Sustainability Faceoff: Verizon vs. Sprint

Check out the full HIP Investor chart below.

  Verizon   Sprint  
Overview Wireless network serves 87.7 million customers; $97.4 billion revenue (2008), 235,000 employees   40 million customers, $35.6 billion revenue (2008), 56,000 employees  
Product
Through HopeLine, collects, refurbishes, and reuses cell phones to provide free phones and services to domestic violence victims; collected more than 1 million cell phones in 2008, up 6% from 2007
  The Samsung Reclaim is Sprint’s first eco-friendly phone designed with 80% recyclable components and 100% recyclable packaging  
Management
Practices
21 of 25: Corporate Responsibility Council establishes benchmarks and goals, assigns and enforces accountability, and measures and tracks results
  11 of 25:  Committed to balancing needs of customers and needs of communities in decisions for tower siting (some poles disguised as flag poles, light poles, pine or palm trees)  
Health

of 20%

Customer satisfaction is 70%; Verizon spent $3.7B in health care benefits, covering 835K employees, retirees and their dependents  8%  Customer satisfaction is 56%  5%
Wealth

of 20%

CEO’s salary is 391 times that of the average employee; long-term incentive plan is available to all employees, awarding stock-based compensation
13% CEO’s salary is 276 times that of the average employee; Employee Stock Purchase Plan available for “eligible” employees
14%
Earth

of 20%

Collected over 1.1 million recycled and refurbished phones in 2008
7% 20th largest purchaser of green power via EPA’s green power partnership for Fortune 500 challenge
9%
Equality

of 20%

Of 12 directors, 2 are female and 2 are ethnic minorities; 36 percent of Verizon’s employees are minorities (2008)
13% Of 10 directors, 1 is female 7%
Trust

of 20%

Spent $18 million on lobbying activity, but overall reported transparency is high and detailed, comprehensive and quantitative; nearly 7 times more lobbying spend, while only 3 times higher revenue
10% “Only” $2.6 million spent on lobbying activity in 2008 but several class action lawsuits for fees and reporting is not sufficiently quantitative
8%
Human Impact

TOTAL, of 100%

SummaryVerizon has the power and the drive to make an impact.
51%
Summary: Sprint is trying to good, but it might want to focus more on customer satisfaction.
44%
Corporate Profit

of 20%

+13.9% return on equity (2008)

+2.3% annualized total return, including reinvested dividends (6/2004-6/2009)

+3.3% annualized total return, including reinvested dividends (6/2006-6/2009)

  -13.4% return on equity (2008)

-20.8% annualized total return, including reinvested dividends (6/2004-6/2009)

37.6% annualized total return, including reinvested dividends (6/2006-6/2009)

 

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Author: Dewita

Co-founder Ecotwist Labs.

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