For the 16th year, ethical business standards firm Ethisphere has announced the 136 honorees representing 22 countries and 45 industries that have earned the coveted designation of World’s Most Ethical Companies in 2022.
The distinction recognizes companies that have demonstrated a commitment to ethical business practices through programs that positively impact employees, communities, and broader stakeholders, and contribute to sustainable and profitable long-term business performance.
In 2022, 14 companies are first-time honorees, while six have been recognized in reach of 16 years since the inception of the awards in 2007.
“The moment is now, and the data is clear—companies must lead on sustainability, social issues, and governance. The World’s Most Ethical Companies understand that the capitalism of today and tomorrow is one that demonstrates how we turn our ideals into action,” said Timothy Erblich, Ethisphere CEO, in a news release. “Congratulations to the 2022 honorees for their dedication to advancing business integrity, for leadership on tough issues, and demonstrating that doing good is key to successful, long-term performance.”
“At TIAA, transparency, accountability, and integrity are values deeply embedded in our culture,” said Thasunda Brown Duckett, President and CEO of TIAA, in the release. “We know our clients want to work with a partner they trust, and we work hard to do right by them, our employees, and our communities. We’re honored to be named one of the World’s Most Ethical Companies by Ethisphere for the eighth straight year.”
“Recognition for the 14th time as one of the World’s Most Ethical Companies is an incredible honor for which we credit our 400,000 green apron partners (employees) who show up with a common mission,” said Kevin Johnson, president and CEO of Starbucks Coffee Company, in the release. “At Starbucks, we know we have to earn the trust we have from our partners, customers, and communities each day by leading with a purpose that goes well beyond the pursuit of profit.”
“It’s a true honor to be named as one of the World’s Most Ethical Companies for the 9th consecutive year,” said Steve James, CEO of Teachers Mutual Bank Limited, in the release. “As one of only five banks across the globe to be honored this year, this recognition reinforces our credentials as a socially responsible bank seeking to make a difference. I’m proud to lead a company that is using banking as a force for good.”
Ethisphere’s 2022 Ethics Index, the collection of publicly traded companies recognized as recipients of this year’s World’s Most Ethical Companies designation, outperformed a comparable index of large-cap companies by 24.6 percentage points over the past five calendar years.
“The outperformance, which Ethisphere refers to as the Ethics Premium, has remained consistent since we began tracking the equity performance of honoree companies. We believe this outperformance is the result of the kinds of practices that lead a company to be on our list—practices that demonstrate investment in their people, culture, and communities. We see in this data that those practices, over time, lead to stronger financial performance,” Erblich added.
Methodology and outcomes
Grounded in Ethisphere’s proprietary Ethics Quotient®, the World’s Most Ethical Companies assessment process includes more than 200 data points on culture; environmental and social practices; ethics and compliance activities; governance; diversity, equity, and inclusion; and initiatives that support a strong value chain. The process serves as an operating framework to capture and codify the leading practices of organizations across industries and around the globe.
This year, the evaluation was updated to include questions inquiring about programmatic changes made in response to the continuing COVID-19 pandemic. It also included a new area around risk assessment, to better address the U.S. Department of Justice’s recent focus on effectiveness of a company’s risk assessment efforts; more detailed questions around key impact assessment processes; and a range of other updates to reflect the evolving landscape as it relates to those in ethics, compliance, and governance.
All companies that participate in the assessment process receive an Analytical Scorecard that provides insights into key trends among honoree companies, and where their programs stand compared to the class of honoree companies. Applicants also receive a three-month Associate membership to the Business Ethics Leadership Alliance (BELA).