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Corporate Responsibility: The 100 Best of 2016
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Corporate Responsibility: The 100 Best of 2016 - Executive Leadership Articles

Corporate Responsibility: The 100 Best of 2016

Executive Leadership Articles

Corporate Responsibility: The 100 Best of 2016

The results are in for CR Magazine’s 17th annual 100 Best Corporate Citizens, a ranking of “transparency, accountability, and business performance,” and for the second year in a row, Microsoft takes the number one position. Intel, Hasbro, Johnson & Johnson, and Ecolab round out the top five.

The magazine, in cooperation with the Corporate Responsibility Association, and with input from the CSR community, developed its methodology evaluating Russell 1000 companies across seven categories: the environment, climate change, human rights, employee relations, governance, philanthropy, and finances. Within each category are multiple specific criteria in the sub-categories of disclosure, policy, and performance, for a total of 216 indicators, leading to a comprehensive score among these 1000 companies.

Further, each category is weighted, with the employee relations and environmental scores each counting toward 19.5% of the final scores. Climate change scores are worth 16.5% of the final scores, human rights 16%, philanthropy 12.5%, finances 9%, and governance 7%. The weights mean lower scores in some categories won’t destroy overall rankings, while higher scores in others can make up for some shortcomings.

It’s hard to argue, with or without weights, against Microsoft’s first-place ranking. The technology company places first (again, this is among 1000 companies) in philanthropy, human rights, and the environment, with an eighth-ranked score in climate change and a fourteenth-ranked score in employee relations. Its lowest rank, 101st for governance, is still in the top 10% of evaluated firms. Second-place finisher Intel has two top-ten rankings, while third-place Hasbro has 4 category scores in the top ten (and an additional 11th-place score).

The weights work against IBM and Cisco, who rank 45 and 46, respectively. IBM is ranked in the top 10 in four categories, including a first-place ranking in climate change, but its 363 and 742 ranks in governance and finances bring it down. Similarly, Cisco has three top-ten scores, but ranks in the 700s and 300s for governance and finances drop it to the lower portion of overall the top-50. Still, these are extremely attractive numbers for the CSR-minded employee looking for a new situation, or for consumers wishing to support companies who’ve made it a priority to focus on the triple bottom line.

An interesting feature of the complete rankings is a soccer-like yellow-card system, where companies are put on virtual notice for public gaffes or suits brought against them that conflict with CSR ideals. They remain on the list, pending resolution of these situations, while companies receiving red cards for judgments against them or other public reputational damage are removed for at least a year, their space marked where they would have finished with a red card and an explanation for the removal.

The entire list is at the CR Magazine website, with links for viewing (or downloading) the entire issue and a clear explanation of the methodology.

Reference Link:
CR Magazine: http://www.thecro.com/100-best/the-100-best-corporate-citizens-2/


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Corporate Responsibility: The 100 Best of 2016 - Executive Leadership Articles

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