Schneider Electric among the World's Most Ethical Companies

The annual list has been released every March since 2007 by the Ethisphere Institute, a US-based organisation whose mission is to define and advance the standards of ethical business practices that fuel corporate character, marketplace trust and business success.

The goal of the list is to help companies worldwide by measuring and defining core ethics standards using data-driven insights to enhance corporate character. The Ethisphere Institute believes that good ethics is good business and that this recognition programme is important because corporate ethical standards must be set and measured, and that those who excel should be honoured.

World's Most Ethical Companies assessment is based on the Ethisphere Institute's Ethics Quotient (EQ) proprietary framework, which captures data in a standardised way using an extensive questionnaire on ethical culture, compliance programs, policy, procedure and other aspects of an ethical organisation. Companies that wish to be considered must complete a questionnaire organised around five main criteria:

• Compliance & Ethics Program refers to corporate best practices, administrative and regulatory guidance, relevant case law and the hallmarks of an effective compliance and ethics programme as outlined by US Federal Sentencing Guidelines (written standards, training and communications, programme monitoring and auditing, etc.)
• Corporate Citizenship looks at the availability and quality of systems designed to ensure strong corporate governance, including oversight, governance principles and risk management. These criteria vary with the type of organisation (public or private company, non-profit organisation, educational institute, etc.)
• Culture of Ethics examines the organisation's efforts to set an ethical tone at every level and measure progress
• Corporate Governance reviews the company's performance indicators associated with sustainability, citizenship and social responsibility. The quality and effectiveness of initiatives are considered in addition to stated and measurable goals, accountability and transparency
• Leadership, Innovation & Reputation aims to measure the company's compliance, litigation and ethical track record, along with its reputation in the marketplace as an ethical leader creating positive change

Once all the information has been submitted, Ethisphere's staff, with the help of its panel of advisors, verify as much as possible through executive interviews, financial filings, online documents, news reports and other research. Analysts research each company's history of litigation, reputation and ethical track record. Industry, size, geographic location and other factors are also taken into consideration.

Over the years, thousands of companies have been evaluated. Any organisation worldwide can participate in the process upon payment of a fee (introduced in 2015, based on a sliding scale). The Ethisphere Institute does not publicly disclose the total number of applicants. It leaves companies the freedom to apply and be measured against others in complete confidence so that honourees recognise that their programmes are measured both competitively and on their own merits. The number of honourees can vary, given the ever-higher expectations of internal and external stakeholders and the fact that the scoring process is not static but reflects changes in best practice and methodology. Every year, the questionnaire is revised by the Ethisphere Institute in conjunction with a Methodology Advisory Panel to ensure that it is aligned with the ever-changing expectations of employees, managers, shareholders, regulators and the public at large.

In 2017, 124 companies received the accolade, representing 52 industries across 19 countries. Schneider Electric has appeared in the World's Most Ethical Companies list every year since 2011. In 2017, Schneider Electric is one of the only two companies honoured in the "Diversified machinery" category.

Learn more about Schneider Electric at www.schneider-electric.com/uk.