By Ryu Jin
Staff Reporter
Hanwha Group has suffered a downfall in the latest ``Most Admired Companies’’ survey by Fortune magazine, as it finds its name on the lists of worst companies in seven categories out of nine such as innovation and global competitiveness.
According to the latest issue of the U.S.-based global business magazine, the South Korean conglomerate was placed at the bottom on lists of four attributes ― ``innovation,’’ ``product/service quality,’’ ``global competitiveness’’ and ``management quality.’’
Hanwha was also placed third from the lowest rank in three other categories ― ``community/environment,’’ ``people management’’ and ``use of assets,’’ according to the March 17 issue of the magazine.
Fortune releases the Most Admired Companies list as the definitive report card on corporate reputations around the world. Its partners at Hay Group started with the Fortune Global 500 and large companies with revenue in excess of $10 billion (roughly 9.64 trillion won).
In order to create the 26 industry lists, Hay asked executives, directors and analysts to rate firms in their own industry on nine criteria. So, the survey covers almost all management factors from investment value to social responsibility.
Scores are averaged to come up with industry rankings. A total of 345 companies in 26 industries and 25 countries were looked at this year, according to the magazine.
``Rivals are often the first to take notice of failures and the least likely to praise successes. Which is why securing a top spot on the list is a distinction worth celebrating,’’ the magazine wrote. ``It means a company’s toughest critics ― their peers ― consider them the best representatives of the industry.’’
Hanwha Group, one of the 10 largest conglomerates in South Korea with more than 20 affiliates, has tried to seek new growth engines through the global management.
However, the latest Fortune survey indicates that the group has some serious problems with its strategies for this.
``We can hardly understand this article, which lacked the basic requirements for a survey,’’ a group spokesman said. ``We have been improving continuously in terms of most criteria. So, we are trying to get some explanation from the magazine.’’
In the meantime, there was no South Korean enterprise included in the 50 Most Admired Companies list, which was based on the total sum of scores. Last year, Samsung Electronics ranked 34th.
By industry, POSCO took fifth place with 6.46 points among the ``Metals’’ sector, following ArceloMittal (7.74 points), Nippon Steel (6.87 points), ThyssenKrupp (6.76 points) and Alcoa (6.69 points).
Samsung Electronics and LG Electronics were ranked sixth and seventh places in the ``Electronics’’ sector with 6.86 points and 6.41 points, respectively. General Electric (GE) topped the category with 8.4 points.
Apple topped the 50 Most Admired Companies list, followed by GE, Toyota, Berkshire Hathaway and Procter & Gamble (P&G).