The Shared Value Index is a composite index assessing the overall performance of companies that are proactively engaging and designing strategy relevant to social activities. The focus will be on how the companies are working on innovative models to create value at scale in the territories of operation and are addressing the social issues with not so mainstream CSR approach.
The index will act as a watch list to map the various Shared Value activities of the companies and to highlight their unique set of practices, which can then be reflected by other company. It will help companies to
Create economic value by tackling the underlying social problem
Strengthen stakeholder’s trust
Integrate the concept of sustainability with the shared value practices so as to help create an affluent society
SV Index aims to evaluate companies on parameters that reflect the creation of shared value. Each company listed on the index will be assessed based on the intricate weighting system based on the parameters representing their shared value approaches
Parameters indicating positive contribution of businesses to society would be identified.
Data across the identified parameters would be collected. The parameters would be based on business activities reflecting the shared value concept.
Evaluation of the shared value weights of companies will be done annually and will reflect their market performance in tandem with their shared value strategies. Companies would be weighted on the pillars of financial, geographical, social & environmental dimensions.
A thorough assessment of the companies on the index would be done on the basis of the parameters identified. The company will be weighed on a score of 100 on the set parameters. The company obtaining the highest score on the basis of their positive social and environmental activities will have the highest weightage
Companies will be evaluated on a yearly basis and those who fail to show consistent progress may be removed. This will motivate companies to invest in the shared value activities
Member companies will have an opportunity to enhance shareholder awareness of their socially conscious efforts
Key reference point in Social/Shared Value investing for investors