E Is For Environmental Effort: Which Companies Are Most Respected?

Top 20 for Environment
This was the first year the Financial Times included an environmental category in its annual survey of the world’s most respected companies. 914 CEOs from 65 countries and 110 media commentators and nongovernmental organizations were asked which 20 companies they perceived as having the best environmental reputation. Surprisingly, both camps chose BP (British Petroleum) as number one!

Apparently, both groups gave BP an “A” for effort. A CEO commented, “They have got this ‘beyond petroleum’ tag these days, but I think they do live up to it.” And an activist summed it up, “Although they have a long way to go, they deserve credit for their effort.” CEOs picked Royal Dutch/ Shell as number two, another highly regarded oil industry leader; the media/activist group chose The Body Shop. Toyota placed third with CEOs; Honda and Ford placed third and fourth with the media/activist camp, and Shell rated fifth.

Toyota and Honda won praise for taking the lead on efficient vehicles and for recycling car parts. Ford received support for its Michigan factory roof garden, its recycling efforts and support of national parks. From here, the groups diverged. CEOs like ExxonMobil, media and activists like McDonald’s (for their waste reduction and recycling efforts). Interestingly, the media and activist groups share the same list.

CEOs, media and activists all agree on the definition of good environmental management.
1. whether a company develops or invests in cleaner, greener products and processes.
2. whether a company has a clearly defined environmental strategy.
3. how well companies communicate with stakeholders on these matters.

CEO’s praise Weyerhaeuser for replanting trees and recycling, DuPont for safety and the environment, and General Electric, for energy efficient products. The media and NGOs chose smaller companies such as Otto Versand (German catalogue retailer), Patagonia, and Interface, for their many leading edge efforts.

Top 50 Overall – The World’s Most Respected Companies
General Electric was chosen as the world’s most respected company overall. Respondents noted reasons such as its leadership position in a wide range of industries and its success in developing managers. “There are an incredible number of CEOs who are ex-GE employees,” one CEO said. Microsoft has been “successful in monopolising the market”. IBM is “reliable”. Sony has “durable products, a brand name and innovation”. It turns out that almost all the companies in the top 50 are admired for different reasons. FT observes, “The world’s most respected companies are admired for being themselves, for having a culture that they understand and act on, and which is successful.”

Top 20 Companies on Environment

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New
“Good Corporation” Certification
Four former senior staff at KPMG developed the Good Corporation Charter which aims to set a common standard for social responsibility. Companies can be certified as having high standards on issues such as the environment, staff, customers, shareholders, and suppliers. Firms meeting the targets must undergo annual verification by an independent body on 21 criteria. It was developed with the Institute of Business Ethics, companies, labor unions, consumer groups, and NGOs. Businesses of all sizes, NGOs and public agencies can all apply.

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