Geneva-based Covalence is publishing today its quarterly ethical reputation ranking, giving the best ranked companies as well as those companies which have made the most progress in the 3rd Quarter of 2008. An overview of emerging and decreasing topics is also given.
The main results across sectors are:
> IBM enters top 10 EthicalQuote score across sectors replacing Starbucks; Toyota, Unilever and HSBC lead the way
> Kraft Foods and DuPont appear in top 10 best progress category
> Wal-Mart, Toyota and Nissan show best Reported Performance
> Criteria gaining weight within positive news in Q3 2008 have been: 31. Product Environmental Risk, 32. Waste Management, 1. Labour Standards, and 33. Eco Innovative Product. Within negative news criteria gaining weight were: 18. Downsizing, 32. Waste Management, 1. Labour Standards, and 6. External Working Conditions (see below).
Twenty multinational companies are analyzed in ten major sectors; the top ten performing companies are ranked in each category: Best EthicalQuote Score (positive minus negative news, cumulated from 2002 to 30 September 2008), Best Ethical Progress (positive minus negative news, cumulated from 1 July to 30 September 2008) and Best Reported Performance (positive news only, 1 July to 30 September 2008).
Best EthicalQuote Score and Best EthicalQuote Progress are given by confronting positive and negative news. Best Reported Performance is calculated by quantifying positive news only – it shows how companies report on their ethical performance without considering criticisms and demands. Some companies being highly targeted by activists have a low EthicalQuote Score while at the same time ranking high in terms of Reported Performance. We can assume that “ethical demands” (negative news i.e. stakeholder issues, campaigns, expectations) stimulate “ethical offers” (positive news i.e. initiatives, reporting, communication by companies).