Corporate Australia's ethical standards to be put to the test

The ethical standards of some of Australia's top companies will be put to the test in a survey designed to examine and improve national corporate responsibility.

The CEOs of Australia's top 250 companies have been personally invited to participate in the voluntary third annual Corporate Responsibility Index, to be conducted by the independent, not-for-profit organisation St James Ethics Centre.

Originally developed by the Business in the Community organisation in the UK, the survey will consist of 97 questions relating to participating companies' impact on the marketplace, the environment, its employees and the wider community.

The questions will require detailed and specific evidence of actual practice, and every claim by a company will be independently scrutinised by consulting firm Ernst & Young.

Participating companies will then be rated out of 100 and placed in a league table in order of performance.

Index manager Emily Albert said the survey was not about "naming and shaming" companies, but about helping companies manage, measure and minimise their impact on society.

She said there were a number of incentives for companies to take part.

"Firstly it demonstrates their commitment to corporate responsibility principles and increases trust in the business by showing transparency," she said.

"It also provides a framework for integration of improvements."

Twenty-seven companies participated in the internationally recognised Index last year, including mining giant BHP Billiton, which rated third on a score of 92.7.

BHP chief executive Chip Goodyear said corporate responsibility was a critical element in a company's right to operate.

"How we compare to others, not only in our industry but more broadly, is important to BHP Billiton and that is why we chose to complete the index," he said.

The 2005 questionnaire "goes live" on the Ethics Centre's website on September 9, and companies have 10 weeks to complete their submissions.

- AAP