Governance and Value Creation Ratings

Corporate governance is about commitment to values and ethical business conduct. Good corporate governance is reflected in fair, transparent, and responsible interactions among a company's management, board of directors, shareholders, and other stakeholders. Our Governance and Value Creation (GVC) Ratings assesses corporate governance practices at a company with respect to their impact on all stakeholders who deal with the company, such as employees, suppliers, shareholders, lenders, and society.

 

A CRISIL GVC rating indicates the capability of the entity with respect to creating wealth for all its stakeholders, while adopting sound corporate governance practices. The rating measures the balanced creation of value among all stakeholders using a judicious mix of qualitative and quantitative parameters.

 

The distinctive features of CRISIL GVC© Ratings:

  • Offers a reliable and independent view of the corporate governance practices
  • Looks at actual practices through an interactive process, thereby going much beyond the scope of audit of regulatory compliance
  • Takes into account the perspectives of all stakeholders (shareholders, debt holders, employees, customers, suppliers, and the society at large)
  • Quantifies the value created on account of good governance practice
  • Recognises crucial role of stakeholders in value creation for shareholders
  • Provides an appropriate balance of quantitative and qualitative factors

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Diagnostic Study

Our GVC© Diagnostic Study analyses corporate governance practices in detail, and evaluates if, and to what extent, good governance is translating into value to various stakeholders of the company.

 

The CRISIL-GVC assessment is interactive, and is a confidential study that identifies gaps in corporate governance practices and the scope for improvement. The concluding report and presentation can also be followed up with CRISIL monitoring the implementation of the recommendations, as an option to the company.

 

Benefits of the diagnostic study:

  • Provides a clear picture on existing governance and value creation practices
  • Helps compare and benchmark with best practices
  • Sets up milestones for achieving best practices
  • Monitors progress of implementation
  • Functions as a powerful self-assessment and self-improvement tool

Rating Scale

 

Rating Description
CRISIL GVC Level 1 The capability of entities rated CRISIL 'GVC Level 1' with regard to corporate governance and value creation for all stakeholders is  the Highest.
CRISIL GVC Level 2 The capability of entities rated CRISIL 'GVC Level 2' with regard to corporate governance and value creation for all stakeholders is Very High.
CRISIL GVC Level 3 The capability of entities rated CRISIL 'GVC Level 3' with regard to corporate governance and value creation for all stakeholders is High.
CRISIL GVC Level 4 The capability of entities rated CRISIL 'GVC Level 4' with regard to corporate governance and value creation for all stakeholders is Above Average.
CRISIL GVC Level 5 The capability of entities rated CRISIL 'GVC Level 5' with regard to corporate governance and value creation for all stakeholders is Average.
CRISIL GVC Level 6 The capability of entities rated CRISIL 'GVC Level 6' with regard to corporate governance and value creation for all stakeholders is Below Average.
CRISIL GVC Level 7 The capability of entities rated CRISIL 'GVC Level 7' with regard to corporate governance and value creation for all stakeholders is Low.
CRISIL GVC Level 8 The capability of entities rated CRISIL 'GVC Level 8' with regard to corporate governance and value creation for all stakeholders is the Lowest.

 

Rating List

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Questions?

  • To get a copy of rating reports, please email us at:
    crisilratingdesk@crisil.com

  • For analytical queries, please email us at:
    ratingsinvestordesk@crisil.com

  • For any other information,  please call or email us at:
    +1800 267 1301
    crisilratingdesk@crisil.com