Criteria for Rating Sustainable Businesses

According to experts, sustainable development has become an urgent and essential requirement in global economic activity. This is also an emerging challenge against the backdrop of international economic integration. This is being expanded worldwide and sustainability-related activities are integrated more deeply into the economic, social and environmental structures of each nation. This means that enterprises are considered one of key factors that play a significant role in shaping and investing in innovation.

 

Until this time in Vietnam, CSI is considered a unique initiative and is supported and advised by leading experts from VCCI, governmental agencies, domestic and international organisations, VCCI member companies and other independent experts. CSI is comprised of appropriate indicators adapted to fit the social and political context of Vietnam and international practice as well. CSI is also a tool to record measurable objectives and manage changes to sustain business operations. CSI is also used as a basis to rank and honour the most sustainable companies.

 

Mr Nguyen Quang Vinh, Deputy Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), said that companies will benefit a lot by applying this index. Specifically, they will further professionalise their corporate governance and they will see their responsibility not only in business, but also in society, labour relations, anti-corruption and transparency administration. In particular, CSI will be seen as a “Green Card” for them in the integration process.

 

He added that surveys showed very positive responses of enterprises to CSI. They said that the index is a mirror for them to reveal themselves in financial, social, economic and environmental dimensions. By carrying out 151 component indices, they can improve themselves in the areas they care about and work towards sustainability.

 

Remarking on the use of CSI as a basis to rank and honour sustainable enterprises in 2016, Mr Vinh affirmed that using CSI to rank companies will give a reliable result and bring in added value in brand and reputation for companies beyond the boundaries of the country, because its three core points relate business operations: economic indicators (revenue and profit), social indicators (employee policies and community impacts) and environmental indicators (internal and external environments). These three indicators are employed to gauge corporate sustainability. Therefore, by focusing on scores of these three indicators, CSI application ensures accurate results in corporate sustainability. This index is also applied to the service sector, which seems to have no relation to environmental factors.

 

According to Mr Vinh, to support businesses, VCCI has been a key partner/unit carrying out a series of sustainable development programmes in the region and in the world, such as the Southeast Asia Action 2020, the Action Agenda 2020 and Vision 2030 of the World Business Council for Sustainable Development, the Integrated Sustainable Agriculture Programme of the United Nations Global Compact Network. The programme on benchmarking and ranking sustainable companies in Vietnam 2016 aims to communicate, disseminate and honour the most sustainable companies. The business-honouring event will set an example for businesses striving for sustainability in all social, environmental and economic aspects.

 

Besides, foreign investors take sustainability into account when they consider investment decision. This indicator not only helps them reduce risks for their capital, but also bring sustainability benefits and increases their interest in sustainable development, thus bring long-term benefits for their own, their shareholders and the community. This is an advantage for listed companies to strive for high sustainability rankings to be announced by VBCSD/VCCI.