Data set provides an opportunity for true ethics and compliance benchmarking
NEW YORK, NY – October 20, 2016 – Stakeholders are placing increasing pressure on companies to be ‘radically transparent’, to ensure that the way they do business conforms to both the letter and spirit of law and regulation, and to ensure that compliance and ethics practices are not just written but actually practiced. This requires defining, measuring and monitoring corporate ethical standards. The Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, announced today the release of a new research report, “Leading Practices of the 2016 World’s Most Ethical Companies”, that permits true comparisons between similar companies and details what defines leadership when it comes to measuring corporate integrity.
This newly-released report is based upon responses to the 2016 Ethics Quotient® survey, and compares results of those honored as 2016 World’s Most Ethical Companies® to the other companies in the data set. To help identify developing trends, certain data points compare World’s Most Ethical Company honorees over the past several years. These two approaches offer a robust analysis far different from other surveys and permits readers to gain a clearer understanding of how leading companies are moving their programs and practices forward.
“Investors, employees and other stakeholders increasingly understand that doing business the right way is good business,” said Erica Salmon Byrne, Executive Vice President, Governance and Compliance, Ethisphere Institute. She added, “Ethisphere has been identifying and measuring those practices for years, and the trend analysis in this report offers exceptional insights into where the best companies have been and where they are going. It’s ideal for building a data-driven case for changes as needed at organizations of all sizes.”
About the Report
The 32-page report includes 22 charts and tables and covers the following areas:
- Emerging Trends & Ethisphere Insights
- Processes and Practices of Leading Companies – How companies structure their programs to provide the right level of oversight, access and resources, and how they leverage relationships with other control functions to work more efficiently and effectively
- The Impact of a Transparent and Open Culture – How companies approach mid-level managers and educate them on their special responsibilities as ethical leaders, as well as how they systematically measure their culture and utilize the results to continuously improve
- Enabling Ethical Leadership – How governance practices and policies can influence the perceptions of multiple stakeholder groups, as well as how to arm directors with the information they need to accurately assess risks and think strategically about the long-term health of the organization
More information and how to order Ethisphere’s special data report is available at: https://ethisphere.com/2016-wme-report/.
The “Ethics Premium”
The correlation between ‘ethics’ and ‘the bottom line’ has been confirmed in a recent independent analysis. When publicly-traded companies named as 2016 World’s Most Ethical Companies are compared to the S&P 500 over the 2015 calendar year, World’s Most Ethical Companies demonstrated an ethics premium of 3.3% (see the comparison).
About Ethisphere’s Data Gathering
Since 2007, Ethisphere has been measuring companies using the proprietary Ethics Quotient Survey and honoring organizations that excel with the World’s Most Ethical Companies recognition. Companies elect to participate in the process and submit their answers to the 160+ multiple choice and text response questions on the Ethics Quotient along with supporting documentation. The EQ framework and methodology was determined, vetted and refined by the expert advice and insights gleaned from Ethisphere’s network of thought leaders and from the World’s Most Ethical Companies Methodology Advisory Panel. All participants, whether or not they’re honored, receive a high-level analysis (the Analytical Scorecard) with their overall Ethics Quotient and how their five category scores and responses to key questions compare to those who are honored as that year’s World’s Most Ethical Companies. Regardless of program maturity, the Scorecard provides an independent and objective analysis that allows a company to compare their practices to those of leading companies, understand the gaps in their programs, activities and practices vs. leading companies, use the knowledge to guide and shape program investment and resources and engage their entire organization and ecosystem.
The 2017 Data Set
Companies wishing to participate in the 2017 Ethics Quotient Survey and World’s Most Ethical Companies process should contact Ethisphere at http://worldsmostethicalcompanies.ethisphere.com/start-eq/. The process is entirely confidential. Completed applications must be submitted by December 1, 2016. All participants will receive a complimentary copy of next year’s Data Report in addition to their Analytical Scorecard.
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 “Ethisphere Magazine”. Ethisphere is also the leading provider of independent verification of corporate ethics and compliance programs that include: Ethics Inside® Certification and Compliance Leader Verification™. More information about Ethisphere can be found at: https://ethisphere.com.