Research and ratings

“We - the mass of common men and women in all countries - also compose the world's market. To sell to us is the ultimate aim of the world's business. Hence it is ourselves as consumers who stand in a central relation to all the economies of the world, like the king in his kingdom. As producers we go unto a particular factory, farm or mine, but as consumers we are set by nature thus to give leadership, aim and purpose to the whole economic world. That we are not kings, but serfs in the mass, is due to our failure to think and act together as consumers and so to realise our true position and power.”
(Percy Redfern, The Consumers' Place in Society, 1920).

About the research behind www.ethiscore.org
www.ethiscore.org is designed to be the consumer interface to ECRA's main research database at www.corporatecritic.org. Corporate Critic is a database containing information on the behaviour of over 30,000 companies. It holds data on companies from anywhere in the world - from small independents to large multinationals. It seeks to collect and categorise information in five main areas:
  • Environment (Environmental Reporting, Nuclear Power, Climate Change, Pollution & Toxics, Habitats & Resources)
  • People (Human Rights, Workers' Rights, Supply Chain Policy, Irresponsible Marketing, Armaments)
  • Animals (Animal Testing, Factory Farming, Other Animal Rights)
  • Politics (Political Activity, Boycott Call, Genetic Engineering, Anti-Social Finance, Company Ethos)
  • Product Sustainability (Organic, Fairtrade, Positive Environmental Features, Other Sustainability)
  • Most people, though they may broadly support many of the issues, will have some areas of particular concern. Because of this we aim to provide information in a way which enables people to make decisions based on their own priorities.
    Breaking the information down into clear categories is one way we do this. Another way is via the Customise Ratings feature of the website.

    About the ethiscore
    The ethiscore is designed to help users quickly and easily identify the best ethical products to support and the worst companies to avoid. It does this by calculating an 'ethical score' out of 20 for a wide range of consumer products and services. Roughly speaking, with the basic unmodified ethiscore:
    15 to 20 is good
    10 to 14 is average
    5 to 9 is poor
    0 to 4 is very poor

    The score is made up by combining:
    A Company Rating out of 15 on corporate social responsibility issues.
    A Product Rating out of 5 on product sustainability issues.

    The Company Rating is based on the subtraction of all the corporate responsibility categories in which the database holds current criticisms from a baseline number. Therefore if a company has received criticisms in the Animal Testing (1 point) and Workers Rights (1point) categories, its ethiscore will be 12. [14 (baseline) minus 2 categories = 12]
    If the company had a lesser criticism under, say, Workers Rights (0.5 points) then its ethiscore would be 14 minus 1.5 = 12.5
    The fifteenth point is for ‘Company Ethos’ - a positive Corporate Responsibility category - which gives an additional point to companies who, for example, only sell organic products.

    The Product Rating is based on five positive attributes which a product may have. Positive Product Sustainability ratings mean that points are added to a company ethiscore. Therefore if a 12 point company is listed as selling an organic (1point) and fairtrade (1 point) Tea, then that Tea product would receive an ethiscore of 12+2 = 14.
    ethiscore website users can get access to the full text of product sustainability rating stories by clicking on the product name in the ethiscore tables.

    The un-customised ethiscore rates all the categories equally, and we fully expect subscribers to use the Customise Ratings area of Corporate Critic to generate ratings which best reflect their own organisational priorities.

    All ratings and ethiscores are based only on information published in the last five years. Detailed information on how we rate companies in each category appears on the Category Rating page of Corporate Critic.

    How is Corporate Critic compiled?
    Corporate Critic is compiled primarily from information already in the public domain. Our team of researchers regularly search through over 80 publications and summarise information on corporate activity into easy-to-read abstracts or ‘stories’. Information on companies is taken from:
  • publications by environmental, animal rights and Third World campaigning NGOs such as Greenpeace, Friends of the Earth, Amnesty, WDM etc.
  • corporate communications such as Annual Reports and company websites.
  • commercial defence and nuclear industry directories
  • pollution and health & safety prosecution records
  • a wide range of other international sources

  • We also request information directly from companies on issues such as
  • environmental reporting
  • animal testing policy
  • and
  • supply chain policy
  • Each abstract is fully referenced to a particular publication, permitting users to explore and follow up stories in more detail.

    Our researchers in Manchester add new stories to the database on a daily basis. These are uploaded onto Corporate Critic and scores recalculated nightly.

    Because of the ongoing nature of this behaviour-monitoring process, we do not systematically check each story or rating with companies prior to publication. Many of the ratings or stories will have been published before in Ethical Consumer magazine. We encourage companies to contact us if they believe a story or rating is in error and we will always address the issues raised.

    Company groups
    Most corporate responsibility rating organisations ‘rate’ company groups as single organisations. Corporate Critic database is therefore structured to map complex company groups. This means that extracts on specific companies generally appear with ownership information.
    For example, British Sugar is owned by a holding company called Wittington Investments. It is important to note that the ethical ratings represent those of the company group as a whole, so where British Sugar is rated, the ratings refer not just to British Sugar but to Wittington and/or other companies owned by Wittington Investments. The exception to this is under the "Environmental Reporting" category, where ratings can refer to the specific subsidiary's environment report if this is better. When one company buys another, the new company is deemed to have inherited the past record of the other, unless there is clear evidence that the take-over has seen a change in policy and practice.

    Significant effort is made with Corporate Critic to maintain the integrity and accuracy of information. Each company is assigned to its UHC (Ultimate Holding Company) but frequent global mergers, takeovers and acquisitions mean that company group information can be of an advisory nature only.

    Of course, accurate ownership information is of the utmost importance to us at ECIS, and we make every effort to monitor significant changes. If you discover information which you believe is incorrect, please contact us and we can make changes within 24 hours if necessary.

     


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