The Use of Corporate Sustainability Indices : A Case Study on the Dow Jones Sustainability Index

Corporations are under growing pressure from socially responsible investors to consider the environmental and social impacts of their operations. To help highlight corporations that have taken steps to address these issues, a number of sustainability indices have been developed. While there is a growing body of literature that focuses on sustainability indices, little is known on how they are used in practice. The purpose of this project was to explore the use of sustainability indices in corporations. In this project, the Dow Jones Sustainability Index North America (DJSINA) was used in a case study. The project consisted of three key phases: a content analysis of corporate sustainability reports in North America, a survey with Canadian experts on the DJSINA, and a review of the DJSI website. The project highlights the similarities and differences in the use of the DJSI by Canadian and American corporations. As the first study focusing on the use of the DJSINA, the results will be of interest to practitioners and academics in socially responsible investment and corporate sustainability.

The Use of Corporate Sustainability Indices : A Case Study on the Dow Jones Sustainability Index

Corporations are under growing pressure from socially responsible investors to consider the environmental and social impacts of their operations. To help highlight corporations that have taken steps to address these issues, a number of sustainability indices have been developed. While there is a growing body of literature that focuses on sustainability indices, little is known on how they are used in practice. The purpose of this project was to explore the use of sustainability indices in corporations. In this project, the Dow Jones Sustainability Index North America (DJSINA) was used in a case study. The project consisted of three key phases: a content analysis of corporate sustainability reports in North America, a survey with Canadian experts on the DJSINA, and a review of the DJSI website. The project highlights the similarities and differences in the use of the DJSI by Canadian and American corporations. As the first study focusing on the use of the DJSINA, the results will be of interest to practitioners and academics in socially responsible investment and corporate sustainability.

Socially Responsible HR in Action: Learning from Corporations Listed on the Dow Jones Sustainability Index World 2018/2019

As ethical management, corporate social responsibility (CSR), and corporate sustainability (CS) are increasingly permeating business discourse, contemplating the role of human resources (HR) in helping organizations with socially responsible management is a proactive acceptance of stakeholders’ expectations while reinforcing the field’s identity and contribution. In response, the we examined the HR policies and practices of 46 multinational enterprises (MNEs) listed on the Dow Jones Sustainability Index (DJSI) World 2018/2019 to add new insights to the literature and inform the HR field on how to move forward with socially responsible HR. Content analysis and inductive conceptualization of the MNEs’ HR activities produced a triangular pyramid for socially responsible HR, constructed with eight major themes at the individual, organizational, and institutional levels. Building on the findings, we suggest implications for practice and research, and conclude with urging the HR community to demonstrate leadership in setting the agendas and facilitating change toward socially responsible management.

Non-Financial Disclosure and Intra-Industry Comparability: A Macro, Meso and Micro Analysis

The inadequacy of financial reports for meeting the information needs of stakeholders has prompted companies to adopt non-financial communication systems (also called non-financial disclosure—NFD). Comparability of NFD is an issue as it allows making sense of the information. Nevertheless, while some argue that comparability is particularly difficult to pursue in practice on a general level, it can be achieved among companies belonging to the same industry. This study aims to understand whether, at the empirical level, the comparability of NFD is achieved and to what extent (macro, meso or micro). To achieve this aim, a text analysis of the NFD was performed. The object of analysis is represented by the NFD published by the listed companies belonging to the energy and banking industries, and that is part of the Dow Jones sustainability index. The main results are the following. First, there is a de facto comparability in terms of adopted standards, but not in terms of how the standards are applied. Second, the phenomenon of label creativity represents a relevant barrier. Third, although content standardization is lacking, common information dimensions in the reports seem to emerge. This appears to be an invitation to policymakers to transpose virtuous behavior and to implement the desired harmonization of jure.

Correlation between the DJSI Chile and the Financial Indices of Chilean Companies

The Dow Jones Sustainability Index Chile (DJSI Chile) is made up of leading sustainability companies that are investing great effort into sustainable management. This study correlates the DJSI Chile with the financial indices (return on equity (ROE), return on assets (ROA), market value, earnings, and leverage) of companies that belong to the General Stock Price Index (IGPA) in Chile. The methodology used was quantitative, considering Chilean companies in the IGPA, including companies belonging to the DJSI Chile, applying a normality and correlation test based on the results. In conclusion, the study shows that in the results for the ROE, ROA, and leverage variables, there is no positive correlation with the DJSI Chile. However, the DJSI Chile is correlated with market value (for approximately 80% of the companies), and with earnings, there is a slightly higher correlation for the companies that belong to the DJSI Chile than for the remaining companies in the IGPA, thus if there exists a correlation between the DJSI Chile index and the variables market value and earnings, the index enables the prediction of those financial variables or predicts the finance indices (value market and earnings) of the companies that make up the DJSI Chile basing in the DJSI Chile index.

Learnings from Sustainability Audits in Automobile Industry in Around Pune: Practices and Procedures

The sustainability is now considered as a paradigm shift. Challenging business environments, less availability of resources and much more competitive markets force business to rethink about the offerings in order to sustain for a greater time. Organizations across the globe are tending to apply many sustainability measures in order to make the business balance and holistic. The audit of such sustainability-oriented efforts is done by various methods like Carbon Credits, Dow Jones sustainability index etc. The most popular method of audits is Global Reporting Initiative (GRI). GRI evaluates the organization on all the three Aspects-Economic, Environmental and Social sustainability. The research papers discuss the sustainability audits in light of Automobile sector and also furnishes the analogy between the efforts of the five passenger vehicle Manufacturing Units (PVMU) reports. The research paper discussed the similarity between social engineering, environmental measures and economic impacts. The final conclusion suggests that global companies do not have localize approach of sustainability whereas Indian organizations lack the global viewpoints in accepting new technologies.

Investment analysis of Coca Cola Hellenic Bottling Company

Studying the investment attractiveness of a company is an integral part of the decision to buy or sell shares. Investment analysis includes a review of the company, competition in the industry, as well as financial analysis, likelihood of risks and company value estimation. In this article, we’ve conducted an investment analysis in regard to Coca-Cola Hellenic Bottling Company (HBC). Currently the company is undervalued compared to competitors in the market. However, it remains a good choice with its high stability in the market. Most of the economic indicators of the company are expected to grow rapidly in future periods. Environmental protection and health benefits of the product are the main demand drivers and trends now and in the near future (in addition to quality products and excellent communication with consumers through advertising and other activities). Moreover, existing trade and political conflicts between the countries are indicators of a looming recession, which can also affect the market of soft drinks. Besides, the company has strong competitors. We cannot say that Coca Cola HBC stands out strongly as a market leader. However, its development and market position is stable. We should mention that Coca Cola HBC 6 times in 7 years took the first place in The Dow Jones Sustainability Index and 9th year in a row company is in top 3 Global and European beverage companies. Coca-Cola HBC’s main investment risks include changes in regulations and consumer preferences due to raising health and environmental concerns. The company is also exposed to the risk of currency volatility, commodity costs uncertainty which can affect its financial performance. Such risk as cyberattacks, supply and distribution disruption can cause damage to company’s ability to operate effectively. There is a possibility of management failing to implement company’s business model and strategies in Coca-Cola HBC’s recent acquisitions. The article allows to delve deeper into the essence of the functioning of business processes in the soft drinks industry and to offer authors’ vision of Coca-Cola HBC assessment.

Presencia internacional y sostenibilidad en mercados emergentes: grupo Nutresa hacia un liderazgo global

Introducción. Las empresas que participan en la evaluación de su desempeño económico, ambiental y social buscan aumentar la transparencia y la trazabilidad, mantener un mejor posicionamiento y brindar más seguridad a sus inversionistas. Esto les permite obtener reconocimiento como líderes en sostenibilidad en índices como el Dow Jones Sustainability Index. Objetivo. Determinar la relación entre la internacionalización de una empresa y su enfoque hacia la sostenibilidad, a partir de un análisis de caso de la empresa colombiana Grupo Nutresa S.A. y su referente internacional la compañía Thai Union Group PCL, ambas incluidas en el Índice Global de Sostenibilidad de Dow Jones 2018. Materiales y métodos. Se utiliza la metodología de estudio de casos para determinar la relación entre la internacionalización de la empresa y su enfoque hacia la sostenibilidad, a partir de un análisis cualitativo y cuantitativo de dos casos. Resultados. Thai Union Group resulta ser la empresa más sostenible a nivel mundial en la industria de alimentos; adicionalmente, se analiza un porcentaje significativo de sus ventas en el exterior, especialización de sus productos alimenticios y fuerte inversión en innovación; los cuales sirven como modelo a seguir para Grupo Nutresa S.A. La expansión internacional puede verse como una motivación a implementar estrategias de sostenibilidad que le otorguen mayor reconocimiento y reputación a la organización en los países destino. Conclusiones. Se evidencia una necesidad, por parte de Grupo Nutresa S.A., de especializar su modelo de negocio y apalancar sus ventas en el exterior, para tener una mayor penetración de mercado, y tomar provecho de sus 46 plantas de producción.