An index of companies deemed ethical by “numerous sources” has outperformed the S&P 500 by more than 370 per cent over five years, according...

An index of companies deemed ethical by “numerous sources” has outperformed the S&P 500 by more than 370 per cent over five years, according to Corpedia, a service provider in risk assessment and e-learning for ethics and compliance. The claim is that organisations that live up to moral principles or codes of conduct are likely to be more profitable over time. The Ethics Index created by Corpedia tracks the stock performance of publicly traded companies that are “recognised for their corporate citizenship, ability to attract and retain employees, and sustainability practices”. Alex Brigham, president and chief executive of Corpedia said: "Based on this evaluation, it's clear that consumers want the companies they frequent to do business in a manner they can respect. The legal departments tasked with creating ethical programs in compliance with government regulations can now justify them with more than a simple 'it's the right thing to do'. The financial implications are clear: to be ethical means to be profitable." The average five-year return on the Ethics Index was 102 per cent compared with 26 per cent for the S&P500. The companies in the Ethics Index include Intel, Starbucks and the Timberland Company. According to Corpedia, independent experts repeatedly included these companies on lists of quality corporate citizens, admired companies or best companies for which to work.