The document discusses Dell Inc. being named one of the 2019 World's Most Ethical Companies by the Ethisphere Institute. It summarizes Dell's social impact plan through 2030, which includes goals in sustainability, inclusion, social initiatives, and ethics/privacy. However, the plan lacks SMART indicators and a clear theory of change. The document also critically assesses Ethisphere's awards and Dell's plan, noting limitations like conflicts of interest for Ethisphere and Dell's plan not following best practices in ethical decision making.
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Dell Inc.: A 2019 World's Most Ethical Companies Honoree
1. Dell Inc.: A 2019 World's Most Ethical
Companies Honoree
Olivier Serrat
2020
2. Ethics in Business
Business ethics—which means to
tie companies to social norms—
is a child of the 1960s and
1970s; but, its development
owes most to the high-profile
accounting scandals at Enron
Corporation, Tyco, and
WorldCom in 2001–2002 and
the deregulation that caused the
financial crisis of 2007–2008.
The compass of ethics now spans
corporate governance,
corporate social responsibility,
ethical leadership, responsible
management education, and
sustainable business.
Signs of a boom in ethics
are everywhere but one
draws attention for the
chutzpah of its ambitions.
In 2007, the Ethisphere
Institute was
established—as a for-
profit company—in
Scottsdale, Arizona to
define and measure
corporate ethical
standards, recognize
companies that excel, and
promote best practices in
corporate ethics.
Ethisphere
manages a
community of
compliance, ethics,
and legal
professionals;
offers verification
services for
corporate ethics;
publishes
Ethisphere
Magazine; and
announces the
World's Most
Ethical Companies
award every year.
3. The 2019 World's Most Ethical Companies (1)
"Ethisphere brings together leading global companies to define and
codify best practices for ethics and compliance; and helps to advance
business performance through data-driven assessments, benchmarking,
and guidance" (Ethisphere Institute, n.d.).
In 2007, Ethisphere launched the World's Most Ethical Companies awards.
Honorees meet criteria across five categories: (1) ethics and compliance
program (35%), (2) culture of ethics (20%), (3) corporate citizenship and
responsibility (20%), (4) governance (15%), and (5) leadership and
reputation (10%).
The 128 honorees of the 2019 World's Most Ethical Companies spanned
50 industries in 21 countries: they included 16 first-time honorees and
eight companies that have been named to the list every year since 2007.
4. The 2019 World's Most Ethical Companies (2)
"Ethisphere's Ethics Quotient® is a proprietary
rating system that collects and objectively
scores self-reported data in five weighted
categories. Questions included in the Ethics
Quotient are periodically reviewed and
updated based on changing regulations,
expectations, and best practices. Supporting
documentation is required for consideration
as one of the World's Most Ethical
Companies" (Ethisphere Institute, n.d.). In
2019, the Ethics Quotient framework
comprised 200+ multiple-choice and essay
questions (Ethisphere Institute, 2019).
Source: (Ethisphere Institute, n.d.).
5. The 2019 World's Most Ethical Companies (3)
Source: (Ethisphere Institute, n.d.).
6. The 2019 World's Most Ethical Companies (4)
Companies • 128
Industries • 50
Countries • 21
Employees • 6.75 million
Annual Revenues • $3.02 trillion
Market
Capitalization • $6.05 trillion
What People Are
Saying
• "The World's Most Ethical Companies award means more than
any other award we could win because it really defines who
we are. It is a manifestation of Milliken & Company trying to
do the right thing and conduct business in an ethical manner.
The way we make money is as important as how much money
we make."—Halsey Cook, Chief Executive Officer, Milliken &
Company (Ethisphere Institute, n.d.)
Source: (Ethisphere Institute, n.d.).
7. The 2019 World's Most Ethical Companies (5)
There were four
"technology"
companies in
the honorees of
the 2019
World's Most
Ethical
Companies
157,000
employees
(Note: Dell Inc.
was recognized
for the sixth
straight year.)
135,000
employees
60,000
employees
12,000
employees
8. The World's Most Ethical Companies: Criticisms
Ethisphere is a for-profit company and there have been accusations of conflicts of
interest. Companies with above-average Ethics Quotients can purchase "Ethics
Inside" certification; benchmarking or evaluation reports; and on-site advisory
sessions (Schiller, 2012). "Is being labeled 'ethical' available for a price?", queried
Schiller (2012).
Ethisphere calculates the Ethics Quotient of each company based on self-reported
documentary evidence: in instances, it has had to reject businesses that have been
less than truthful or displayed inconsistencies in answers (Schiller, 2012).
Ethisphere does not disclose the number of applicants. But, with reports of just 750
applicants in 2015, Ethisphere's lists of honorees must surely miss out on thousands
(and thousands) of highly ethical companies (Adams, 2015).
9. Dell Inc.: Company Profile
Founded by Michael Dell and headquartered in Round
Rock, Texas, Dell Inc.—formerly PC's Limited (1984–
88) and Dell Computer Corporation (1988–2003)—
designs, develops, manufactures, markets, sells,
repairs, and supports personal computers (and offers
related products, accessories, and services). With
market capitalization of $45.2 billion, sales worth
$90.4 billion, and about 157,000 employees in 2019,
Dell Inc. is one of the world's leading suppliers of
personal computers (after Lenovo and HP). Dell Inc.
operates in 180 countries and serves 98% of Fortune
500 companies. (Dell Inc., n.d.).
10. Dell Inc.: Progress Made Real—Social Impact Plan for
2030 (1)
Dell Inc.'s
nomination in
2019 must
have been
informed by—
if not based
on—its Social
Impact Plan
for 2030 and
its four
"moonshots"
(Dell Inc.,
2019).
• Advancing Sustainability. By 2030, for every product a
customer buys, Dell Inc. will reuse or recycle an equivalent
product. 100% of its packaging will be made from recycled or
renewable material. More than half of its product content will
be made from recycled or renewable material. (Dell Inc., 2019)
• Cultivating Inclusion. By 2030, 50% of Dell Inc.'s global
workforce and 40% of its global people leaders will be
women. (Dell Inc., 2019)
• Transforming Lives. By 2030, with its technology and scale,
Dell Inc. will advance health, education, and economic
opportunity initiatives to deliver enduring results for 1 billion
people. (Dell Inc., 2019)
• Upholding Ethics & Privacy. By 2030, Dell Inc. will fully
automate its data control processes, making it easier for its
customers to control their personal data. (Dell Inc., 2019)
11. Dell Inc.: Progress Made Real—Social Impact Plan for
2030 (2)
For a total of 19, each of Dell Inc.'s "moonshots" to 2030 comes with "other goals" such as:
• Transforming Lives
• Each year through 2030, 50% of the people empowered by Dell Inc.'s social and
education initiatives will be girls, women, or underrepresented groups.
• By 2030, Dell Inc. will use its expertise and technology to help 1,000 nonprofit
partners digitally transform to better serve their communities.
• Each year through 2030, 75% of Dell Inc.'s employees will participate in giving or
volunteerism in their communities. (Dell Inc., 2019)
• Upholding Ethics & Privacy
• By 2030, 100% of Dell Inc.'s employees will demonstrate their commitment to Dell
Inc.'s values criteria.
• By 2030, 100% of the direct partners Dell Inc. does business with will demonstrate
their commitment to Dell Inc.'s values. (Dell Inc., 2019)
12. Dell Inc.: Progress Made Real—Social Impact Plan for
2030 (3)
An indicator is a factor (or variable) that
provides a simple and reliable means to
reflect change, measure achievement, or
help assess performance.
In a series of connected propositions
regarding means and ends, common
indicators relate to inputs, processes,
outputs, outcomes, and impacts.
Regardless of its position in a results chain,
an indicator must have a source of objective
verification.
SMART
Specific
Measurable
Assignable
Realistic
Timebound
13. Dell Inc.: Progress Made Real—Social Impact Plan for
2030 (4)
A specific
indicator …
Measures only the design element (i.e., input, process, output, outcome, or
impact) that is intended for measurement
A measurable
indicator …
Stands for a clear and practical expression of what is being measured
An assignable
indicator …
Stipulates who will be responsible for data collection
A realistic
indicator …
Provides a realistic dimension of what can be achieved with the resource,
activity, or change including the plans for implementation
A timebound
indicator …
Specifies (as the case may be) the timing of data collection; the time to
be spent in data collection; the time-lag between, say, inputs and outputs;
or more generally when results can be obtained
14. Dell Inc.: Progress Made Real—Social Impact Plan for
2030 (5)
An indicator is a marker
of performance against
a target or progress
over time, without which
nothing can be gauged.
An indicator presents
information in a
simplified way: by
drawing attention, it can
be used to detect and
eliminate failures.
SMART criteria are best
practice and well
accepted in the field of
monitoring and
evaluation.
Theories of change
articulate assumptions
and stipulate how early
and intermediate
outcomes are to be
brought about.
The indicators of Dell
Inc.'s "moonshots" and
"other goals" to 2030
are not SMART (Dell Inc.,
2019).
There is no evidence
that any theory of
change underpins Dell
Inc.'s "moonshots" and
"other goals" to 2030
(Dell Inc., 2019).
15. Dell Inc.: A 2019 World's Most Ethical Companies
Honoree—Assessment (1)
For lack of SMART indicators and a theory of change, it is not likely that Dell Inc. will
accomplish its Social Impact Plan for 2030.
Because they rest on certain criteria, to the exclusion of others, ethical awards will always be
partial. (Ethisphere does not survey the customers of the companies it ranks or the public.)
Ethisphere is a for-profit company and does business with the companies it ranks: there have
been accusations of conflicts of interest.
The methodology that underpins Ethisphere's Ethical Quotients lacks transparency and rests on
submissions that must be corroborated by Ethisphere, to the best of its ability.
What Dell Inc. did to become a 2019 World's Most Ethical Companies honoree is not clear.
16. Dell Inc.: A 2019 World's Most Ethical Companies
Honoree—Assessment (2)
With so many known knowns, known
unknowns, and unknown unknowns
clamoring for attention, best practices
for companies to adopt have to do
with providing an enabling
environment. Thence, because the
compass of ethics is exceedingly
broad, companies deliver concrete
actions from SMART criteria.
Be proactive in managing compliance and ethics
Adopt and communicate an ethical profile
Train employees on compliance policies
Integrate hotlines with the corporate compliance
program
Adopt a risk-based approach to compliance
management (MetricStream, n.d.)
"[T]oxic relationships, dubious economic models, opaque workplace paradigms, as well as
questionable collective and individual actions and behaviors of people who, ordinarily, would
not be considered 'typically criminal'," April et al. (2010) remark, are behind many scandals,
indiscretions, and collapses. Past such drivers such as upbringing, spirituality, or mentors and
role models, and past perfunctory (and nowadays near-universal) statements on the subject,
the galvanization of ethics in organizational settings hangs absolutely on leadership.
17. Dell Inc.: A 2019 World's Most Ethical Companies
Honoree—Assessment (3)
No best practices can be discerned in Dell Inc.'s Social Impact Plan for 2030: on the whole, as
mentioned earlier, this owes to lack of SMART indicators and a theory of change, which means
concrete outcomes cannot be expected. The effort required by Dell Inc. "moonshots" and "other
goals" cannot be gauged either. (The professed effort is not necessarily that great). In any
event, what outcomes eventuate will not be clearly attributable to the plan.
The seeming lack of best practices in Dell Inc.'s Social Impact Plan for 2030 may also owe to
its disregard for utilitarianism, Kant's categorical imperative, justice as fairness, pragmatism, or
altruism, the five popular perspectives (or systems) that Johnson (2015) says are widely used
in ethical decision-making.
Put differently, Dell Inc.'s Social Impact Plan for 2030 is not ends-based, duty-based, or care-
based (if from ends-based ethics we exclude self-promotion).
18. Ethics in Business—Conclusions (1)
For too long now, too many companies have focused on compliance: they have
concentrated on what they should not do so they might avoid fines. Those that have
ventured further afield, such as the World's Most Ethical Companies, are wont to
seek maximum kudos, not necessarily results, from calibrated efforts.
In a globalizing world, social media can have emotional, social, financial, and
even legal consequences: companies must move from self-protective, "check-the-
box" compliance to turn potential liabilities into assets.
Social media, corporate branding, and reputation management are now indivisible.
Hence, actually having ethics and demonstrating that they are a critical part of a
company's business can be a great competitive advantage and profitable sales
tool.
19. Ethics in Business—Conclusions (2)
Past the shaping—with
ethical leadership—of
organizational
standards, strategies,
and contexts for which
best practices exist,
companies must
proactively scope their
ethical range. Copycat
approaches cannot
help but guides such as
the SDG Compass
bode well
(Sdgcompass.org, n.d.).
At entity level (but possibly also at product, site, divisional,
or regional level as appropriate), ethical actions would
entail:
• Defining Priorities (i.e., map the value chain to identify
impact areas, select indicators and collect data, define
priorities).
• Setting Goals (i.e., define scope of goals and select key
performance indicators, define baseline and select goal
type, set level of ambition, announce commitment [to
ethics]).
• Integrating (i.e., anchor goals within the business, embed
[ethics] across all functions, engage in partnerships).
• Reporting & Communicating (i.e., conduct effective
reporting and communication, communicate on [ethical]
performance). (Sdgcompass.org, n.d.)
20. Annex: References (1)
Adams, S. (2015, March 19). The world's most ethical companies 2015. Forbes. Retrieved from
https://www.forbes.com/sites/susanadams/2015/03/19/the-worlds-most-ethical-companies-
2015/
April, K., Peters, K., Locke, K., & Mlambo, C. (2010). Ethics and leadership: Enablers and
stumbling blocks. Journal of Public Affairs, 10(3), 152–172.
Dell Inc. (n.d.) Dell. Retrieved from https://www.dell.com/
Dell Inc. (2019). Progress made real—Our vision for 2030. Retrieved from
https://corporate.delltechnologies.com/en-us/social-impact.htm
Ethisphere Institute. (n.d.). Ethisphere. Retrieved from https://ethisphere.com/
Ethisphere Institute. (2019). World's Most Ethical Companies® 2020 Application Guide.
Retrieved from https://ethisphere.com/
21. Annex: References (2)
MetricStream. (n.d.). MetricStream. Retrieved from https://www.metricstream.com/
Sdgcompass.org. (n.d.). SDG Compass—A guide for business action to advance the
Sustainable Development Goals. Retrieved from https://sdgcompass.org/
Schiller, B. (2012, April 2). What does it take to be one of the world's most ethical companies?
Fast Company. Retrieved from https://www.fastcompany.com/1679578/what-does-it-take-to-
be-one-of-the-worlds-most-ethical-companies