STING Consultants Views & Interviews 10 November 2009 128 views No Comment  Print This Post  Email This Post

The STING Accountability Index will be a follow up to the 2009 listing which was published in the LMD of January this year. The updated listing will be the most comprehensive index that can be found which would evaluate all the companies on the LMD50 (those with the highest revenue on the CSE) on their accountability and sustainability practices.

Whilst financial indicators are key to providing investors with their current performance, a good indicator of future performance is the sustainability outlook of the enterprise. This can be gleaned through a detailed analysis of the company’s sustainability practices such as it’s governance practice, strategic planning and its commitment to economic, environmental and community impact.

The data gathering process has now been completed with 20 companies from the LMD50 having shared information
relating to their accountability processes. In addition, our index would also include a few unlisted companies who also took part by sharing their information with us. Those listed companies which did not share information will be evaluated based on publicly available data only. This system is similar to the procedure adopted internationally by the Dow Jones Sustainability Index which is published annually.

The score that is attributed to each company can be broken down to detailed components, which establishes the basis on which the overall score is derived. This feedback is available to those companies who are interested in understanding this.

We believe that this feedback will be useful as companies can compare their performance against others through a
benchmarking process, learn more about best practices in other industries and thereby raise the overall standard of
corporate accountability and sustainability in Sri Lanka.

Unless the LMD50 leads the way, we cannot expect the smaller companies to follow suit.

Can we?

Related posts:

1. Dialog tops accountability ratings
2. Market Highlights – 3rd February 2010
3. Brandix wins Gold for Corporate Accountability