• by Nina Lentini  @Nina_Lentini, May 11, 2007

McDonald's is among the "2007 World's Most Ethical Companies," according to Ethisphere Magazine, an accolade that may cause the fast-food giant's detractors to shake their heads in amazement, but the magazine justifies the designation.

"The food service industry is the largest industry in the world--and McDonald's has clearly stood apart in introducing healthier food fare, sustainable packaging, food safety, and ethical purchasing practices," say the editors in launching the index.

"Doing the right thing is at the core of McDonald's values," says Bob Langert, vice president/corporate social responsibility for the company. "This recognition reflects our accountability to our customers, and our strong commitment to listening, learning and leading the way in key industry changes."

The magazine's editors go on to say that "the elite list of companies was recognized for their strong leadership in ethics and compliance, advancement of industry discourse on social and ethical issues, and positive engagement in the communities in which they operate."

With a circulation of 60,000, the magazine is dedicated to compliance, ethics and corporate social responsibility. It is published by the Ethisphere Council, which is operated by Phoenix, Ariz.-based Corpedia, dedicated to risk management and eLearning for ethics and compliance.

Researchers and editors examined more than 5,000 companies across 30 industries. "We looked for absolutes," they say. "We examined companies in relational context of their industries. And we looked for influential leadership that moved others to change or follow."

Companies may fall off the list in subsequent years, says Matt Blake, an Ethisphere Council associate. "If a company has significant legal action, turmoil or otherwise deemed as unethical behavior or programs in place, it will lower their score next year, and they could drop off the list, depending how damaging each of the above would be."

In the categories most relevant to consumer marketing, the companies named to the list are:

Automotive
AB Volvo, Johnson Controls, Modine Manufacturing, Toyota

Banking
HSBC, Rabobank Group, Standard Chartered Bank

Consumer Products
Hindustan Lever, Kao, L'Oreal, Natura Cosmetics, S.C. Johnson & Sons, Unilever

Electronics
Canon, Royal Philips Electronics, Sharp

Financial Services
American Express, Berkshire Hathaway, PNC Financial Services, Principal Financial

Food and Beverage
Barilla Holding, Danone, Kellogg, PepsiCo, Stonyfield Farm, Tnuva

Hotel and Hospitality
Accor, Marriott

Insurance
Aflac, Geico, Swiss Reinsurance Co.

Media and Entertainment
Kiplinger, Time Warner

Pharma and Biotech
Genzyme, Novartis, Novo Nordisk

Retail
Aeon, Aldi Group, Costco Wholesale, Ikea, Marks & Spencer, Otto GmbH & Co., Target, Wegmans Food Markets, Whole Foods

Restaurants and Cafes
McDonald's, Starbucks

Software and Internet
Google, Salesforce.com

Telecommunications
Avaya, Nokia, Vodafone