- Product / Service Innovation
- Public communications
- Criteria Definition and Weightings
- Sources of information, analysis and scoring
- Sources of information
- Analysis and scoring
السلام عليكم ورحمة الله
5.
Responsible Supply Chain
Adaptation here is made to emphasize two key impact areas:
5.1 How are companies enabling and supporting the development of a local supply base?
5.2 Are companies working to improve the performance of suppliers on ethics, environmental and social aspects?
6.
Product / Service Innovation
Adaptation here is made to emphasize the extent to which companies are trying to address unmet needs in general (eg investments in R&D) or in under-served areas (eg rural, poor neighbourhood) through product service innovations.
7.
Public communications
Adaptation here is made to emphasize the opportunity for improving company communications with consumers and other stakeholders as well as the extent of engaging in responsible advertisements and product claims.
Criteria Definition and Weightings
The criteria for the evaluation and ranking of Saudi companies is derived from the drivers of responsible competitiveness as outlined in the AccountAbility framework customized to regional concerns. In the first two years of SARCI these criteria will remain generally applicable to all sectors. Sector customization will be introduced in the 3rd year. The choice of criteria is based on internationally accepted standards and norms, over 400 case studies of best practices in corporate performance, academic literature and leading CSR award schemes. Customization for the Saudi context is based on extensive consultation with local experts and consultants and primary research on regional concerns conducted by Tamkeen.
The company evaluation is then based upon performance across the seven groups of drivers (RC themes) and along the four parts of the management cycle, covering, leadership and strategy, management systems, engagements and impacts (performance). This yields an overall matrix with 28 cells, the aim being to have a dynamic, robust, replicable framework for responsible competitiveness that enables Saudi companies to build on what they are already doing, and benchmark their performance over time, against national and global peers.
In terms of weighting, the seven drivers are all weighted as of equal importance (eg innovation is as important as human resources), and the sub-criteria are also weighted as of equal importance (eg health and safety is as important as environmental management). Finally, each of the four parts of the management cycle is weighted as of equal importance (eg systems are as important as strategy).
The basis for this weighting system is two-fold:
firstly, global research from CSR and socially responsible investment (SRI) analysts involving large samples of companies, suggesting that each of the seven RC drivers and the four parts of the management cycle contributes significantly towards company economic performance
;
sensitivity analysis from a range of index projects showing that where there is little variability in the dataset from different aggregation options, simple averages should be preferred.
Therefore, the weightings adopted in SARCI are as shown in the table below.
RC evaluation criteria and weightings
RC Driver
Criteria
Weighting
Sub -Criteria (Dimensional)
Business Climate
Responsible Business Climate
1/7
Stakeholder analysis
Engagements and Networks
Assigned responsibilities and budgets for governmental and stakeholder relations
Non-financial KPIs used
Smart Philanthropy
Corporate Philanthropy
1/7
Alignment to development priorities
Structure and organization of philanthropic activities
Partners and Networks
Tracking of effectiveness and impacts / added value of philanthropic activities
Talents
Employee benefits
1/21
Vision and policies
Staff benefit beyond legal requirements
Measures of staff satisfaction
Awards and recognitions in the area of HR
Creating of local jobs
1/21
Strategy for creating local jobs
Training and capacity building programs
Collaboration with government and other stakeholders
change in % of saudization over the last 3 years
Promoting of female employment
1/21
Policy / strategy on female employment
External engagements to address barriers
Suitable workplace environments for women
Change in % of female in the workforce
Business Standards and Compliance
Ethics
1/21
Management statements on values and ethics: ethics and anti –corruption
Guidelines to ensure ethical behaviour
Positive / negative media reporting
Health & Safety
1/21
Management views and policies on H&S
Systems and procedures
Awards and recognitions
Stakeholder relationships
Performance: incidents and accidents
Environment
1/21
Management views and policies on environment
Systems and procedures for managing environmental impacts and compliance
External relationships
Environmental performance reporting: resource efficiency, impacts,
Supply Chain
Developing local economic opportunities and jobs
1/14
Policy on local procurement
Evidence in helping build local supply network
Measures of supplier’s satisfactions
Improving the supply chain
1/14
Suppliers’ requirements
EHS requirements and standards for suppliers
Supplier audits
Product / Service Innovations
Serving New Markets
1/7
Innovation and R&D
Local relationships to universities
% of sales from new innovations
Tracking of efficiency improvement in product and services.
Responsible Communications
Consumer Education
1/7
Policies on transparency and stakeholder communications
Non financial reporting
Customer feedback and complaints handling systems
Brand management
Assessments of customer satisfactions
Interviews with company management provide the main source of data for the analysis and evaluations. SARCI is open to all businesses in Saudi Arabia, regardless of size or ownership structure. The goal was to engage a wide range of businesses in 2008. In total, 40 businesses from a wide range of sectors volunteered to participate in the project (see graphic), which was advertised in leading Saudi media and during a range of events.
The interviews are a semi-structured process, conducted face to face by a small team of trained analysts
with senior managers and/or the CEO from the company, lasting three hours. The interviews are designed to be a two-way dialogue, but analysts are not permitted to ask leading questions or offer advice. During the interview, the analysts worked through the 28 areas of the SARCI framework as described above. Supporting evidence was asked for in cases where the analysts wanted to gain further evidence of the company’s policies, procedures and performance.
Prior to the interview, SARCI analysts conduct an internet and media search about the company to build a picture of the company and identify positive or negative media reporting. The material is used to triangulate with evidence supplied by the company. The interviews are recorded, with company permission, for quality control purposes (see below).
Analysis and scoring
After careful consideration, the interview approach was chosen instead of the more usual impersonal questionnaire based approach.
The questions in the SARCI framework are a mix of yes/no, quantitative and qualitative questions, some derived from international surveys and some devised specifically for the Saudi context. In some cells of the SARCI matrix, several questions are covered. Answers to questions are recorded by the analysts during the interview. After the interview, analysts complete a standardized impression report and then agree on numerical scores for each question in turn.
Each question is scored by on a 0 to 5 scale, where 5 is rated by the analysts as among global best practice (based on AccountAbility’s database of high performing companies), 4 is rated as among best practice by companies in KSA and similar economies (based on evidence from the cumulative interviews and background research on good practice among non-participating companies). 3 is rated as strong performance, 2 as intermediate, 1 as beginning efforts, and 0 as evidencing no action at all.
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