The designation recognises organisations that have had a material impact on the way business is conducted by fostering a culture of ethics and transparency at every level of the company.
More than 132 companies were evaluated by the Ethisphere Institute as part of the decision process. Schneider Electric is one of only three companies in the "capital goods" category honoured this year.
Ethisphere chief executive officer, Timothy Erblich, said the awards embrace the correlation between ethical business practice and improved company performance.
"These companies use ethics as a means to further define their industry leadership, and they understand that creating an ethical culture and earning the world's most ethical companies recognition involves more than just an outward-facing message or a handful of senior executives saying the right things."
"Earning this recognition involves the collective action of a global workforce from the top down. We congratulate everyone at Schneider Electric for this extraordinary achievement."
Assessment for the awards is based upon the Ethisphere Institute's Ethics Quotient (EQ) framework.
The information collected provides sampling of criteria of core competencies, rather than all aspects of corporate governance, risk, sustainability, compliance and ethics.
The EQ framework and methodology is determined, vetted and refined by advice and insights gleaned from Ethisphere's network and advisory panel.
The scores are calculated in five main categories: ethics and compliance program, corporate citizenship and responsibility, culture of ethics, governance, leadership, innovation and reputation.