Data shows that ethically-focused honorees outperform peers
With so much social, business, and political turmoil seen in today’s culture, Ethisphere, a global leader advancing the standards of ethical business practices, offers some reassurance through its list of the World’s Most Ethical Companies in 2024. The organization recognizes 136 companies for their leadership in advancing business integrity.
“Every day, businesses must earn and keep the trust of stakeholders, from employees and investors to regulators, and others. By leading with business integrity—and investing in strong governance, an ethical culture, corporate citizenship, and compliance—organizations not only build trust, but also outperform,” said Erica Salmon Byrne, Chief Strategy Officer and Executive Chair, of Ethisphere.
The list includes some of the world’s most well-known names in business as well as lesser-known companies scattered across the globe. Those readily recognized are tech retailer Best Buy, consulting powerhouse Accenture, and automotive manufacturer General Motors, while others are located in countries outside the United States including Iceland, Ireland, Mexico, and India, among others.
Ethical Companies Outperform Peer Competitors
Ethisphere uses data to not only assess a company’s ethical standing but also quantify a premium that those companies gain through their high standard of business practices. For 2024 Ethisphere’s Five Year Ethics Premium is 12.3%.
This represents the margin by which the publicly traded companies recognized in this year’s list of ethical companies outperform a comparable index of global companies. The evaluation covers five years from January 2019 to January 2024.
Methodology and Application Process
Ethisphere uses its proprietary Ethics Quotient® to make its selections. It is a questionnaire with over 240 proof points about each company’s culture of ethics. The covered areas include environmental, social, and governance (ESG) practices, ethics and compliance programs, diversity, equity, & inclusion efforts, and initiatives that support a strong value chain.
A panel of experts spends a tremendous number of hours evaluating submissions that capture and codify “best-in-class practices from organizations across industries and from around the world”.
Following the evaluation, each applicant receives a Digital Analytical Scorecard experience that provides an overview of how their application scored against the World’s Most Ethical Companies honorees in key categories. This interactive format is powered by The Sphere—Ethisphere’s Ethics and Compliance benchmarking platform that gives them access to 15 key Ethics Quotient® data points.
Given the detailed nature of the application process, Ethisphere provides applicant companies with resources to navigate the intensive evaluation process. They learn of best practices in business integrity, and what past honorees have considered valuable in their pursuit of excellence. Ethisphere’s subject matter experts offer insight into the latest trends and expectations that help in the application process.
Honoree shares Experience
nVent, a global leader in electrical connection and protection solutions, was one of the companies honored in this year’s list of the World’s Most Ethical Companies for its commitment to Absolute Integrity. The company maintains a strong compliance program, governance, and Win Right values that form the basis of its Code of Business Conduct and Ethics followed by its 11,000 global employees.
Chair and CEO of nVent, Beth Wozniak, expresses the excitement within nVent that also reflects the other 135 companies honored drawn from 20 countries and 44 industries.
“I’m thrilled that nVent has been recognized as one of the World’s Most Ethical Companies®. Absolute Integrity is one of our core values at nVent. We know that making ethical choices makes our company stronger and builds trust and transparency. We emphasize to our employees that acting with Absolute Integrity is critical. I’d like to thank all our employees for living our values every day. It is because of our collective efforts that we received this outstanding recognition,” said nVent Chair aWozniak.
The 18th annual World’s Most Ethical Companies are the best in demonstrating a commitment to ethical business practices through extensive programs that support their employees, communities, and broader stakeholders. That dedication to ethical practices has been shown to help sustain their long-term business growth by out-competing their peers.
