The CGRS score is a composite of a score for corporate compliance assessment (50%), a Fiduciary Awareness Certification Testing (FACT) of directors (10%) and Corporate Integrity based on feedback from stratified, random sample of stakeholders (20%) and an Expert Multi-Stakeholder Group (EMSG – 20%).
The Corporate Compliance uses self- assessment by companies to assess their compliance to corporate governance codes, regulatory rules and anti-corruption programs. Companies need to score 35% or more of total score to move on to the next level.
The Fiduciary Awareness of directors reviews the percentage of directors of a company that possess the fundamental knowledge required to fulfill their roles effectively and lawfully. This is done by assessing the percentage of directors that pass a Fiduciary Awareness Certification Test (FACT) upon completion of fiduciary awareness training.
The Corporate Integrity assessments involves an assessment via structured stakeholder questionnaires designed to obtain the perceptions of a sample of relevant staff/employees, middle& senior managers, suppliers/business partners, analysts, investors and regulators. There is also an Expert Multi-Stakeholder Group (EMSG) whose role is to provide views and informed opinions to the ratings committee on the corporate governance practices of listed companies, based on their deep industry knowledge of companies under review.
A company must score 70% of the cumulative total rating score or greater to be eligible for ratification as meeting the CGRS standard.