How the Motley Fool Ranks Companies:
Overall, 1,700 companies were considered eligible. These included all America-based companies with at least $200 million in market capitalization and a five-year history as a public company.
Here's some more detail on how each of the four stakeholder scores was calculated.
Investor (28.3% weighting)
Investor scores were based on data from S&P Capital IQ:
- 5-Year Median Return on Capital (2/3 weight)
- 5-Year Total Revenue Growth (1/3 weight)
- Must have a 5-year total return among the top 4/5 of eligible companies (i.e. greater than -13%)
- Forward-looking competitive pressures, governance, and capital allocation history were also considered in the “investor” category.
Customer (28.3% weighting)
Customer scores were determined by:
- Wratings customer surveys of customer expectations in nine different areas relating to fair pricing, leadership, and uniqueness
- As well as data from:
- American Customer Satisfaction Index
- Satmetrix US Consumer NPS Benchmark Study 2012
- Interbrand 2012 rankings
- Industry-specific data from company 10-K filings
Employee (28.3% weighting)
Employee scores were determined by:
- Glassdoor data measuring employees’ willingness to recommend their employer to a friend, as well as employee satisfaction with career opportunities, compensation and benefits, senior leadership, work-life balance, and culture and values
- LinkedIn proprietary data measuring the most sought-after employers relative to their reach
World (15% weighting)
“World” scores assess companies’ impact on the wider world, calculated as the sum of purpose, philanthropy, and sustainability scores.
- Purpose (4 points available):
- Offers products and services that fundamentally make the world a better place (3 points)
- Offers useful, necessary, or desired products and services (2 points)
- Offers mildly harmful products and services (0-2 points), taking into account any measurable and effective steps intended to limit their harmfulness
- +1 bonus for revolutionary products, services, or business models
- -1 deduction for gratuitous tax evasion, poor corporate and executive compensation governance
- Philanthropy (3 points): Charity, community, or pro bono contributions and effectiveness relative to company market capitalization
- Sustainability (3 points): Environmental record, human rights and labor practices, and record of improvement