Nov
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In 2010 Trust Across America introduced the FACTS® Framework, a holistic unbiased barometer of the corporate integrity of America’s largest 2000 US public companies. The Framework identifies companies whose leadership is going beyond doing what is legal to choosing what is right in meeting all stakeholder needs. This, by order of magnitude, is the most comprehensive and data driven ongoing study on this subject. We analyze quarterly and rank order by company, sector and market capitalization. We are particularly interested in tracking individual companies and sector trends over time.

F   Financial Stability and Strength: assesses the company’s financial and market performance. Companies that maintain high rankings have been shown to have better stock performance, with lower volatility over time.

A   Accounting Stability: analyzes the company’s transparency of earnings and quality of reporting. Companies ranking highly over time have conservative ratings and are shown to have less regulatory actions and restatements.

C   Corporate Integrity: assesses the company’s overall governance risk, board independence and composition, and compensation policies and risks. The focus is on real-world value and risk, not just “check-the-box” practices.

T  Transparency: analyzes the company’s financial and nonfinancial clarity including disclosure, environmental management and climate change, diversity, human rights and workforce composition.

S   Sustainability: assesses the company’s environmental, workforce policies, community impact and human rights performance among other metrics.

 

Trustworthy public companies are rewarded in the long-term. Click To Tweet They not only avoid expensive crises but also have the benefit of stakeholder support and longevity.

During the three-year period from February 2013-February 2016, and according to FACTS® Framework audited live returns, America’s most trustworthy public companies outperformed the S&P 500 by 1.8x. The composite results translate to 16.7% annualized for FACTS® vs. 9.5% for the S&P 500.

Almost two years since this chart was created, Trust has continually proven to be a successful business strategy that may significantly impact… Click To Tweet

Our Corporate Integrity Monitor provides additional insights into America’s most trustworthy companies.

Interested in learning more?

Buy our books

or contact Barbara Kimmel: Barbara@trustacrossamerica.com

 

 

 

 

Copyright © Next Decade, Inc. All Rights Reserved. FACTS® is a service mark of Next Decade, Inc. in which Barbara Brooks Kimmel is the founder and CEO. Jordan Kimmel and Barbara Brooks Kimmel are the Cofounders of Trust Across America.

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