Performance by region

All regional averages have risen, notably in Europe and North America. European companies continue to lead with an average overall score of 40 (compared with 31 in 2004). Asian companies are next with 28 (2004: 25), with North American companies lagging behind with 24 (2004: 16). In each of these regions, there are notable exceptions that buck these trends.

European companies score well in complying with internationally recognized labour, human rights and environmental standards. Eighty-eight per cent of European companies in the rating are signed up to these types of initiatives, compared with 24 per cent of US companies.

US corporations also fall short in the rating’s stakeholder engagement and assurance criteria. Few seem willing to engage with stakeholders to understand their concerns and co-design solutions, and even fewer want to subject themselves to independent evaluation of their social and environmental performance.