‘World’s Most Ethical Company’
Ethisphere Institute has awarded Prudential Financial (PRU) the “World’s Most Ethical Company” award for 2018. It’s the fourth consecutive year that Prudential has received the award, which is given to companies with transparency and strong ethics. Ethisphere has criteria that need to be met in order to qualify for the award.
Following are some criteria on which Ethisphere evaluates companies:
- compliance and ethics program
- corporate governance
- culture of ethics
- corporate citizenship
- leadership, innovation, and reputation
According to Prudential Financial management, by conducting its day-to-day activities in a transparent and ethical way, it strives to make its customers financially secure, which is the core business of any insurance company. The award implies that employees have been working in an ethical way, which also helps build customer trust in the company. PRU focuses on satisfying customers in terms of financial security, so building trust is crucial.
According to Ethisphere management, large, global organizations need to follow ethical practices in the industries in which they are working in order to gain customer trust. Executing their operations in an ethical way provides a competitive advantage.
Prudential Financial’s price-to-book value is 0.84x on an LTM (last-12-month) basis. The values for CNO Financial Group (CNO), MetLife (MET), and Reinsurance Group of America (RGA) are 0.79x, 0.87x, and 1.22x, respectively, on an LTM basis.