CORPORATE SOCIAL RESPONSIBILITY RATINGS CSR Ratings Nicole Notat CEO - Vigeo Fouad Benseddik Head of Methodologies Istambul 28 juin 2007 Is business able to demonstrate its contribution to progress of societies ? How to identify and assess companies social responsibility performances? Second OECD World Forum "Statistics, Knowledge and Policy"

2. OECD – Istambul 29/06/07 REPUTATION HUMAN CAPITAL OPERATIONS LEGAL MARKET TRANSPARENCY Evaluation of the CSR level of commitment Corporate social responsibility looks at a company’s level of commitment on the integration of stakeholders expectations. Managing impacts on stakeholders is a means to mitigate risks (reputation, efficiency, legal, …), and ultimately is a source of opportunities and continuous improvement for the company. Level of commitment Risks Performance

3. OECD – Istambul 29/06/07 Un référentiel d’objectifs opposables UN, ILO, OECD, (Conventions, Recommendations, Statements, Guidelines) For States For Companies Human Rights Human Resources Environment Business Behaviour Community Involvment Corporate Governance 6 evaluation fields / 37 criteria Critérium management performances evaluation and rating Actions steps for management CSR principles and goals for universel respect and promotion

4. OECD – Istambul – 29/06/07 HRS3.3 Respect and management of working hours The methodology: Criteria of evaluation

5. OECD – Istambul – 29/06/07 Sector-specific criteria weighting system Sensitivity of the sector’s stakeholders to the CSR issue under review in the criterion X Exposure of stakeholders to these impacts = Weight given to criterion Fundamental / vital rights Essential rights or interests Legitimate interests and expectations X Risks run by companies failing to manage these impacts =X High exposure Average exposure Low exposure Nature of impact on stakeholders X REPUTATION HUMAN CAPITAL OPERATIONS LEGAL MARKET TRANSPARENCY

6. OECD – Istambul – 29/06/07 Each of these 8 L-I-R questions is scored on a scale from 0 to 100. The analysis process: scale of scoring Points Level of company’s CSR engagement and management of associated risks Advanced commitment -> Social responsibility objectives actively promoted Consolidated commitment -> Reasonable guarantee of risk management Commitment initiated -> Poor to moderate guarantee of risk management Little evidence of commitment -> Poor to very poor guarantee of risk management Scale

7. OECD – Istambul – 29/06/07 A management reference model focused on continuous improvement Visibility – Types of polices in place ? Content – Content of these policies ? Ownership – Responsibility for these policies ? LEADERSHIP Means and Resources – Programs and tools in place ? Scope – Aspects addressed by these tools ? Coverage – Parts of the company covered by these tools ? IMPLEMENTATION Indicators – Quantitative data ? Controversies – Stakeholder information ? RESULTS

8. OECD – Istambul – 29/06/07 A progressive management reference model focused on continuous improvement : from visible commitments to material performances Visibility Relevancy of vision, strategies, and missions Content Ownership Leadership review Process Means Controls/Reporting Implementation efficiency Implementation review Indicators Stakeholders opinion Controversies Materiality, acceptability and strength of Results Results review

9. OECD – Istambul – 29/06/07

10. OECD – Istambul – 29/06/07 Conclusions Corporate Governance is the unhoped-for baby of globalisation. Regarding international principles and targets in term of regulation results are still modest but they are getting better in every sector. Commitments are not only determined by… National and local factors Sectorial stakes …stakeholders and institutions’ role is also to take into account… Legal authority Trade Unions, NGO, Media, Customers, Financial markets and hedge funds. …moreover, managers with their concrete commitments represent an independent and decisive part of the process.

VIGEO Les Mercuriales - 40 rue Jean Jaurès Bagnolet - France T: F: CORPORATE SOCIAL RESPONSIBILITY RATINGS PARIS BRUSSELS MILAN CASABLANCA Contact information Nicole NOTAT Présidente T: Fouad BENSEDDIK Directeur des Méthodes et des Relations Institutionnelles T: