Good Karma is Good Business

According to researchers at De Paul University in Chicago, the financial performance of companies listed on the Business Ethics' "100 Best Corporate Citizens" list was "significantly better" than others in the Standard & Poor's 500 (S&P). Business Ethics magazine rates the "corporate citizenship" of companies listed on the S&P based on measures of corporate service to stockholders, employees, customers, the community, the environment, overseas stakeholders, and women and minorities.

Ranked in order, the top five companies for 2002 are IBM, Hewlett-Packard, Fannie Mae, St. Paul Companies, and Procter & Gamble. Twenty-six newcomers on the list include Bank of America (No. 15), Lucent Technologies (No. 17), and Federal Express (No. 22). Some companies ranked on both the 2001 and 2002 "Best 100" list are Timberland (14), Southwest Airlines (20), Starbucks (21), and Ecolab (49). (For the complete list see www.business-ethics.com/100best.htm#Chart.)

The "100 Best" firms practice model business strategies in areas ranging from layoffs and sweatshops to predatory lending and the environment. They show there are better ways to handle these issues than the ruthless practices that are too often the norm, and which are often excused as the most financially feasible.

No. 3-ranked Fannie Mae's $2 trillion program "the American Dream Commitment" is a prime example of good "corporate citizenship." Its purpose is to increase home ownership by minorities, new immigrants, young families, and those in low-income communities. In 2001, over 51 percent of Fannie Mae's financing went to low- and moderate-income households.

Avon (No. 10) makes sure its suppliers' employees have the best working conditions possible. All Avon factories and suppliers – both here and abroad – must pass an audit based on Social Accountability 8000 standards, which covers issues like employee safety, wages, and the right to join unions.

These and other business practices show that concern for the well-being of employees, customers, the community, and the Earth is good for the bottom line.

See http://www.business-ethics.com/100best.htm#Press Release for more information about the research.