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FAQs 2018-02-27T19:20:28+00:00

Frequently Asked Questions

The announcement of 2018 honorees will mark the twelfth year we have honored companies with the designation of World’s Most Ethical.

Yes. The main evaluation categories are Corporate Citizenship and Responsibility; Ethics and Compliance Program; Corporate Governance; Leadership, Innovation and Reputation; and Culture of Ethics. Each category is evaluated through a combination of answers to our Ethics Quotient (EQ) questionnaire, submitted supplemental documentation, and where necessary, independent research and follow up with each candidate.

The World’s Most Ethical Companies evaluation is an annual exercise. Each year’s evaluation process considers information available up to December 31 of the prior year. The evaluation time frame for 2018 honorees ended on December 31, 2017. Therefore, if a material fine or settlement is disclosed or a lawsuit or regulatory action initiated or resolved after the evaluation time period has ended, it is taken into consideration during the following year’s evaluation should the company in question choose to apply.

The EQ questionnaire is jointly developed by our internal team of legal and compliance professionals and our Methodology Advisory Panel. Advisory panel members include leading experts from the fields of law, corporate reputation, corporate ethics, governance, anti-corruption and government.

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. In 2015, the questionnaire was significantly revised across each assessment category, and in 2016 we made substantial additions in the areas of data privacy, cyber security and assessing an organization’s ethical culture. 2017 saw an increased focus on diversity at the board and executive levels, compliance and ethics program structure (based on recent guidance from regulators) and how companies are evaluating their compliance and ethics programs. Our improvements have continued into the 2018 questionnaire.

We believe strongly that measurement matters, and utilizing the questionnaire allows us to include substantial quantitative and objective analysis in our process. Our review is the result of a three-step process. The first step is for a company to complete the EQ questionnaire. This results in a self-reported or unverified EQ score. Companies are then asked to submit documentation that supports their questionnaire responses. We independently verify materials on an as-needed basis. Lastly, Ethisphere’s team of analysts researches each company’s history of litigation, reputation and ethical track record. Self-reported scores are then adjusted during the review process, and candidates receive a final verified score.

A company’s verified 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. 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 litigation outcomes 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 2018 World’s Most Ethical Companies.

No. Each section, question and answer choice is individually weighted. Certain sections carry more importance than others, as do certain questions.

Any company, public or private, for-profit or not-for-profit, U.S. or foreign-based, is eligible to participate in the process and to be considered for designation as one of the World’s Most Ethical Companies. However, non-profit colleges and universities, governments, governmental agencies and NGOs are not eligible.

We encourage wide participation, regardless of whether a company thinks that it will be honored. All companies that submit a survey will receive an Analytical Scorecard that provides their overall Ethics Quotient and evaluates how their responses to each of the five categories and to key questions in each category compare to honorees. The value in participating is not only in learning how one’s company compares to the honorees, but also in better understanding what’s trending in leading companies and more about their best practices.

A company’s industry, size, geographic location, etc. are all taken into consideration during the review process.  That said, we have minimum expectations for all companies, regardless of size. As a result, our database tends to be mostly for-profit companies with revenue above $250 million (USD) and non-profit companies with revenue of more than $1 billion (USD). Accordingly, regardless of size, for-profit companies will be compared to companies with at least $250 million (USD) in revenue and non-profit companies to those with at least $1 billion (USD) in revenue.

We understand that practices can be different for public, private, and non-profit organizations. Private organizations and non-profits are not penalized for not adhering to certain guidelines that are expected for public companies. However, all organizations must demonstrate that their policies, procedures and practices are best in class for their specific organization type.

We review documentation submitted by companies and may conduct additional research or request additional information and documentation from the company. We conduct reputational and legal reviews to determine any outstanding or historical issues as well. We generally consult external data sources, such as SEC filings, the RepRisk Index and global news outlets, among other sources. Compliance or ethics issues will be reflected in a company’s Leadership, Innovation and Reputation score. Seriously deficient scores in that category will prevent a company from being selected as one of the 2018 World’s Most Ethical Companies. EQ scores are often adjusted based on documentation review and independent research. Each candidate then receives a “validated” score that may be higher or lower than the initial “self-reported” score. Note that if we are unable to verify certain aspects of self-reported performance, the resulting scores may be discounted.

Yes, we require all application materials to be submitted in English.

We supply a list of recommended documents in the Supplemental Documentation Guidelines provided to each applicant. As explained therein, applicants are expected to provide documents and evidence to support their responses to the EQ questionnaire. Ethisphere will only contact an applicant regarding its supporting documentation if the assessment team is unable to locate any documentation associated with the applicant company (this is to ensure there was not a problem in delivering or transmitting the documentation) or there is a technical issue with particular files or documents.

Applicants trust us to keep all analysis and results of each company confidential. We take that responsibility seriously.

We do not disclose the names of companies who are not honored, and no individual response is made public. Scores will only be used to calculate EQ scores and/or provide a report or analysis to a company. We also use EQ scores and responses in an aggregated or anonymized fashion for benchmarking and research purposes.

Additionally, honorees may not publicly share or reference their company’s scores or performance compared to the World’s Most Ethical Companies’ averages. Our purpose is to celebrate all of the companies equally; accordingly, we very intentionally do not rank the companies that make the list each year. Sharing information or referring to the scores necessarily leads to a comparison among the honoree companies. Also, the selection process compares companies to their peers. Without context, publicizing how a company fares against the average scores misrepresents our process and could cause confusion.

Over the years, thousands of companies have been evaluated. We don’t publicly disclose the total number of applicants each year. We established this policy at the very beginning of our program so that companies have the freedom to apply and be measured against others in total confidence and so that those who are honored recognize that their programs are being measured both competitively and on their own merits.

No. We evaluate every company independently and then in comparison to others in the same industry sector. Because we’re recognizing companies that are the “most ethical” and not merely “ethical,” there is a natural limit to the number that we honor both in total and by sector. The number can vary based upon the ever-increasing expectations of stakeholders (both internal and external) and the fact that the scoring process is updated to reflect changes in best practice and methodology.

There are 135 companies spanning 24 countries and 57 industry sectors on the 2018 list.

Past honorees are given no inherent advantage over non-honorees or companies applying for the first time. Typically, companies that have participated in the evaluation process in previous years (both honorees and non-honorees) are more familiar with the expectations and are therefore more aptly prepared when it comes to completing the questionnaire and submitting supporting documentation.
A real benefit to participating in the EQ process is that all participants, whether or not they’re honored, receive a high-level analysis with their overall EQ score and how their five category scores compare to those who are honored as that year’s World’s Most Ethical Companies. This is an important and valued outcome of the process, since many organizations are looking to move forward both in compliance activities and ethical corporate behavior. This independent review allows a company to compare itself not just to any group of companies that want to complete a survey but to those who excel and are named as the World’s Most Ethical Companies.

Companies that submit the EQ survey and supporting documentation between July 13 and November 8 are considered for inclusion in the World’s Most Ethical Companies recognition program for 2018. However, companies that would like to participate in the EQ—with the opportunity to be benchmarked against honored companies—may do so throughout the year, at any time. More information can be found here.

Beginning in 2015, Ethisphere instituted a processing fee in order to at least partially cover the administrative costs of gathering and analyzing the data and providing the Analytical Scorecard. The graduated fee structure is based on corporate revenue (in USD): companies with revenue of less than $500 million are charged $1,000; companies with revenue of $500 million or more are charged $1,500. And, of course, each participant receives the Analytical Scorecard that helps to inform their programs and future decisions.

There are no additional fees to be honored or to communicate either internally or externally that a company has achieved this designation. However, companies that wish to use the year-specific World’s Most Ethical Companies logo must license the logo and follow the branding guidelines. Ethisphere developed these guidelines in coordination with the Ethisphere community and by examining best practices from other organizations that review and recognize companies. Once licensed, the logo for that year may be used in perpetuity without additional fee. Fees are $7,500 for those with corporate revenue less than $1 billion USD and $10,000 for those with corporate revenue above $1 billion USD.

Ethisphere receives revenue from conferences, event sponsorships, subscriptions to publications, advertising, membership groups, advisory services and licensing. No company that is honored with the World’s Most Ethical Companies designation is responsible for more than 3% of Ethisphere’s revenue. And no honoree may place advertising in the issue of Ethisphere Magazine that announces and highlights new honorees.

There is no connection between the two. Organizations are honored for their programs, practices, policies, and reputations as measured by the EQ methodology.

Our mission is to define and advance the standards of ethical business practices that fuel corporate character, marketplace trust, and business success. We have a deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character. We believe that this recognition program is important because corporate ethical standards must be set and measured and that those who excel should be honored.

We strive to honor companies based on their body of work and not just one particular policy or program that is groundbreaking or admirable. Likewise, we don’t believe that one particular controversy, settlement, fine, regulatory action, or lawsuit necessarily disqualifies a company from being honored. That being said, these outcomes are taken into consideration during the evaluation time frame. How companies prepare employees for ethical dilemmas, how they respond to unethical or illegal actions once uncovered, and their general culture and policies are also considered in our evaluation.