Corporate sustainability ratings: an investigation into how corporations use the Dow Jones Sustainability Index

The purpose of this paper is to explore the use of the Dow Jones Sustainability Index (DJSI), with an emphasis on Canadian corporations. The paper provides insight into the use of the DJSI in several areas, including the use of its logo, the steps taken by corporations to achieve initial acceptance to the index, and the steps corporations take to maintain their inclusion in the DJSI. A content analysis of publicly available information from 24 Canadian corporations listed in the DJSI North America (DJSINA) showed that less than half of those sampled used the DJSI logo in their sustainability reports or on their websites. The majority of the published references to the DJSI were in highlighting corporate achievements or in providing background information on the index. A survey of 10 experts from the Canadian corporations listed in the DJSINA revealed a wide range of strategies for gaining and maintaining inclusion in the index, particularly involving a large number of internal stakeholders in responding to data requests and working with third parties. Several suggestions for improving the DJSI were also provided, including streamlining the questionnaire, improving coordination among sustainability ratings agencies, and enhancing transparency.