10 Biggest Socially Irresponsible Companies In America

To the 10 biggest socially irresponsible companies in America, profit often comes first. While the desire to increase profits does not necessarily mean a company has to cross an ethical line, it appears that many of the corporations on this list might have taken the desire to profit above all else too far, earning them the ire of consumers, environmentalists, and other global social watchdogs.

It’s somewhat surprising that companies would even risk being socially irresponsible and ruining their reputation among the public given the importance it can play in their success, and their own knowledge of that. Of the CEOs surveyed by Burson-Marsteller, 95% believed that their corporate reputation was important or very important to the company achieving its goals.

That belief bears out among consumers, with 75% of the consumers surveyed by the same company for its 2010 Corporate Social Responsibility Perceptions Survey stating that social responsibility was important to them, despite the recession at that time, which may have left consumers with less room for idealism in who they dealt with. Among the things consumers cited as being important facets of corporate social responsibility were a company’s generosity in giving back to the community, its general ethics, how well it treats its employees, and its environmental responsibility.

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To come up with the list of the 10 biggest socially irresponsible companies in America, we referenced the 2017 Harris Poll Reputation Quotient survey, which measured the reputations of the 100 most visible companies as perceived by the general American public. Produced by New York-based market research firm Harris Insights & Analytics, the Harris Poll is an annual survey that gauges a company’s reputation using six dimensions. The Harris Poll defines and rates social responsibility along similar lines as the aforementioned consumers, including how supportive of good causes a company is, its environmental responsibility, and its community responsibility.

Based on the poll, the 10 biggest socially irresponsible companies in America are American International Group Inc (NYSE:AIG), Bank Of America (NYSE:BAC), Charter Communications (NASDAQ:CHTR), Goldman Sachs (NYSE:GS), Halliburton Company (NYSE:HAL), Monsanto Company (NYSE:MON), Sears Holdings Corp (NASDAQ:SHLD), Takata Corporation, Volkswagen  AG (ADR), and Wells Fargo & Co (NYSE:WFC).

Check out how they rank and why they’re so socially irresponsible beginning on the next page.

If you need to restore your confidence in the business world (or humanity in general) after reading this article, then check out the 10 biggest socially responsible companies in America for the opposing side of the subject.

10. Volkswagen AG (ADR) (OTCMKTS:VLKAY)

In 2015, the U.S Environmental Protection Agency slapped the automotive giant with an emission violation notice that resulted in one of the biggest scandals involving major corporate fraud. The agency found that Volkswagen AG (ADR) (OTCMKTS:VLKAY) rigged its vehicles to pass emission tests, forcing the brand to pay about $20 million in fines and legal fees in the U.S alone. Then-CEO Martin Winterkorn had to step down amid the scandal, while several Volkswagen executives were suspended.

9. American International Group Inc (NYSE:AIG)

A key figure in the 2008 financial crisis, American International Group Inc (NYSE:AIG) makes it to our list of the 10 biggest socially irresponsible companies in America with its highly-questioned bailout deal amounting to $182 billion. After less than a decade since the financial crisis hit the world’s top financial institutions, many are still raising questions about the controversial deal between the insurer and the Federal Reserve. A congressional report said the Fed used taxpayers’ money to rescue AIG instead of requiring the banks to clean up the mess they created in a greedy attempt to rake in profits.

8. Charter Communications Inc. (NASDAQ:CHTR)

Charter Communications Inc. (NASDAQ:CHTR) became the second-largest cable operator by number of subscribers in the U.S, as well as the third-largest pay television service operator when it bought Bright House Networks and Time Warner Cable for $65.5 billion. Some said that the merger did not bode well for the public, as it would give less incentive for Charter to enhance its services. Sure enough, Charter currently has one of the poorest ratings on the American Customer Satisfaction Index (ACSI). Its reputation score on the Harris Poll also recorded one of the biggest slips by any company in the last year, falling by just under 2 points to 62.80, which is considered “poor”.

      7. Sears Holdings Corp (NASDAQ:SHLD

Sears Holdings Corp (NASDAQ:SHLD) is one of the lowest-rated retailers in the U.S, primarily due to its poor customer service and lagging employee satisfaction. The company is ranked as the third-worst retailer in terms of customer service in the ACSI, while it has a one-star overall satisfaction rating on the Consumer Affairs website. According to Glassdoor, only 1-in-10 Sears workers approve of current CEO and hedge fund manager Edward Lampert, while barely 1-in-3 would refer the company to a friend as a good place to work.

6. Bank of America Corp (NYSE:BAC)

Another representative from the financial industry, Bank of America Corp (NYSE:BAC), the next one on the list of biggest socially irresponsible companies in America has seen its reputation score tread downward in recent years. Last year, the bank’s reputation score was only 64. This year, it sank even further, to below the 60-point mark. The company was slapped with a $542 million lawsuit by the Federal Deposit Insurance Corporation (FDIC) after it allegedly underreported an important risk metric by “tens of billions of dollars” sometime in 2013-14 according to the FDIC’s lawsuit.

5. Halliburton Company (NYSE:HAL)

With a score of only 58.30, Halliburton Company (NYSE:HAL)’s reputation quotient is one of the lowest on the Harris Poll’s list. The oil and gas player is notorious for its controversial deals during the war in Iraq. It reportedly scooped up $39.5 billion worth of contracts by benefiting from the conflict. Then-U.S. vice president Dick Cheney, Halliburton’s former CEO, was believed to have helped the company win contracts without going through a legal bidding process. The company likewise earned the ire of environmentalists amid the oil spill in the Gulf of Mexico, for which it was found co-responsible and was ordered to pay $1.1 billion.

4. Monsanto Company (NYSE:MON)

Caught in a series of legal battles, Monsanto Company (NYSE:MON)that ranks 4th on our list of biggest socially irresponsible companies in America has earned the scorn of environmentalists in recent years. The company has been accused of concealing the harmful carcinogenic effects of its Roundup pesticide in more than 20 lawsuits. The Seattle government has likewise accused the firm of polluting the city’s drainage system and the Duwamish River with toxic PCBs. Monsanto’s move to dismiss the case was denied by a federal judge this year.

3. Goldman Sachs Group Inc (NYSE:GS)

Being one of the biggest socially irresponsible companies in America has meant being constantly under the public eye for Goldman Sachs Group Inc (NYSE:GS). The multinational firm was said to have paid Hillary Clinton to deliver speeches in its favor, enabling the losing Democrat candidate to scoop up $675,000. Clinton was criticized for this during her campaign, which some said “symbolize[d] the public’s animosity towards the financial industry.”

More recently, Goldman Sachs has been caught up amid a “moral mess” when it bought Venezuelan bonds at a heavily discounted price. Among those who criticized the bank for taking advantage of the cash-strapped country’s misfortune was no less than Venezuelan President Nicolás Maduro.

2. Wells Fargo & Co (NYSE:WFC)

Recent scandals have inevitably hurt Wells Fargo & Co (NYSE:WFC)’s corporate image, making the bank the worst-rated financial company this year according to the Harris Poll. Last year, it was revealed that Wells Fargo fraudulently opened about 1.5 million bank accounts and issued credit cards without the consent of its customers, who only learned about the dubious act when charges later started showing up on their billing statements. The bank was fined $185 million as a result.

1. Takata Corp.

Japanese automobile parts maker Takata Corp.’s massive airbag recall pushed the company to the top (bottom) slot in our list of the 10 biggest socially irresponsible companies in America. Starting in 2013, Takata had to recall about 70 million airbags installed on 42 million vehicles. The recall was triggered by the deaths of 11 people in the U.S, all of which were blamed on the faulty airbags. The disastrous recall is considered the “largest and most complex safety recall in U.S. history.” Takata CEO Shigehisa Takada volunteered to step down amid the controversy.

Disclosure: None