CGF - Community Growth Funds

Social Responsibility Criteria Used For Screening

Unity Incorporation has put in place specific criteria to assist the portfolio manager to choose the right type of share in a socially responsible company. The current criteria are as follows:

• Job creation through innovation and growth
  Companies which are innovating, expanding and investing for growth will be companies which are creating jobs. CGF will ask senior management probing questions about their plans and strategies and assess their ability to innovate and invest for job creating growth.
• Training and development of workers in order to enhance skills
  All workers must be skilled, and to achieve, this company training programmes and grading systems must be transformed to provide clear career paths for all employees. This will facilitate skill acquisition and lead to higher productivity and higher wages. Artificial barriers to upgrading and skills training will be exposed. There must be evidence of union and worker participation in decisions on training.
• Economic and social empowerment
  CGF will seek companies where there is evidence of high levels of worker empowerment. Worker empowerment will be rated high where there is strong worker participation in training, affirmative action, and health and safety, advanced union rights and centralised bargaining. Union involvement in decisions over company restructuring will be scrutinised closely. Companies which are committed to creating genuine economic opportunities for emerging black businesses will be looked at favourably.
• Equity through affirmative action in the workplace
  Companies should have carefully planned and meaningful affirmative action programmes that will get the most out of their workforce – at the same time offering new opportunities for advancement. Programmes within the company should focus on the advancement of women, black employees and the disabled. Affirmative action is seen as closely linked to a company’s training programmes.
• Good conditions of employment
  The focus here is on the company’s wages and benefits, like maternity pay and hours of work. These must be at least above the industry’s average. Special focus will be given to the company’s minimum wage. Companies which outsource work must ensure that conditions of employment are above industry standards and unions can operate freely.
• Sound environmental practices must be promoted
  Companies’ products and procedures must care for people and the environment. GGF will pay close attention to companies to ensure they put in place policies and practices which will protect the environment. Companies which have regular independent environmental audits will be favourably assessed.
• High health and safety standards must be applied
  Companies must have good health and safety records to be approved by CGF. CGF will rely mainly on the reports of employees and the actual safety record of a company in judging its attitude to health and safety. The involvement of trade unions in health and safety will be further evidence of high standards at the company.
• Demonstrate open and effective corporate governance
  Special focus is to be given to corporate governance by CGF. CGF will ensure companies meet at least the King Committee’s Code of Corporate Practices. The role of directors will come under scrutiny. CGF wants full disclosures of directors’ pay, the appointment of independent remuneration and audit committees, and to see effective communication with all stakeholders.