“We have long believed our culture — namely our values and guiding principles — is a differentiator for our employees and customers, and this award recognizes that fact,” said Kevin Wheeler, A.O. Smith’s president, chairman, and CEO, in a press release. “This designation is consistent with who we are and always have been. While it’s a new recognition, it’s not a new concept for A.O. Smith.”

A.O. Smith is marking its 150^th anniversary this year; the company was founded in 1874 by Charles Jeremiah Smith.

The World's Most Ethical Companies assessment is grounded in Ethisphere's proprietary Ethics Quotient, an extensive questionnaire that requires companies to provide more 240 different proof points on company culture, including its environmental, social, and governance (ESG) practices; ethics and compliance program; diversity, equity, and inclusion; and initiatives that support a strong value chain. That data undergoes qualitative analysis by Ethisphere’s panel of experts, who spend thousands of hours vetting and evaluating each year's group of applicants.

“Through the rigorous review process, we see the dedication of these organizations to continually improving their ethics, compliance, and governance practices to the benefit of all stakeholders,” said Erica Salmon Byrne, chief strategy officer and executive chair at Ethisphere. “Companies that elevate best-in-class cultures of ethics and integrity set a standard for corporate citizenship for their peers and competitors to follow.”

A.O. Smith’s values and guiding principles have steered the company throughout its 150-year history and helped make it the thriving organization it is, the company’s press release said.

“As we look back on what has made A.O. Smith successful all these years — and also look to our bright future ahead — this milestone year is the perfect time to achieve this recognition,” Wheeler said. “I want to thank our employees for their commitment to make this honor possible and for living our values every day.”