ON Semiconductor Corporation (Nasdaq: ON), driving energy efficient innovations, has been recognised by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, as one of the 2018 World’s Most Ethical Companies.
“Our company’s ability to consistently demonstrate ethical operations and culture in a fluid semiconductor industry remains critical to our business operations,” said Keith Jackson, ON Semiconductor president and chief executive officer. “Leveraging our ethical practices, based on key factors of integrity and accountability, is one of our biggest differentiators. I want to personally thank all of our employees for their dedication to maintaining a strong corporate culture of compliance and ethics and for embedding ethical standards in every aspect of their jobs and in the foundation of our company.”
ON Semiconductor has been recognised for three consecutive years and is one of only six honorees in the Electronics & Semiconductors industry, underscoring their commitment to leading with integrity and prioritising ethical business practices.
In 2018, 135 honorees were recognised, spanning 23 countries and 57 industries. The twelfth 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.
ON Semiconductor attributes this prestigious recognition to its longstanding and active pursuit of the total alignment of all business objectives with exercising the utmost care and commitment to ethical stewardship, across the entire organisation of more than 30,000 employees in 31 countries. Starting with the CEO and the chief compliance and ethics officer, spanning to the executive leadership team and to every employee, the principles of compliance, ethics and corporate social responsibility are modeled from the top and instilled in each employee, in accordance with ON Semiconductor’s core values of respect, integrity and initiative. A strong foundation in compliance and ethics stemming from the company’s Board of Directors that is echoed throughout an organisation, results in trust from customers and partners, who count on the company to be honest and equitable, regardless of macroeconomic factors.
“This three-time designation is a true testament to the strength of our core values and steadfast dedication to our ethical foundation,” said Sonny Cave, ON Semiconductor executive vice president, general counsel, chief compliance and ethics officer, chief risk officer and corporate secretary. “Employees, customers and suppliers have seen the evidence of our actions, which continually reinforce the fact that they are doing business with a company that has high standards and a culture of compliance. I am proud of our achievements as a three-time designee of this tremendous honor.”
“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 ON Semiconductor for being recognised as one of the World’s Most Ethical Companies.”
Ethics and 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 and 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 standardised 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), 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 organisations.
Best practices and insights from the 2018 honorees will be released in a report and webcast in March and April of this year. Sign up to receive the report.