The top corporations dedicated to sustainability in 11 significant categories.
CR Magazine has announced its annual set of the “2016 Most Responsible Companies Ranked by Industry Sector” list. This list serves to help readers establish that their supply chain is comprised of the most responsible, sustainable, and transparent companies-creating shared value when strategic opportunities arise.
This ranked list includes the top 12 companies in 11 industry categories. We congratulate all who appear on this list.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 Russell1000 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 “2016 Most Responsible Companies Ranked by Industry Sector” list, we identify the industry sectors with high representation among the Russell1000, our starting point for our database. We 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 260 data elements in seven categories: climate change, employee relations, environment, financial, governance, human rights, and philanthropy and community support. 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. Non-reporters in these numerical cases rank worse than worst numerical respondent in any group.We 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 our methodology committee, whose members include CR practitioners, NGO representatives, investors, and regulators.
For more details on the weightings, the data collection process, and analysis, visit www.thecro.com and click on the “100 Best Corporate Citizens” tab.
Each year, based on the numbers, some companies make the list 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 give a yellow card for a caution, and a red card for expulsion from the list. *Companies with an asterisk are yellow-carded companies. More information can be found on page 52.
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.