Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, employee benefits, insurance services, and payroll, has been named among one of the 2024 World’s Most Ethical Companies® on Ethisphere’s annual list. This marks the 16th time Paychex has been recognized since the program began in 2007.
Ethisphere, a global leader in defining and advancing the standards of ethical business practices, recognizes a select group of companies each year that show exceptional commitment to ethical operations, compliance performance, and governance practices.
“It’s always inspiring to recognize the World’s Most Ethical Companies. 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, Ethisphere’s Chief Strategy Officer and Executive Chair. “Companies that elevate best-in-class cultures of ethics and integrity set a standard for corporate citizenship for their peers and competitors to follow. Congratulations to Paychex for achieving this honor and demonstrating that strong ethics is good business.”
“Helping small and medium-sized businesses succeed has been our purpose since Paychex was founded in 1971. In order to achieve this purpose, we will continue to have an unwavering commitment to operating our business with the highest ethical standards. This commitment has been essential in earning the trust of over 740,000 businesses, whom we are honored to call our customers,” said John Gibson, president and CEO of Paychex. “Paychex is a purpose and values-driven organization. Our 16,000 employees are committed to helping businesses succeed and do so with the highest levels of integrity. To be once again recognized as one of the most ethical companies in the world is a testament to the strength of our employees and our culture to do good for our customers, employees, and the communities where we live and work.”
“Our unwavering ethical business behavior is what drives our Environmental, Social, and Governance (ESG) initiatives,” said Stephanie Schaeffer, vice president, chief legal and ethics officer, and secretary at Paychex. “It is an honor to be recognized by Ethisphere for how we apply our integrity across everything that touches the Paychex business—from how we act as responsible stewards to how our workplace values and respects our employees, and how we contribute to the quality of life for our local communities.”
In the 2023 Environmental, Social, and Governance Report, Paychex released the impact the company has made to date and announced initiatives related to the primary pillars of the company’s ESG program:
- Paychex is committed to supporting strong and vibrant communities. In FY23, the Paychex Charitable Foundation made its first gifts in support of its strategic giving framework focused on well-being. The initiative directs $1 million in funding each year for the next four years to Mental Health America, Feeding America®, Junior Achievement USA®, and the National Urban League for a total investment of $4 million to support mental health, physical health, financial health, and professional skills development.
- Paychex launched the DEI Advisory Board, chaired by Gibson, to align efforts through strategic task forces to move DEI actions throughout the company. Prioritization remains on amplifying diverse voices through recruitment, Employee Business Resource Groups (EBRG), mentorship programs, training, and pay equity. Last fiscal year, in (FY23), 61% of Paychex employees were female and 53.5% of leadership roles within Paychex were held by women.
- To align with the shifting guidance on reducing energy consumption and greenhouse gas (GHG) emissions, Paychex committed to updating its environmental policy at least once a year, performing enterprise-wide risk assessments, evaluating the energy efficiency of data centers, and has announced its ambition to achieve net-zero GHG emissions by 2050. In FY23, Paychex strategically reduced printing 43 million sheets of paper and recycled 74.8 metric tons of electronic waste in the company’s U.S. operations.
Methodology & Scoring
The World’s Most Ethical Companies assessment is grounded in Ethisphere’s proprietary Ethics Quotient®, an extensive questionnaire that requires companies to provide over 240 different proof points on their culture of ethics; environmental, social, and governance (ESG) practices; ethics and compliance program; diversity, equity, & inclusion; and initiatives that support a strong value chain. That data undergoes further qualitative analysis by our panel of experts who spend thousands of hours vetting and evaluating each year’s group of applicants. This process serves as an operating framework to capture and codify truly best-in-class ethics and compliance practices from organizations across industries and from around the world.
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