Company Evaluation Criteria

The RESPECT Index project is targeted at companies listed at the Warsaw Stock Exchange Main Market. The project consists of three phases:

Phase I aims at identification of companies with highest liquidity, which means that they are underlying companies of the following indices:

  1. WIG20 (description, composition)
  2. mWIG40 (description, composition)
  3. sWIG80 (description, composition)
The composition of all three indices is revised on a quarterly basis (on third Friday of March – annual revision, third Friday of June, September, December – quarterly adjustments).
RESPECT Index composition is revised on a bi-annual basis, which means that in the first phase of subsequent editions of the revision consideration is given to the underlying companies of WIG20, mWIG40, SWIG80 indices revised in September and March of a certain year.


Phase II includes the evaluation of corporate governance practice at the companies, information and investor relations governance, performed by the Warsaw Stock Exchange in collaboration with the Polish Association of Listed Companies on the grounds of publicly available reports published by the companies and on the grounds of their Web sites.

Criteria:
  1. Burdening with sanctions imposed by the Polish Financial Supervision Authority (PFSA) and/or WSE in relation to the failure to fulfil reporting duties (the imposition of penalties disqualifies the company from further evaluation).
  2. Impeccable reporting on Corporate Governance and communication governance:
  • quality of current reports,
  • fact of adjusting reports published earlier,
  • number of adjustments and their weight.
  1. Running of Website following the model implemented by the WSE – evaluation of corporate Websites from the perspective of the quality of communication with investors, its promptness and effectiveness:
  • speed of providing subject matter replies to the queries concerned with investor relations made via Website
  • publication on the Website:
    • basic corporate documents (statutes and operational by-laws of corporate bodies etc.)
    • professional resumes of the members of corporate governing bodies
    • current and periodic reports
    • annual reports on the Supervisory Board activities
    • information about shareholding structure
    • calendar of corporate events
    • basic financial ratios of the company
  • the application of active content browser on the Website
  • putting on the Website cross-references to other capital market institutions (e.g. Polish Financial Supervision Authority (PFSA), Warsaw Stock Exchange (WSE), Polish Association of Listed Companies (SEG)      
  • the use of modern means of communication with the investors
  • availability of the Website in English

Phase III includes the evaluation of the level and degree of complexity of measures, taken by the companies and addressed at their stakeholders, that are a manifestation of widely understood Social Corporate Responsibility (CSR). This evaluation is made based on the questionnaires completed by the companies and based on the outcome of questionnaires’ verification, performed by Deloitte, Project Partner.