CSRHub Blog Research on ESG metrics and comments on sustainability best practice

Private Company Ratings on CSRHub

[fa icon="calendar'] Mar 20, 2013 9:00:29 AM / by Bahar Gidwani

By Bahar Gidwani

Publicly-traded companies are a big part of world economic activity.  However, most of the world’s goods, services, and jobs are generated by privately held companies (including large, medium-sized, and smaller companies), not-for-profit enterprises (including foundations, schools, and religious institutions), and government organizations (airports, ports, municipal governments, agencies, etc.).  CSRHub’s mission is to provide transparent information on the social performance of all types of enterprises.  This past month, we have begun to offer ratings on a number of private and government organizations.

Why couldn’t we do this before?  The original pressure for revealing social performance data came from investors who wanted to put their money only into companies that had a positive social impact.  These investors supported the work of financial analyst groups, encouraged the rise of reporting systems such as the Global Reporting Initiative, and helped fund not for profit groups like the Carbon Disclosure Project (which has recently re-christened itself “CDP”).  These systems tended to focus on the largest and most widely-held companies—the ones that large investors most wanted to know about.

Competitive pressures—and investor interest in investing in smaller growth companies and public companies in less-developed economies—has caused the coverage universe of financially driven research to expand.  Some of our data partners now claim to track the social performance of 30,000 publicly-traded companies.  At the same time, a growing number of non-public organizations have begun reporting data on their sustainability performance.  For example, we estimate that about 1,800 non-public organizations filed Global Reporting Initiative (GRI) reports in 2012, as did at least a thousand of the 5,000 reports offered via CDP.

Two additional sources of data have emerged on non-public companies over the past few years.  One is crowd source/user contributed data feeds.   Employee opinions about 110,000 companies come from Glassdoor, sustainability-oriented user ratings on 5,000 companies come from GoodGuide/ULE and more than 30,000 products and companies come from WeGreen, data on the brand value of 5,000+ organizations derive from Brand Finance, and 27 measures of risk on 32,800 companies, 7,000 projects, 5,300 NGOs and 4,500 governmental bodies come via RepRisk.  Some of these sources receive fees from investors, some are supported by donors, and some generate revenue from selling services such as job ads or consulting.

The second new source arises from the effort by major companies to improve the sustainability of their supply chains.  Engagement from a company’s supply chain is vital to meet announced sustainability goals (e.g., a 20% reduction in carbon use) or respond to pressure from social groups on water user, treatment of indigenous peoples, child labor, etc.  Using software systems from firms such as Source 44, OneReport, Credit360, Enablon, Eco-Vadis, CSRware, and others, large companies gather huge databases of sustainability data on their own operations and on their suppliers—many of whom are not publicly traded.  Industry organizations (e.g., EICC, The Sustainability Consortium, SEDEX, and Sustainable Packaging Coalition) help by providing standard questionnaires and by allowing their members to share data and supply chain audits.

When we add data from some of these new sources to the information we obtain from other more conventional inputs, we can rate almost 200 non-public companies and organizations.  The initial list includes companies such as Deloitte, PricewaterhouseCoopers, Levi Strauss, S. C. Johnson, and TIAA CREF.  We also have partial ratings on McKinsey & Company, The US Postal Service, and Finnair.  As a group, our non-public companies have a respectable average rating (using our average user profile) of 55.5—seven points above the average for all companies of 48.5.

non-public companies

This good performance makes sense—the first non-public organizations to report are likely to be those who have good social performance and who want others to know about it.  We expect the next wave of smaller organizations and government groups to bring this average down—just as smaller public company scores lag behind those of bigger public companies.  We also expect the number of sources on non-public organizations to converge towards the average for publicly-traded organization of about eight sources.

Average Number of Sources

Non-Public Organizations

4.3

Publicly-Traded Companies

7.8

Would you like to help us further our cause by bringing you more non-public organization information?  If you would, please:

  • Reward non-public organizations who report—even if their scores still are not as good as we might like—by giving them your business and your attention.
  • Share ratings from non-public organizations with other non-public organizations.  We need to break down the organizational barrier that says “we are private so we don’t talk about these things.”
  • Encourage anyone who collects information to allow the groups they collect their data from to control their own data and to have the option of sharing it.  It is unfair for big companies to require their supply chain components to pay to gather and report data, but to not get further value from their work.

Our long term goal is to provide a CSRHub rating for any type of organization—public, private, or governmental—of any size, in any location.  To reach our goal, we need your help to encourage all organizations to report their social performance and to make available more of the data that has already been collected in various sustainability tracking systems.


Bahar GidwaniBahar 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 7,000+ companies from 135 industries in 91 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.

 

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[fa icon="comment"] 3 Comments posted in Bahar Gidwani, Carbon Disclosure Project, credit360, CSR, GoodGuide, non-public companies, publicly-traded companies, privately- traded companies, Source 44, Uncategorized, WeGreen, industry organizations, Onereport, sustainability, NGO, social performance, software systems, Brand, Brand Finance, CDP, CSRHub, Glassdor, Global Reporting Initiative, GRI

Source 44 and CSRHub Strategic Alliance Enables Unprecedented Sustainability Benchmarking, Reporting and Compliance

[fa icon="calendar'] Jul 31, 2012 9:00:29 AM / by CSRHub Blogging

  

Offering combines the first interactive web-based supply chain transparency tool, Source Intelligence™, with the world’s largest database of corporate social responsibility (CSR) and sustainability ratings and reports.

SOLANA BEACH, CA and NEW PALTZ, NY (July 31, 2012) - Source 44, a leading provider of supply chain sustainability solutions and home to Source Intelligence™, and CSRHub, provider of the largest CSR and sustainability ratings database in the world, today announced a strategic alliance that will provide companies with unprecedented data and analytical and visualization capabilities for corporate benchmarking and compliance reporting.

“This partnership was formed to bring real value to companies seeking to gain control of their supply chains and mitigate associated risks while ensuring overall corporate sustainability,” said Matt Thorn, Chief Operating Officer at Source 44.

“With the imminent rules on supply chain due diligence, companies are gearing up to dig deeper into their supply chains than ever before,” Thorn added. “Through our partnership with CSRHub, they will be able to achieve supply chain transparency while understanding their overall company sustainability position on a comparative industry level.”

CSRHub rates and scores about 5,000 publicly traded companies in 65 countries on their levels of corporate social responsibility, using technology to aggregate 175 information sources that measure environmental performance, corporate governance, community engagement and treatment of employees.

Source 44’s interactive web-based tool, Source Intelligence™, is the leading source of supply chain sustainability intelligence. This groundbreaking technology incorporates a wide variety of key sustainability indicators and easy-to-use visualization tools that enable companies to benchmark, report and drive sustainability through their supply chains.

“These offerings blend high-level and fine-detail sustainability data to give companies a much more precise and at the same time comprehensive picture of their sustainability,” Thorn said. “This means companies will now have both the information and tools they need to reach their sustainability goals, from meeting compliance requirements to protecting their most important asset, their brand.”

“CSRHub is excited to partner with Source 44 to provide customers seeking to improve the sustainability of their supply chain and company with powerful tools for data analysis, insight and decision making,” said Cynthia Figge, Chief Operating Officer and Cofounder of CSRHub.

###

About Source 44

Source 44, home of Source Intelligence™, delivers a unique blend of cost-effective technology, expertise and data to rapidly improve supply chain sustainability and transparency.  We offer solutions tailored to the distinct challenges that retailers and manufacturers face when they set out to define and meet sustainability targets, from assessing suppliers for increased supply chain transparency and brand protection to complying with conflict minerals requirements. Each solution is powered by groundbreaking technology within Source Intelligence™, which drives companies to meet sustainability goals like never before.

Get More. With Source 44. Visit: s44.co  Source 44 is a B Corp.

About Source 44’s Conflict Minerals Program: http://www.source-44.com/content/cm-ondemand

About CSRHub

 

CSRHub® provides access to the largest corporate social responsibility (CSR) and sustainability ratings and information database in the world.

 

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 track company and industry ratings monthly.

 

CSRHub rates 12 indicators of employee, environment, community and governance performance and flags company involvement in many special issues. We offer subscribers immediate access to millions of detailed data points from our 175 data sources. Our data comes from six socially responsible investing firms, CDP, 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.

CSRHub's goal is to foster access to sustainability and corporate social responsibility (CSR) information. We aim to be an engine of transparency that encourages more consistent and actionable disclosure from all types of organizations. CSRHub is a B Corp.

Website: http://www.csrhub.com

For More Information

Source 44 LLC

Lauren Gambaccini, Marketing Communications Manager

Email: marketing@source-44.com

Phone: 877. 916. 6337 ext: 1007

CSRHub LLC

Cynthia Figge, Chief Operating Officer

Email: cynthia@csrhub.com

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[fa icon="comment"] 1 Comment posted in benchmarking, CSR, sustainability ratings, Source 44, supply chain, Uncategorized, Source Intelligence, CSRHub

Source 44 Webinar on Conflict Minerals

[fa icon="calendar'] Jun 18, 2012 5:00:00 AM / by CSRHub Blogging

Are you at risk?  Do you know what is lurking in your supply chain?

Image001

With the upcoming SEC rules requiring disclosure on conflict minerals, you need to find out what is in your supply chain and how to comply with the Dodd-Frank Act. Your brands and reputation are at risk if you are using conflict minerals from the Congo, an area linked to slavery, child labor and corruption.

As Source 44 is a part of the CSRHub network, we want to offer you and your suppliers, who may be affected by the Dodd-Frank Act, an easy way to get educated on the issue. Source 44 invites you to attend a free webinar, moderated by Eve Troeh, sustainability reporter for Marketplace, that will:

  • Educate you on the situation in the Congo (Patricia Jurewicz, Responsible Sourcing Network, project of As You Sow),
  • Update you on the imminent Dodd-Frank Section 1502 SEC rule (Eve Troeh, Sustainability Reporter for Marketplace),
  • Highlight the challenges of securing your supply chain  (Wally Sanabria, SanDisk), and
  • Present solutions for the traceability challenge (Source 44).

Please join to hear from experts about the regulatory, marketing and operational aspects of conflict minerals.

To learn more, visit http://www.sourceintelligence.com/node/67.

 

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[fa icon="comment"] 1 Comment posted in conflict minerals, corporate social responsibility, Dodd Frank Act, Source 44, supply chain, Uncategorized, sustainability, webinar

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