Principal Financial Group has been recognized as one of the 2026 World’s Most Ethical Companies by Ethisphere, a global leader in defining and advancing the standards of ethical business conduct. This marks the 15th time Principal has received the honor, placing it among 138 companies across 19 countries and 41 industries acknowledged for their commitment to ethical practices.
The 2026 World’s Most Ethical Companies designation is based on Ethisphere’s Ethics Quotient, a comprehensive assessment that evaluates over 240 data points across key areas including governance, compliance, risk management, and corporate culture. Ethisphere’s methodology examines a company’s ability to demonstrate ethical leadership and accountability.
“We’re honored to be recognized as one of the World’s Most Ethical Companies for 2026,” said Deanna Stable, chair, president, and CEO of Principal, in a statement released by the company. “This recognition belongs to our employees, whose daily commitment has built a culture where ethics and integrity are a core part of who we are as a company. As we continue to help more people and businesses build their financial futures, this recognition reinforces that doing what’s right—consistently and authentically—is both a competitive strength and a fundamental part of our culture.”
Ethisphere’s announcement comes as the organization highlights a correlation between ethical business practices and financial performance. A five-year analysis, dubbed the “Ethics Premium,” revealed that publicly traded companies recognized as World’s Most Ethical Companies outperformed a broad global benchmark by 8.2 percentage points between January 1, 2021, and December 31, 2025. The analysis likewise indicated that these companies demonstrated greater resilience during market downturns, experiencing smaller drawdowns and recovering more quickly from peak declines.
According to Ethisphere’s Chief Strategy Officer and Executive Chair, Erica Salmon Byrne, “Companies with strong ethics, compliance, and governance programs are built for better long-term performance.” The 2026 list represents the 20th year Ethisphere has published its ranking of ethical companies.
Principal Financial Group recently reported fourth-quarter adjusted earnings per share that were below analyst expectations, while simultaneously guiding to full-year adjusted EPS growth of 9% to 12%. The company’s stock performance has lagged behind the Dow in recent trading periods.
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