L'Oréal has been recognized for the eighth time and is one of only two in the Health and Beauty industry.
The other company on the list is Kao.
"Culture is the foundation of a high performing, innovative and sustainable company," said Jean-Paul Agon, chairman and CEO of L'Oréal. "I am proud that ethics is the key pillar of our culture and leadership, requiring our teams throughout the world to always include ethics in the decisions they make."
"Receiving this recognition from Ethisphere for the 8th time is a source of pride for everyone at L'Oreal. Ethics is the new decision-making framework and we are convinced that a strong culture of integrity is an essential component for long-term success," added Emmanuel Lulin, senior vice-president and chief ethics officer.
The World's Most Ethical Company 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 way. 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%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership, innovation and reputation (10%) and provided to all companies who participate in the process.