The Ethisphere Institute has released its annual list of the World's Most Ethical Companies, and the 2020 rankings include a lucky 13 consumer goods companies.
Now in its 14th year, the list recognizes companies for "setting the global standards of business integrity and corporate citizenship." There are 132 companies on this year's list, including seven companies that have secured a spot since the list's inception.
“This is truly a time to celebrate incredible achievements. When we initiated the World’s Most Ethical Companies recognition in 2007, the concept of companies proactively aligning profits and purpose seemed unlikely,” said Ethisphere CEO Timothy Erblich. “However, leading CEOs and organizations continue to prove our long-held hypothesis that conducting ethical business is the key to maximizing profits. In addition to congratulating all 2020 honorees, we commend their commitment to continuous improvement and raising the collective bar for all companies.”
The Ethisphere Institute, an events and magazine publisher, defines and advance the standards of ethical business practices that fuel corporate character, marketplace trust and business success.
Companies are evaluated based on more than 200 data points, including their ethics and compliance program, culture of ethics, corporate citizenship and responsibility, governance, and leadership and reputation. Ethisphere uses a combination of answers to its questionnaire, company-submitted documentation, and publically available information.
An Ethics Quotient (EQ) score is generated that set relative to a company's peers in structure, size and operating environment, and Ethisphere also conducts independent research and follows up when necessary.
The 13 consumer goods companies that appeared on the 2020 list are as follows:
1. 3M 2. Colgate-Palmolive 3. John Deere 4. Grupo Bimbo 5. Hasbro 6. Illy 7. Kao 8. Kellogg’s 9. Kimberly-Clark 10. L’Oreal 11. Natura 12. PepsiCo 13. VF Corp.
While Ethisphere generates revenue through its conferences, membership groups, advisory services, advertising and licensing programs, it says on its website that no company on the list is responsible for more than 3% of Ethisphere’s revenue.
It adds: “No honoree may place advertising in the issue of Ethisphere Magazine that announces and highlights new honorees.”
Honorees will be celebrated at a gala on March 31 in New York.