As consumers increasingly clamor for companies to embrace social responsibility, good corporate citizenship is fast becoming a vital part of any business or stock’s success. Corporate Responsibility magazine recently released its “100 Best Corporate Citizens” list, in which it rated members of the Russell 1000 large-cap index on more than 300 different elements related to responsible behavior…
Today, we’ll look at corporate governance, which gets a 7% weighting. Dozens of companies got a top rating in this category, including: EMC, Boeing, Sherwin-Williams, Xerox, Abbott Labs, Consolidated Edison, Cisco Systems. To earn their high scores, the companies above engaged in a variety of good practices, including maintaining an independent audit and compensation committee, having an outside majority on the board, not having many directors serving on more than four boards, not employing poison pills as defenses against takeovers, and giving shareholders the right to call special meetings.
via The Best Citizens in Corporate Governance, Motley Fool, 4/14/2011.
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