Eastman Named One of the World's Most Ethical Companies® by the Ethisphere Institute for the Fifth Time
Recognition honors Eastman's commitment to operate with purpose and lead with integrity
KINGSPORT, Tenn., Feb. 12, 2018 - Eastman (NYSE:EMN) announced today it has been recognized by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, as one of the World's Most Ethical Companies® for the fifth consecutive year. The prestigious honor underscores Eastman's commitment to leading with the highest ethical business standards and practices.
"We are honored to be recognized among the World's Most Ethical Companies again this year," said Chairman and CEO Mark Costa. "At Eastman, we understand that, to be successful and fulfill our purpose of enhancing the quality of life in a material way, we must build trust and confidence with all of our stakeholders - employees, customers, communities, investors, and suppliers. As we continuously look for innovative ways to create value for these stakeholders, our global team is committed to conducting business with honesty and integrity every day. This award is a testament to that commitment."
Eastman has a number of policies and initiatives in place that allow its team members to cultivate a culture of integrity and ethical standards. The company has an Office of Global Business Conduct, led by Eastman's chief legal and sustainability officer, which establishes the Code of Business Conduct. The Code outlines the laws, principles and guidelines all employees follow regarding honesty, integrity and responsible corporate behavior. Regular training on the Code of Business Conduct is required for all employees. Additionally, the Business Conduct Helpline is a confidential, 24-hour-a-day phone service staffed by communications specialists employed by an independent, globally recognized service provider.
"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 Eastman for being recognized as one of the World's Most Ethical Companies."
In 2018, 135 honorees are being recognized, spanning 23 countries and 57 industries. The twelfth class of honorees has 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 are all priorities for honorees. The full list of the 2018 World's Most Ethical Companies can be found at http://worldsmostethicalcompanies.ethisphere.com/honorees/.
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), 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.
Eastman is a global advanced materials and specialty additives company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries and had 2017 revenues of approximately $9.5 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world. For more information, visit www.eastman.com.
About the Ethisphere Institute
The Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character. Ethisphere honors superior achievement through its World's Most Ethical Companies® recognition program, provides a community of industry experts with the Business Ethics Leadership Alliance (BELA) and showcases trends and best practices in ethics with the publication Ethisphere magazine. More information about Ethisphere can be found at: http://ethisphere.com.
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Source: Eastman Chemical Company via Globenewswire