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Measuring Sustainability:
ETHIBEL’s Evaluation Scheme
ETHIBEL’s own
evaluation model constitutes the core of the whole selection
procedure. This scheme consists of an extensive checklist
of "sustainable criteria" which together form a
picture of the extent to which a company takes its social
role seriously. The evaluation scheme is the result of a thorough
analysis of scientific insights and social discussions about
sustainable entrepreneurship.
The scheme is divided into five areas. The first area gives
a general description of the context of the enterprise but
is not the object of evaluation. The four remaining areas
are internal social policy, environmental policy, external
social policy and ethical economic policy.
These four areas compose the whole terrain of the social responsibility
of companies. Each of the four areas is given equal importance.
Openness, transparency and respect for the legal framework
are the minimum starting conditions for a successful evaluation.
In more concrete terms, ETHIBEL examines the following in
more detail:
| 1. Internal
Social Policy |
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Under social policy, the quality of working conditions
and the social contribution of a company are examined
in depth. Working content, conditions, environment and
relationships are the subject of analysis.
Subjects for analysis include:
- The development of employment and the nature of
contracts;
- Training possibilities for employees;
- Equal opportunity policy of the company and its
effects on the number of women in higher positions,
the attitude of the company towards employees of different
cultures, etc.
- Wage structure;
- Safety policy on the work floor;
- Negotiating structures;
- Participation of employees in company policy.
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with all the subjects that are analysed. |
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| 2. Environmental
Policy |
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Concern for the environment
includes an examination of the internal organisation of
a company and its production chains.
The core terms in this area are chain management and integral
environmental policy. Does the company have a comprehensive
environmental care system and to what extent is this certified
by external bodies? ETHIBEL looks into policy vision and
management approach with a particular look at input (use
of raw materials and energy), and output (emissions and
waste) and examines the environmental impact of the finished
product.
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Examine the table
with all the subjects that are analysed. |
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| 3.
External Social Policy |
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The questions raised here
are: "How does the company adhere to its responsibility
vis a vis its environment?" "What is its attitude
to human rights and its relation with developing countries?"
"What are the specific results of these policies?"
Specifically, the focus is made on the extent to which
the company contributes to a sustainable, environmentally
friendly and human-centred development of society. In
this connection, the extent to which the company is involved
in technologies or practices which may be controversial
and are in conflict with sustainable society in the widest
sense of the term, is equally examined. The parameters
in this area include the involvement in the production
and trade in arms, genetic manipulation and animal testing.
(For more information on this subject, consult possible
exclusion of a company.). |
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Examine the table
with all the subjects that are analysed. |
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| 4. Ethical Economic
Policy. |
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Under this heading, the analysis concentrates on the
ethical aspects of the company's economic policy. The
focus here is the extent to which a company:
- manages to guarantee and strengthen its economic
potential;
- adheres to its contractual obligations;
- strives for long-lasting and constructive relations
with its customers, suppliers, shareholders and the
authorities.
Specific questions include: What is the innovative
capacity of the company? Does the company have internal
control procedures to deal with internal and external
risks? Is there an effective quality care system? Are
the interests of customers, suppliers, shareholders,
the authorities and other stakeholders respected?
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Examine the table
with all the subjects that are analysed. |
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Possible Exclusion.
In its evaluation model ETHIBEL does not apply negative criteria
in the strictest sense. This means that the involvement of
a company in technologies or practices arousing public controversy
does not automatically lead to the exclusion of this company
from ETHIBEL’s investment register. Specific technologies
or practices which might harm the sustainability of society
and its social and economic development in the long run, are
identified, following a specific procedure. This procedure
is established for technologies and practices such as nuclear
energy production, arms production and trading, experiments
on animals. Furthermore, ETHIBEL remains particularly concerned
about matters such as genetic engineering. Any company involved
in a specific application of such practices can only be retained
in the unique instance where these practices have demonstrably
positive effects on mankind and the environment.
Controversal Activities.
The evaluation model ETHIBEL also consists of a seperate cluster
for controversial activities. We consider the following:
Armament, Gambling,
Nuclear
Energy, Tobacco,
Hazardous
Chemicals, the
Sex-Industry, Genetically
Modified Organisms(GMO's) in food and feed,
Alcohol en Animal
Maltreatment.
Four of these activities are considered as exclusionary criteria:
armament, gambling, nuclear energy and tobacco. Companies
with a major involvement in these activities are automatically
excluded for the both ETHIBEL-labels. Involvement with the
other controversial activities is carefully examined, but
does not automatically lead to exclusion.
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