Freddie Mac among “Best corporate citizens”

Freddie Mac is listed among the 100 Best Corporate Citizens for 2006, a list compiled by Business Ethics magazine for the eighth time, and also published in CRO magazine for the first time. The 100 Best Citizens are selected out of approximately 1,100 publicly held U.S. companies included in the Russell 1000, S&P 500 and Domini 400 indices. The statistical analysis was designed by Sandra Waddock and Samuel Graves of Boston College. KLD Research & Analytics, an independent investment research firm in Boston, collects data on each company and assigns points for strengths and weaknesses in 8 categories: community, corporate governance, diversity, employee relations, environment, human rights, product and total return on investment (averaged over three years). Each category is given equal weight in the final scoring. Issues like environmental protection, human rights, and serving the community in both traditional and innovative ways are of special importance in compiling the list.

Freddie Mac ranks 28th, followed by Google Inc. (number 29) and 3M Co. (number 30). One of its rivals, Wells Fargo & Co., ranks way lower, landing at number 46. Corporate responsibility and serving the community are among Freddie Mac’s top priorities, one of its major aims being providing affordable housing and low-cost loans. It seems the company’s efforts are being recognized and appreciated.

The “100 Best Corporate Citizens” doesn’t list perfect companies. Many of the corporations in it are involved in various scandals and have their own problems, but by acting as “good citizens” and showing responsibility for the environment, their employees and the world as a whole, they distinguish themselves from their peers. High standards and embracing social issues have ranked Freddie Mac among the top 100.

Well, the list did not present many surprises, but it was quite interesting to find out who ended up in the top 10. Here is the link: http://www.thecro.com/files/100BestGatefold.pdf. With increasing challenges predicted for 2007, let’s hope Freddie Mac maintains high performance standards and responsible practices.