Companies Excelling in Candor Substantially Outperform Market, by Rittenhouse
The top-quartile companies in the Rittenhouse Rankings 2012 Candor and Corporate Culture Survey™ outperformed the S&P 500 Index by 17.9 percent, increasing by an average of 34.2 percent. The bottom-ranked quartile’s year-over-year average increase was only 17.1 percent. Companies in the top-quartile of the Survey reporting the most improved market performance were: Eaton, Whirlpool, Citigroup, and Ford Motor Company. L.J. Rittenhouse, RittenhouseRankings CEO said, “These companies have created leadership communications that nurture accountability cultures, provide excellent context, and realize tangible results.”
Companies in the bottom quartile with the lowest returns were: AMD, Pitney Bowes, Dow Chemical, and Tim Hortons. “These companies,” noted Rittenhouse, “created communications that were less focused and relevant.” Companies posting the steepest declines in the 2012 rankings were: Google (4th to 50th), Lowe’s Corporation (16th to 45th) and Alcoa (2nd to 44th). Those gaining the most were 3M (64th to 13th), Lockheed Martin (71st to 21st) and SAP (74th to 24th).
The RittenhouseRankings’ representative survey sample of 100 Fortune 500 companies was selected ten years ago based on industry grouping, capitalization size and financial reputations. Candor is quantified systematically by awarding points for informative, relevant disclosure and deducting points for jargon, confusing statements and clichés.
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