The telecommunication sector is less controversial than others but has to increase its offering of sustainable products and services for being a leader, according to a report released today by Geneva-based ethical research firm Covalence EthicalQuote.

Historically, the telecommunication sector has registered a clear majority of positive news. Again, in the Sep 2009 – Aug 2010 period, it showed a very good ratio of 1,327 positives versus 301 negatives. However, as it gets a relatively small volume of information, it only ranks 8th out of 18 sectors. Automobiles, Technology, or Food & Beverage register larger volumes of news and manage to register higher EthicalQuote scores, even if they may be more controversial in absolute terms (more negatives).

While telecommunication companies are strong on philanthropy, charity giving, and community investments, they show a weak amount of positive news on products compared to the 18 sectors; this phenomenon is expanding each year.

The challenge for these companies is to explore new ways to valorize the social and environmental value of their services as well as that of their related products. Here are examples: services helping elderly people at home; improving the availability of anti-malarial drugs in remote areas of Tanzania; SMS for HIV/AIDS-related social marketing; facilitating internet use in developing countries; bringing greater broadband access to Africa; e-government; requirement of greener products from manufacturers of mobile devices; facilitating recycling of electronic devices; code of conduct to help consumers understand contracts; protecting children and teens from Internet abuses.

As masters of internet access, telecommunication companies have the power to initiate and require smart uses of the web. They can associate their services to many different sustainable products and initiatives that rely on online facilities. They can be crucial actors in cross-sector partnerships. Being in a services sector is not a barrier to sustainable innovation!

More information about Covalence Telecommunication Sector Report 2010:

> Report Extract

> Offer & Order Form

> Press Release (.pdf)

About Covalence

Covalence runs EthicalQuote, the ethical reputation scoring system and CSR news database tracking the world’s largest companies. We produce the widely recognized Covalence EthicalQuote Ranking and offer reputation research and ESG ratings to corporates, investors, and non profits.

Covalence research is also available on Bloomberg: COVA <GO> ; Capital IQ: Covalence SA, Research Division; TheMarkets.com: Covalence.

The EthicalQuote scoring system has brought the following recognitions and awards to Covalence:

• Ethisphere 2009’s 100 Most Influential People in Business Ethics
• Finalist Social Entrepreneur of the Year 2005 Switzerland
• Prix cantonal du développement durable 2004 (Geneva)

The EthicalQuote scoring system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as labour standards, waste management, product social utility or human rights policy. It is a barometer of how multinationals are perceived in the ethical field.

Inspired by stock quotes, EthicalQuote integrates thousands of positive and negative news items found among media, companies, blogs, NGOs and other online sources. The documents are coded, quantified and synthesized into curves and volumes.

Covalence is a limited company based in Geneva, Switzerland, founded in 2001.

Press contact

Covalence SA Antoine Mach, Direction & Research

Tel: +41 (0)22 800 08 55; antoine.mach@ethicalquote.com

Sales contact

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@ethicalquote.com

French version

The ethical reputation of banks shows a smaller progress than other sectors, according to the Covalence Banking Sector Report 2010 released today. The reasons are a low volume of positive news regarding products, as well as criticisms related to remunerations and gender discriminations.

After two years of sharp decline, the EthicalQuote calculated for the banking sector has recovered an ascending path. However, most other sectors having shown a better performance over the last year, banks only rank 14th out of 18 sectors in the July 2009 to June 2010 period. Looking at the 2002 – 2010 (June) time frame, the Banking sector is ranked in 10th place. Back in 2007 Banks were ranked 2nd. The current leader is Technology, while Oil & Gas is last.

The Impact of Product criteria group only represents 16% of positive news registered on Banks, against 37% for the 18 sectors benchmark. This group covers criteria such as Eco-Innovative Product, Socially Innovative Product, Product Human Risk, or Product Environmental Risk. Banks are shy in demonstrating the social utility of their products and in presenting their innovations in this field. In most other sectors, sustainable products are central to corporate communication, notably: cleantech, green and fair trade labelling in the food industry, or green cars.

Many banking activities can be described in terms of contribution to sustainable development. But banks don’t use these terms much. What inhibits ethical innovations in this sector? The low level of criticisms targeting banks’ products can be interpreted as a lack of incentives. Secondly, bankers seem to consider that highlighting their sustainable products may be counterproductive to the serious, conservative, cautious, and money-oriented corporate culture and image they show to their clients.

Private and institutional investors are also responsible for the cautiousness of banks regarding products with added social and environmental value. They are primarily interested in preserving and growing their assets. Research shows that investing ethically doesn’t necessarily generate a sacrifice of financial performance; Environment, Social and Governance ratings constitute useful risk management tools. However, the cultural background of Western societies doesn’t help banks to endorse and promote sustainable products, nor does it help pressure groups to encourage banks on this way, and clients to demand these products. We are not used to associate money and good in the same thought.

Other factors have weighted negatively on the ethical reputation of banks last year. Next to the usual suspects (tax issues), Wages was the most active criteria. CEO compensation, traders’ bonuses, and the differential between the highest and the lowest salaries within banks have been abundantly criticized. This report also highlights an increasing amount of negative comments about the status of women at work (discrimination on wages and promotions, a work atmosphere described as unfriendly to women). The wages and women issues, together, constitute one of the most dangerous combinations for the ethical reputation of banks.

On the positive side, banks registered the most points on social sponsorship (philanthropic donations, community investments) and on climate change mitigation. After the 2007 green boom the Climate Change issue remained almost silent during the financial crisis from 2008 to mid-2009. Since then it has recovered its visibility and contribution to the responsible image of the banking sector and of its leaders.

Some banks are less shy than others in their offering of sustainable products, which allows them to score well in Covalence EthicalQuote Ranking. For example, they communicate on their involvement in microfinance and renewable energy projects, on interest rates favorable to green buildings, or on their signing of the UN Principles for Responsible Investment.

Covalence Banking Sector 2010 analyses and compares the ethical reputation of 29 international banks, internally as well as against the 18 sectors benchmark covering 581 large companies.

The challenge for banks is to add a progressive touch, if not a progressive turn, to their identity, culture, strategy and image, while maintaining a high level of confidence in their customers’ minds. In a competitive environment where beating the market is knowingly difficult, sustainable investments can be a strong differentiator, but it needs subtle educational efforts to demonstrate to asset managers and to their clients that it is compatible with their financial priorities.

More information about Covalence Banking Sector Report 2010:

> Report Extract

> Offer & Order Form

> Press release (.pdf)

About Covalence

Covalence runs EthicalQuote, the ethical reputation scoring system and CSR news database tracking the world’s largest companies. We produce the widely recognized Covalence EthicalQuote Ranking and offer reputation research and ESG ratings to corporates, investors, and non profits.

Covalence research is also available on Bloomberg: COVA <GO> ; Capital IQ: Covalence SA, Research Division; TheMarkets.com: Covalence.

The EthicalQuote scoring system has brought the following recognitions and awards to Covalence:

• Ethisphere 2009’s 100 Most Influential People in Business Ethics
• Finalist Social Entrepreneur of the Year 2005 Switzerland
• Prix cantonal du développement durable 2004 (Geneva)

The EthicalQuote scoring system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as labour standards, waste management, product social utility or human rights policy. It is a barometer of how multinationals are perceived in the ethical field.

Inspired by stock quotes, EthicalQuote integrates thousands of positive and negative news items found among media, companies, blogs, NGOs and other online sources. The documents are coded, quantified and synthesized into curves and volumes.

Covalence is a limited company based in Geneva, Switzerland, founded in 2001.

Press contact

Covalence SA Antoine Mach, Direction & Research

Tel: +41 (0)22 800 08 55; antoine.mach@ethicalquote.com

Sales contact

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@ethicalquote.com

English version

La réputation éthique des banques progresse moins que celle des autres secteurs, observe la société genevoise Covalence dans son Banking Sector Report 2010. En cause, un faible volume d’informations positives sur les produits, ainsi que des critiques sur les rémunérations et sur le statut des femmes en entreprise.

Après deux ans de fort déclin, la courbe de cotation éthique calculée pour le secteur bancaire a retrouvé une pente ascendante. Toutefois, comme les autres secteurs ont presque tous enregistré une meilleure performance l’an passé, les banques ne se classent que 14ème sur 18 sur la période juillet 2009 – juin 2010. Considérant la période 2002 – 2010 (juin), le secteur bancaire se classe 10ème. En 2007, il atteignait la 2ème place. Le secteur technologique occupe actuellement la tête du classement, alors que les pétroliers sont derniers.

Le groupe de critères Impact du Produit ne représente que 16% des informations positives collectées sur les banques, contre 37% pour la moyenne des autres secteurs. Ce groupe comprend des critères comme Produit socialement innovant, Produit écologiquement innovant, Risque du produit pour l’homme ou Risque environnemental du produit. Les banques sont timides dans la démonstration de l’utilité sociale de leurs produits et dans la présentation de leurs innovations en la matière. Dans la plupart des secteurs, les produits durables sont au cœur de la communication des entreprises. Pensons ainsi aux clean tech, à la nutrition et aux labels verts et équitables dans le secteur alimentaire, ou encore aux innovations écologiques dans l’automobile.

De nombreuses activités bancaires peuvent être décrites en termes de contributions au développement durable. Mais les banques utilisent peu ces termes. Qu’est-ce qui inhibe l’innovation éthique dans ce secteur? Le faible niveau de critiques visant les produits des banques peut être considéré comme un manque d’incitations. Deuxièmement, les banquiers semblent considérer que la mise en avant de leurs produits durables se ferait au détriment de la culture d’entreprise et de l’image sérieuse, conservatrice, prudente et orientée vers l’argent  qu’ils montrent à leurs clients.

Enfin, les investisseurs privés et institutionnels sont aussi responsables de la prudence des banques à l’égard des produits à valeur sociale et environnementale ajoutée. Ils sont d’abord intéressés à préserver à et accroître leur capital. Certes, la recherche montre que l’investissement éthique n’implique pas forcément un sacrifice financier; et la notation Environnement, Social, Gouvernance s’affirme comme un outil de gestion des risques. Cependant, l’héritage culturel des sociétés occidentales n’aide pas les banques à promouvoir des produits durables, il n’aide pas non plus les groupes de pression à encourager les banques sur cette voie, ni les clients à demander ces produits. Nous ne sommes pas habitués à associer argent et morale dans la même pensée.

D’autres facteurs ont pesé négativement sur la réputation éthique des banques au cours de l’année écoulée. A côté des suspects habituels (affaires fiscales), le critère Salaires a été le plus actif. Rémunérations des dirigeants, bonus des traders et différentiels entre haut et bas salaires ont été abondamment critiqués. Ce rapport relève aussi une croissance des commentaires négatifs sur le statut des femmes en entreprise (discrimination en matière de salaires et de promotion, environnement de travail démobilisant). Le thème des salaires et celui des femmes constituent une combinaison dangereuse pour la réputation éthique des banques.

Du côté des informations positives, les banques marquent le plus de points sur le sponsoring social (donations philanthropiques, investissements communautaires), et sur les initiatives liées au changement climatique. Après le boom vert de 2007, le thème du changement climatique a été très discret durant la période de crise financière de 2008 à mi 2009. Depuis, il a repris de sa visibilité et contribue à nouveau à une image responsable du secteur bancaire et de ses leaders.

Certaines banques sont moins timides que les autres dans leur offre de produits durables, ce qui leur permet de bien figurer dans le ranking éthique de Covalence. Elles communiquent par exemple sur leur implication dans la microfinance et la production d’énergie renouvelable, sur des taux d’intérêt favorisant les constructions écologiques, ou sur leur adhésion aux Principes des Nations Unies pour l’Investissement Responsable.

Le Covalence Banking Sector Report 2010 analyse et classe la réputation éthique de 29 grandes banques, de manière interne et en comparaison avec 18 secteurs comprenant 581 sociétés multinationales.

Aujourd’hui, le défi pour les banques est d’apporter une touche progressiste, si ce n’est un virage progressiste, à leur identité, culture, stratégie et image, tout en maintenant un haut degré de confiance dans l’esprit de leurs clients. Dans un environnement concurrentiel où l’on admet qu’il est très difficile de battre le marché, l’investissement éthique peut être un bon différentiateur, mais il nécessite de subtils efforts d’éducation pour démontrer aux gérants de fortune et à leurs clients qu’il est compatible avec leurs priorités financières.

Plus d’information sur le Covalence Banking Sector Report 2010:

> Report Extract

> Offer & Order Form

> Communiqué de presse (.pdf)

A propos de Covalence

Le système de cotation éthique de Covalence est un indice de réputation basé sur une quantification de données qualitatives, qui sont classées d’après 45 « Critères de contribution des entreprises au développement humain » tels que  Avantages sociaux, Utilité sociale du produit,  Gestion des déchets ou Politique des droits de l’homme. C’est un baromètre de la perception des multinationales dans le domaine éthique.

Ce système intègre des milliers de documents collectés parmi les médias, entreprises, ONG et autres sources, pour produire les courbes de cotation éthique (EthicalQuote). Ces courbes mesurent l’évolution historique de la réputation des entreprises sur les enjeux éthiques. Elles sont données par l’addition cumulée des informations positives (documents codés comment “offre éthique”, valeur +1, la courbe monte) et des informations négatives (“demandes éthiques”, valeur -1, la courbe descend).

Cet outil a été primé en 2004 – Prix cantonal du développement durable, Genève, et il a permis à la société Covalence de figurer parmi les finalistes du concours l’Entrepreneur Social de l’Année 2005, organisé par la Fondation Schwab, ainsi que parmi les Ethisphere 2009’s 100 Most Influential People in Business Ethics.

Covalence pratique une veille d’information systématique sur 18 secteurs comprenant 581 entreprises classées parmi les plus grandes capitalisations boursières dans le Dow Jones World Sector Titans Index.

Covalence SA a été fondée en 2001 à Genève par six personnes issues des sciences sociales et de la finance.

Contact presse

Covalence SA Antoine Mach, Direction & Recherche

Tel: +41 (0)22 800 08 55; antoine.mach@ethicalquote.com

Contact vente

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@ethicalquote.com

On the other side, the Impact of Product criteria group received the most compliments and the highest ratio (6.5) – the most active criteria were: Information to Consumers, Eco Innovative Product, and Product Environmental Risk.

Sectors which are the most represented among leaders of Covalence EthicalQuote Ranking (first quintile, grade A) are: Technology, Food & Beverages, Retail, and Personal & Household Goods. Sectors which are the least  represented are: Media, Insurance, Basic Resources, and Oil & Gas.

Companies generating the highest volume of information during the last quarter are : BP, Wal-Mart, Ford, Google, and Hon Hai Precision Industry (Foxconn).

3 Technology and 2 Food & Beverage companies currently lead CovalenceEthicalQuote Ranking across sectors.

Covalence EthicalQuote Ranking tracks the ethical reputation of 581 large companies within 18 sectors. It combines the EthicalQuote (measure of popularity) and the scores calculated in each criteria group (measure of diversified performance).

Companies are ranked within each sector, as well as on a cross-sector basis. This ranking is built on web-based public information. Calculation starts in 2002.

More on Covalence EthicalQuote Ranking Q2 2010:

Covalence EthicalQuote Ranking has been published annually and quarterly since 2005. From July 2010 on, the results of Covalence EthicalQuote Ranking are available in the Ethical Snapshots which can be purchased on a single basis or as annual subscription, for a company, a sector, or the entire universe.

• Ethical Snapshots

• Press Release (.pdf)

About Covalence

Covalence runs EthicalQuote, the ethical reputation scoring system and CSR news database tracking the world’s largest companies. We produce the widely recognized Covalence EthicalQuote Ranking and offer reputation research and ESG ratings to corporates, investors, and non profits.

Covalence research is also available on Bloomberg: COVA <GO> ; Capital IQ: Covalence SA, Research Division; TheMarkets.com: Covalence.

The EthicalQuote scoring system has brought the following recognitions and awards to Covalence:

• Ethisphere 2009’s 100 Most Influential People in Business Ethics
• Finalist Social Entrepreneur of the Year 2005 Switzerland
• Prix cantonal du développement durable 2004 (Geneva)

The EthicalQuote scoring system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as labour standards, waste management, product social utility or human rights policy. It is a barometer of how multinationals are perceived in the ethical field.

Inspired by stock quotes, EthicalQuote integrates thousands of positive and negative news items found among media, companies, blogs, NGOs and other online sources. The documents are coded, quantified and synthesized into curves and volumes.

Covalence is a limited company based in Geneva, Switzerland, founded in 2001.

Press contact

Covalence SA Antoine Mach, Direction & Research

Tel: +41 (0)22 800 08 55; antoine.mach@ethicalquote.com

Sales contact

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@ethicalquote.com

Technology companies are portrayed as the most ethical businesses in the world by the media, according to a survey released April 15. Covalence, a Swiss firm that tracks the ethical reputation of multinational companies, says that IBM, Intel and Cisco were the most ethical companies in the world in the first quarter of 2010. The list is compiled by monitoring news output and media mentions around such subjects as attitude to the Haiti earthquake, product environmental risk, human rights policy and social stability. Overall, technology companies accounted for half of the top ten, with Xerox and Dell taking ninth and tenth place respectively. Chip-maker Cisco and Pepsico, the beverage giant, entered the top ten for the first time.

Source: The Independent

Companies may purchase a license granting them the right to communicate and distribute Covalence’s results, graphic material and logo.

For more information, please contact: Marc Rochat, Marketing & Sales, marc.rochat@ethicalquote.com; phone: +41 (0) 22 800 08 55

Product news by Covalence

Companies may purchase a license granting them the right to communicate and distribute Covalence’s results, graphic material and logo.

For more information, please contact: Marc Rochat, Marketing & Sales, marc.rochat@ethicalquote.com; phone: +41 (0) 22 800 08 55

Companies may purchase a license granting them the right to communicate and distribute Covalence’s results, graphic material and logo.

For more information, please contact: Marc Rochat, Marketing & Sales, marc.rochat@ethicalquote.com; phone: +41 (0) 22 800 08 55

Pharmaceutical companies involved in consumer health activities achieve the best ethical reputation, states Geneva-based Covalence in its latest Health Care Sector Report.

Among the seven leaders of the Covalence ethical ranking in the health care sector, five companies are following a diversified business strategy and operate in consumer health (such as over-the-counter drugs, eye and dental care, anti-obesity treatments): GlaxoSmithKline, Bristol Myers Squibb, Novartis, Abbott, and Johnson & Johnson.

These 5 companies have communicated towards the general public on topics such as Social Sponsorship, Climate Change, and Community.

Future success for diversified Health Care companies will be driven by their ability to create brand loyalty through strong ethical behavior. These companies are also subject to special risks due to the extended reach of their products. Sound consumer information and marketing practices are essential to allow for appropriate selection and self medication.

Comparing the EthicalQuote scores of 18 sectors in the 2002 – 2009 (July) time frame, the Health Care sector is ranked as number 8, while Technology Hardware and Automobiles & Parts are leading.

The Health Care sector experienced a decline from August 2008 to July 2009, reaching the 12th rank among 18 sectors. Some explanations for this ranking are:

- Negative coverage on issues such as Product side-effects and risks; Legal issues; Marketing practices; Child issues

- On a cross-sector comparison, Health Care puts little focus on climate change mitigation

- Health Care companies should increase communication related to working conditions

- Most companies found their environmental efforts undermined by the negative coverage related to the economic downturn and following job cuts

- Blogs are a major generator of criticisms targeting the Health Care sector

Covalence Ethical Ranking for 31 companies in the Health Care sector, with data spanning the 2002 – 2009 (Jul) period: GlaxoSmithKline is the top company (#27 across 18 sectors and 541 companies), ahead of Bristol Myers Squibb (#34) and Novartis (#53), while Gilead Sciences Inc (#515), Schering Plough (#478), and Wyeth (#453) occupy the last ranks.

More information on Covalence Health Care Sector Report 2009:

> Extract: Covalence Health Care Sector Report 2009

> Press Release (.pdf)

About Covalence

Geneva-based Covalence tracks the ethical reputation of multinationals by sourcing online information. We publish ethical rankings and offer reputation management products to clients among companies, investors and institutions, while informing researchers and the media > Covalence in the news.

Covalence’ s ethical quotation system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as Labour standards, Waste management, Product social utility or Human rights policy. It is a barometer of how multinationals are perceived in the ethical field. The system integrates thousands of documents found among media, companies, blogs, NGOs and other sources.

This tool received the Cantonal Sustainable Development Prize (Geneva) in 2004 and prompted Covalence among the finalists of the Social Entrepreneur of the Year 2005 award organised by the Schwab Foundation. Covalence research is also distributed by Reuters, Thomson Financial and Bloomberg.

Covalence is closely monitoring 18 sectors including 550 companies that are classified as the largest market capitalizations in the Dow Jones World Index. Covalence is a limited company that was founded in Geneva in 2001 by six persons with political science and finance backgrounds.

Press contact

Covalence SA Antoine Mach, Direction & Research

Tel: +41 (0)22 800 08 55; antoine.mach@covalence.ch

Sales contact

Covalence SA Marc Rochat, Marketing & Sales

Tel: +41 (0)22 800 08 55; marc.rochat@covalence.ch