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Business Ethics Magazine Lists '100 Best Corporate Citizens' for 2006

Business Ethics Magazine Lists '100 Best Corporate Citizens' for 2006

Published 04-27-06

Submitted by Business Ethics

NEW YORK, NY - Business Ethics Magazine has released its annual survey of the "100 Best Corporate Citizens" in the Spring 2006 issue published today. The closely-watched survey has gained national recognition as an indicator of best practices in the area of corporate social responsibility.

This year's "100 Best" list is led by Green Mountain Coffee Roasters (NASDAQ: GMCR) of Waterbury, Vermont, which was cited for its "meticulous attention to corporate social responsibility," including its pioneering work in the fair trade movement, which pays coffee growers stable, fair prices. Green Mountain has been among the top 10 companies on Business Ethics' list for four years running.

Now in its seventh year, the list for 2006 is striking because of the dominance of technology firms among the top 10. Hewlett-Packard (NYSE: HPQ) is enjoying its seventh time in the top 10, while Advanced Micro Devices (NYSE: AMD) makes its first appearance on the list. Motorola (NYSE: MOT) is enjoying its third time in the top 10, and Agilent Technologies (NYSE: A) its second time.

Rounding out the top ten this year are The Timberland Company (NYSE: TBL), list newcomer Salesforce.com (NYSE: CRM), Cisco Systems (NASDAQ: CSCO), Dell (NASDAQ: DELL) and Texas Instruments (NYSE: TXN)).

Why the strong showing by tech? "Surprisingly, it's not due to financial out-performance," said Marjorie Kelly, Editor of Business Ethics, "since none of the top tech companies ranked in the top 10 in financial returns." Instead, Kelly noted, most top tech companies do well on environmental issues. They also tend to be active in their communities and score high in employee relations, she said. "These firms know that to attract and retain talent, it pays to be socially enlightened. High- tech seems to be a genuinely socially responsible sector."

The list saw quite a bit of turnover from 2005, with 33 companies appearing for the first time. Newcomers Johnson & Johnson (NYSE: JNJ) and McGraw-Hill Companies (NYSE: MHP) score particularly high in workforce diversity. Newcomer Milwaukee-based Johnson Controls (NYSE: JCI) rates high marks because of products that help conserve energy.

The 100 Best Corporate Citizens list puts a numerical rating on service to these various stakeholders. Environmental, social and governance ratings are drawn from SOCRATESTM, the online social research database created by KLD Research & Analytics, Inc. in Boston, an independent research firm serving investment management professionals.

"KLD is proud to have powered the ratings for The 100 Best Corporate Citizens in each of the seven years since inception," says Peter Kinder, president of KLD. "Our quality is rooted in independent research and analysis of listed companies for environmental, social and governance factors. Clearly, The 100 Best Corporate Citizens demonstrates some perform better than others.

The universe of companies considered for the list encompasses U.S. firms in the Russell 1000, the S&P 500, and KLD's Domini 400 Social Index. These firms are ranked on their performance in eight stakeholder categories: shareholders, community, governance, diversity, employees, environment, human rights, and product. Social scores use KLD's assessment of "strengths" and "concerns" demonstrated in each category. The shareholder score is based on three-year average total return (stock appreciation plus dividends) through year-end 2005.

"Being a good corporate citizen requires focus, dedication, and hard work. The companies on our list are to be congratulated for their performance," said Michael Connor, Publisher and Executive Editor of Business Ethics.

More details regarding the 100 Best Corporate Citizens list are available on the Business Ethics web site at http://www.business-ethics.com/whats_new/100best.html

Founded in 1987, Business Ethics magazine is the only US-based business magazine focusing on ethics and corporate social responsibility. Published four times a year with a total distribution to approximately 10,000 readers, it has a unique position and a unique readership of thought leaders in business, investing, academia, government and civil society organizations interested in corporate social responsibility issues.

Business Ethics is owned by New York City-based New Mountain Media. In addition to the magazine, the company sponsors conferences and seminars and produces a one-hour weekly radio program, Good Company, on LIME/Sirius Satellite Radio.

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