However, have you ever thought of giving Social Ratings to companies?
Don’t you think that giving social ratings (1-star to 5-star) to companies by government or by employees give a very good picture about how ethical companies are? According to me, there should be some kind of mechanism developed by government to rate companies, depending on several factors like those listed below –
- How good is the corporate governance of the company
- Whether the company is complying with different industry norms like pollution norms
- Whether the company is taking enough care of an environment while manufacturing or developing products
- How many legal cases have been filed against the company
- Whether the company is employing child labour
- How many defaults has been done by the company in recent past
- How many CSR activities are being conducted by the company
- How many jobs the company is creating annually
- How many entrepreneurs have been created by company
With regard to this basis, companies can be giving Excellent Social ratings of 5-star to Poor Social ratings of 1-star.
What could be benefits of such system?
It will have multi-fold advantages like-
- While buying a product; this can help consumers decide whether there are probabilities of getting cheated by the company or not. For e.g. if company’s social ratings is 5-star, the customer will not mind paying 1% or 2% premium than similar products sold by other company whose social ratings is 3-star or lesser.
- This can help prospective employees to find out whether they will be able to fit into the corporate culture of that company or not.
- This can help suppliers and vendors to decide if dealing with such companies is going to be rewarding or draining.
- This could also help banks to avoid giving loans to companies with low Social Ratings.
I hope that someone in PMO is reading this article and starts Social Ratings for Companies.
I will be happy to hear your views on the topic.