For the fifth consecutive year, Ford Motor Company has been recognized as one of the world’s most ethical companies by Ethisphere Institute. Ford is among 144 companies selected from thousands around the world. It is the only automaker to receive this honor for the year 2014. It is also one of the few companies that has been recognized five different times. Ford was selected for its corporate responsibility efforts, governance and business practices.
The World’s Most Ethical Companies designation recognizes companies that truly go beyond making statements about doing business “ethicially” and translate these words into action. The award recipients not only promote ethical business standards and practices internally, they exceed legal compliance minimums and shape future industry standards by introducing best practices today.
To determine who makes the cut researchers and analysts look into the following things:
- A review of each companies codes of ethics, litigation and regulatory infraction histories
- An evaluation of investment in innovation and sustainable business practices
- A look into activities designed to improve corporate citizenship
- Input through nominations from senior executives, industry peers, suppliers and customers.
The framework consists of five core categories; ethics and compliance, reputations, leadership and innovation, governance, corporate citizenship and responsibility, and culture of ethics. The ethics and compliance program is used for 25% of the rating system and criteria used for this category are aligned to the corporates best practices, relevant case law and the hallmarks of an effective compliance and ethics program. Reputation, leadership and innovation measures a company’s legal compliance, litigation, and ethical track record along with the strength of the company’s reputation. Governance takes up 10% of the rating and this category looks at the availability and quality of systems designed to ensure strong corporate governance. Corporate citizenship and responsibility makes up 25% and reviews a wide range of a company’s performance indicators associated with sustainability, citizenship and social responsibility. Culture of ethics makes up 20% and looks at the culture of ethics at the organization concerning widely accepted or unaccepted norms as it pertains to ethical conduct.