Twin Cities Business Journal, February 4, 2005
Kudos to the Star Tribune for examining the figures on U.S. foreign aid in the January 16, 2005 issue. You covered the subject regarding personal and foreign aid from our federal government well.
When it comes to foreign aid, much of the work is done by American companies contracting to the government. How are Minnesota companies shaping up when it comes to philanthropy, foreign combined with domestic? Forbes Magazine in
“Who are our best corporate citizens?” in its on-line version
for December, 2004, took a look at the “personal lives” of some 3,600 companies. It then made a “report card” on 50 of the best known companies of the group, from Abbott Labs to Yahoo!
How did companies based in or with a strong presence in the Twin Cities rate?
Each company was ranked from A to F in four areas: Diversity, Community, Human Rights, and Environment. If we look at the Forbes universe as represented in this report, on a 4-point scale, American business over-all rated 2.25, a solid C. The highest rating was earned by Hewlett-Packard with three A’s and a C (3.5) and the lowest was Wal-Mart with two F’s, a B and a C (0.75).
Our Twin Cities companies, represented by 3M, American Express, Medtronic, US Bancorp, and Wells Fargo combined scored an average of 2.112. That’s a pretty disappointing average for a corporate community that prides itself on its good citizenship.
What are our strengths and weaknesses in the area of good corporate citizenship?
Four Minnesota companies scored A or B when it came to diversity, but one scored a D. We must admire those first four, considering the rapidly changing demographics in our state, particularly with the influx we’ve experienced with immigrants from Asia, Latin America, and Africa.
Forbes isn’t the only one who noticed the good work done in Minnesota in the area of diversity. In October, Diversity, Inc. (www.diversityinc.com) named General Mills to its list of Top 50 Companies for Diversity.’
It takes effort to develop, recruit, and retain qualified new Minnesotan in good jobs with top companies. We should congratulate these companies for their successful outreach to bring these groups into our economic mainstream. The company scoring a D can learn much from its neighbors in this field.
In the “community” field, it was a surprise to see that no one ranked higher than a B (3M) in this area. Four of these companies are members of the Minnesota Keystone Program and give at least 2% of pre-tax profits.
Obviously, Forbes has some very high standards in this area. Our four Keystone members can feel proud to know that they give at such a generous level financially, especially compared to the U.S.’s largest company, Wal-Mart, which gave less than 0.75% of its profits to charity, according to the article.
When it came to Human Rights, only one company –Wells Fargo—scored above a C. In fact, Wells Fargo was the only company on the entire list that earned grade A. Forbes cited the bank’s new $10 billion fund for women entrepreneurs as the pinnacle of examples for supporting human rights. Forbes didn’t ignore the good works of the other Minnesota corporations; they just couldn’t measure up to that mind-boggling dollar total that the financial services giant could deliver.
It was no surprise to see that the only companies to earn an F in the Environment field were oil companies. We can have even more pride in 3M (a major chemicals user and producer) as earning a B. It was also the only Minnesota company to earn over a C.
Which Minnesota company was the tops in Forbes’ over all? Congratulations, 3M! Minnesota’s native child earned a solid 3.0. Forbes cited the company’s extraordinary support of education as the company’s outstanding achievement in corporate citizenship. According to the report, 3M gave 68% of its total charitable contributions toward educational programs in 2003. Much of that largesse went to the University of Minnesota and other educational institutions right here in our state.
There are many ways of measuring corporate citizenship. Being recognized as a good citizen in Forbes or in the Keystone Program are only two ways of honoring those who measure up to the standard of being “good” or “great.”
Most companies aspire to be included in the ranks of good citizens. How can small companies do this?
Look at your employees. Do you have a loyal workforce that is proud to bear the company logo on their tee shirt or brief case?
Cast an eye at your lobby or board room. How many awards and testimonials do you have from nonprofit organizations you support, or from industry and trade groups?
All of these, too, are indications that your company is a good citizen.
We can follow the best practices of Minnesota companies like 3M and Wells Fargo and apply them to our own companies. Then, as we start the new year, let all in business resolve to be good citizens.
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