Most Environmentally and Socially Controversial Companies in October 2008

According to the reputational risk radar RepRisk, the top ten most environmentally and socially controversial companies in October 2008 were: Sanlu, Yili, Wal-Mart, BAE Systems, Chevron, BP, Exxon
Mobil, Fonterra, Shell, and Monsanto. Last month’s rankings were heavily influenced by the contaminated Chinese milk powder scandal, and this month, according to RepRisk, the industry will see a number of these companies on the top ten list
as they continue to be criticized in the media.

Companies on the list have also been severely criticized by the world’s media and NGOs for issues including human rights abuses, severe environmental violations impacts on local communities, corruption and bribery, and breaches of labor, health and safety standards.

Rankings are based on the Reputational Risk Index (RRI), as measured by RepRisk in October of this year. RepRisk does not measure a firm's overall reputation. Instead, by capturing criticism, RepRisk provides an indicator of reputational risk. RepRisk is used by asset owners and asset managers, commercial and investment bankers, and supply chain managers and corporate responsibility experts.

The three environmental and social issues for which the ten companies were criticized most were:

1. Impacts on Ecosystems/Landscapes
2. Products (Health and Environmental Issues)
3. Impacts on Communities

The RRI ranges from zero (lowest) to 100 (highest) and its calculation is based on the reach of news sources, the frequency and timing of news, as well as its content, i.e. severity and novelty of the issues addressed. The RRI is an indicator of a company's exposure to controversial issues and allows an initial assessment of risks which are attached to investments and business relationships. It also allows the exposure of an entity to be compared with that of its peers and permits risk trends to be tracked over

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Source: RepRisk

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