Ikea Recognized as one of Ethisphere's Most Ethical Companies

March 29, 2010  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on March 30, 2010 Swedish home furnishings retailer Ikeahas been recognized by the Ethisphere Institute as one of the world's most ethical companies for 2010.

Ikea was recognized for its "upright business practices and initiatives that are instrumental in the company's success, benefit the community and raise the bar for ethical standards within the industry," according to the announcement.

This Ikea's fourth consecutive year for the award.

"Ikea is very pleased with being recognized again as one of the world's most ethical companies," said Mike Ward, Ikea U.S. president. "We believe the strength of a company starts with a deep commitment€”not only from management€”but also from every co-worker who has demonstrated unwavering dedication to the highest standards."

This is the fourth year Ethisphere, a think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability, has published the ethical rankings.

Through in-depth research and a multi-step analysis, Ethisphere reviewed thousands of nominations from companies in more than 100 countries and 36 industries to determine the winners.

A sampling of other winners include Aflac, American Express, Campbell Soup, the Ford Motor Co., General Electric, Google, L'Oreal, Nike, PepsiCo, Starbucks, T-Mobile USA, UPS, Whole Foods Market and Xerox.

"Ikea's promotion of a sound ethical environment shines within its industry and shows a clear understanding that operating under the highest standards for business behavior goes beyond goodwill and "lip-service" and is intimately linked to performance and profitability," said Alex Brigham, executive director of the Ethisphere Institute. "This year's World's Most Ethical Companies award was more competitive than ever, because companies realize that making ethics a priority is critical amidst a tough economic environment.

"Compliance or ethics failures add up to more than fees, fines and penalties," Brigham said. "The leadership distraction and turnover, forced alteration of a working profit model and heightened scrutiny that result show: good ethics means better business."

Companies are reviewed on codes of ethics, litigation and regulatory infraction histories; evaluating the investment in innovation and sustainable business practices; looking at activities designed to improve corporate citizenship; and studying nominations from senior executives, industry peers, suppliers and customers.

Click here to view the complete list of 2010 World's Most Ethical companies.