Corporate responsibility report gives low scores to Boston Scientific, TJX
Photo | Grant Welker
The TJX Cos. headquarters in Framingham
Last year, the Washington, D.C. nonprofit The Business Roundtable, an influential group of major corporate CEOs, made a watershed change to what they saw as their companies' missions, giving greater consideration to society and the environment and less on shareholders.
Just over a year after that August 2019 change, a new report is gauging how major corporations have stuck to that charge, especially during the coronavirus pandemic.
In Central Massachusetts, the two largest corporations by market capitalization — Marlborough medical device maker Boston Scientific and Framingham retail parent TJX Cos. — did not do too well. Oxford laser manufacturer IPG Photonics fared better.
TJX was ranked in the bottom quartile, and Boston Scientific was in the third quartile, according to the report Tuesday by KKS Advisors, a consultancy firm whose American headquarters is in Boston. KKS rated companies and placed them into one of four quartiles from best performance to worse, in large part based on how they've addressed inequality and the pandemic. KKS considered labor practices, customer privacy, human rights, community relations, access and affordability, selling practices, product labeling, and employee engagement, diversity and inclusion.
IPG Photonics landed in the second quartile as the third locally based company included in the report. Boston Scientific, IPG and TJX are among S&P 500 companies KKS Advisors used, along with major European counterparts, in the report. IPG didn't return a message seeking comment, while Boston Scientific and TJX declined to comment but pointed to recent actions their companies have taken.
Boston Scientific, for example, issued a statement affirming support for equality from its CEO and chairman, Mike Mahoney, in May following the death of George Floyd in Minnesota, where the company has a major presence. Boston Scientific said it would donate $2.5 million to help fight racism in its workplace and communities where it operates, $1 million to the The New Commonwealth Racial Equity and Social Justice Fund in Massachusetts, $250,000 to Greater Twin Cities United Way, and a matching program for employee donations of up to $500 per employee.
The company also announced, among other initiatives, a health equity initiative focused on raising awareness in four cities — Dallas, Detroit, Minneapolis and New Orleans — and empower health providers to reach more patients of color, fight inequities and address barriers to care.
TJX reopened its American stores after a spring closure with a requirement that workers and customers wear face coverings in accordance with local mandates. Stores were given reduced occupancy limits and protective partitions near cashiers, among other changes. TJX also suspended its dividend and share buybacks, which are sometimes controversial for prioritizing shareholders and earnings-per-share over other needs.
KKS' report highlighted some businesses that have done particularly well or poorly based on the firm's review. The Atlanta financial firm Invesco, for example, checks in regularly with employees in regards to coronavirus and 97% of its employees said it has prioritized their wellbeing in response to the pandemic. Amazon was rated poorly for its working conditions, particularly with positive virus cases, and for firing at least six employees who spoke out against the company's protocols.
KKS highlighted what it said were perceived gaps from the public between what the Business Roundtable proclaimed last year with social responsibilities and their actions. A survey by GlobeScan included in the report found 13% of respondents believing companies were being consistent in their messaging and their actions, and 8% thought the purpose of a company was to create profit and return value to shareholders, compared to creating value for all shareholders.
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