MINNEAPOLIS, Minnesota - Socially responsible behavior pays off on the bottom line. That’s the conclusion of new research based on Business Ethics’ 100 Best Corporate Citizens list, which shows the financial performance of these companies was "significantly better" than others in the S&P 500, according to researchers at De Paul University in Chicago. That’s good news indeed for the companies on this year’s list, released today by Business Ethics magazine. Now in its third year, the ranking is based on quantitative measures of corporate service to seven stakeholder groups: stockholders, employees, customers, the community, the environment, overseas stakeholders, and women and minorities.

The top five companies for 2002, in rank order, are IBM, Hewlett-Packard, Fannie Mae, St. Paul Companies, and Procter & Gamble. Twenty-six firms are making their first appearance on the list, including Bank of America (No. 15), Lucent Technologies (No. 17) and Federal Express (No. 22). For the complete list see www.business-ethics.com

The cutting-edge practices of these firms offer model business strategies in areas ranging from layoffs and sweatshops to predatory lending and the environment. These firms show there are better ways to handle these issues than the ruthless practices that are too often the norm.

* While many financial firms prey upon low-income borrowers. Fannie Mae (No. 3) helps them. Its $2 trillion program "the American Dream Commitment" aims to increase home ownership rates for 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. "It is our goal to keep expanding our reach to impaired borrowers and to help lower their costs," said Barry Zigas, senior v.p. in Fannie Mae’s National Community Lending Center.

* While other firms outsource work to sweatshops overseas, Avon (No. 10) ensures employees at its suppliers 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 covering issues like
employee safety, wages, and the right to join unions.

Statistical analysis for the list was done by Sandra Waddock and Samuel Graves of the Carroll School of Management at Boston College in Chestnut Hill, Mass. Social ratings were provided by KLD Research & Analytics of Boston, a research firm serving socially responsible investors.

The 100 Best Corporate Citizens story will appear in the March/April issue of Business Ethics, which for 15 years has been the premier publication for the movement to bring greater social responsibility into business. Free sample issues and subscriptions can be obtained by calling 612/879-0695. For more information, plus full list and story, see www.Business-Ethics.com

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