NEW YORK—Hilton, Marriott International, Carlson Rezidor (recently rebranded as Radisson Hotel Group) and Wyndham Worldwide are among the 135 companies named the 2018 World’s Most Ethical Companies by the Ethisphere Institute.
“Over the last 12 years, we have repeatedly seen that those companies who focus on transparency and authenticity are rewarded with the trust of their employees, their customers and their investors,” said Ethisphere CEO Timothy Erblich. “While negative headlines might grab attention, the companies who support the rule of law and operate with decency and fair play around the globe will always succeed in the long term.”
Wyndham made the list for the sixth time. “As a global hospitality company with a diverse range of business lines including hotels and vacation ownership resorts, our ethical business practices support our ability to create great experiences for associates and guests,” added Korin Neff, SVP and chief compliance officer.
This year marks the ninth consecutive for Radisson Hotel Group. “This award recognizes our long-standing commitment to responsible business, and demonstrates clearly that our corporate principles are an example to companies across every industry,” said Federico J. González, president/CEO of Radisson Hotel Group. “We have won this award nine years in a row since 2010, and it is always an immense honor for every single one of us. We aim to continue being a global responsible business leader in the hospitality industry.”
The World’s Most Ethical Company assessment is based upon the Ethisphere Institute’s Ethics Quotient (EQ) framework, which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized way. The information collected provides a comprehensive sampling of definitive criteria of core competencies, rather than all aspects of corporate governance, risk, sustainability, compliance and ethics. Scores are generated in five key categories: ethics and compliance program (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership, innovation and reputation (10%).
Ethisphere’s notion that financial value and ethics are inexorably tied together has been borne out through long-term tracking of how the stock prices of publicly traded honorees compare to the U.S. Large Cap Index. The research found that listed World’s Most Ethical Companies outperformed the large cap sector over five years by 10.72% and over three years by 4.88%. Ethisphere refers to this as the Ethics Premium.