity consumption for a given calendar year. It measures the contribution of electricity produced from renewable energy sources to the national electricity consumption.

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsdcc330

TOTAL SCORE:

5

slide14

Environment

TOTAL AVALIABLE SCORE: 4 pts

12. Total environmental protection expenditure

  • Importance:
  • Money spent on environmental protection is a good proxy for amount of interest and action taken in this area.
  • It provides us with additional information that is not covered by the indicator “Emissions of GHG per unit of GDP”.

Criteria / description of indicator

Government expenditure on environment protection* measured as percentage of GDP.

KEY

Spend <0.4%

Spend ≥0.4% - <0.6%

Spend ≥0.6% - <0.8%

Spend ≥0.8% - <1.0%

Spend ≥1.0%

*Definition of environmental protection: “Environmental protection groups together all actions

and activities that are aimed at the prevention, reduction and elimination of pollution as well as

any other degradation of the environment”.

1 pt

0 pts

2 pts

3 pts

4 pts

TOTAL SCORE:

4

Data sources & contacts

Data for this indicator can be found in Eurostat government expenditures statistics by COFOG. http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/dataset?p_product_code=GOV_A_EXP

We have used code 05: Environment protection: http://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=4&Lg=1&Co=05

slide15

Labour issues

TOTAL AVALIABLE SCORE: 3 OR 5 POINTS?? pts

13. Percentage of listed companies using labour management systems

Importance: This indicator is quantifiable and focuses on systems development, which is a good way to embed CSR in business practice.

Criteria / description of indicator

Percentage of listed companies using labour management systems, namely:

SA 8000

AA 1000

KEY

<5% = 0 points

5-15% = 1 point

15-30% = 2 point

30-50% = 3 points

50-70% = 4 points

≥70% = 5 points

1 pt

2 pts

3 pts

5 pts

4 pts

0 pts

TOTAL SCORE:

3

Data sources & contacts

This information can be obtained from certification or membership data from system bodies. Alternatively, check for CSR reports mentioning the use of labour management systems.

slide16

Labour issues

TOTAL AVALIABLE SCORE: 3 pts – ?????

14. Percentage of employees covered by collective bargaining agreements (CBAs)

  • Importance:
  • This represents a fundamental human right/labour right, as recognised in international law.
  • Furthermore, collective bargaining is by definition a multi-stakeholder initiative and can be used in organisations of various sizes.

Criteria / description of indicator

Freedom of association and collective bargaining, though considered fundamental rights, are extremely difficult rights to assess for a variety of reasons. One reason is that laws in this area vary quite widely from country to country. Another reason is that existing indicators do not completely and accurately assess whether the rights are being upheld adequately. In the absence of clearly defined standards and clearly useful indicators, the one proposed here is a quantifiable proxy clearly linked to the rights in question.

National laws pertaining to these rights often do not uphold the spirit of the ILO core conventions on these topics, so it is often a good idea to assess these rights in comparison to the ILO definitions and assessments as well as national legal standards.

KEY

0 -20% CBA coverage of workers

21 – 40% CBA coverage of workers

41 – 60% CBA coverage of workers

61 – 80% CBA coverage of workers

81 – 100% CBA coverage of workers

2 pts

3 pts

1 pt

4 pts

5 pts

Data sources & contacts

EIRO (European Industrial Relations Observatory), one of the partner organisations of Eurofound, maintains country profiles for EU Member States. These profiles contain “facts and figures” sheets that include the collective bargaining coverage in these countries.

The website is: http://www.eurofound.europa.eu/eiro/country_index.htm

Alternatively, country labour ministries or statistical offices often maintain this type of information.

TOTAL SCORE:

3

slide17

Labour issues

TOTAL AVALIABLE SCORE: 5 pts

15. Gender equality in business and government

Importance: This is a clearly quantifiable indicator that addresses a major discrimination element of the project and a major concern in most countries.

Criteria / description of indicator

This is an aggregate score, consisting of two indicators

Indicator 1: Proportion of female members of the highest decision-making body of the largest publicly quoted companies.

KEY

Female members <10% = 0 points

Female members = ≥10 <15% = 1 point

Female members = ≥15 <20% = 2 points

Female members = ≥20% = 2.5 points

Indicator 2:Proportion of seats held by women in national parliaments.

KEY

Female members <20% = 0 points

Female members = ≥20 <30% = 1 point

Female members = ≥30 <40% = 2 points

Female members = ≥40% = 2.5 points

0 pts

2 pts

1 pt

2.5 pts

1 pt

0 pts

2 pts

2.5 pts

+

Data sources & contacts

Indicator 1: European Commission, Employment, Social Affairs and Equal Opportunities DG, Database on women and men in decision making, updated annually. http://ec.europa.eu/social/main.jsp?catId=764&langId=en

Indicator 2: World Bank. Human Development Indicators: http://data.worldbank.org/indicator/SG.GEN.PARL.ZS

Both indicators can also be obtained from the publication: “Report on Equality between women and men” (published annually) http://ec.europa.eu/social/main.jsp?catId=418&langId=en

TOTAL SCORE:

5

slide18

Labour issues

TOTAL AVALIABLE SCORE: 4 pts

16. Fatal accidents/ 100,000 workers

  • Importance:
  • This is a clearly quantifiable indicator and a clear CSR indicator reflecting working conditions and labour standards.
  • Fatal accidents are strongly correlated with serious injuries, so it is a proxy for general workplace health & safety.
  • This is relevant regardless of sector but is more relevant to heavily industrialised workplaces.

Criteria / description of indicator

Information to be obtained from Eurostat. However, this information may not be fully up to date for all countries, so country experts may need to obtain it from their respective national statistics offices.

KEY

Fatal work accidents/100,000 workers: >5 = 0 points

Fatal work accidents/100,000 workers: >4 - ≤5 = 1 point

Fatal work accidents/100,000 workers: >3 - ≤4 = 2 points

Fatal work accidents/100,000 workers: >2 - ≤3 = 3 points

Fatal work accidents/100,000 workers: ≤2 = 4 points

0 pts

2 pts

3 pts

1 pt

4 pts

TOTAL SCORE:

4

Data sources & contacts

Source: Eurostat, health and safety at work: http://epp.eurostat.ec.europa.eu/portal/page/portal/health/health_safety_work

slide19

Transparency and the business environment

TOTAL AVALIABLE SCORE: 10 pts

17. Level of corruption (as indicated by Transparency International)

  • Importance:
  • This is a quantifiable indicator with a direct link to responsible business behaviour.
  • Corruption is one of the key impediments to an environment in which companies act in open, transparent, and accountable ways, both to governments and to citizens.

KEY

Score: <2.3

Scores: ≥2.3 <3

Scores: ≥3 <3.7

Scores: ≥3.7 <4.4

Scores: ≥4.4 <5.1

Scores: ≥5.1 <5.8

Scores: ≥5.8 <6.5

Scores: ≥6.5 <7.2

Scores: ≥7.2 <7.9

Scores: ≥8.7 <9.4

Scores: ≥9.4

Criteria / description of indicator

Placement on the International Corruption Perceptions Index (CPI). All the Project Countries would be expected to improve their score in the years to come. CPI is a robust piece of analysis; it is a "survey of surveys", based on 13 different expert and business surveys.

1 pt

0 pts

2 pts

3 pts

9 pts

5 pts

4 pts

6 pts

7 pts

8 pts

10 pts

TOTAL SCORE:

10

Data sources & contacts

The ranking is published annually on Transparency International’s website.

http://www.transparency.org/policy_research/surveys_indices/cpi

Alternatively, see enterprisesurveys.org

slide20

Transparency and the business environment

TOTAL AVALIABLE SCORE: 5 pts

18. Existence of SRI activity

  • Importance:
  • As a measure for the existence and sophistication of the Social Responsible Investment market, this indicator provides strong evidence whether the national business environment is geared towards CSR
  • The existence of SRI activity in a country suggests a maturing awareness of the relation between financial markets and incentives for ethical business conduct

Criteria / description of indicator

This is an aggregate score, consisting of two indicators

Indicator 1: Does the country have an SRI Index?  (2.5 points)

Indicator 2: Does the country have a national SRI forum (eg., EuroSIF, UKSIF, etc.)? (2.5 points)

+

2.5 pts

2.5 pts

TOTAL SCORE:

5

Data sources & contacts

These figures are normally easily available from the national fund management industry association.  A European organisation called EuroSIF (Social Investment and Finance) also provides figures for European countries.

slide21

SCORECARD

25

15

15

15

15

15

100