3M and Lincoln Electric Among ‘World’s Most Ethical Companies’
Several automotive companies made it on Ethisphere Institute’s list of the world’s most ethical companies, including 3M, Lincoln Electric, Eastman Chemical Co. and Timken. Cummins and Volvo were also named to the list.
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. In 2019, the firm recognized 128 companies for exemplifying and advancing corporate citizenship, transparency and the standards of integrity. Honored companies span 21 countries and 50 industries and include 16 first-time honorees and eight companies that have been named to the list every year since 2007.
Ethisphere Institute evaluates a company’s ethics and compliance program, culture of ethics, corporate citizenship and responsibility, governance, and leadership and reputation. Each category is evaluated through a combination of answers to the firm’s ethics quotient (EQ) questionnaire, submitted supplemental documentation, and where necessary, independent research and follow up with each candidate.
“We regularly review the questionnaire to ensure that it aligns with the ever-changing expectations of employees, managers, shareholders, regulators and the public at large,” Ethisphere Institute stated on its website.
A company’s final EQ score is evaluated relative to those of its peers within the context of its structure, size and operating environment.
“Those companies demonstrating the strongest application across our methodology receive the designation of being one of the world’s most ethical companies,” according to Ethisphere Institute. “As applicant companies come from a variety of industries with significant differences in regulatory and operating environments, the overall EQ score is used to compare similar companies, not to set a floor. However, reputation and legal issues are carefully evaluated.
“Receiving a materially deficient score in the category of leadership, innovation and reputation will prevent a company from being selected as one of the 2019 world’s most ethical companies.
