World’s Most Ethical Companies

In my last post, I briefly mentioned some companies that have shown very poor examples of ethics in past business relations.

Just today, I came across an Ethisphere Institute report that instead, detailed the acknowledgment of companies who were the most ethical in 2010. The World’s Most Ethical (WME) companies were awarded because they demonstrated real and sustained ethical leadership within their field. There are no set maximum or minimum awards to be given out each year, but instead the award is just given to the top companies who are leading the way in terms of ethics and compliance programs.

The selection process was lead by a methodology committee, which reviewed over the course of the year, many possible candidates. They eventually narrowed the selection down to a semi-finalist stage, where then the companies would have to answer in-depth questionnaires. After further refinement, from viewing surveys, documents and other information, the resulting award winners were chosen because they scored the highest in the committees’ calculations.

The awarded companies were broken down by each industry. Here are a few of the companies who were awarded World’s Most Ethical:

Apparel: Nike, Patagonia and Comme Il Faut

Automotive: Cummins, Ford Motor Company and Johnson Controls

Banking: Rabobank, Standard Chartered Bank and Westpac Banking Corporation

Consumer Electronics: Ricoh and Xerox

Consumer Products: Henkel, Kao, L’ORÉAL and Mattel

Environmental Services: Waste Management

Food & Beverage: Campbell Soup Company, General Mills, PepsiCo and Solae

Food Stores: Trader Joe’s, Wegmans and Whole Food Market

Internet: Google and Zappos

Specialty Retail: Best Buy, Gap, Ikea, Target and Ten Thousand Villages

There were a few more companies also awarded, but these were some in more popular industry markets.

The Ethisphere Institution also made a chart, which shows that it is beneficial for companies to focus on ethics.

This chart compares the World’s Most Ethical awarded companies against the S&P 500 and FTSE since the year 2005. This clearly shows that the continued practice of ethics is not only good for relations, but for increasing profit in the company as well.

Very interesting things to consider!

The full report can be viewed here World’s Most Ethical Award

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6 Responses to “World’s Most Ethical Companies”

  1. It’s very interesting to see a company like Nike on this list after all the outcry over the way that they create their products, using cheap labor from developing countries. Maybe that is not something that is weighed when looking at this but it seems as if they are a company that has been driven by higher profit margins. Good post though, very relevant. Nice work!

  2. I concur, that is something I also thought about when I first read the report. I definitely remember that news but that seems like almost a distant memory now. Maybe nike has changed their ways a bit? This was just an awarding for this past year so a possibility to consider.

  3. wow. I always thought that an ethical business didn’t have much of an advantage as compared to an unethical one. Learned something useful! thanks!

  4. Nice post. It was interesting to see that good company ethics has a positive effect on making profits. I was also interested to see a company like Nike on the list. Nike has been accused of child labor in its history, but is this a indicator that the consumers have already forgotten the past and moved on?

  5. I am very surprised by these results. I am glad there are businesses out there that are both successful and also ethical. This was a very nice post and hopefully more businesses follow the foot steps of these businesses. Also, hopefully upcoming entrepreneurs read your post and notice that being a ethical businessman can have positive results

  6. […] In my last post, I briefly mentioned some companies that have shown very poor examples of ethics in past business relations. Just today, I came across an Ethisphere Institute report that instead, detailed the acknowledgment of companies who were the most ethical in 2010. The World’s Most Ethical (WME) companies were awarded because they demonstrated real and sustained ethical leadership within their field. There are no set maximum or minimum awar … Read More […]

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