…are mostly not Indian L. 4 of Top 6 Most respected companies are Indian subsidiaries of global non-Indian companies – Google India being No. 1, Microsoft No. 4, BMW India No. 5, Merc-Benz is No. 6. Only the two Indian IT stalwarts, Infosys and TCS grab the Ranks 2 and 3 respectively. In the Top 25 companies, 9 are Indian subsidiaries (IBM, Amazon, Honda, Samsung, Coke being the remaining 5), 5 are PSUs. Of the remaining 11 in the Top 25, I am counting HUL, ITC, L&T as Indian companies!! 3 of the 8 Indian-Indian companies are Tata group companies – TCS, Steel, Motors. Rest being Infy, Sun Pharma, HDFC Bank, Apollo Hospitals and Raymond.
This are the findings of a Survey of Most respected Companies in the latest Business World.
Coming to the methodology of measuring “Respect” : 350 companies were selected across 20 Sectors based on financial strength. >500 expert respondents in senior management positions across multiple companies (not necessarily working in these companies) rated companies OF THEIR SECTOR on 8 parameters (more on these below) to select 107 companies. These 107 companies were presented to the respondents again in Phase 2, and each selected Top 10 companies – for his selected Top 10 companies, the respondent rated again on the 8 parameters. Hence, each company had a Base of people who decided that this company was in his Top 10. And then an average rating for each of the 10 parameters (on scale of 0-10). Total of the average ratings was the RESPECT SCORE for that company.
So, the survey suffers from being based on perception of Respondents, and not on hard data as some other surveys are based on. Further, it’s tough to discern whether the Base is more important or the Average Rating (number of people who thought that the company was in top 10 vs Average rating itself).
Break-down of components of Respect : The eight parameters which are supposed to comprise Respect are as follows :
- Quality & depth of Top Management
- Financial Return to shareholders
- Ethics and Transparency
- Quality of Products and Services
- People Practices / Talent Management
- Global Competitiveness
- Technological Prowess.
I would have liked inclusion of a few more parameters – “Environmental contribution”, “social / societal impact”.
Returning to a few more of the findings :
- When 500 people were asked for Top-of-mind “Most Respected Company”, TCS was No. 1, followed by Infosys, Google India.
- Similarly, Least Respected companies were Kingfisher Airlines and Sahara Group (some confusion about RIL being in both Lists).
- In Ethics and Transparency, 3 of top 5 companies were Tata companies. Infosys is No. 1 in Quality & depth of top mgt. Rest, on all other 7 parameters, Google India is No. 1.
- Sectoral Toppers were (based on Total Base of people terming it as Top 10) are : Raymond in Apparel, Maruti Suzuki, Jet Airways, HDFC Bank, Samsung India, NIIT, Flipkart, HUL, Apollo Hospitals, ITC Hotels, L&T, Tata Steel, LIC Housing Finance, RIL, Sun Pharma, DLF, Shoppers’ Stop, Infosys, Airtel.
So obviously, Respect has to be earned, and it is a tough job. Indian companies have to work harder to do that. All the best, and kudos to all winners…