The Value of Corporate Governance & Responsible Business

Our research reveals a statistically significant link between effective management and governance of environmental and social issues and financial performance.

This report examines the relationship between total shareholder return and the management of environmental and social impacts in 33 FTSE companies that have measured and managed their corporate responsibility through Business in the Community’s Corporate Responsibility Index (CR Index) in each of its six years.

The results revealed that FTSE companies that actively managed and measured corporate responsibility issues outperformed the FTSE 350 on total shareholder return by between 3.3% and 7.7% throughout the period 2002-2007