Part 2 : They profit who put profit second?

In our main article, Craig Smith of London Business School argues that one very good reason for a business to have a strong ethical stance is that it plays so well with customers.

Corporate ethics have become so important that various bodies have started producing guides to corporate ethical performance – in much the same way that the Consumer Association produces guides to product performance.

Online ethical database Corporatecritic.org has rated every company in the FTSE 100 on its ethical performance. Using five areas of activity (human rights, workers' rights, environment, animal testing and political activity), it starts with a score of 14 and subtracts one point for every area in which there is public criticism of a company's activities.

So, if a company has received criticisms in the animal testing and workers' rights categories, two points will be deducted and its 'ethiscore' will be 12. A 15th point is given for 'company sustainability' – a positive corporate responsibility category – which rewards companies who, for example, only sell organic products.

So let's see which are the top 20 FTSE companies to profit from not maximising profits.

Top Ethical Performers In FTSE 100
Rank Name Turnover Ethiscore
1 Land Securities Group £944m 13.5
2 Enterprise Inns plc £447m 13
3 Antofagasta plc £514m 13
4 Liberty International £363m 13
5 InterContinental Hotels £2,726m 12.5
6 Bunzl plc £2,408m 12.5
7 Friends Provident plc £3,419m 12.5
8 Sage Group plc (The) £520m 12.5
9 Schroders plc £419m 12.5
10 Bradford & Bingley plc £2,035m 12.5
11 Northern Rock plc £2,402m 12.5
12 Alliance UniChem plc £7,218m 12.5
13 Yell Group plc £978m 12.5
14 Man Group plc £888m 12.5
15 British Land Company plc £402m 12
16 Hays plc £2,122m 12
17 ITV plc £1,318m 12
18 Alliance & Leicester plc £3,001m 11.5
19 William Hill plc £3,028m 11.5
20 EMAP plc £855m 11.5

Reproduced with the permission of www.corporatecritic.org – an online corporate ethics rating database based in Manchester UK. www.ethicalconsumer.org

RELATED ARTICLE: Many Happy Returns?

 

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ARCHIVE

Issue ONE
Win by coming second
Ever hear of first mover advantage? Well it probably doesn't exist. Learn why in business you win by coming second.

Issue TWO
When corporate goals become own goals
42 degrees investigates 'The McKinsey fallacy'. Why target setting can damage your business.

Issue THREE
Riding the Business Cycle
The bumpy road of business cycles and why relying on public indicators may not guarantee the smoothest ride.

Issue FOUR
When customer relations turn sour
42 degrees investigates the idea that perhaps not all your customers are saints.