March 27, 2002
Executives and Analysts Name Most Admired Socially Responsible Companies
by William Baue
A recent Fortune magazine survey lists America's most admired companies, with one section of the
list devoted to social responsibility.
In its March 4 issue, Fortune magazine
published its twentieth annual list of "America's Most Admired Companies." The global consultancy
firm HayGroup conducted the research, asking
10,000 executives and securities analysts to rate companies on a scale of zero (worst) to ten
(best) based on eight attributes, one being social responsibility.
attributes were determined by interviews with industry executives and analysts more than 20 years
ago," said Fortune magazine Senior List Editor L. Michael Cacace. "[Social responsibility]
was one of the criteria executives and analysts felt strongly about including in the determination
of a company worthy of admiration."
Other attributes include innovation, financial
soundness, employee talent, use of corporate assets, long-term investment value, quality of
management, and quality of products/services.
Fortune's longstanding inclusion of
social responsibility as a key attribute to determine admirable companies may surprise those who
thought that corporate social responsibility (CSR) was a relatively recent development. CSR is not
entering mainstream consciousness--it is already firmly embedded there.
The survey defines
social responsibility simply as "responsibility to the community and/or the environment," according
to HayGroup Associate Consultant Tiffany Mortellito. The survey thus relies heavily on the survey
respondents' own understanding of what constitutes social responsibility.
respondents in recent years shows a growing 'awareness' of the importance of the social
responsibility attribute," said Mr. Cacace. "The majority of calls I receive are from companies
asking about their ranking by this attribute."
Fortune's website lists not only
overall ratings, but also ratings by subcategories such as the eight individual attributes.
Topping the list for social responsibility
were the New York Times (ticker:
NYT), with an 8.0 average rating. Target (TGT) and Procter & Gamble (PG) tied for second
place, with both receiving a 7.9 average rating. At the bottom of the list were Federal-Mogul (FMO) with a rating of
2.8, Dillard's (DDS) at 2.6, and Warnaco Group (WAC) at 2.0.
Respondents chose from a universe that consisted of the ten largest companies by revenues in 58
industries, including large subsidiaries of foreign-owned companies. For the first time,
Fortune published its list of the "World's Most Admired Companies" simultaneously with the
U.S. list this year. The global universe included only companies with annual revenues of $8
billion or more, removing some companies that appear in the U.S. ranking from consideration on the
The New York Times thus disappeared from the global list for social
responsibility, bumping Target and Procter & Gamble up to the top two positions. United Parcel Service (UPS) placed
third with a 7.7 average rating. Bringing up the bottom of the global list for social
responsibility were Kmart (KM) at
3.7 and two Japanese corporations, MYCAL (3.4) and Snow Brand Milk Products (3.2).