Executive Summary

This article was published in Living Ethics: issue 80 winter 2010

In the wake of the global financial crisis, one group of Australian and New Zealand companies has emerged as true leaders and champions of corporate responsibility.

In 2009, 113 companies participated in the Corporate Responsibility Index (CRI) globally. This included twenty-one submissions from Australia and New Zealand (fourteen from Australian/New Zealand companies plus seven from global companies with operations in Australia and/or New Zealand).

Both global and Australian/New Zealand CRI participation numbers have declined since 2008. This was mainly due to company resource shortages in the aftermath of the economic downturn. However, for the companies brave enough to commit to this rigorous examination of their corporate responsibility and sustainability performance, the rewards were great.

Results

Congratulations to all 2009 CRI participants in Australia and New Zealand, for the outstanding results achieved this year. The average overall score of 85.4% (Silver) achieved in the 2009 CRI is the highest score awarded since the Index was first launched in Australia and New Zealand seven years ago.

What is even more impressive about the achievements of this year’s companies is that half of this group was awarded an overall score of at least 90% and above (Gold to Platinum).

The most striking results that mark out this year’s Australian/New Zealand CRI participants as leading companies, include the average overall scores of 90% achieved for CR leadership (Gold) and 99% achieved for CR advocacy (Platinum).

It should come as no surprise that the Index results evidence a strong positive correlation between Board and/or Senior Executive commitment to corporate responsibility and overall performance in the Index – the higher the number of senior company representatives with accountabilities in this area, the higher the Index score.

The 2009 Australian and New Zealand Index participants have now been on the CRI journey for an average of three years each. An impressive seven year record of CRI participation is held by Foster’s Group Limited. This includes three years of Gold level achievement from 2006 to 2009.

EnergyAustralia has also participated in the CRI for the past six consecutive years. With this pedigree and commitment to corporate responsibility best practice, it is with great pleasure that we award EnergyAustralia the 2009 Best Overall Performance Platinum Award – for the company that has achieved the highest overall score in the 2009 Aus/NZ CRI. This is a significant achievement in its own right, but is even more importantly an outstanding record of achievement, given that this is the third consecutive year in which EnergyAustralia has won this award.

Platinum Award Certificates were presented to Australian Broadcasting Corporation and Country Energy. The new Platinum level was introduced to the Aus/NZ CRI in 2009 to award companies that achieve an overall Index score greater than or equal to 95%.

Best Progress Awards were also presented this year to the companies that achieved the highest overall score improvement in the Aus/NZ CRI between 2008 and 2009. The winners were PricewaterhouseCoopers (Gold), New Zealand Post Group (Silver) and Western Power (Bronze). Special mention should be given to PricewaterhouseCoopers for the company’s significant performance improvement, from Participant level in 2008 to Gold level (90% and above) in 2009.

Western Power must also be congratulated for the company’s courageous performance in its first year of Public Index participation. This is certainly a sign that the prospect of public disclosure provides a great source of motivation and an incentive to achieve.

Perhaps this is one of the reasons for the record high average overall score of the companies that participated in the 2009 CRI in Australia and New Zealand. All of this year’s participating companies agreed to disclose their results publicly, rather than retreat to the relative safety of the Private Index.

CRI Leaders’ Network

St James Ethics Centre welcomes the opportunity to acknowledge the support and contribution of the CRI Leaders’ Network to the Centre’s National Responsible Business Practice (RBP) Project.

St James Ethics Centre established the CRI Leaders’ Network in April 2008 to assist in meeting the goals of the Centre’s RBP Project through to 30 June 2010, the end of the current period of funding by the Government, through Treasury. Major areas of contribution by the CRI Leaders have included mapping key corporate social responsibility tools and frameworks and encouraging greater uptake of responsible business practice in the small-to-medium enterprise sector.

The CRI Leaders’ Network currently comprises: ANZ, BHP Billiton, Boral Limited, EnergyAustralia, Rio Tinto, Toyota Australia and Westpac. The criteria for entry to the network is a CRI score greater than or equal to 95% and continuous, independently assured and rated leadership in corporate responsibility and sustainability. In 2010 Australian Broadcasting Corporation and Country Energy are also now eligible to join the CRI Leaders’ Network. We look forward to the continued support of the CRI Leaders’ Network over the coming year.

The journey ahead

The testimonial words and demonstrated achievements of this year’s CRI participants, provide an insight into the kind of leadership it takes to go the distance. Participation in the Index takes courage, commitment and integrity – the hallmark traits of true leaders.

Keep an eye on the Corporate Responsibility Index website as we profile the journeys and case studies of the companies that continue to champion responsible and sustainable business practice through participation in the CRI.

Who knows … perhaps their stories and achievements will inspire you to join them? We take this opportunity to encourage your company to participate in the Corporate Responsibility Index.

The Corporate Responsibility Index is developed and maintained by Business in the Community in the UK. St James Ethics Centre has served as trustee for the CRI in Australia and New Zealand since 2003.

For further information go to: www.corporate-responsibility.com.au