What makes the most socially responsible companies in the US get ranked as socially responsible? Why is giving back to the society important? These companies engage in activities that benefit society. A company can be regarded as socially and environmentally conscious when it incorporates social responsibility into its business model. Today multinational companies have the power and resources which exceed those of small countries. They can influence the society through their global reach and influence. They can also become role models for smaller enterprises. Though a company’s primary purpose is to make profits for its shareholders, there are other important stakeholders which it needs to serve. These days CSR is considered as the most important factor that drives a company’s reputation and is also critical to its long-term share price. We have listed down some of these companies, several of which are also among 10 Most Respected and Admired Companies in America.
Climate change has become one of the biggest threats to mankind today. It is the responsibility of the large powerful multinationals to work hand in hand with various governments and take mitigation actions. CSR efforts are more likely to pay off in the long term. Many socially responsible companies in the US have taken up the climate cause and have decided to install solar, wind power to cut their carbon footprint.
Al Gore’s Generation Investment Management is a hedge fund that invests in sustainable businsses. They are of the opinion that sustainability investing is essential to creating long-term shareholder value. The team researched the history of sustainable investing before starting the fund. The fund expect to see opportunity in businesses that are involved with lower-carbon energy, including renewable energy provision, such as wind, solar, and cellulosic ethanol2 production. Al Gore’s Generation Investment Management held large stakes in Microsoft Corporation and Google Inc. – the top two most socially responsible companies in 2016.
Below is a list of 10 most socially responsible companies in the US. The list is based on research from the Reputation Institute which is a leading provider of reputation based research based in Boston and launched in 1997. The firm ranks these companies based on their performance, products/ services offered, innovation, workplace etc. and sums them up to make a RepTrak Pulse score.