Aussies Feature Among World’s Most Ethical
11 March 2015 at 9:54 am
Two Australian banks have made the cut for the 2015 World’s Most Ethical Companies list, which promotes global recognition of ethical business practice.
The Australian finance sector has been a regular inclusion on the annual list by independent research centre the Ethisphere Institute, with Teachers Mutual Bank named on the list for the for the second year in a row and National Australia Bank (NAB) included for the fifth year running.
Westpac was left off for the first time since 2007.
In its ninth year, the 132 companies on the list span 21 countries and five continents and represent over 50 industries. The list includes 15 nine-time honorees and 11 first-time honorees.
According to the Ethisphere Institute, The World’s Most Ethical Companies list recognises companies that go beyond making statements about doing business ethically and translate those words into action, exceeding legal compliance minimums to shape future industry standards by demonstrating best practice.
To make the list, companies must excel in five key categories: ethics and compliance program (35 per cent), corporate citizenship and responsibility (20 per cent), culture and ethics (20 per cent), governance (15 per cent) and leadership, innovation and reputation (10 per cent).
“Companies today are challenged by a complex and often conflicting set of laws and regulations around the world, yet despite the lack of a global rule of law there’s a growing commonality about how to do business the right way,” Ethisphere’s Chief Executive Officer, Timothy Erblich, said.
“More and more, we’re finding that stakeholders from employees and customers to executives and investors understand that ethical leadership drives outcomes ranging from operational performance to corporate integrity, transparency and workforce behavior.
“We’re delighted to honor these companies who not only understand the various components of what makes a company ethical but are dedicated to building an environment that makes it so.”
Steve James, CEO of Teachers Mutual Bank said it was a significant achievement to be recognised on the international stage for long-term commitment to ethical business practices.
“Profitability and sustainability are not mutually exclusive. We believe it is our responsibility as a business to invest in ethical practices and to leave a positive mark on the community in which we operate,” he said.
“There is a growing tide of socially aware consumers who are sending a strong message by demanding ethical and sustainable practices from the businesses they deal with. Among the reasons our members join Teachers Mutual Bank is because they support the way we do business and they want their money to help create positive change in the community.”