Avnet, a leading global technology distributor, has been recognized as one of the 2018 World’s Most Ethical Companies by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. Avnet’s consistency in leading with purpose and integrity has now been lauded by Ethisphere for five consecutive years.
“On behalf of Avnet, I would like to express our gratitude to the Ethisphere Institute for continuing to shine the spotlight on not only the big-picture implications of supporting social, ethical and environmental causes but the many benefits purpose-driven companies enjoy — increased profitability, highly engaged employees, more loyal customers and fruitful innovation,” said Bill Amelio, Avnet CEO. “Business leaders like myself are continually challenged with finding that sweet spot where the ideals of people, planet, and profits intersect. It is not easy, but I believe that doing well by doing good is not about being perfect, but always striving to do better and to be better. That’s how I try to live my life, and it is a long-standing characteristic of Avnet’s culture that I admire and am proud to have the opportunity to support.”
Recognized each year since 2014, this award underscores the company’s commitment to prioritizing ethical business practices. Defined by equal measures of collaboration, ingenuity, and integrity, Avnet’s business model, philosophy and culture serve as a benchmark inspiring engineers and makers at companies of all sizes to reach further with products and processes that promote fairness and social value.
This year, 135 honorees spanning 23 countries and 57 industries earned the designation as one of the World’s Most Ethical Companies. This class of honorees had record levels of involvement with their stakeholders and their communities around the world. Measuring and improving culture, leading authentically, and committing to transparency, diversity, and inclusion were all priorities for honorees.
“While the discourse around the world changed profoundly in 2017, a stronger voice emerged. Global corporations operating with a common rule of law are now society’s strongest force to improve the human condition. This year we saw companies increasingly finding their voice. The World’s Most Ethical Companies, in particular, continued to show exemplary leadership,” explained Ethisphere’s CEO, Timothy Erblich. “I congratulate everyone at Avnet for being recognized as one of the World’s Most Ethical Companies.”
Ethics & Performance
Once again, the 2018 World’s Most Ethical Companies have proven that operating with integrity leads to greater financial performance. Research has found that, when indexed, listed World’s Most Ethical Companies outperformed the U.S. Large Cap Index over five years by 10.72 percent and over three years by 4.88 percent. Ethisphere refers to this as the Ethics Premium.
Methodology & Scoring
The World’s Most Ethical Companies 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 manner. 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 percent), corporate citizenship and responsibility (20 percent), the culture of ethics (20 percent), governance (15 percent), and leadership, innovation, and reputation (10 percent). All companies that participate in the assessment process receive their scores, providing them with valuable insights into how they stack up against leading organizations.