Shining a Spotlight on Sectors 

This is CR Magazine’s annual set of “Industry Sector Best Corporate Citizens” lists. For these compilations, we use the same methodology as the “100 Best Corporate Citizens List,” with one additional data slice. The Best Corporate Citizens database comprises publicly available data from Russell 1000 companies collected and analyzed by IW Financial, a Portland, Maine-based financial analysis firm serving the environment, social, and governance (ESG) investment community.

 

For the “Industry Sector Best Corporate Citizens” lists, we identify the industry sectors with high representation among the Russell 1000, our starting universe for our database. We then narrow those to 10 and apply the same review process to the companies on those sector lists as we do for the “100 Best Corporate Citizens List.”

 

The methodology collects 324 data elements in seven categories: climate change, employee relations, environment, financial, governance, human rights, and philanthropy. Data in each category takes one of two forms, true/false or numerical. “True” counts as a positive value; “False” as zero value. Numerical values are compared with all other companies’ numerical answers in order to generate a ranking. Nonreporters in these numerical cases rank worse than worst numerical respondent in any group.

 

We then tally total scores from the collected data elements for the seven categories and apply weights to each category to account for different relative values:

 

Those total scores are rank ordered, highest to lowest, to generate our industry sector rankings. The entire process, including the weightings, is overseen by the by our methodology committee, whose members include CR practitioners in consultation with academics, NGO representatives, investors, and regulators.

 

Which would mean little if it weren’t transparent. But it is.

 

For details on the weightings, the data collection process, and analysis, please visit www.thecro.com and click on the “100 Best Corporate Citizens” tab on the left menu.

  

Industry Sector Best Corporate Citizens

 

CR Sector: Consumer Items

 

1. Mattel, Inc.
2. Gap, Inc.
3. Hasbro, Inc.
4. Nike, Inc.
5. Whirlpool Corp.
6. PVH Corp.
7. Target Corp.
8. TJX Companies, Inc.
9. Macy’s Inc.
10. Costco Wholesale Corp

 

 

CR Sector: Consumer Staples

 

1. Campbell Soup Co.
2. Coca-Cola Enterprises Inc.
3. Coca-Cola Co.
4. Kimberly-Clark Corp.
5. Altria Group Inc.
6. Hormel Foods Corp.
7. General Mills, Inc.
8. Pepsico Inc.
9. H.J. Heinz Co.
10. Colgate-Palmolive Co.

 

 

CR Sector: Energy

 

1. Exxon Mobil Corp.
2. Chevron Corp.
3. Hess Corporation
4. Occidental Petroleum Corp.
5. Marathon Oil Corporation
6. ConocoPhillips
7. Baker Hughes Inc.
8. Tesoro Corp.
9. Halliburton Co.
10. EOG Resources, Inc.

 

 

CR Sector: Financials/Insurance/Real Estate.

1. JPMorgan Chase & Co.

JP Morgan Chase Bank receives a yellow card for its now discontinued practice of posting of transactions related to debit cards and consumer deposit accounts causing overdraft fees; the company settled class actions suits for $110M.

2. Prudential Financial Inc.
3. Jones Lang LaSalle Inc.
4. State Street Corp.
5. Northern Trust Corp.
6. The Bank of New York Mellon Corp.
7. Citigroup Inc.
8. Allstate Corp.
9. Comerica, Inc.
10. Prologis

 

CR Sector: Healthcare

1. Bristol-Meyers Squibb Co.
2. Merck & Co., Inc.
3. Johnson & Johnson
4. Abbot Laboratories

Abbott Labs pleaded guilty in a case brought by the Justice Department for “misbranding” their anti-seizure medication, Depakote®. The case stemmed from improper marketing of Depakote® for a purpose other than approved indications. Abbott Labs agreed to compliance guidelines and to a settlement of $1.6B. As Abbott Labs has separated its pharmaceutical business into the new spin out company, Abbvie, the legacy Abbott organization has received a yellow card and Abbvie, has received a red card.

5. Baxter International Inc.
6. Allergan Inc.
7. Eli Lilly & Co.
8. Life Technologies Corp.
9. UnitedHealth Group Inc.
10. Becton, Dickinson And Co.

Amgen

Amgen pleaded guilty in a case brought by the Justice Department for “misbranding” their anemia treatment product Aranesp®. The case stemmed from improper marketing of Aranesp® for a purpose other than approved indications. Amgen agreed to a settlement of $762M. According to the Justice Department, Amgen was marketing the drug and training sales representatives using studies rejected by FDA as insufficient. Amgen has received a red card.
 

CR Sector: Information Technology

 

1. International Business Machines Corp.
2. Microsoft Corporation
3. Motorola Solutions Inc.
4. Texas Instruments Inc.
5. Rockwell Automation Inc.
6. Dell Inc.
7. Lexmark International
8. EMC Corp.
9. Agilent Technologies Inc.
10. Hewlett-Packard Co.

 

 

CR Sector: Materials

1. E.I. DuPont Nemours & Co.
2. Weyerhaeuser Co.
3. Praxair, Inc.
4. International Paper Co.
5. Monsanto Co.
6. Mosaic Company
7. Dow Chemical
8. Freeport-McMoran Copper & Gold Inc.
9. Air Products & Chemicals Inc.
10. Albemarle Corp.

 

CR Sector: Media & Entertainment

1. Walt Disney Co.
2. McGraw-Hill Cos., Inc.
3. Starbucks Corp.
4. Carnvial Corp.

While there have been no specific allegations or admission of wrongdoing, Carnival’s string of incidents over the past two years at the very least raise questions over maintenance policies and at worst indicate deeper issues. The magnitude and regularity of these issues earns Carnival a yellow card.5. Darden Restaurants, Inc.

5. Darden Restaurants, Inc.

6. Wyndham Worldwide Corporation
7. Yum! Brands Inc.
8. Time Warner Inc.
9. Marriott International, Inc.
10. Comcast Corp.

News Corp

Though the initial investigation was launched in January 2011 into allegations journalists from Murdoch’s now defunct News of the World newspaper had hacked voicemails of mobile phones, News Corp’s subsequent settling of cases, and the scale and reach of the scandal earns News Corporation a red card for 2013.

 

 CR Sector: Services

1. Accenture plc.
2. ManpowerGroup, Inc.
3. Waste Management, Inc.
4. Computer Sciences Corp.
5. SAIC Inc.
6. Cognizant Technology Solutions Corp.
7. Moody’s Corp.
8. Interpublic Group of Cos., Inc.
9. Omnicom Group, Inc.
10. Compuware Corp.

 

CR Sector: Utilities

1. Spectra Energy Corp.
2. Duke Energy Corp.
3. Sempra Energy
4. Pinnacle West Capital Corp.
5. PG&E Corp.
6. Wisconsin Energy Corp.
7. Dominion Resources Inc.
8. Northeast Utilities
9. Entergy Corp.
10. Exelon Corp.

 

Yellow/red cards
Each year, based on the numbers, some companies make the Best 100 List by Sector despite some self-caused reputational damage, which usually appears as a pending or completed administrative or official legal sanction. To address those kinds of issues, we’ve turned to a two-level system akin to that used in European football—the yellow card for a caution, the red card for expulsion.

 

A yellow card icon next to a company’s listing indicates a caution — a significant but pending investigation/situation initiated in the research year by a recognized authority. Yellow carded companies remain on the list without impact on their ranking unless and until the investigation/ situation is resolved.


Red cards recognize a significant adverse event or judgment in the research year against the company, an event so widely recognized that no reasonable person would expect to find the company on a listing of the best corporate citizens. These companies are excluded from the list for at least one year, and an explanation is included with the full listing.

AttachmentSize
yellowcard2.jpg1.41 KB
redcard2.jpg1.44 KB