Table II CSR data ESG measure... | Emerald Publishing

Table II

CSR data

ESG measure	Description	Definition	Mean	SD	Min.	Max.
ESG	Overall CSR index	Equally weighted average of the environmental, social, and corporate governance indices	0.526	0.242	0.003	1
E	Subindex: environment	Equally weighted average of the three elements comprising the environment index	0.546	0.304	0.003	1
S	Subindex: social	Equally weighted average of the seven elements comprising the social index	0.550	0.302	0.003	1
G	Subindex: corporate governance (CG)	Equally weighted average of the five elements comprising the CG index	0.501	0.300	0.000	1
Resource reduction	Element 1: environment index	Measures a company’s management commitment and effectiveness toward achieving an efficient use of natural resources in the production process and reflects the capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management	0.549	0.304	0.001	1
Emission reduction	Element 2: environment index	Measures a company’s management commitment and effectiveness toward reducing environmental emission in the production and operational processes. It reflects a company’s capacity to reduce air emissions (greenhouse gases, F- gases, ozone-depleting substances, NOx and SOx, etc.), waste, hazardous waste, water discharges, spills or its impacts on biodiversity and to partner with environmental organizations to reduce the environmental impact of the company in the local or broader community	0.546	0.307	0.003	1
Product innovation	Element 3: environment index	Measures a company’s management commitment and effectiveness toward supporting the research and development of eco-efficient products or services. It reflects a company’s capacity to reduce the environmental costs and burdens for its customers, and thereby creating new market opportunities through new environmental technologies and processes or eco-designed, dematerialized products with extended durability	0.516	0.306	0.028	1
Employment quality	Element 1: social index	Measures a company’s management commitment and effectiveness toward providing high-quality employment benefits and job conditions. It reflects a company’s capacity to increase its workforce loyalty and productivity by distributing rewarding and fair employment benefits, and by focusing on long-term employment growth and stability by promoting from within, avoiding lay-offs and maintaining relations with trade unions	0.530	0.300	0.000	1
Health and safety	Element 2: social index	Measures a company’s management commitment and effectiveness toward providing a healthy and safe workplace. It reflects a company’s capacity to increase its workforce loyalty and productivity by integrating into its day-to-day operations a concern for the physical and mental health, well-being and stress level of all employees	0.525	0.299	0.007	1
Training and development	Element 3: social index	Measures a company’s management commitment and effectiveness toward providing training and development (education) for its workforce. It reflects a company’s capacity to increase its intellectual capital, workforce	0.558	0.300	0.002	1
Diversity and opportunity	Element 4: social index	Measures a company’s management commitment and effectiveness toward maintaining diversity and equal opportunities in its workforce. It reflects a company’s capacity to increase its workforce loyalty and productivity by promoting an effective life-work balance, a family friendly environment and equal opportunities regardless of gender, age, ethnicity, religion or sexual orientation	0.523	0.310	0.009	1
Human rights	Element 5: social index	Measures a company’s management commitment and effectiveness toward respecting the fundamental human rights conventions. It reflects a company’s capacity to maintain its license to operate by guaranteeing the freedom of association and excluding child, forced or compulsory labor	0.503	0.302	0.000	1
Community	Element 6: social index	Measures a company’s management commitment and effectiveness toward maintaining the company’s reputation within the general community (local, national and global). It reflects a company’s capacity to maintain its license to operate by being a good citizen (donations of cash, goods or staff time, etc.), protecting public health (avoidance of industrial accidents, etc.) and respecting business ethics (avoiding bribery and corruption, etc.)	0.550	0.300	0.001	1
Customer/Product responsibility	Element 7: social index	Measures a company’s management commitment and effectiveness toward creating value-added products and services upholding the customer’s security. It reflects a company’s capacity to maintain its license to operate by producing quality goods and services integrating the customer’s health and safety, and preserving its integrity and privacy also through accurate product information and labeling	0.537	0.307	0.001	1
Board structure	Element 1: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to a well-balanced membership of the board. It reflects a company’s capacity to ensure a critical exchange of ideas and an independent decision-making process through an experienced, diverse and independent board	0.474	0.294	0.000	1
Compensation policy	Element 2: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to competitive and proportionate management compensation. It reflects a company’s capacity to attract and retain executives and board members with the necessary skills by linking their compensation to individual or company-wide financial or extra- financial targets	0.478	0.300	0.000	1
Board functions	Element 3: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to board activities and functions. It reflects a company’s capacity to have an effective board by setting up the essential board committees with allocated tasks and responsibilities	0.478	0.287	0.000	1
Shareholder rights	Element 4: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to a shareholder policy and equal treatment of shareholders. It reflects a company’s capacity to be attractive to minority shareholders by ensuring equal rights and privileges and by limiting the use of anti-takeover devices	0.507	0.297	0.000	1
Vision and strategy	Element 5: CG index	Measures a company’s management commitment and effectiveness toward the creation of an overarching vision and strategy integrating financial and extra-financial aspects. It reflects a company’s capacity to convincingly show and communicate that it integrates the economic (financial), social and environmental dimensions into its day-to-day decision-making processes	0.551	0.305	0.007	1

ESG measure	Description	Definition	Mean	SD	Min.	Max.
ESG	Overall CSR index	Equally weighted average of the environmental, social, and corporate governance indices	0.526	0.242	0.003	1
E	Subindex: environment	Equally weighted average of the three elements comprising the environment index	0.546	0.304	0.003	1
S	Subindex: social	Equally weighted average of the seven elements comprising the social index	0.550	0.302	0.003	1
G	Subindex: corporate governance (CG)	Equally weighted average of the five elements comprising the CG index	0.501	0.300	0.000	1
Resource reduction	Element 1: environment index	Measures a company’s management commitment and effectiveness toward achieving an efficient use of natural resources in the production process and reflects the capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management	0.549	0.304	0.001	1
Emission reduction	Element 2: environment index	Measures a company’s management commitment and effectiveness toward reducing environmental emission in the production and operational processes. It reflects a company’s capacity to reduce air emissions (greenhouse gases, F- gases, ozone-depleting substances, NOx and SOx, etc.), waste, hazardous waste, water discharges, spills or its impacts on biodiversity and to partner with environmental organizations to reduce the environmental impact of the company in the local or broader community	0.546	0.307	0.003	1
Product innovation	Element 3: environment index	Measures a company’s management commitment and effectiveness toward supporting the research and development of eco-efficient products or services. It reflects a company’s capacity to reduce the environmental costs and burdens for its customers, and thereby creating new market opportunities through new environmental technologies and processes or eco-designed, dematerialized products with extended durability	0.516	0.306	0.028	1
Employment quality	Element 1: social index	Measures a company’s management commitment and effectiveness toward providing high-quality employment benefits and job conditions. It reflects a company’s capacity to increase its workforce loyalty and productivity by distributing rewarding and fair employment benefits, and by focusing on long-term employment growth and stability by promoting from within, avoiding lay-offs and maintaining relations with trade unions	0.530	0.300	0.000	1
Health and safety	Element 2: social index	Measures a company’s management commitment and effectiveness toward providing a healthy and safe workplace. It reflects a company’s capacity to increase its workforce loyalty and productivity by integrating into its day-to-day operations a concern for the physical and mental health, well-being and stress level of all employees	0.525	0.299	0.007	1
Training and development	Element 3: social index	Measures a company’s management commitment and effectiveness toward providing training and development (education) for its workforce. It reflects a company’s capacity to increase its intellectual capital, workforce	0.558	0.300	0.002	1
Diversity and opportunity	Element 4: social index	Measures a company’s management commitment and effectiveness toward maintaining diversity and equal opportunities in its workforce. It reflects a company’s capacity to increase its workforce loyalty and productivity by promoting an effective life-work balance, a family friendly environment and equal opportunities regardless of gender, age, ethnicity, religion or sexual orientation	0.523	0.310	0.009	1
Human rights	Element 5: social index	Measures a company’s management commitment and effectiveness toward respecting the fundamental human rights conventions. It reflects a company’s capacity to maintain its license to operate by guaranteeing the freedom of association and excluding child, forced or compulsory labor	0.503	0.302	0.000	1
Community	Element 6: social index	Measures a company’s management commitment and effectiveness toward maintaining the company’s reputation within the general community (local, national and global). It reflects a company’s capacity to maintain its license to operate by being a good citizen (donations of cash, goods or staff time, etc.), protecting public health (avoidance of industrial accidents, etc.) and respecting business ethics (avoiding bribery and corruption, etc.)	0.550	0.300	0.001	1
Customer/Product responsibility	Element 7: social index	Measures a company’s management commitment and effectiveness toward creating value-added products and services upholding the customer’s security. It reflects a company’s capacity to maintain its license to operate by producing quality goods and services integrating the customer’s health and safety, and preserving its integrity and privacy also through accurate product information and labeling	0.537	0.307	0.001	1
Board structure	Element 1: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to a well-balanced membership of the board. It reflects a company’s capacity to ensure a critical exchange of ideas and an independent decision-making process through an experienced, diverse and independent board	0.474	0.294	0.000	1
Compensation policy	Element 2: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to competitive and proportionate management compensation. It reflects a company’s capacity to attract and retain executives and board members with the necessary skills by linking their compensation to individual or company-wide financial or extra- financial targets	0.478	0.300	0.000	1
Board functions	Element 3: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to board activities and functions. It reflects a company’s capacity to have an effective board by setting up the essential board committees with allocated tasks and responsibilities	0.478	0.287	0.000	1
Shareholder rights	Element 4: CG index	Measures a company’s management commitment and effectiveness toward following best practice corporate governance principles related to a shareholder policy and equal treatment of shareholders. It reflects a company’s capacity to be attractive to minority shareholders by ensuring equal rights and privileges and by limiting the use of anti-takeover devices	0.507	0.297	0.000	1
Vision and strategy	Element 5: CG index	Measures a company’s management commitment and effectiveness toward the creation of an overarching vision and strategy integrating financial and extra-financial aspects. It reflects a company’s capacity to convincingly show and communicate that it integrates the economic (financial), social and environmental dimensions into its day-to-day decision-making processes	0.551	0.305	0.007	1

Notes: This table shows summary statistics and definitions of the overall CSR measure (ESG), its indices (Environmenal, Social and Corporate Governance), and the index elements from Asset 4