We combine spread and spend and arrive at what we call the responsibility matrix. The matrix charts companies based on the combination of their spend (as a percentage of average profits of the past three years) and the (responsible business) score.
Pace setters: These are companies that spend relatively large amounts and have relatively high responsible business scores. These companies have responsible business at the core of their long- term vision with good execution.
Smart utilisers: These companies spend relatively less but have higher scores. They get the best bang for their buck. They spend judiciously and are often able to extract economies of scale and also utilise their experience to the hilt.
Low efficiency: These companies spend a relatively larger amount but have relatively low responsible business scores. These companies focus on complying with regulatory norms. However, they lack vision and execution. Their approach is more short term.
Starting out: These companies spend relatively less and also have lower responsible business scores. As the name suggests, these companies are still finding their feet. They are still putting their frameworks in place and are struggling to comply with norms. They may take a while to ramp up.
In 2016-17, our sample set comprised 30 smart utilisers, 52 pace setters, 35 low efficiency and 49 companies starting out.