Five years of ranking responsible businesses
It was in 2014 that we brought out our first study. This is the fifth edition of the study and we look back with some satisfaction at the work we have done and how companies have fared over the years.
Over years, companies have improved their communication practices by publishing Business Responsibility Reports and Sustainability Reports where none were being reported. This enables us to more accurately evaluate their performance. Also, new entrants to the sample often change the complexion of the scoring patterns.
Keeping in mind, that there are challenges to the historical patterns traced in our study we look at the patterns to give the readers a sense of how responsible business in India has evolved.
Significant improvements in score across the years
Since the weights of each of the four criteria have changed over the years we recalibrate the scores in earlier years to the current weights. Thus, if stakeholder had a score of 18.6 in 2013 and the weight assigned was 50%, we revise it the current weights by 30/50 x 18.6 = 11.1. With the caveat, that this 50 adjustment may not accurately reflect the underlying situation, we notice that over time, on average, companies have improved marginally on governance; improved marginally on disclosure; the stakeholder scores have fluctuated but not changed much; and sustainability is one area where there has been a marked improvement across years. We have also notice that the top-third companies tend to score much better than the remaining two-thirds; manufacturing companies beat service companies; and, private companies beat public companies.