Sid Cato—November 2001 Quiz Answers

(Answers for November 2001)

1. Most top annual reports are the product of one determined individual. True or false?
Answer: Try convincing Ford Motor Co. of that. It proudly submits its annuals accompanied by a transmittal letter signed by members of the team—in its case, eight team members responsible for Ford having the world's best report two years in a row. Both times, the annual report scored a perfect 135 points, accompanied by an equally admirable, 100% Cato Positive Index.

2. You never make mistakes, but if you did, you'd never admit it. True or false?
Answer: False, I'm glad to say—as with all responsible journalists, which category I'd like to think I belong to. For instance, when I criticized Knight Ridder for failing to fully caption its graphs, I overstated the case—and, accordingly, apologized in my November newsletter. Only six of its 16 graphs were uncaptioned, though that’s still in violation of our requirement: Each and every one must be explained fully—for the scanners among us, which is most readers.

3. More and more reports are achieving "world-class" status. That means, to some, you've lowered your standards. True or false?
Answer: Again, false. Fewer this year (so far) have scored at least 100 of a potential 135 points—31 vs. 42 at year's end among 1999 annuals. My standards remain consistent, though each year the bar is raised: Loopholes are closed, "the screws tightened," as I put it.

4. Many are convinced that when companies have been acquired, taken over by other corporations, thus no longer "important" to you, they immediately disappear from your radar screen. True or false?
Answer: Again, false. Take American General, recently acquired by American International Group, which I personally despise. Though AmGen can't do anything for me, no longer being a separate entity, I just reviewed its "close-but-no-cigar" 2000 document, said many nice things about it.

5. Everyone knows you suck up to major corporations—keep hands off criticizing the big players in the business. True or false?
Answer: Again, that's untrue. In my November newsletter, I cite 63 companies that pictured employees in their reports, but failed to identify each—as all executives of course are; it would be unheard of for any of the top brass to be allowed to remain anonymous. Among that despicable 63 are such big names as AB Volvo, BellSouth, BMW, British Petroleum, Chevron, ConAgra, Conoco, Dana, Dow Jones, SKF, Southern Co., Tribune Co., Wal-Mart and Wendy's. Guess you've been ill-advised.

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	1.	Most top annual reports are the product of one determined individual. True or false? *Answer:* Try convincing Ford Motor Co. of that. It proudly submits its annuals accompanied by a transmittal letter signed by members of the team—in its case, eight team members responsible for Ford having the world's best report two years in a row. Both times, the annual report scored a perfect 135 points, accompanied by an equally admirable, 100% Cato Positive Index.

	2.	You never make mistakes, but if you did, you'd never admit it. True or false? *Answer:* False, I'm glad to say—as with all responsible journalists, which category I'd like to think I belong to. For instance, when I criticized Knight Ridder for failing to fully caption its graphs, I overstated the case—and, accordingly, apologized in my November newsletter. Only six of its 16 graphs were uncaptioned, though that’s still in violation of our requirement: Each and every one must be explained fully—for the scanners among us, which is most readers.

	3.	More and more reports are achieving "world-class" status. That means, to some, you've lowered your standards. True or false? *Answer:* Again, false. Fewer this year (so far) have scored at least 100 of a potential 135 points—31 vs. 42 at year's end among 1999 annuals. My standards remain consistent, though each year the bar is raised: Loopholes are closed, "the screws tightened," as I put it.

	4.	Many are convinced that when companies have been acquired, taken over by other corporations, thus no longer "important" to you, they immediately disappear from your radar screen. True or false? *Answer:* Again, false. Take American General, recently acquired by American International Group, which I personally despise. Though AmGen can't do anything for me, no longer being a separate entity, I just reviewed its "close-but-no-cigar" 2000 document, said many nice things about it.

	5.	Everyone knows you suck up to major corporations—keep hands off criticizing the big players in the business. True or false? *Answer:* Again, that's untrue. In my November newsletter, I cite 63 companies that pictured employees in their reports, but failed to identify each—as all executives of course are; it would be unheard of for any of the top brass to be allowed to remain anonymous. Among that despicable 63 are such big names as AB Volvo, BellSouth, BMW, British Petroleum, Chevron, ConAgra, Conoco, Dana, Dow Jones, SKF, Southern Co., Tribune Co., Wal-Mart and Wendy's. Guess you've been ill-advised.