Ethical companies

The Ethisphere Institute which describes itself as a "leading international think-tank dedicated to the creation, advancement
and sharing of best practices in business ethics, corporate social
responsibility, anti-corruption and sustainability" earlier this week named  ninety nine companies it says are the "world’s most ethical" in its third
annual listing "designed to encourage ethical practices within the
global business community". The New York based institute sees its primary mission as one to " improve corporate behavior". Interestingly the institute does not consider "diversity, layoffs,
executive compensation and outsourcing as part of the criteria" for
selection.

That the insitute is New York based is perhaps a nice fillip for the Big Apple given the beating the city appears to have taken on account of Wall Street excesses but what is more heartening is to see among the names making the cut in, what ought to be a coveted list for all companies in all industries, two hotel majors Accor and Marriott. The hotel majors clearly were better than their competitors per the criteria used as "companies are chosen against their peers within their industry, as each industry operates under different circumstances". Among the factors that go into the selection process: "Corporate Citizenship and Responsibility; Corporate Governance;
Innovation that Contributes to the Public Well Being; Industry
leadership; Executive Leadership and Tone from the Top; Legal,
Regulatory and Reputation Track Record; and Internal Systems and
Ethics/Compliance Program".

The breath and depth of categories may limit some of the smaller hotel companies from submitting to the process but perhaps over time, the institute can develop metrics more suited to small business (and hotels) which constitute a major part of  the US economy whose business practices arguably are in as much need of such validation.

Published by

Vijay Dandapani

Co-founder and president of a New York based hotel company for 24 years. Grew the firm to five hotels in Manhattan and also developed a greenfield project at MacArthur airport, New York. Speaker at numerous prestigious forums including Economy Hotels World Asia, Lodging Conference, NYU, Columbia University Real Estate Roundtable, Baruch College's Zicklin School and ALIS. President and ceo of New York City Hotel Association since January 2017.

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