Forbes Names Nature’s Sunshine one of America’s Most Trustworthy Companies
Earlier this year, Forbes published its list of America’s 100 Most Trustworthy Companies, naming Nature’s Sunshine Products under its Micro-Cap category*. Being named to this list demonstrates that NSP is “a model of openness and integrity,” according to Forbes’ own description.
Nature’s Sunshine (NATR) is one of just four companies in the entire pharmaceuticals category to make it on the list. And we’re the only one that’s a direct selling company. Of the four, NSP also had the highest AGR score (92 out of 100).**
This honor further demonstrates NSP’s continuing commitment to integrity in every facet of its business practices.
How is such a list created?
Forbes relies on GMI Ratings (a global research pioneer) for help in ranking companies on the trustworthiness scale. GMI looks at 60 different governance and forensic accounting measures. Companies with the most accounting transparency, the lowest incidence of high-risk events and those that have appropriate Board supervision typically rank the highest. Other determining factors include penalties for excessive executive compensation, high turnover among management, high levels of short-term executive compensation, etc.
GMI examines over 8,000 publically traded companies and assigns a risk score quarterly. Companies on the top 100 list must have market caps of $250 million or more. And they may not have: amended filings with the Securities and Exchange Commission, SEC enforcement actions or material restatements.
*Micro-cap label is merely a measurement of market value. To be considered, companies needed $250 million market value (minimum) at the time of assessment.
**The AGR score is the accounting and governance risk score assigned by GMI and based on models that attempt to identify practices that tend to correlate with shareholder risk. Higher scores are associated with conservative business practices and, therefore, less risk.
For more information, visit http://www.forbes.com/sites/jacquelynsmith/2013/03/18/americas-100-most-trustworthy-companies/