Hong Kong based sourcing specialist William E Connor & Associates has been named as one of world's most ethical companies by a US business ethics think-tank - an accolade that marks a first in sourcing and in Asia.

The Ethisphere Institute, which compiles an annual list of companies that lead the way when it comes to their ethical business practices, praised the 63-year-old sourcing firm for "its industry-leading commitment to ethics and dedication to integrity."

Its evaluation includes everything from codes of ethics, litigation and business practices to the firm's impact on local communities, along with feedback from customers and employees.

"More than 60 years ago our founder articulated a clear and uncomplicated code of conduct - we will represent only one interest, that of our principal, and will do so transparently, ethically, and to the very best of our ability," said chairman and CEO William E (Chip) Connor. "This code remains the cornerstone of our culture today."

Connor's success is based on a business model that enables brands, retailers and importers to source apparel and homewares from a global supply base of over 6,000 audited factories.

However, the company does not hold an equity interest in any factory, nor receive any financial benefit from factories. Instead, Connor puts together a portfolio of options providing details of different factories, prices, technical evaluations, spec packs, quality assurance and a vendor scorecard so that customers can make their own decisions. The sourcing firm's earnings are generated only from client commissions, based on the value of products delivered.

Connor also prides itself on high volume, long-term relationships with customers such as US retailer Dillards, with which it has been working for 40 years, and UK retailer Marks & Spencer (also recognised by Ethisphere), which has been a client for 15 years.

A strong ethical foundation also offers a competitive advantage when working with some of the world's leading consumer brands, chief financial officer James Gagnon told just-style. "It is important to us that our corporate culture makes us a trusted business partner representing the best to our clients, from internal processes to working externally with them."