Geneva-based Covalence is publishing today its third annual ethical reputation ranking, giving the best ranked companies as well as those companies which have made the most progress in the 1st Quarter of 2008. An overview of emerging and decreasing topics is also given (see below).  

The main results across sectors are:

• Unilever, Toyota and HSBC consolidate their leadership with Best EthicalQuote Score
• Wal-Mart, Toyota and Marks & Spencer register the best EthicalQuote progress during Q1 2008
• Wal-Mart, Toyota and General Motors show best Reported Performance
• Emerging topics in Q1 2008 have been: Community affairs, International Presence, Lobbying Practices, Product Environmental Risk, Social Sponsorship, Waste Management and Human Rights Policy, while the following criteria have lost importance: Wages, Anticorruption Policy, Environmental Impact of Production, Social Impact, United Nations Policy and Eco Innovative Product.

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 31 March 2008), Best Ethical Progress (positive minus negative news, cumulated from 1 January to 31 March 2008) and Best Reported Performance (positive news only, 1 January to 31 March 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).

http://www.covalence.ch/docs/CovalenceEthicalRankingQ12008.pdf