Is it fair to compare globally operating companies to the comparatively strict EU15 benchmark?
A benchmark is a hurdle that companies should (be able to) clear. The choice of a benchmark is therefore always a normative judgement. This applies not only to the Sustainable Value concept but also to benchmarks in financial management. An investor who chooses a stock market index as a benchmark for his/her investment, presupposes that the investment ought to outperform this benchmark. The rationale behind using the EU15 as a benchmark is the assumption that companies domiciled in the EU15 ought to be able to outperform the economy of the EU15 with their operations – no matter if they are inside or outside the EU15. Click here to go back to the top.
