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Making the List

This article accompanies Managing the Message.

Wednesday, December 10, 2014
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A good reputation is a prerequisite for becoming one of Fortune's Most Admired Companies. Inclusion on Human Resource Executive®'s "Most Admired for HR" list -- now in its 10th year -- requires another level of scrutiny.

The process of developing this definitive report card on corporate reputations begins when Philadelphia-based management consulting firm Hay Group teams up with Fortune to determine the "World's Most Admired Companies," which they've done since 1997. They started with the Fortune 1000 -- the 1,000 largest U.S. companies ranked by revenue and non-U.S. companies in Fortune's global 500 database with revenues of $10 billion or more. They then selected the 15 largest for each international industry and the 10 largest for each U.S. industry, surveying a total of 692 companies from 30 countries.

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To create the 57 industry lists, Hay Group asked 3,920 executives, directors and analysts to rate companies in their own industries on nine criteria, from investment value to social responsibility. To arrive at HRE's "Most Admired for HR" rankings, Hay Group recalibrated the Fortune numbers, isolating four criteria that have a bearing on HR -- management quality, product/service quality, innovation and people management.

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