{"id":3635,"date":"2017-11-20T09:22:02","date_gmt":"2017-11-20T14:22:02","guid":{"rendered":"http:\/\/www.trustacrossamerica.com\/blog\/?p=3635"},"modified":"2017-11-20T09:22:02","modified_gmt":"2017-11-20T14:22:02","slug":"corporate-trustworthiness-pays-off","status":"publish","type":"post","link":"https:\/\/www.trustacrossamerica.com\/blog\/?p=3635","title":{"rendered":"Corporate Trustworthiness Pays Off"},"content":{"rendered":"

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In 2010 Trust Across America introduced the FACTS\u00ae Framework, a holistic unbiased barometer of the corporate integrity of America\u2019s 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.<\/p>\n

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F<\/strong> \u00a0 Financial Stability and Strength: assesses the company\u2019s financial and market performance. Companies that maintain high rankings have been shown to have better stock performance, with lower volatility over time.<\/p>\n

A<\/strong> \u00a0 Accounting Stability: analyzes the company\u2019s 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.<\/p>\n

C<\/strong> \u00a0 Corporate Integrity: assesses the company\u2019s overall governance risk, board independence and composition, and compensation policies and risks. The focus is on real-world value and risk, not just \u201ccheck-the-box\u201d practices.<\/p>\n

T<\/strong>\u00a0 Transparency: analyzes the company\u2019s financial and nonfinancial clarity including disclosure, environmental management and climate change, diversity, human rights and workforce composition.<\/p>\n

S\u00a0\u00a0 <\/strong>Sustainability: assesses the company\u2019s environmental, workforce policies, community impact and human rights performance among other metrics.<\/p>\n

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Trustworthy public companies are rewarded in the long-term. <\/a><\/span>Share on X<\/a><\/span> They not only avoid expensive crises but also have the benefit of stakeholder support and longevity.<\/p>\n

During the three-year period from February 2013-February 2016, and according to FACTS\u00ae 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\u00ae vs. 9.5% for the S&P 500.<\/p>\n

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Almost two years since this chart was created, Trust has continually proven to be a successful business strategy that may significantly impact a company\u2019s profits over the long-term. <\/a><\/span>Share on X<\/a><\/span><\/p>\n

Our Corporate Integrity Monitor<\/a> provides additional insights into America\u2019s most trustworthy companies.<\/p>\n

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Interested in learning more? <\/strong><\/p>\n

Buy our books<\/strong><\/a><\/p>\n

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or contact Barbara Kimmel: Barbara@trustacrossamerica.com<\/a><\/strong><\/p>\n

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Copyright \u00a9 Next Decade, Inc. All Rights Reserved. FACTS\u00ae 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.<\/p>\n