2 research outputs found
Corporate sustainability standards : a comparison of two sustainability indices
Increased stakeholder pressure on companies to aim for more than profit maximization has resulted in adoption of corporate sustainability practices by companies. In response to the accountability pressures, companies have increased their reporting efforts to communicate financial and non-financial information. Efforts to communicate corporate positions on sustainable development are made in annual reports as well as by external organizations, in ranking systems. While sustainability indices and ratings are gaining increased recognition, neither the scientific community nor the business community have agreed on standards for corporate sustainability or assessment of sustainable development. However, under these conditions of uncertainty and undefined concepts, sustainability indices prosper. They create own methodologies to assess companies performance, present reports emphasizing on accuracy of measurements, earn trust of investors and exercise influence on companiesâ behavior.
At this point when sustainability indices play such an important role in corporate sustainability assessment, the call for an explanation how corporate sustainability standards are affected by sustainability indices arises. This study addresses this gap by the analysis of two sustainability indices, DJSI and FTSE4Good, and comparison of their methodology on a list of criteria. The criteria that were used for the comparison are values of corporate sustainability indices hold, influence they cause on different groups of stakeholders, and indicators they imply to assess companies. On the next stage comparison was done according to such categories as objectives indices have, techniques they apply, sources of information they use, and requirements for inclusion they state.
The analysis and comparison of two sustainability indices in accordance to the chosen criteria reveal that there are more commonalities than differences in indicesâ corporate sustainability assessment and several additional commonalities arose in the course of the analysis. Both, DJSI and FTSE4Good demonstrate their adherence to similar values of sustainable development on a corporate level, have influence on the same stakeholders and state almost identical requirements for the companies to be considered for the inclusion. The similarity between indices is the adoption of industry-specific weighting when a company is compared to its peers within the same industry. Discussing the question of methodologies both DJSI and FTSE4Good put effort on regular reviews and improvement of it. Finally, DJSI and FTSE4Good emphasize on the voluntary adoption of their corporate sustainability standards. In the questions of indicators and objectives the indices do not match completely but only at certain points. Differences were found in only two categories such as techniques and sources of information indices use in the assessment process.
To sum up, two analysed indices have more similar points in assessment of corporate sustainability, than contradictions. This conclusion suggests that analysed indices have a tendency to establish standardization of the certain aspects of corporate sustainability assessment. Potential future analysis of the other influential sustainability indices with the application of the same conceptual framework will help to reveal a broader picture of the situation around corporate sustainability standards.En höjd medvetenhet om hÄllbar utveckling leder till förhöjda förvÀntningar pÄ företags arbete med hÄllbarhetsfrÄgor. Det innebÀr att traditionella finansiella rapporter med vinstmaximering som mÄl inte lÀngre rÀcker till. Företag förvÀntas göra en icke-finansiell redovisning av ansvarstagande i bred bemÀrkelse. Dessa rapporter utgör tillsammans med externt genomförda vÀrderingar, indexeringar och rankingar kanaler för att kommunicera strategiskt hÄllbarhetsarbete och göra jÀmförelser.
En mÀngd olika hÄllbarhetsvÀrderingar och index som har utvecklats; var och en representerar de organisationer som tillhandahÄller resultaten av sÄdana mÀtningar och jÀmförelser för allmÀnheten. Medan hÄllbarhetsindex och vÀrderingar vÀxer i popularitet, har varken forskarsamhÀllet eller affÀrsvÀrlden kommit enats om standarder för hÄllbar utveckling och dess bedömning. Det finns ingen enhetlig definition eller standard för kriterier för bedömning hÄllbarhet. Under dessa förhÄllanden blomstrar utvecklingen av hÄllbarhetsindex. En mÄngfald av index skapas, dÀr varje index bygger pÄ egna metoder för att bedöma företags prestanda, presentera rapporter, fÄ ett förtroende hos investerare och pÄverkar företagens beteende.
Givet den viktiga roll som hÄllbarhetsindex spelar för ett stort antal intressenter som gör bÄde strategiska och operativa beslut Àr det kritiskt att granska hur de samspelta de index som finns i dag Àr. Detta projekt Àr fokuserat pÄ tvÄ av de stora erkÀnda hÄllbarhetsindex som idag vÀgleder mÄnga företag och investerare, DJSI och FTSE4Good. De jÀmförs med avseende pÄ metod och val av kriterier för hÄllbar utveckling. Kriterierna Àr vÀrdena av hÄllbara index, pÄverkan de har pÄ olika grupper av intressenter och indikatorer de innebÀr för att bedöma företag. JÀmförelsen inkluderar Àven kategorier som mÄl index har, tekniker de tillÀmpar, informationskÀllor de anvÀnder och en inkludering krav jÀmfördes.
En analys och jÀmförelse av tvÄ hÄllbara index i överensstÀmmelse med de valda kriterierna pekar pÄ att det finns fler likheter Àn skillnader i index hÄllbarhetsbedömning. BÄde DJSI och FTSE4Good visa deras tolkning av vÀrden för en hÄllbar utveckling pÄ företagsnivÄ Àr relativt samstÀmmig, har pÄverkan pÄ samma intressenter och har nÀstan identiska krav för företagens inkludering i index. Likheten mellan indexen Àr i en applikation av branschspecifika viktning nÀr ett företag jÀmfört med sina gelikar inom samma bransch. I en frÄga om metoder bÄde DJSI och FTSE4Good göra stora anstrÀngningar för regelbundna revisioner och förbÀttringar av det. Slutligen, bÄde DJSI och FTSE4Good betonar vikten av frivillig antagande av deras företags hÄllbarhetsnormer. Delvis matchning mellan indexen Àr i frÄgan om indikatorer och mÄl. Skillnader hittades i endast tvÄ kategorier sÄsom tekniker och informationskÀllor indexen anvÀnder i bedömningsprocessen.
Sammanfattningsvis, de tvÄ analyserade indexen, DJSI och FTSE4Good har mer liknande punkter i bedömningen av företagens hÄllbarhets Àn olikheter. Denna slutsats pekar pÄ en standardiseringsprocess i vilken de analyserade indexen gÄr mot likformighet av vissa aspekter av hÄllbarhetsbedömningar. Potentiella framtida analyser av de andra inflytelserika index och longitudinella data med tillÀmpning av samma begreppsmÀssiga struktur kan utröna en bredare bild av utvecklingen av hÄllbarhetsstandarder
MervÀrden som konkurrensmedel
This report describes how Swedish agricultural firms may work with value adding as a strategy, and how it might affect their profitability and competitiveness. It discusses what competencies are needed to succeed with value adding strategies and identifies what particular measures in improving the industryâs competencies could be taken to help agricultural firms to increase profitability and competitiveness with added value.
A variety of value adding activities
The report shows several different ways to work with added value, including changes in product properties, production methods, changes in identity of the products. There is also a dimension that regards the relationship between producer and customer through, for example, alternative distribution channels, of communication, or to adjust production to customer needs. Different types of added values are often combined. implying that there is rarely only one single added value offered to the consumer.
Value adding strategies Firms may have different value adding strategies. These are reflected in the firmsâ business models, which covers aspects on both the customer and the production side and the configuration of the value offer towards customers.
Successful value adding strategies are characterized by that the firm:
âą has identified a particular part of the market (a niche) with low competition âą focuses on one or few customer segments and/or distribution channels
âą keeps a high product quality
âą has effective production processes, good organisational and managerial competencies
âą has well developed collaborations with other actors
âą has market and marketing knowledge
âą has strong relations with their customers
âą has a strong identity and a brand that is associated with positive values
âą has persistence in the process to adapt to a value adding strategy
Firms do not need all these conditions fulfilled to be successful from a profitability perspective, but they are vital pre-requisites for the success.
Activities to strengthen competencies in agricultural firms Competencies and capabilities in management, organisation and strategic focus is important to implement a successful value adding strategy. So are resources such as access to competent co-workers and physical resources, market and marketing knowledge, and the capability to, in an effective way, transform inputs into outputs. Generally, the firms in the study have very good knowledge in production, but request increased knowledge in management and organisation, as well as within market and marketing. Recommendations of measures on how to increase competencies on working with value adding strategies in agricultural firms are suggested