…a project of St James Ethics Centre

GPO Box 3599 Sydney NSW 2001

9 Rangers Road Neutral Bay NSW Australia
Tel +61 (0)2 9953 5500 Fax +61 (0)2 9953 5544
ABN 83 637 740 533 ARBN 094 609 015
www.corporate-responsibility.com.au

Corporate Responsibility Index Developments 2006/2007

Prepared by St James Ethics Centre, August 2006

As part of our commitment to continuing improvement of the CRI, and in response to feedback from a market
review conducted in Australia and the UK, here is an overview of Index developments to be introduced this
year.

How we are improving the Index

Addressing questionnaire fatigue
• Previous company information will be pre-uploaded to prevent repetition of data entry and validation
will focus on areas of key changes.
• Further alignment with the FTSE4Good is occurring – last year this related to environmental questions, in
2006 we will be focussing on OH&S.
• Companies who have participated for two consecutive years and have not undergone a company
re-structure in the previous 12 months, may opt to take a ‘leave of absence’ from the Index for a one-
year period. These companies will have their 2005 results reported with an expectation of a
commitment to complete the full Index again the following year. Official, CEO/Board level sign-off will
remain a requirement for submissions to be reported publicly.

Premier league
To retain the involvement of the most advanced companies – those that have sustained high performance in
the Index over consecutive years (>95%) – we will invite them to join a leadership group, reporting formally on
the Index every third year, whose aim will be to:
• share experience and best practice;
• develop a framework for continuous improvement;
• provide thought leadership and innovation; and
• mentor others through the CRI process.

Index sustainability
An important ongoing consideration is the sustainability of the Index process as a cost effective means for both
participating companies and Index partners. Whilst we recognise the internal costs borne by companies in
completing the self-assessment, it is essential that we also ensure that management costs are sustainable.
To meet the validation costs, this year we will be introducing a fee for participating companies. We have
attempted to keep this cost to a minimum whilst providing maximum added value to participants and are
pleased to be able to offer the full Index at a subsidised rate of AU$7,500*. The remainder of the validation
cost will be met by the pro bono contribution of Ernst & Young.
We would like to take this opportunity to recognise the generous contributions of our partners: Business in the
Community, Ernst & Young, and The Sydney Morning Herald and The Age; which have enabled us to offer this
management tool free of charge to participants for the initial three-year period.
*This fee is applicable to organisations submitting their Index response in Australia. Companies participating on a global basis
through their membership to Business in the Community in the UK will not be required to pay the Australian validation fee.

Flexible entry approach

To engage more companies in the Index process we are introducing flexible entry options in recognition of the
potentially prohibitive ‘all or nothing approach’ for companies with limited resources or at the early stages of
their corporate responsibility journey. This includes private benchmarking (AU$12,500**) and a modular option
(AU$5,500**) in community or environment.
**Further details available upon request or at www.corporate-responsibility.com.au

Validation model
The Index validation model is currently under review – driven by two main factors:
• an understanding of the pressures that an increased workload created by a growing participant base
would place on a sole validation provider; and
• feedback from companies regarding already established assurance relationships.
In consideration of these factors, and to ensure the ongoing viability and sustainability of the Index and
validation process, we are currently examining the feasibility of transitioning the validation model to a panel of
approved validators. This process will involve consultation with all key stakeholders over the coming 12 month
period.

The Corporate Responsibility Index, developed by Business in the Community, is an initiative of St James Ethics Centre, The Sydney Morning Herald and The Age, proudly supported by Ernst & Young.
Business in the Community has generously donated the Index under a licence agreement to St James Ethics Centre. Project catalyst: Pilotlight Australia