Aussie Banks Named In World’s Most Ethical List

An Australian mutual bank serving the education sector, Teachers Mutual Bank, along with banking giants Westpac and NAB have been named  in a line-up of the 2014 World’s Most Ethical Companies.

The three have been named  by the Ethisphere Institute, a US-based independent centre of research promoting best practices in corporate ethics and governance.

The World’s Most Ethical Company designation recognises companies that the Institute says go beyond making statements about doing business ethically and translate those words into action.

This year, 144 honourees were chosen from thousands of submissions, of which only three were Australian.

“All three Australian companies were banks, and Teachers Mutual Bank, by far the smallest of the three, was recognised for its work in its five sustainability priority areas – business practices, the education sector, its members, its employees, and the environment,” Steve James, CEO of Teachers Mutual Bank, said.

One of the largest mutual banks in Australia, teachers Mutual Bank it has more than 160,000 members and more than $4 billion in assets.

“We’re honoured to be recognised at an international level by the Ethisphere Institute, and are proud to be punching above our weight alongside the biggest in the industry when it comes to ethical business practices and sustainability,” James said.

“For us, it’s not a bolt-on, it’s at the very heart of our strategy. It’s great to see Australia leading the world in ethical banking practices which is testament to the forward-thinking nature of our industry.”

“In today’s complex global economy, it can be increasingly challenging for companies to meet performance expectations, while addressing the varying regulatory, compliance and sustainability needs across geographies and cultures,” Tim Erblich, CEO of the Ethisphere Institute, said.

“Global economic and social challenges from anti-corruption to security and privacy are accelerating the need for companies and organizations to embrace ethics and governance as critical business imperatives.

“Failure to establish the highest ethical business standards and practices throughout an organisation can result in unacceptable consequences that include both human impacts and operational risks.

“These organisations have taken this challenge head on and recognize that leading ethical business practices present an unprecedented opportunity to deliver significant tangible and intangible organizational benefits.”

This year’s 144 honorees represent 41 industries and include 21 first-time honorees.  In this eighth year of recognising companies, Ethisphere is honoring the largest group of organisations based outside the US – 38 organisations from 21 countries and five continents.

Others that topped the list include Marriott International, GE in the US, clothing giant Gap Inc, Cisco Systems, Starbucks and ING US.