2Sustain

The dictionary defines ethics as “the principles of conduct governing an individual or group; a set of moral issues or aspects (rightness).”

But, how does that definition translate into every day business practice? What role do ethics play in today’s ultra-competitive marketplace? Or, to put it a little more bluntly, does it pay for a company to be ethical?

According to Ethisphere Magazine, the short answer to that last question is “yes” –and, here’s the proof. Over the past five years, the world’s most ethical (WME) corporations have significantly outperformed the S&P 500 in terms of average stock growth percentile.

Of course, now you’re probably wondering two things: Which companies are the “world’s most ethical,” and what exactly does it takes to make the cut? You can find all the details in this article, where Ethisphere announces its new list of the World’s Most Ethical Companies for 2009.

To be considered for the list, companies undergo a three-part selection process, and ultimately, they’re assigned an EQ score based on performance in seven different categories.

This year, 99 companies made the list, including 44 that have appeared for the past three years in a row. Compared to last year, 20 companies were dropped and 25 new firms were added.

The article also contains short interviews with C-level executives from a handful of companies that made the list (Accenture, Caterpillar, General Mills, Philips, Unilever, and T-Mobile, to be specific), and it’s great to hear how these organizations are working to incorporate ethics programs into their core business strategies. For instance, Robert Dotson, president and CEO of T-Mobile USA, explains that even in today’s fast-paced, competitive business world, it’s critical to weave ethics “in the fabric” of all employees.

“Our employees know that getting great results is only part of the equation,” Dotson says. “We expect everyone to get the right results, the right way. ‘Performance’ and ‘values’ are like two wings of an airplane – they are both required for success, and you really would never try flying without one of them.”