Giving Credibility to EcoVadis Awards

Reputation management can be honest.

 There is a credibility issue with EcoVadis awards. However, the good news is that organizations assessed by ecovadis can make their award credible just by disclosing their EcoVadis Premium Report to the public. Then everybody knows for sure that also the employees of that company can scrutinize that CSR report.

 If they hide their EcoVadis Premium Report from their own employees, you can’t really count on “Gold” ratings and “Silver” ratings given to organizations assessed by EcoVadis for their CSR management. But companies that disclose such an CSR report at least to the own employees, deserve credit. They, and of course those who publish the report in the internet, deserve a Platinum CSR Award.

 The employees of these platinum winners then can compare the reported CSR performance of their employer with the real CSR performance experienced by the employees. Seemingly, only very few companies ranked by EcoVadis can afford such an openess.

 Companies that prove their credibility by openly publishing their report in the internet(!) of course have a top-notch attitude towards CSR – even if they have no “Gold” award. A company with a “Silver” award and disclosed Premium Reports is much more credible that a “Gold” awarded company that hides the Premium Report.

 In the listing below, entries are rendered in boldface typesetting for those companies who publish their EcoVadis premium report in the internet.


Platinum for transparent reporting:

Above I listed good practice examples only. The listing is not complete.

 Should I add EcoVadis to the list? (They didn’t answer yet.)

 “Analysing CSR orientation through employees’ perceptions can help distinguish between company’s genuine CSR orientation and simple window dressing.” Bad companies don’t care about employees’ perceptions. Such examples you can find yourself, I won’t list them here. If a company has been awarded by EcoVadis with “Gold” and if such a company has received an EcoVadis Premium Report, there should be no reason to hide a that report from the employees. Actually, according to EcoVadis, “trade unions” are legitimate stakeholders. Therefore at least these employee representatives should receive the Premium Report.

 The companies mentioned above are credible. They don’t hide their EcoVadis Premium report. But some companies seem to be afraid that providing their own employees with the Premium Report would reveal to the employees what their employer reported to EcoVadis. If a company assessed by EcoVadis hides the Report from the employees, there may be something wrong with what that company had reported to EcoVadis. Then a “Gold” award has no value.

Imbalanced Inclusion

RobecoSAM (Dow Jones Sustainability Yearbook) explained by CINCS (Creating Intelligent Natural Capital Solutions) in: Sustainability Indices and Environmental Reporting, 2013-04-23

“[…] Environmental-business analysts and investors have challenged the credibility of DJSI’s information source for some time. DJSI [Dow Jones Sustainability Index] has four steps to follow in the evaluation process:

[1] First, each participating company has to fill in an industry-specific company questionnaire distributed by RobecoSAM, which evaluates the overall social and environmental strategies of each company.
[2] After that, DJSI will analyze industry-relevant media reports, press releases, news articles, investor commentaries and employee feedback to get a comprehensive understanding of how the company is perceived by opinion leaders and stakeholders.
[3] Following this is the company documentation section, in which RobecoSAM will request sustainability reports, environmental reports, health and safety reports, social reports and annual financial reports from each company.
[4] The last part is the company contact, in which SAM will have discussions and phone conversations with corporation leaders.

Of these, three of them are based on companies’ self-provided reports, data, resources and articles. In that circumstance, data could be optimized or even manipulated to generate better evaluation scores. For example, in the company documentation section, there is no standard sustainability reporting regulation regarding how companies should file sustainability and environmental reports. Therefore, companies are able to polish and further dress these data to make them appear glorious and “trustworthy.”
Conclusions – With the growing awareness of and demand for sustainability assessment, DJSI is a great tool for companies who are dedicated to gaining ongoing financial growth while meeting high environmental and social standards. The major benefit of being listed in DJSI is that it will help companies to be more transparent for investors through a thoroughly planned and designed corporate sustainability ranking system. The two major deficiencies of DJSI and other similar indices are that they lack authenticity in their auditing process and use imbalanced inclusion. […]”

Imbalanced inclusion: Inclusion of pros only while neglecting cons. In advertising that is legitimate. However, a performance evaluation or an audit which allows imbalanced inclusion is not credible.