New analysis demonstrates clear correlation between ethical values and financial performance.
The Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, announced today the launch of the 2015 World’s Most Ethical Companies® recognition program. Ethisphere will host a webcast on Friday, September 12, 2014 at 1:00 p.m. ET for those interested in learning more about the process, changes to the Ethics Quotient (EQ™) questionnaire and a new scorecard that will provide more meaningful feedback to organizations.
The World’s Most Ethical Companies designation, now in its ninth year, recognizes organizations that understand the value that permeates throughout an entire community of employees, customers, investors and the public at large when words about ethics, compliance and good governance are translated into action. “Ethisphere’s tenet that ‘ethics drives performance’ resonates with us and aligns with Marriott’s approach to doing business continually with integrity,” said Arne Sorenson, President and Chief Executive Officer of Marriott International, Inc., a seven-time honoree.
Ethisphere’s longstanding belief that there is a correlation between ethics and the bottom line – that achieving commercial success in ways that honor ethical values has a proven positive impact on financial performance – has been bolstered by a recent analysis. Results indicate that the honorees perform at least as well as – and better than – the S&P for the five- and 10-year periods ending December 31, 2013 – 21 percent versus 18 percent for the five-year period, with a 54 percent premium for the 10-year period.
The Application Process and Resulting Feedback
Organizations complete a nomination form and the EQ questionnaire. This year Ethisphere will require supporting documentation that must be received before December 15, 2014. The last step in the process is Ethisphere’s legal and reputational review. Honorees will be announced on March 9, 2015 at a gala dinner in New York City.
Following the announcement of honorees, all those who complete the EQ questionnaire will receive a scorecard comparing their overall EQ and scores on 18 key questions and five categories to those of the honorees. The benefit of such a temperature check against the World’s Most Ethical Company honorees is a valuable tool for all companies. According to Jill Witter, Senior VP, General Counsel and Ethics and Compliance Officer, Novation, a three-time World’s Most Ethical Company honoree, “We view the award as a means of us benchmarking ourselves and ensuring that we are continuing to be a best-in-class type of company in terms of our compliance programs.”
To nominate your organization, visit: http://ethisphere.com/worlds-most-ethical/nominate-for-wme/.
To register for the September 12 webcast, visit: https://cc.readytalk.com/r/cpgl2vofppze&eom.
In 2014, Ethisphere honored 144 organizations from 41 industries including 21 first-time honorees. Honorees included the largest group of organizations based outside the U.S. – 38 organizations from 21 countries and five continents.
More information is available at http://ethisphere.com/worlds-most-ethical/wme-faq/.
The Ethisphere® Institute
The Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character. Ethisphere honors superior achievement through its World’s Most Ethical Companies® recognition program, provides a community of industry experts with the Business Ethics Leadership Alliance (BELA) and showcases trends and best practices in ethics with the Ethisphere Magazine. Ethisphere is also the leading provider of independent verification of corporate ethics and compliance programs that include: Ethics Inside® Certification, Compliance Leader Verification™ and Anti-Corruption Program Verification™. More information about Ethisphere can be found at: http://www.ethisphere.com.