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Corporate Responsibility: How Employees Rate Working For The Most Ethical Companies
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Corporate Responsibility: How Employees Rate Working For The Most Ethical Companies - Executive Leadership Articles

Corporate Responsibility: How Employees Rate Working For The Most Ethical Companies

Executive Leadership Articles

Corporate Responsibility: How Employees Rate Working For The Most Ethical Companies

The Ethisphere organization publishes an annual list of the most ethical companies in the world, according to its evaluation of companies’ responses to questionnaires addressing “a comprehensive sampling of definitive criteria of core competencies.” Responses are scored according to Ethisphere’s “Ethics Quotient,” weighted for Ethics and Compliance Program (35%), Corporate Citizenship and Responsibility (20%), Culture of Ethics (20%), Governance (15%), and Leadership, Innovation, and Reputation (10%).

The 2015 list honors 132 companies in 21 countries on five continents, representing more than 50 industries. In its ninth year of publication, the list includes 15 nine-time honorees and 11 first-time honorees. One hundred of the companies are based in the United States.

There’s much to be celebrated when companies make this list, and much more to be celebrated when companies strive for recognition in areas related to corporate social responsibility and ethics. As has been written in this space multiple times, CSR is not about charity; it is about doing business a different way, with profit still in mind but with a different definition of that term. When companies spend resources on CSR certifications or self-examining questionnaires, at the very least they are making an effort to consider the ways in which they might become more responsible. Sure, there might be some amount of preening and self-congratulations as motivation for making the list, but if self-satisfaction comes hand-in-hand with better results for all stakeholders, that seems more than a fair concession.

Because employees are among the stakeholders mentioned in the conversation about CSR, it seems natural to wonder how they feel about the companies on the Ethisphere list. We looked up the 100 Ethisphere Most Ethical Companies on Glassdoor, an online service connecting job-seekers with companies, and featuring anonymous reviews by current and past employees. Reviewers list pros, cons, and advice for management, then give ratings across multiple categories, including work-life balance and salary. Each company’s average score across all ratings is provided in the company profile, with a maximum rating of five stars.

The one hundred American companies on the 2015 Ethisphere list averaged 3.49 stars, with a low of 1.9 and a high of 4.6. Of companies on the list, four have average employee ratings of exactly 3 stars, and they occupy the 87th through 90th spaces on the ordered list. This offers an overall (non-scientific) generalization that these companies seem to be doing well with employee satisfaction, which one might expect of working in a highly ethical environment.

Only seven of the list’s honorees broke the 4.0 mark. Eastman Chemical has the lists’ highest rating with a remarkable rating of 4.6 stars. Eastman is followed by Google (4.4 stars), Hypertherm (4.1), Adobe, Baptist Health South Florida, Knights of Columbus, and Sempra Energy (4 stars each). Twelve other ethically celebrated companies have Glassdoor ratings of at least 3.8.

It should be noted that this approach is statistically sloppy, and a five-star rating system is really a cognitive shortcut that doesn’t do much more than offer quick glimpse at general hive-mind. Keeping in mind that no company is as good as its best review or as bad as its worst, a more useful approach for any critic would be to spend a good deal of time looking at reviews near the middle, then slightly above and below that mark. However, in getting an overhead forest view, as opposed to a detailed tree view, the comparison of the Ethisphere list with the Glassdoor ratings can offer a handy (if flawed) glimpse at the relationship between a company’s self-reported ethics and the satisfaction of its employees. Every company on the list is worthy of congratulations if for no other reason than its recognition by a neutral, third party as being among the most ethical companies in the world.

Link:
Ethisphere’s list of World’s Most Ethical Companies. http://ethisphere.com/worlds-most-ethical/wme-honorees/

 

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Corporate Responsibility: How Employees Rate Working For The Most Ethical Companies - Executive Leadership Articles

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