By Ishant Gupta
Ethisphere has released a list of the most ethical firms from around the world, underlining the importance of this critical value in leading organisations of the modern day.
Ethisphere is US-based think tank which is the leading institute in setting up Business Ethics standard globally. It also measures business ethics with its data-driven insights. It prepares a list of World’s Most Ethical Companies annually. Various distinct organizations are recognized on the basis of integrity, ethics, and transparency via this ranking.
A company is ranked on the basis of its score in five weighted categories. These scores are reviewed periodically and updated based on changing practice and regulations. The five categories include Ethics and Compliance Program with a weight of 35 percent. An organisation’s legal and ethical compliance is measured in this category. Its written standard, training program, monitoring, and auditing, performance indicators of overall ethics and compliance program concerning resources etc. are some of the concerned fields. In the second comes Corporate Citizenship and Responsibility with a weight of 20 percent. In this category, an organisation’s performance in social responsibility, sustainability, and citizenship, the effectiveness of its initiatives and philanthropy is measured against the standard. In the third place is the culture of ethics with a weight of 20 percent. An organisation’s ethical tone from the top level to bottom is evaluated and it also includes the program to establish the same. At fourth is Governance with a weight of 15 percent. This category measures an organisation’s efforts and system to ensure strong corporate governance. It is modified as per the changes in rules and regulation of compliance. The final category is Leadership, innovation and Reputations with a weight of 10 percent. An organization’s ethical reputation in the marketplace along with legal compliance and ethical track record is measured in this category.
Indian Companies on the list
Wipro and Tata Steel are the two Indian firms that have made it to the list of 135 of the world’s most effective ethical companies of 2018. What made these companies stand apart from other companies are their values and spirit. There are five core values that Tata Steel follows according to the Tata Code of Conduct. These are integrity, a vow to be honest, transparent and ethical in their conduct; responsibility, ensuring environmental and social principles in the business and returning their bit to the society; unity, an investment in the people and partners of the organisation to enable continuous learning and build caring and collaborative relationships’ pioneering, utilising profound consumer insights to develop innovative solution; and lastly Excellence, a drive to achieve the highest standard of quality.
Wipro holds three core values. These are the intensity to win, to make customers successful and teams more innovative; act with sensitivity, respecting the individual and making thorough and responsible actions and lastly, unyielding integrity; delivering on commitments and honesty and fairness in actions. These company getting recognized indicates the sincerity with which they stick to their code of conduct.
Importance of Ethics
Ethics in an organization is often stressed as the most valuable asset. In the long run, they are also profitable for a business. Good ethics helps in building relationships with clients, hence bringing repeated sales and long-term contracts. They also boost the morale of employees thereby increasing employee’s loyalty. It makes them want to stay and attracts potential employees. It also depicts a sense of accountability in the mind of investors which also keeps the price of share high. In totality, ethics is an integral part of the business.
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