Wipro is the sole non-American tech company to feature in the list of 124
The 2017 version of The World’s Most Ethical Companies, the annual list brought out by ethics advisory firm, Ethisphere Institute, is out. Ten IT companies find place in the list of 124 ethical companies around the world.
The technology companies that feature in the list of the world’s most ethical companies include CA Technologies, Dell, Intel, LinkedIn, Microsoft, Symantec, Teradata, Texas Instruments, Wipro, and Xerox. Except Wipro, which is India-headquartered, the rest are all American companies.
Technology companies do slightly better in lists such as most preferred employers.
The performance of tech companies has not changed much since last year. There were 12 tech companies in the 133 companies-long list published by the same firm last year. While there is no new tech company in the 2017 list, two companies that featured last year are out of this year's list. They are Cisco and Ricoh.
While some companies like Dell, Intel, Microsoft, Symantec, Teradata, Texas Instruments, Wipro and Xerox have been consistently featuring in this list, LinkedIn and CA have joined the list in last two years. Cisco, which was a regular over the years, has dropped off the list this year.
What does it mean to be an ethical company?
“Honorees have historically out-performed others financially, demonstrating the connection between good ethical practices and performance that’s valued in the marketplace,” the firm says. It shows by analyzing the performance of these stocks that there is a 9.6% excess return that these companies have given to shareholders over average S&P 500 return. Of course, these are some of the leaders and it is not known if the better performance can be linked to their being ethical. Nevertheless, it is surely an image booster that helps to attract employees and customers alike.
The program honors companies that excel in three areas – promoting ethical business standards and practices internally, enabling managers and employees to make good choices, and shaping future industry standards by introducing tomorrow’s best practices today.