ABSTRACT
This chapter considers some of the important internal factors affecting company performance and suggests some ways in which an engaged investor can gauge their quality and effectiveness. Values as opposed to rules of behaviour are discussed with the destructive consequences of leaving behaviour contrary to values unaddressed. The challenge for both managers and investors is assessing the penetration of values throughout the company. Are there clear examples of where values trump profit? The process of agreeing the purpose and values of a company is important to their wide acceptance. Building on a basis of widely accepted principles such as those of the UN Global Compact is useful; transparent reporting against such values is essential to build confidence. Speak-up programmes and hotlines are important tools as are properly conducted regular surveys of employees. The trends of such surveys can give important information. The positive impact of investment in difficult countries is discussed. Responsible business provides valuable examples in such countries. Examples from the UN Global Compact “Business for Peace” initiative are given and the role of responsible investors in supporting such initiatives encouraged. In conclusion, a checklist that sustainable investors might use when gauging internal corporate factors is proposed.
