Peer admiration involves more than just profits and performance for India Inc.
Global management consultancy, Hay Group, in association with Fortune India, has released the findings of the second edition of India’s Most Admired Companies (IMAC) research. Business solutions major Tata Consultancy Services (TCS) has topped the ranking for 2013, followed by Hindustan Unilever (HUL), ITC, and Infosys rounding up the top three.
The study is based on a unique peer ranking methodology, which covered 493 companies across the economy’s 16 key sectors. A total of 552 respondents participated to rank their peers across a scale of ten parameters - corporate governance, endurance, performance, quality, financial soundness, innovativeness, leadership, talent management, social responsibility, and global business. Hay Group partners with Fortune globally, using a similar methodology, to develop the World’s Most Admired Companies.
TCS tops the list this year, replacing last year’s winner, group company Tata Steel, by scoring highest on parameters such as corporate governance, financial soundness, and talent management. Second-ranked FMCG HUL has been rated highest on its endurance and product quality, while ITC and Infosys share the joint third spot. SBI, L&T, Tata Steel, ONGC, Maruti Suzuki, and ICICI Bank also feature in the top ten (table 1).
Gaurav Lahiri, Managing Director, Hay Group India, comments, “Hay Group India is excited to roll out the second edition of India’s Most Admired Companies in partnership with Fortune India. This year, two criteria in particular, Leadership, and Creating Shareholder Value, separated the Top 10 from the rest of the winners, with Talent Management coming in a close third.”
Interestingly, last year’s top ten did not include any PSEs - accounted for by SBI and ONGC this year. ICICI makes its debut in the top ten this year, while Colgate Palmolive, Tata Motors, and Dell India all have slipped down the order compared to their ranking last year.
The study has also compiled sectoral rankings for 16 key industries – based on their performance on the ten evaluation criteria for the study.
A new addition to the 2013 study is the Endorsement list – where companies were ranked based on unprompted endorsements by peers. This ranking threw up some surprises and, in many cases, differed from the overall rankings – for instance, HUL tops this list, followed by TCS and Infosys. Bharti Airtel, ranked 19th in the overall rankings, featured at 11th place in the Endorsements section, while Cisco Systems India appeared at 26, a big leap from its overall ranking of 40.
Adds Gaurav Lahiri, “As demonstrated by the IMACs, in today’s uncertain business environment, it is more important than ever for organizations to create shareholder value through good leadership and talent management practices.”
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