Critical gaps show in electronics industry ethics
Ethics in Electronics (EiE) has found significant transparency gaps in the ethical policies of electronics companies, with little advancement in the last two years.
EiE researches the ethical, sustainability and governance (ESG) policies of electronics companies at the electronica exhibition every two years and the 2024 survey found has major deficiencies in how electronics companies communicate their ethics and sustainability practices.
The regulatory requirements for ESG reporting are increasingly important, but the survey of 100 companies shows that many are lagging behind in meeting growing stakeholder expectations for transparency.
While 65% of companies showcase their corporate values on their websites, only 47% communicate their ethics and sustainability efforts. Moreover, just 14% feature leadership quotes endorsing these initiatives, signaling a missed opportunity to engage stakeholders at the executive level.
Only 16% of companies explicitly reference the UN’s Sustainable Development Goals (SDGs) in their communications.
The survey also points to a lack of financial transparency. Only 14% of companies make their annual reports public, and just 18% disclose their revenue or profit figures. This is particularly concerning given the increasing pressure from investors, customers, and regulators for companies to be open about their financial health.
“The findings from this survey indicate that companies in the electronics industry have substantial room for improvement in how they communicate their ethical and sustainable practices,” said Niek Poortman, project leader at EiE. “Effective communication of ethics and sustainability will be key to building credibility, attracting top talent, and positioning themselves as leaders in responsible innovation.”
Compared to a similar survey conducted by EiE in 2022, the 2024 results show minimal improvement in transparency and ESG alignment. While awareness of ESG standards has increased among companies in the industry, many companies are still struggling to meet the communication expectations that will soon become mandatory.
EiE started in 1994 and plans an ethics in electronics guide for February 2025 with profiles of companies, an exclusive interview with the number one ranked company, commentary from outside the industry, in-depth interviews with ethically engaged companies, and detailed Ethical Profiles of participating businesses.
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