The ubiquitous attention to creating and maintaining ethics and compliance programs point to the importance of being a good corporate citizen, but research also bears out that the most ethical companies are perform noticeably better financially. This year, in the Ethisphere Institute’s list of the World’s Most Ethical Companies, high-tech players, from consultants to OEMS have distinguished themselves for their high standards.
“Today, employees, investors and stakeholders are putting their greatest trust in companies to take leadership on societal issues. Companies that take the long view with a purpose-based strategy are proven to not only outperform but last,” said Ethisphere’s chief executive officer Timothy Erblich.
Ethisphere, which has tasked itself with defining and advancing the standards of ethical business practices, has been monitoring and honoring companies that set the standard for ethical conduct, standards, and programs for the past 13 years. This year, the list includes 128 honorees from 21 countries in 50 industries. It includes 16 first-time honorees and eight companies that have been recognized every year since 2007. By comparison, last year the list included 135 companies spanning 23 countries and 57 industries.
Organizations in the high-tech sector, including defense, distribution, manufacturing, logistics, automotive, and more, were well represented on the list. “The World's Most Ethical Companies assessment is based upon the Ethisphere Institute’s Ethics Quotient (EQ) framework, which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized manner,” Ethisphere said. “The information collected provides a comprehensive sampling of definitive criteria of core competencies rather than all aspects of corporate governance, risk, sustainability, compliance and ethics.”
The awards were based on the following criteria:
- Ethics and compliance program (35%)
- Corporate citizenship and responsibility (20%)
- Culture of ethics (20%)
- Governance (15%)
- Leadership, innovation and reputation (10%).
Ethisphere evaluates each company through a combination of its EQ questionnaire, supplemental documentation submitted by the company, and, as needed, independent research and follow up with the candidate. Any company, public or private, for-profit or not-for-profit, U.S. or foreign-based, is eligible to participate in the process and to be considered for the Most Ethical designation.
It is clear that companies that focus on ethics and compliance enjoy financial benefits. Ethisphere tracks the stock prices of publicly-traded honorees and compare it the Large Cap Index. This year, it found that those recognized with the award outperformed the large cap sector over five years by 14.4% and over three years by 10.5%.
Click on the image below to start a slideshow of the honorees in the high tech sector in alphabetical order.
— Hailey Lynne McKeefry, Editor in Chief, EBN