American Values Investments, Inc.

Finding value in America's values

Scoring Policy Details 

 

Home
Reports
Research Philosophy
Scoring Criteria
Research Staff
Login

Scoring Policy Details

Foundational Values

Fiscal Responsibility

Standard: The Company should conduct its operations in a fiscally responsible manner with the goal of long-term growth and stability.  The Company should not assume an excessive debt load.

Scoring:

  • Level of debt assumed by the company 
  • Long-term debt / Equity vs. Industry
  • Operating cash flow / Long-term debt vs. Industry
  • Stability of earnings, growth and returns 
  • Earnings growth – 5 year vs. Industry
  • Stability – r-squared of 5-year earnings vs. Industry
  • Degree of reinvestment in the Company
  • Capital Expenditures / Depreciation v. Industry
  • Long-Term Growth Strategy
  • CEO Compensation vs. Industry
  • Top Three Compensation vs. Industry
  • Stock Price: 5-year change vs. industry

Servant Leadership

Standard: Management should be seen more as a helping hand rather than merely an authoritative source.  Management policies should allow for and encourage employee input into decision-making.

Scoring:

  • Direct evidence of principles of servant leadership
  • Degree of employee participation in decision-making process
  • Flexibility of management structure
  • Presence of faith-based leadership

Senior Management’s Commitment to Values

Standard: Public evidence of senior management’s commitment to values will be evaluated.  This evidence will include, but not be limited to, media or analyst interviews, public statements, publications, personal conduct, and corporate documents. Corporate principals membership and support of values-based organizations will also be evaluated.

Scoring:

  • Direct evidence of management’s commitment to values
  • Public expression of management’s commitment
  • Corporate principals membership in a values-based organization
  • Depth of management commitment to values
  • Pervasiveness of values in all levels of management activities

Mission and Values in Corporate Culture

Standard: Values and principles must be clearly evidenced to be of high importance to corporate leaders.  The ideal Company will include values training in new-hire or recurring employee training programs and the values of the Company will be readily surmised by an objective observer of the Company’s business actions and corporate conduct. Corporate membership in values-based organizations will also be evaluated.

Scoring:

  • Direct evidence of values inclusion in corporate culture
  • Public expression of values through corporate actions
  • Values training for employees
  • Ethics in corporate actions
  • Corporate governance
  • Corporate membership in values-based organizations

Mission/Values/Vision Statement

Standard: The Company must have a stated, defined, published mission statement and/or values statement and/or vision statement.  Profits should not be the focus of any of these statements.  Such statements must be consistent with traditional American values.

Scoring:

  • Presence of mission/values/vision statement
  • Clarity of vision/purpose
  • Inclusion of values
  • Detail
  • Substance

Internal Values

Support for Family Life

Standard: The ideal Company will provide services for employees such as day care and childhood development services, generous family leave programs, chaplain service, and other family-oriented programs and resources.

Scoring:

  • Faith-friendly corporate atmosphere
  • Provision of family-friendly benefits for employees
  • Support for programs that promote family life
  • Provision of products/services that enrich family life
  • Nature and scope of family leave programs
  • Public recognition of family-friendly programs/services

Continuous Improvement

Standard: The Company should be committed to a process of continuous improvement.  The Company should solicit and encourage customer feedback and act on trends and issues raised by such.  An evaluation will be made of the Company’s record of product and process improvement.

Scoring:

  • Presence of Total Quality Management Program or equivalent
  • Commitment to continuous improvement reflected in corporate practices
  • Record of introduction of new/improved products and processes
  • Company’s record of product and process improvement
  • Industry recognition of continuous improvement of products and processes

Quality of Products and/or Services

Standard: Products and/or services provided by the Company must provide superior value to the customer.  The Company should have standards in place to insure the continued provision of quality products and/or services.  Corporate participation in programs including external evaluation of products and/or services is a definite plus.  Customer perception of value and quality of products and/or services will be evaluated through the use of secondary and primary sources.

Scoring:

  • Customer perception of the quality of products and/or services
  • Recall history
  • Warranty/Guarantee policy
  • Presence of internal quality and control programs and internal standards for quality
  • Industry recognition of the quality of products and/or services

Employee Relations

Standard: The Company should be a ‘fun’ place to work and provide highly competitive benefits to its employees to include, but not be limited to, competitive wages, stock options, healthcare benefits, retirement benefits, education benefits, and relocation assistance.  An evaluation of employee loyalty will be made through the use of secondary and primary sources with the average length of employment/employee turnover rate taken into consideration.

Scoring:

  • Labor relations history
  • Competitiveness of employee wages
  • Employee benefits
  • Employee loyalty and morale

Teamwork

Standard: Corporation should utilize team process in core

corporate divisions – corporate strategy, quality control, etc. 

Scoring:

  • Use of team concept in management processes
  • Use of team concept in production processes

External Values

Giving

Standard: An evaluation of the commitment of the Company and senior management to supporting causes will be made using secondary and primary sources.  This evaluation will take into account the percentage of gross profits that is given, the nature and scope of the giving, and the nature of the recipient organizations.

Scoring:

  • Percentage of company profits donated to charitable causes
  • Nature and scope of giving
  • Nature of recipient organizations
  • Presence of matching-gift program

Community Relations

Standard: The Company should be involved in and support programs benefiting the local and extended community.  Company involvement and support should not be solely limited to financial contributions but should also include provision of personnel, facilities, and/or equipment.  The Company should encourage employee participation in such programs.  An evaluation of the community’s perception of the company will be made using primary and secondary sources.

Scoring:

  • Company’s degree of community involvement
  • Senior management's degree of community involvement
  • Company’s support of employee involvement

Environmental Responsibility

Standard: The Company should be cognizant of and taking steps to address any environmental concerns related to their industry.  Programs to reduce waste products, emissions, and energy consumption are expected of the Company. 

Scoring:

  • Environmental responsibility history
  • Environment-friendly programs and processes
  • Presence of recycling programs
  • Presence of environmental responsibility statement/policy

Customer Relations

Standard: The Company should have a fair return/refund policy in effect and have implemented an active program to proactively address customer complaints and concerns.  An evaluation of customer opinion of the company will be made using secondary and primary sources.

Scoring:

  • Return/refund policy (if applicable)
  • Customer complaint process (if applicable)
  • Customer opinion of the Company

Awards & Recognition

Standard: An evaluation of the Company will be made concerning the type, source, and scope of awards received. 

Scoring:

  • Awards and recognition received for products/services.
  • Awards and recognition received for values/community services.
  • Awards and recognition received for quality of life.

 

Finding Value in America's Values
Copyright ® 2003 American Values Investments, Inc.  All Rights Reserved.
1-800-722-1776
 

Site design by  iPlenus Solutions