Social responsibility yes, but not at the expense of corporate profits
The current swissVR Monitor, with responses from 429 board members, shows that only just over half of the companies have defined the topics that are important to them. Employees are clearly in focus when it comes to social responsibility, followed by customers and, at some distance, nature and the environment. There are also some skeptical voices on the subject: A quarter of those surveyed believe that making a profit and increasing the value of the company are their only real responsibilities.
Corporate social responsibility (CSR) is on everyone's lips: countless initiatives have been launched, a number of declarations of intent have been signed, and a multitude of reports have been published. At the World Economic Forum in Davos, corporate responsibility and climate change were the all-dominant topics. According to the swissVR Monitor published by the swissVR association together with the consulting firm Deloitte and the Lucerne University of Applied Sciences and Arts, this public debate on the topic is also reflected in the boards of directors of Swiss companies: 36 percent have fully integrated corporate social responsibility into their corporate strategy, 45 percent at least partially.
Clear goals for social responsibility are often lacking
However, there is still room for improvement in implementation: Only three-fifths (61%) of respondents believe their board of directors has sufficient resources and expertise to implement the topic successfully. It fits in with this picture that for just under half (46%) of the respondents, the topics of social commitment that are important for the company are rather not defined (36%) or not defined at all (10%). And for only one-tenth (9%) has the board of directors set clear and timed objectives for corporate citizenship, with another 27 percent still somewhat agreeing with this statement. And only just over half (54%) of respondents believe they take enough time on the board to address the issue of social responsibility.
"More and more Swiss companies are realizing that people expect more from them than making profits and creating jobs. At the same time, public distrust of business is on the rise - which is currently reflected very concretely in the broad sympathy for the corporate responsibility initiative. It seems that stronger regulation can hardly be prevented any longer," explains Reto Savoia, CEO of Deloitte Switzerland.
However, Savoia also sees great entrepreneurial opportunities: "Companies must convincingly strategically anchor their specific responsibility for the environment and society and systematically identify the material issues that are essential to them. But that alone is not enough to gain a real competitive advantage. Clear goals, impact measurement and transparent communication are needed. Ultimately, it's about a culture change and embedding an integrated mindset across the company."
Employees more important than the environment
For board members, employees are at the top of the list as a target group when it comes to corporate social responsibility: For 89 percent, fair wages and working conditions or health protection are important. Almost as high a priority is given to ethical business practices in general - this involves correct compliance with laws, fair competition and ethically acceptable business practices. Almost two-thirds of respondents (64%) also consider customers to be important, with transparent information on production, the supply chain and consumer protection in mind. Just under half (47%) of the executives surveyed still consider nature and the environment to be an important aspect of corporate social responsibility. Of similar importance to environmental compatibility, climate protection, energy efficiency or resource conservation for Swiss companies is responsibility for the impact of digitization: A good half (51%) of respondents describe data protection, information security or the social impact of digital technologies as an important aspect of their corporate social responsibility.
"The central importance of employees is justified; they are a company's most important asset and have a significant influence on its success. More and more companies are taking responsibility for the development of their employees into their own hands and preparing them for new challenges such as digital transformation. Swiss companies are doing well to embed a culture of lifelong learning in their organizations. However, many still need to pay more attention to what skills their employees need to successfully lead their company into the future. Furthermore, it is a good sign that companies not only see digital technologies as profit drivers and want to use them to increase efficiency, but are also becoming aware of their responsibility for possible negative effects," says Cornelia Ritz Bossicard, President swissVR.
Many SMEs still skeptical
The vast majority of respondents find that the perception of corporate social responsibility promotes employee loyalty, increases attractiveness as an employer, facilitates customer acquisition, and strengthens competitiveness and reputation. However, there are also skeptical voices: For a good third (36%) of respondents, the priority is for companies to focus on their economic tasks. Corporate responsibility causes costs, reduces profits and makes products more expensive, according to 32% of respondents. A quarter (25%) of the board members surveyed support the statement that making profits and increasing corporate value are their only real responsibilities. Another two-fifths (40%) believe that their company already assumes enough social responsibility by creating jobs and paying taxes.
The survey thus also reveals a conflict of objectives between the costs and benefits of measures for the perception of corporate social responsibility. This is more pronounced among SMEs than among large companies: 40 percent of respondents from small and 30 percent from medium-sized companies believe that social commitment primarily generates costs. Only 26 percent of large companies are of this opinion.
Prof. Dr. Christoph Lengwiler, lecturer at the Institute of Financial Services Zug IFZ of the Lucerne University of Applied Sciences and Arts and Vice President of swissVR explains: "There is apparently still a certain skepticism among the boards of directors of SMEs about the effective benefits of targeted social commitment. In addition to the scarcity of resources, this may also be due to the fact that many owner-managed companies and family businesses in particular already have a long tradition of corporate responsibility. They are anchored in their social environment and assume corresponding responsibility without anchoring this in written goals and CSR programs. Here, it may well be worthwhile to communicate more actively to stakeholders the social commitment that is taken for granted."
