Cosmetic companies recognized for outstanding ethical practices

By Andrew McDougall

- Last updated on GMT

Related tags Business ethics Corporate social responsibility

Cosmetic companies recognized for outstanding ethical practices
A number of cosmetic and consumer product companies have been named in the 2012 World’s Most Ethical Companies list devised by the Ethisphere Institute, including L’Oréal, Shiseido, and Natura.

It is the third time cosmetics giant L’Oréal has been recognized and is also joined on the list by Colgate Palmolive, Kao, Henkel and Kimberly-Clark.

"A strong ethical foundation is a competitive advantage, and L’Oréal recognizes the important role corporate responsibility plays in improving its bottom line,"​ said Alex Brigham, executive director of the Ethisphere Institute.

Business ethics, CSR, anti-corruption and sustainability

Constructed by business ethics organization the Ethisphere Institute, the list is in its sixth year and is dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.

The 2012 list features companies in more than three dozen industries, including 40 companies headquartered outside the United States.

The methodology for the WME ranking includes reviewing 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.

To compile the data on which it bases the list, Ethisphere relies mostly on the honor system. Three thousand companies were nominated, or nominated themselves, to be considered.

‘Overwhelmingly honest’

"Depending on their responses, we might give them more points in that category," says Stefan Linssen, editor of Ethisphere Magazine. He adds that most companies tend to be"overwhelmingly honest."

Ethisphere evaluated the surveys and assigned the companies scores in seven different categories. It then culls the list down and eliminates any company that has had significant legal trouble over the past five years, which in the end left 145 companies who made the grade.

"It is a wonderful recognition of the level of commitment of our employees worldwide. This award reinforces our conviction that long-term business success is built on high ethical standards and a genuine engagement with the community at large,”​ said Emmanuel Lulin, group director of Ethics at L’Oréal.

“A company with strong values is a company you can trust and trust is the biggest asset a company can have.”

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