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The World’s Most Ethical Companies

  • January 2014
  • -
  • MarketLine
  • -
  • 20 pages

Summary

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Introduction

The annual World’s Most Ethical Companies list is compiled by the Ethisphere Institute, an “independent center of research, best practices, and thought leadership that promotes best practices in corporate ethics.”The 2013 list contains 140 companies from various industries. A number of companies have appeared on the list every year; seven of these are talked about in more detail in this case study

Features and benefits

* This case study looks at the founding and activities of the Ethisphere Institute, and how it compiles its annual World's Most Ethical Companies list.
* The case study also looks at some companies that have been included every year, how they are ethical and any unethical activity.
* The case study looks at why ethical business activities might be beneficial to a company, and how it affects both employees and consumers.

Highlights

The Ethisphere's Ethics Quotient score is given to companies based on their Ethics & Compliance program; Reputation, Leadership & Innovation; Governance; Corporate Citizenship & Responsibility; and Culture of Ethics.
The 2013 list is made up of 140 companies from over three dozen industries, down from 2012's 145 companies. 40 are headquartered outside the US and 15 have been on the list every year since its inception in 2007.
Starbucks is the only company in the restaurants and cafes industry to be included. However, the company experienced controversy when it was reported in 2012 that the company had only paid £8.6m (approximately $13.6m) in UK tax over 13 years in which revenues reached £3.1bn (approximately $4.9bn).

Your key questions answered

* How does the Ethisphere Institute compile its list of Most Ethical Companies?
* Have any companies been included on the list consistently? Which companies?
* How do companies benefit from conducting business ethically?

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