In this article, we’ll take a detailed look at the 25 Most Honest Countries in the World, with insights into the link between honesty and economic growth. For a quick overview of the top 10 honest countries, read the 10 Most Honest Countries in the World.
The trustworthiness and honesty of a country can have a huge impact on its foreign policy, internal affairs, and global economic influence. A 2016 study analyzed how people think about honesty in 15 countries. It found that countries where people were more honest generally had a better economy.
The reputation of a country can significantly influence its attractiveness to foreign investors. Countries with low corruption ratings and high transparency levels are often seen as more predictable and positive in the global business landscape. For instance, nations like Finland and Denmark which consistently rank high on transparency and honesty scales have seen a surge in foreign investments in recent years.
In recent years, Finland has witnessed a notable shift in its Foreign Direct Investment (FDI) landscape. After a downturn in 2020 mainly due to COVID-19, with an inward FDI flow of -$1,579 million, there was an impressive bounce-back in 2021 to $13,806 million. By 2022, the numbers stabilized at $9,445 million. Simultaneously, the country’s FDI stock grew from $86,292 million in 2021 to $99,901 million in 2022. This boost in investments shows that people and companies trust Finland more with their money. One reason for this trust is Finland’s reputation for honesty and clear dealings.
The reputation for honesty also shapes the perceptions of goods or services coming from these countries. A tag like “Made in the USA” or “Designed in Japan” carries an impression of quality and trustworthiness. This is evident with the trust global consumers place in the most transparent companies like Intel Corporation (NASDAQ:INTC), CVS Health Corp (NYSE:CVS), and Honeywell International Inc (NASDAQ:HON) which were ranked as the most transparent companies worldwide in 2022.
Intel Corporation (NASDAQ:INTC), based in the USA, enjoys credibility associated with one of the most honest countries. With its Transparent Supply Chain, Intel Corporation (NASDAQ:INTC) assures its products are authentic, traceable, and accountable. This is what makes Intel Corporation (NASDAQ:INTC) a global leader in the semiconductor industry.
CVS Health Corp (NYSE:CVS) is another multi-award-winning company that capitalizes on its reputation for integrity in business practices. With its focus on transparency, CVS Health Corp (NYSE:CVS) champions safety, quality, and accountability, making it a leading provider of healthcare and retail pharmacy services. The company’s success is evident from its financial reports. CVS Health Corp (NYSE:CVS) reported revenue of $99,921 million in Q2 FY2023, an increase of 10.3% from the same period in FY2022.
Another major multinational corporation, Honeywell International Inc (NASDAQ:HON), reflects its dedication to innovation and trustworthy business practices. Honeywell International Inc (NASDAQ:HON)’s corporate governance is structured to ensure checks and balances, safeguard the interests of shareholders, and ensure ethical business practices. In recent years, the company has played its part in tackling escalating ESG issues, including the reduction of greenhouse gas emissions, using upcycle process technology for plastic circularity, and delivering sustainable buildings.
Its public sustainability reports, awards, and initiatives show its dedication to these critical contemporary challenges. This commitment is reflected in Honeywell International Inc (NASDAQ:HON)’s financial reports. In Q2 2023, Honeywell Reported sales of $9.1 billion, a 2% year-on-year growth. Its EPS stood at $2.23, a 6% YoY increase.
By providing a strong regulatory framework and oversight mechanisms, honest countries encourage transparent and ethical business practices within their boundaries. It also ensures that companies operate with a level of transparency that protects stakeholders, fosters trust, and promotes a fair economic environment.
Methodology
For our list of the 25 most honest countries in the world, we primarily focused on the country’s transparency and reputation in the international business community. To determine this, we referred to the Countries with the Most Transparent Business Practices rankings by the U.S. News and 2022 Corruption Perception Index (CPI) by Transparency International.
For our list, we averaged rankings for each country on both indexes. We then ranked countries in descending order of quantitative honesty, based on the average results.
Below is our list of the 25 most honest countries in the world.
25 Most Honest Countries in the World
25. Italy
Italy is considered a hub for various industries, including tourism, textiles, chemicals, machinery, clothing, and more. Though the country ranks low in terms of honesty when compared to other European countries, it is viewed as an ideal destination for international trade.
24. Israel
According to the Corruption Perception Index (CPI) 2022, Israel is the 31st least corrupt nation on the list of 180 countries. IMD Global Competitiveness Yearbook 2013 ranked the country first for innovative capacity worldwide.
23. Spain
The relaxed business culture and numerous trading opportunities make Spain a popular destination for business. World Bank 2019 data ranked Spain 30th among 180 countries for ease of doing business. CPI 2022 ranks it as the 35th least corrupt country.
22. Portugal
Portugal is considered one of the top countries for doing business. The government of the country has introduced many initiatives to support entrepreneurs, and the country is home to many startups, tech firms, and international companies.
21. Estonia
The State of European Tech 2021 ranks Estonia as the top entrepreneurial country in the world. The country also offers e-residency for freelancers and entrepreneurs, making it an attractive destination for foreigners. According to the 2022 CPI, the nation’s perceived corruption score has improved from 64 out of 100 in 2012 to 75 in 2022, with a higher score signifying reduced corruption.
20. South Korea
Known as one of the top business-friendly economies in the world, South Korea makes an accessible location for both local and foreign companies. South Koreans are generally believed to be honest and helpful.
19. United States
The United States dominates as the world’s premier tech market, accounting for 32% of the global share. It also stands as the top job market for life science professionals and leads in the insurance industry, capturing 56% of global revenue. Americans are generally known for their honesty in different aspects of life, including business.
18. France
According to the Institute of Business Ethics, more French workers feel that honesty is common in their jobs, with the rate improving from 71% in 2018 to 89% in 2021. Also, fewer workers in France feel pushed to act against their company’s rules – only 9% in 2021, down from 20% in 2018. Moreover, the 2022 CPI gives France a score of 72 out of 100, indicating that the country is perceived as having relatively low levels of corruption on a global scale.
17. Japan
Japanese people and businesses consider honesty as a basic principle in every aspect of life and work, making it the most honest country in Asia. The 2022 CPI ranks it as the 18th least corrupt nation among 180 countries worldwide. The country has educated people and is among the leaders when it comes to innovation, digital infrastructure, and technological expertise.
16. United Kingdom
The U.S. News ranks the United Kingdom 13th among the list of 83 countries in transparent business practices. It’s a highly developed nation with huge economic, scientific, political, and cultural influence, making it one of the most loved country in the world. The country has a well-developed infrastructure and legal framework, making it accessible for both local and international businesses.
15. Austria
The U.S. News ranks Austria 8th for transparent business practices, placing it among the list of the top 20 most honest countries in the world. Austria also stands out as one of the EU’s most affluent and stable members, balancing a free-market economic approach with a strong emphasis on social welfare. The high level of social security and low crime rate make it an ideal destination for businesses.
14. Ireland
The favorable tax environment and competitive business costs make Ireland a popular location for international businesses. With a positive perceived corruption score of 77 out of 100 on the 2022 CPI, Ireland is one of the most honest country in the world in 2023.
13. Australia
Australia’s corruption perception score improved from 73 in 2021 to 75 in 2022, indicating a positive shift in the nation’s efforts to enhance transparency and reduce corrupt practices. It’s a prosperous market with a highly educated workforce and a stable economy.
12. Luxembourg
Luxembourg’s financial hub is globally renowned, holding the distinction as the world’s top international financial center. The sterling reputation of its financial sector attracts investors and businesses from across the globe. According to the 2022 CPI, Luxembourg boasts a score of 77, indicating a low level of corruption in the country.
11. Belgium
The U.S. News ranks Belgium 3rd for transparent business practices, highlighting its strong commitment to creating an open and trustworthy business environment. The country offers a well-developed infrastructure and low corporate tax rates, making it a decent location for expanding business in Europe.
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Disclosure. None. 25 Most Honest Countries in the World is originally published on Insider Monkey.
