The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu


Wednesday, February 24, 2016

Strategic CSR - The People's Index

The article in the url below outlines the idea of a "people's index." The goal is to track corporate performance according to the issues that are of highest priority to the societies in which a company is based. The index is to be launched in Fall 2017 by JUST Capital (http://justcapital.com/) and will track the largest 1,000 U.S. firms:
 
"This idea of a 'people's index' driving more just and balanced corporate behaviour supposes that the greatest pay-off for addressing societal stresses will come from shifting corporate behaviour, not government policy. If firms are forced by the marketplace to be more in synch with the American public's view of 'justness,' the competition for 'goodness' could have a huge impact."
 
The Index is driven primarily by the widening issue of social inequality, but could be applied to any issue of concern/interest to a firm's stakeholders today:
 
"New research conducted by JUST shows that, despite the above, and despite trust in business being close to an all-time low, most Americans agree that what is good for business is good for the country. Moreover, they believe companies can play a positive role in building a more just society, and are willing to give credit to those that try to do so."
 
The principles underlying the Index closely mirror those underlying strategic CSR:
 
"At the heart of the matter is the concept of a rebalancing of corporate interests. JUST's work indicates that, regardless of political ideology or income bracket, the public believes companies are too focused on meeting the needs of shareholders, and have greater obligations to employees, customers, communities and the environment than the firms themselves acknowledge."
 
The Index will be constituted by the "JUST 100" firms out of the largest 1,000 U.S. firms. The goal is that, by highlighting those companies most responsive to their stakeholders' needs, these firms will be more successful in attracting the stakeholder support that is essential for long-term business success:
 
"A large majority of the [40,000 Americans] polled by JUST, across all political ideologies, said that … if information were available it would influence their decision to work for, buy from or invest in that firm. … If only 1% of capital begins to flow in a more just direction, that would mean more than $600 billion a year going towards firms that pay a living wage, provide great benefits, make products that enhance society, protect human rights and the environment, and more. This is the bottom line that really matters."
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Just business
By Paul Tudor Jones
November 2, 2015
The World in 2016, The Economist
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