Proceedings of the International Association for Business and Society

Volume 11, 2000

Proceedings of the Eleventh Annual Meeting

The Problem of Inter-Rater Group Differences in the Fortune "Most Admired Companies" Survey
An Empirical Look Using Financial Performance Measures

This study takes a closer conceptual and empirical look at the issue of homogeneity among the groups of "judges" whose assessments make up the Fortune "Most Admired Companies" survey ratings and rankings. The study uses financial performance as a vehicle for examining differences between these respondent groups, and the empirical analysis shows that although many respondent groups do rely on companies' financial performances to develop their reputational rankings (and, therefore, their underlying ratings), approximately half of the groups appear to be relying on some other factor. The study therefore calls into question whether unadjusted Fortune "Most Admired Companies" ratings and rankings across industries provide valid and useful comparisons.