Ethical Business: Another Way to Measure Better Business
The terms CSR, sustainability, ethical, and responsible indicate a fundamental shift in thinking about the purpose of business. All describe strategies that assume a mission larger than just profit. The Ethisphere Institute uses a morality filter as the benchmark for its annual list of The World’s Most Ethical Companies. The program evaluates companies in three areas: the promotion of ethical business standards and practices internally; the enabling of managers and employees to make good choices; and the shaping of future industry standards by introducing tomorrow’s best practices. The kicker: companies on the “ethical” list historically outperform others financially. This year’s group recorded a 3.3% higher return compared to the S&P 500. That’s better business, indeed.
John Howell, Editorial Director