ECONOMIC RECIPROCITY REPORT CARDS

The NAACP Economic Reciprocity Initiative (ERI) was launched in 1996 as a sustained consumer movement measuring corporate America’s commitment to African-American citizenry. Under ERI, consumer service companies have been surveyed for their economic impact on African American consumers and the results of the surveys have been released in Report Cards and Consumer Guides. To date we have surveyed the lodging, telecommunications, cable and banking industries.

The purpose of this project is to provide organizations and consumers with fundamental information on corporations and to guide consumers in making choices for products and services. The project is a measuring tool upon which consumers can rely to make informed choices about where to spend their dollars. It also provides a vehicle for the selected industry to measure itself for responsiveness to the given market. ERI is designed to serve as a catalyst for positive change.

ERI Methodology
All industries are measured for performance in the areas of (1) employment, hiring and promotions, (2) procurement/vendor relations (3) advertising/marketing opportunities and expenditures, and (4) charitable/philanthropic activity. Industry specific areas of measurement include (5) service deployment cable industry, (6) community service banking industry, and (7) equity ownership/franchise opportunities hotel industry.

GRADING CRITERIA
The criteria is based upon the percentage of the African-American population in the United States (13%). Through the year 2000, the following scale of measurement was used:

OVERALL RATING
Each rating (derived from a percentage of activity) has an associated point value. The points for each category are totaled and divided by the total number of line items in a category to derive the overall point standing. The overall position translates into an associated letter grade of A through F. For example, if a company scores 2.05 points, that number would translate into a letter grade of C based on the above table.

-------Automotive Report Card

The NAACP’s first survey on the automotive industry reveals some disturbing findings as it relates to minorities in the automotive industry. Ethnic minorities purchase more than twenty percent (20%) of new cars, certified used cars and related services. Ethnic minorities represent approximately thirty percent (30%) of the population in the United States and represent the fastest growing segment of the population in the United States. However, ethnic minorities only own a mere 5.22 percent (5.22%) of all new car dealerships in the United States. This report provides consumers with the tools for empowerment, enabling them to make the most of the choices available in the automotive industry.

NAACP AUTOMOTIVE REPORT CARD 2003

This is the first year of measuring the automotive industry. This report card focuses on the top ten automotive companies on the 2002 Global 500 list, the Global Most Admired Companies (2002 All-Star-Motor Vehicles) list and those companies that generate 30 million dollars or more in revenue a year. Ten automotive companies were included in this review and the industry has scored an overall grade of D+ (1.67).

a Includes Chrysler, Dodge, Jeep, Mercedes-Benz, MOPAR; b Includes Chevrolet, Pontiac, Buick, Oldsmobile, Cadillac, GMC, Saturn, Hummer, Saab; c Includes Ford, Lincoln-Mercury, Mazda, Volvo, Jaguar, Land Rover, Aston Martin; d Includes Honda, Acura; e Includes BMW, MINI; f Includes Nissan, Infiniti; g Includes Volkswagen, Audi; h Includes Toyota, Lexus, Scion.

-------Banking Report Card

This report comes at a time when studies show that the 1990’s and the first part of this millennium have been particularly prosperous for some minority groups. The aggregate buying power of the four leading minority groups (African Americans, Asian Americans, Hispanic Americans, and Native Americans) doubled between 1990 and 2001. This increased prosperity underscores the need for increased and informed savings and investing to ensure sustained economic growth for minority populations.

NAACP BANKING INDUSTRY REPORT CARD 2003

This report card focuses on full-service, large commercial banks with revenues of at least $5 billion. Twelve banks were included in this review and the industry has scored an overall grade of C (2.18).

* Did not respond to survey

NAACP BANKING INDUSTRY REPORT CARD 2002

This is the second year of measuring the financial services industry. This report card focuses on full-service, large commercial banks with revenue of at least $5 billion. Eleven banks were included in this review and the industry has scored an overall grade of 2.26 (C).

NAACP BANKING INDUSTRY REPORT CARD 2000

This is the first year of measuring the financial services industry. This report card focuses on full-service, large commercial banks with revenues of at least $5 billion. Fifteen banks were included in this review and the industry has scored an overall grade of C-.

* Did not respond to survey.

-------Lodging Industry Report Card

This report provides consumers with the tools for empowerment, enabling them to make the most of the choices they have in the continuingly changeable market of the lodging world. While the NAACP intends to keep monitoring the lodging industry for progress and advancement, consumers are encouraged to utilize this guide in making informed choices about where to spend and invest their dollars.

NAACP LODGING INDUSTRY REPORT CARD 2003

This is the sixth year of measuring the lodging industry. This report card focuses on the largest hotel chains in the industry, cross referenced with the hotels most often used by African American organizations and consumers for conventions and other gatherings. Twelve hotels were included in this review and the industry has scored an overall grade of C (2.44).

a Includes Marriott Hotels, Ritz-Carlton, Renaissance, Ramada International, Courtyard, Residence Inn, TownPlace Suites, SpringHill Suites, Fairfield Inn, Marriott Vacation Club Intl; b Includes Wyndham Luxury Resorts, Wyndham Hotels & Resorts, Wyndham Garden Hotels, Summerfield Suites; c Includes Comfort Inns, Comfort Suites, Sleep Inn, Mainstay Suites, Clarion Hotels, Quality Inns, Econo Lodge, Rodeway Inns; d Includes Westin Hotels, Sheraton Hotels, St. Regis Hotel, Four Points Hotels, Luxury Collections, W Hotels; e Includes Conrad Hotels, Hilton Hotels, Embassy Suites, Doubletree Hotels, Doubletree Guest Suites, Doubletree Club Hotels, Hilton Grand Vacations, Homewood Suites, Hilton Grand Inns, Hampton Inns, Hampton Inn & Suites; f Includes Park Hyatt, Grand Hyatt, Hyatt Regencies, Hyatt; g Formerly known as Bass Hotels, includes Holiday Inn, Holiday Inn Select, Holiday Inn Express, Crowne Plaza, Staybridge Suites, InterContinental; h Includes Days Inn, Howard Johnson, Knights Inn, Super 8 Motel, Travelodge, Villager, Wingate Inn, AmeriHost Inn.

NAACP LODGING INDUSTRY REPORT CARD 2001/2002

Collectively, the industry received a grade of 2.7 in both 2001 and 2002. Since the beginning of this initiative, the NAACP has seen a greater responsiveness from the industry and has been pleased to witness the installation of various diversity officers to implement and direct project goals. However, progress in certain categories remains stagnant. As was widely reported, the travel industry as a whole suffered significant losses in the aftermath of September 11th which affected results particularly in the areas of advertising/marketing, vendor relationships and charitable giving.

* Pledge Curve Applied
** Properties Curve Applied

1 - Includes Days Inn, Howard Johnson, Knights Inn, Super 8 Motel, Travel Lodge, Villager Lodge, Wingate Inn

2 - Includes Marriott, Courtyards, Fairfield Inn, Residence Inn, Renaissance Hotels & Resorts, Ritz Carlton

3 - Includes Clarion Inns, Comfort Hotels, EconoLodge, MainStay Suites

4 - Includes Hilton Inns, Hilton Suites, Hilton Hotel & Resorts, Garden Inns, Conrad International and all former Promus Hotels (Doubletree, Guest Suites, Embassy Suites, Hampton Inn)

5 - Wyndham Resorts & Gardens, Summerfield Suites

6 - Formerly known as Bass Hotels, also includes Holiday Inn, Crowne Plaza, Inter-Continental, Stay Bridge Suites

7 - Includes Westin, Sheraton, Fourt Points, St. Regis, Luxury Collection, Ceasar's World

-------Merchandising Report Card

African Americans have 500 billion dollars in spending power and it continues to grow. Yet the NAACP’s first general merchandising survey reveals that the companies reviewed are spending proportionately far fewer dollars on marketing to African Americans than to the majority population. Similar findings are revealed in each of the categories analyzed: employment, vendor relationships, community reinvestment, and philanthropy. One of the primary purposes of this initiative is to educate consumers on how this industry impacts day-to-day commodities and how the individual consumer’s decision on spending priorities impacts the decisions of these corporations regarding products, services and costs back to the consumer. This report provides customers with the tools for empowerment, enabling them to make educated decisions about where to spend their dollars in the general merchandising industry.

NAACP MERCHANDISING REPORT CARD 2003

This is the first year of measuring the general merchandising industry. This report card focuses on companies with revenues of at least $6 million with 40,000 employees or more serving diversified neighborhoods. Eleven general merchandising companies were included in this review and the industry has scored an overall grade of D (1.29).

a Includes Bloomingdale’s, The Bon Marche’, Burdines, Goldsmith’s, Lazarus, Macy’s, Rich’s; b Includes Lord & Taylor, Famous Barr/L.S. Ayres/The Jones Store, Foley’s, Filene’s/Kaufmann’s, Hechts/Strawbridge’s, Robinson-May/Meier & Frank; c Includes Saks, Parisian, Proffitt’s, McRae’s, Younkers, Herberger’s, Carson Pirie Scott, Bergner’s, Boston Store; d Includes Target, Marshall Field’s, Mervyn’s.

-------Telecommunications Report Card

Most telecommunications companies suffered from mid-2000 through mid-2002. (There are notable exceptions, including conservatively run, low-debt companies such as ALLTEL.) This period will long be remembered for profound and shocking injury to the entire industry, with results for most participating companies lying somewhere on the scale from extreme losses and downsizing to complete and final liquidation under bankruptcy.

The telecom reduction led to the dismissal of more than 300,000 workers employed directly in the telecommunications business, and to tens of thousands of workers indirectly employed, such as those at investment banks, consultancies and other service providers.

There is a need to make certain that services are available in African American and underserved communities and that there is access to advanced telecommunications and information services. We also need to ensure that local schools and libraries have access to the global communications environment. If technology is not deployed to our local schools and libraries, the economic empowerment of our community is affected.

NAACP TELECOMMUNICATIONS REPORT CARD 2003

This is the fifth year of measuring the telecommunications industry. This report card focuses on cellular service providers with revenues of $1 to $75 billion dollars. Ten telecommunication companies were included in this review and the industry has scored an overall grade of C (2.43).

* Did not respond to survey

NAACP TELECOMMUNICATIONS REPORT CARD 2002

Collectively, the industry's performance averages a 2.41 (C) grade, with advertising/marketing and vendor relations still presenting the greatest challenges for the industry overall. The industry is most responsive in the categories of employment opportunities and service deployment and is generally fairing well in the category of charitable giving. However, 2001 witnessed a decline in growth of the telecom industry and many corporations were forced to curtail their spending as a result of the slowing economy.

*Did not respond to survey

NAACP TELECOMMUNICATIONS REPORT CARD 2001

Collectively, the industry's performance averages a 2.43 (C) grade, with advertising/marketing and vendor relations still presenting the greatest challenges for the industry overall. The industry is most responsive in the categories of employment opportunities and service deployment and is generally fairing well in the category of charitable giving. However, 2001 witnessed a decline in growth of the telecom industry and many corporations were forced to curtail their spending as a result of the slowing economy.