compliance & ethics program rankings & ratings€¦ · highlights and case studies on...

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Society of Corporate Compliance and Ethics

6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977

Compliance & Ethics Program Rankings & Ratings

Alex BrighamExecutive Director

The Ethisphere Institute


� Research institute into ethical

leadership and compliance best

practices

� Affiliated membership council

with 400+ corporate members

� Certifications and Rankings

� Largest circulation magazine on

compliance and ethics

Institute

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magazine

� Quarterly periodical published by the Council for 80,000 Boards of Directors, CEOs, GCs and Compliance and Ethics Officers

� Resources and commentary on major compliance and ethics cases and trend issues

� Highlights and case studies on leaders and initiatives which highlight ethical leadership in action – including some Council members

� Hailed by Forbes.com as the “leading magazine of its genre”

� To subscribe to Ethisphere, please visit www.ethisphere.com/subscribe.

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 4

The World’s Most Ethical Companies Ranking

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ETHICAL LEADERSHIP IMPACTS 36 PROFIT AREAS


ETHICAL COMPANIES OUTPERFORM

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WELL-REGARDED COMPANIES ARE WORTH MORE

“a company's reputation for being able to deliver growth, attract top talent, and avoid ethical mishaps

can account for much of the 30%-to-70% gap between the book value of most companies and their market

capitalizations. Reputation is a big reason why Johnson & Johnson trades at a much higher price-earnings ratio than Pfizer, Procter & Gamble than

Unilever…”

“What Price Reputation?”

BusinessWeek

July 9, 2007


Good Ethics are Good for Your Image

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2008 AGGREGATE SCORE WEIGHTING

15% INNOVATION THAT

CONTRIBUTES TO PUBLIC WELL BEING

20% LEGAL, REGULATORY

AND REPUTATION TRACK RECORD

15% EXECUTIVE

LEADERSHIP AND TONE FROM THE TOP 5% INDUSTRY

LEADERSHIP

15% INTERNAL SYSTEMS

AND ETHICS/COMPLIANCE PROGRAM

10% CORPORATE

GOVERNANCE

20% CORPORATE CITIZENSHIP

AND RESPONSIBILITY


METHODOLOGY

01 //The Starting Line

• World’s Most Ethical Companies Methodology Committee: Group of expert attorneys, professors, government officials and organization leaders concerned with ethical and

honest business practices.

02 //Candidate Selection

• Over the course of the year, Ethisphere contacted thousands of companies worldwide about the awards to gather information and create a pool of candidates.

03 //Making Contact

• Semi-finalist companies were then notified and given an in-depth survey questionnaire.

04 //Crunching Numbers

• Data analysis on hundreds of companies based on their responses to the survey, as well

as documents and information researched and requested by Ethisphere to confirm survey

responses. Every company was then given an EQ score.

05 //The Final Stretch

• The highest EQ scores for each industry became finalists and were then notified and

interviewed by Ethisphere analysts.

06 //And the Winners Are…• 2008 World’s Most Ethical Companies were announced on June 3rd, 2008 at the Forbes-

Ethisphere Ethical Leadership Forum in New York City’s Rainbow Room.

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93 ULTIMATELY HONORED AS WME

Complete list available at www.ethisphere.com


IN THE WORDS OF A FEW OTHERS…

"We are incredibly honored to again receive this tribute

recognizing our uncompromising standards."

Jonathan J. Judge, president and CEO, Paychex

"It is an honor for Waste Management to be ranked so highly

by Ethisphere, and it is an indicator of how strongly our

corporate culture values ethics, diversity and sustainability,"

Dave Steiner, CEO, Waste Management

“The Hartford is honored to be recognized by the Ethisphere Institute as we continue

to demonstrate to our employees, customers, investors, business partners and

government officials that their trust in The Hartford is well served.” Tom Marra,

President and Chief Operating Officer, The Hartford

"We are proud to be recognized by Ethisphere Institute as one

of the world's most ethical companies and by the Reputation

Institute as one of the most respected U.S. companies," Jeff

M. Fettig, Chairman and CEO, Whirlpool Corporation

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ETHICS INSIDE CERTIFICATION

4 of 93 WME Companies were distinguished further by receiving Ethics Inside

CeritificationTM designation

What is Ethics Inside Certification? And how does it relate to the World’s Most

Ethical Companies rankings?


The only independent verification of a company’s ethics and compliance

program, business practices, corporate governance, citizenship and

social responsibility

WHAT IS ETHICS INSIDE CERTIFICATION?

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THE BENEFITS OF BEING ETHICS INSIDE CERTIFIED


The first and only

independent review of U.S. Government contractors

ethics and compliance

program, based on the

Federal Acquisition

Regulation and FederalSentencing Guidelines

The Government Contractor Ethics Program Rating and Ranking

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� The mission of the Ethisphere Institute is to drive and reinforce profitable ethical business practices. This is embodied in the tagline of the Institute: GOOD. SMART. BUSINESS. PROFIT.

� In support of the new FAR amendments, Ethisphere provides an objective analysis of how well government contractors are doing in their efforts to reasonably detect and prevent fraudulent andunethical behavior in winning and administering federal government contracts.

� Recognizing contractors that excel and demonstrate best practices and efforts in ethics programs

Why did Ethisphere Compile These Rankings?


Advisory Committee

� Steven G. Churchwell, Partner, Government Affairs, DLA Piper LLP

� George W. Ash, Partner, Foley & Lardner LLP

� Jeffery D. Clark, Partner, Willkie Farr & Gallagher LLP

� Ronald Clark, Partner, Arent Fox LLP

� Lisa A. Estrada, Partner Government Contractor Services and Government Enforcement, Arent Fox LLP

� Kathleen M. Hamann, Vice-Chair, Anti-Corruption Initiatives & Compliance Issues Committee,

American Bar Association (ABA)

� Jenny Kim, Senior Associate, Miller & Chevalier Chartered

� David Laufman, Partner, Kelley Drye Collier Shannon LLP

� Tim Lupfer, Director, Human Capital Organization and Change, Deloitte Consulting LLP

� Deneen J. Melander, Partner, Fried Frank LLP

� Paul Melendez, Professor, Eller College of Management, University of Arizona

� Traci Melvin, Deputy Director, National Institute of Health (NIH) Ethics Office

� Kevin Mullen, Partner Government Contracts Practice, Cooley Godward Kronish LLP

� The Government Contracting Ethics and Compliance Methodology

Committee is comprised of leading attorneys and government officials

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Media Coverage

Ethisphere’s 2008 Government Contractor Ethics Program Rankings is “nonpartisan and non-

confrontational.”

“Ethisphere had developed a good set of questions that companies should be asking

themselves about their own programs”

“[Ethisphere’s] effort makes sense. Voluntary disclosure of internal ethics procedures will give us better means to do business with

the best contractors out there.”

- Senator Tom Carper, State of Delaware


2008 Rankings and Ratings

• Top 100 Largest Government Contractors

• Best Ethics Programs Overall

• 10 Best Private Companies

• 5 Best Foreign Companies

• 10 Best Internal Control Systems

• 5 Best Small Companies

• 10 Best Training and Communication Programs

• 10 Best Code of Ethics and Business Conduct

• 10 Best Internal Control Systems

• 10 Best Codes of Conduct

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Process Highlights

� Confidential survey sent to top 1,000 federal government contractors

� More than 90% of the outsourced government budget

� Information provided by the companies was supplemented by Ethisphere research.

� Companies were encouraged to send in additional materials and ‘evidence’ of their efforts at ethics and compliance

� Random audit and verification of responses

� Each company an highly objective numerical score against the

methodology & weighting

� Some companies (privately-held and some overseas) were not rated due

to the lack of reliable data


Score Analysis

Key components of contractor ethics programs with a focus on aspects

addressed by the amendments to the FAR, such as:

� Code of Ethics and Business Conduct

� Internal Control Systems

� Training and Communication

� Leadership and Tone from the Top

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Aggregate Score Weightings


Global Sustainability Centers

What are the 2020 Global Sustainability Centers?

In the fall of 2008, The Ethisphere Institute will rank the 10 cities throughout the world that have built a strong, principled foundation in order to become a global mega-hub by the year 2020.

Why 2020?

It’s the future. While it’s easy for policy-makers and elected officials to look at short term profit and

growth, we at Ethisphere would like to reward those city leaders around the world with the

foresight to plan a growing city in a long-term, environmentally and economically sustainable manner.

What are the criteria?

• Environmental & Sustainability Practices

• Health & Recreation• Education, Arts & Culture

• Economic & Business Environment

• Regulatory Framework, Law Enforcement & Transparency

• Media & Speech

• Leadership & Planning• Innovation & Investment

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Global Sustainability Centers

What cities are the semi-finalists?

• 46 cities are on the semi-finalist list. Full list available on ethisphere.com.

• No more than one city per country will make the final list.

• Some of the cities that will be on the list are currently world leaders and will simply maintain their

status. Others will become first-time leaders by 2020.

When will the winners be announced?

• The Ethisphere Institute will be producing a documentary on the 2020 Global Sustainability

Centers and announce the city finalists in the third quarter edition of Ethisphere Magazine, due out in fall of 2008.

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Global AntiCorruption Rating

Continued crackdown on global corruption

• According to New York Times, FCPA is the new Sarbanes-Oxley

• Ethisphere launches Global Anticorruption Quotient in Q4 2009, rating 1000 largest global exporters and multinational companies

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Anti-Corruption Quotient Methodology Advisory Committee

Christoph Frei, Senior Director, World Economic Forum Partnering Against Corruption Initiative, World Economic Forum

Manny A Alas, Partner, PricewaterhouseCoopers LLP Margaret M. Ayres, Partner, Davis Polk & Wardwell Nancy Boswell, President, Transparency International USAGary DiBianco, Partner, Skadden, Arps, Slate, Meagher & Flom LLPTimothy L. Dickinson, Partner, Paul, Hastings, Janofsky & Walker LLP Thomas W. Dunfee, Professor, Business Ethics University of Pennsylvania David Hess, Assistant Professor of Business Law & Business Ethics, Ross School of

Business University of Michigan Michael E. Horowitz, Esq., Partner, Cadwalader, Wickersham & Taft LLP Scott Lane, The Red Flag Group Judith Lee, Partner, Gibson,Dunn & Crutcher LLP Brian Levy, Adviser, Public Sector Governance, World BankLucinda A. Low, Partner, Steptoe & Johnson LLP Danforth Newcomb, Partner, Shearman & Sterling LLPKimberly A. Parker, Partner, Wilmer Cutler Pickering Hale and Dorr LLPLisa Prager, Partner, Wilson Sonsini Goodrich & Rosati Claudius O. Sokenu, Partner, Mayer Brown LLP Alexandra Wrage, President, Trace International Martin Weinstein, Partner, Willkie Farr & Gallagher LLP Don Zarin, Partner, Holland & Knight/PLI


QUESTIONS?

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