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LatAm Telecoms Fall in Ratings

Jul 1, 2011

LatAm telecom companies faced a tougher compliance questionnaire this year. Despite some improvements, most fell short.

by Staff Reporters

LatAm telecom companies performed worse this year on a series of metrics measuring social responsibility, corporate governance and overall sustainability, according to a study by LatinFinance in association with consultancy Management & Excellence (M&E).

“Performance scores among telecoms this year ranged from 16%-33%, all very weak scores,” says William Cox, managing director at M&E.

The sector faced more stringent compliance guidelines in 2011 when compared to previous years, though this is the first year M&E has analyzed the sector as a whole. Most were not up to the challenge. “Telecoms have not yet discovered sustainability as a mechanism for driving investor interest, employee productivity or sales,” Cox says.

The study measures companies according to three metrics: compliance, risk, and performance. All three are combined to yield an overall final score. Compliance measures the number of sustainability metrics, such as having...

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