How to Evaluate Companies?

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Recommended: Ethical standards and values in business

Companies and firms are evaluated as good or ethical based on different factors that may differ based on the purpose and criterion used by the evaluators or evaluating body. Perhaps the factors that must be taken into consideration when evaluating a firm are the following : business ethics, corporate social responsibility, reputation on leadership, governance and the company’s culture (Ethisphere, 2013). These factors in fact are the indicators used by the movement Ethisphere which identifies The World’s Most Ethical (WME) Companies.

To define each criterion, business ethics primarily deals on the company’s best practices in terms of adopting an effective program and compliance to standard ethical rules as outlined by the Federal Sentencing guidelines. Reputation and leadership on the other hand looks at legal compliance and ethical track record of the companies. It also takes into account the reputation of the company in the market and how its leadership promote ethical and responsible operations. Next, governance primarily looks as the systems that company has in place in terms of risk management, proper evaluation and compliance to the rules promulgated by the guidelines released by the Security and Exchange Commission and other federal or national authorities (Ethisphere, 2013). The Corporate Social Responsibility on the other hand, was first proposed by Oliver Sheldon in 1923 to encourage companies to take social responsibility when pursuing their own businesses and take into mind the repercussion to the public welfare of each economic decision (Wang, 2010). Finally, culture is considered since it talks more on the work environment and how the firm or company reinforces ethical conduct, how they develop their values and...

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REFERENCES:

Gogo, H. (2013). Responding to Negative Celebrity Endorser Publicity: The Case of Nike. Academia.edu. Retrieved April 6, 2014, from http:// http://www.academia.edu/6315776/Responding_to_Negative_Celebrity_Endorser_Publicity_The_Case_of_Nike

Hillsberg, A. (n.d.). Top 10 most expensive Nike Shoes Endorsements: From Kobe Bryant to Tiger Woods. Finances Online. Retrieved April 8, 2014, from http://financesonline.com

Roberts, S. (2006 August 2). Sports of The Times; Coaches Like Graham Still Have Their Sponsors. The New York Times. Retrieved April 6, 2014, from http://query.nytimes.com/gst/fullpage.html?res=9D06E5DA103FF931A3575BC0A9609C8B63

Tan, L. & James, B. (2013). Effects of doping behavior on brand image in Australian sport. Macquire University. Retrieved April 6, 2014, from http://anzmac.org/conference/2013/papers/anzmac2013-263.pdf

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