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New Global Rating Challenges Top 100 Companies' Accountability

New Global Rating Challenges Top 100 Companies' Accountability

Published 06-23-04

Submitted by AccountAbility

Today sees the launch of the first global index, The Accountability Rating®, which evaluates how well the world's 1001 largest companies account for their impacts on society and the environment. This topical index is released at a decisive time, as trust in big business continues to be eroded by corporate scandals.

The announcement of The Accountability Rating® coincides with The United Nations Global Compact Leaders Summit in New York, where many of the G-100 companies covered by the index will be in attendance to discuss business' leadership in a global society.

Developed by AccountAbility2 and csrnetwork3, The Accountability Rating® measures the state of corporate accountability by ranking individual companies on their global sustainability performance4. Mark Line, Director csrnetwork commented, "The survey delves much deeper than simply examining whether companies are meeting the basic requirements of sustainability reporting: it identifies the companies that have really integrated responsible business practices into their core processes - a prime facet of accountability."

The Accountability Rating® provides compelling insights:

  • The average score of G-100 companies was just 24%
  • Scores varied widely from 67% for BP, and 60% for Suez, (1st and 2nd respectively) to a low of only 1% for the lowest scoring company.
  • The top ten features seven European companies, two Asian companies, and only one US company - Hewlett-Packard.
Full details of the methodology and results are available in a new report - The Accountability Rating® 2004, Encoding Accountability. Background media information can be viewed (in PDF format) by clicking here.

The rating maps out how businesses must change if they are to create long-term economic value and contribute to sustainable development. Simon Zadek, CEO AccountAbility commented, "The Accountability Rating moves us beyond a narrow focus on reporting adhoc non-financial activities to one that illuminates the links with business strategy, performance and long-term value creation."

The Accountability Rating® assists companies and stakeholders practically improve their overall performance, and ensure that accountability enables performance, rather than provides backward-looking data. Mark Ware, Group Vice President of Communications and External Affairs for BP, commented "this new rating provides new insight into performance strengths and weaknesses, and will help guide BP and other companies on where disclosure improvements could be made."

The Accountability Rating® 2004, Encoding Accountability is available through csrnetwork and AccountAbility priced $100/&pound60.

Notes to Editors:
1. The initial application of the Accountability Rating® has been to the Global 100 (G-100), defined by Fortune Magazine (as the world's 100 companies with the highest gross revenues).
2. AccountAbility's mission is to promote accountability for sustainable development. As a leading international professional institute, our work includes developing innovative and effective accountability tools and standards (notably the AA1000 series), carrying out cutting-edge strategic research that explores best practice for practitioners and policy-makers in organisational accountability, promoting accountability competencies across the professions, and securing an enabling environment in markets and public bodies. www.accountability.org.uk
3. csrnetworkTM is one of the UK's leading corporate social responsibility consultancies. Founded in 1999, our purpose is to help businesses worldwide meet their social and environmental responsibilities. We have extensive practical experience in implementing CSR practices that reflect stakeholder expectations. Our team of experienced specialists supports our clients in five main areas: benchmarking; stakeholder engagement; strategy and systems development; communications and reporting; and independent assurance of sustainability reports. www.csrnetwork.com
4. The Accountability Rating® measures the state of corporate accountability by ranking individual companies against six key areas: stakeholder engagement, strategy, governance, performance management, public disclosure and assurance.
5. Both Simon Zadek, CEO AccountAbility and Mark Line, Director csrnetwork, will be available for interview. Please contact AccountAbility or csrnetwork for further details.

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AccountAbility

AccountAbility

AccountAbility is a global consulting and standards firm that works with businesses, investors, governments, and multi-lateral organizations to achieve opportunities, advance responsible business practices, and transform their long-term performance. We focus on delivering practical, effective, and enduring results that enable our clients to succeed.

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