Poll shows most ethical companies

Companies were ranked on their measures for avoiding pollution

The National Grid has topped a new league table of companies that show greater awareness of social issues.

Oil company BP came second, with consumer goods manufacturer Unilever, Veolia Water and insurer Aviva next.

The survey for the Sunday Times by the Business in the Community group ranks companies in key areas like diversity and protecting the environment.

The number of Companies That Count - those taking part in the Corporate Responsibility Index - has risen 14%.

Companies that do social responsibility are more in touch with the communities in which they live David Varney, Business in the Community

The National Grid, which runs electricity supply in England and Wales and employs 27,308 staff, was praised in a number of areas, including avoiding contamination and environmental accidents.

Meanwhile, BP was singled out for product safety, biodiversity and the diversity of its workforce.

Of over 500 FTSE 100, FTSE 250 and Dow Jones companies contacted by the Sunday Times, 139 completed questionnaires.

Companies scored on average 80% for performance in social responsibility, an increase of 12% on 2003.

David Varney, chairman of Business in the Community and telecoms company MMO2, said: "The companies that do social responsibility - and do it well - have a better sense of innovation and they are more in touch with the communities in which they live."

This year's index precedes government legislation that will force companies to report on environmental and social performance.

On Monday ministers from the Department of Trade and Industry are hosting a dinner for executives from the Companies That Count at Lancaster House in London.