Purpose: How many Swiss companies are credible in this regard?
The majority of Swiss companies meet the requirements for being able to position themselves credibly via a socially relevant purpose. This is shown by the new "Purpose Readiness Study" of the Zurich-based management consultancy Globeone.
A recently published study shows how credibly Swiss companies can position themselves. The "Purpose Readiness Index" (PRI), specially developed for the representative study by the management consultancy Globeone, is made up of 15 purpose-relevant image attributes in five image dimensions. The PRI, which is based on the survey results, indicates on a scale of one to one hundred and in four levels how credibly companies and institutions can represent a socially relevant corporate purpose in the public perception. Companies with a PRI score of less than 50 often lack the appropriate basis for credibly communicating their purpose, while companies with a score above 70 have a high purpose credibility that is hardly overshadowed by negative associations. The current PRI ranks 60 leading Swiss companies.
Almost two-thirds of brands are "purpose ready
The study revealed: After all, 64 percent of Swiss brands are perceived by the public as at least partially "purpose ready" - they do not exhibit any major deficits in purpose-relevant image dimensions. Five brands (eight percent) are considered fully credible and thus have a very good basis for successful purpose activation. With a score of 72.3, Victorinox ranks first in the Purpose Readiness Index (PRI). Migros, Geberit, Lindt & Sprüngli and Coop are also among the leaders with PRI scores of more than 70. Around 36 percent of the brands surveyed are struggling with credibility problems, which also make them more susceptible to greenwashing accusations.
"Retailers, technology brands, cooperatively organized retail companies and traditional consumer brands in particular are proving to be particularly credible in terms of purpose-centric positioning in the public perception," says Carina Hauswald, Managing Partner at Globeone. "Many PRI winners certainly also benefit greatly from their everyday proximity to customers."
Consumers take a critical view of companies
Compared with the first Purpose Readiness Study for Switzerland in 2020, however, it is noticeable that the top performers in the Purpose Readiness Index (PRI) no longer score quite as highly: Second-placed Migros, for example, lost 6.5 index points, PRI winner Victorinox 5.1 index points. Mobiliar lost 6.2 index points and slipped from fifth to 15th place. "The decline in ratings is probably also a sign that Swiss consumers are generally becoming more critical of companies in terms of their purpose promises - a trend that is also increasingly evident in other industrialized countries," says Hauswald. "There is also an increased demand on particularly credible brands to constantly improve their socially relevant contribution, to provide concrete evidence of it and to communicate it transparently." Even brands that score fully on future viability, sustainability, authenticity and social relevance would have to live their purpose around the clock and make it clear in order to maintain or enhance their reputation.
Pharmaceutical and financial sectors suffer from negative image
As the backbone of the Swiss economy, financial and pharmaceutical companies are not very convincing in the public perception, especially in the image dimensions of sustainability, honesty and profit orientation. Companies from these sectors, such as Novartis (58.1), Vontobel (56.7), Roche (56.7), Julius Baer (56.2) and UBS (53.0), suffer from the risks posed by the tarnished image of their industries in a purpose-centric positioning. In the case of Credit Suisse (48.6), the data shows that a significant credibility crisis was already evident before the recent turmoil that culminated in a takeover by UBS.
Construction and raw materials bring up the rear in the sector rankings
The transformation of the construction and raw materials industry to greater sustainability is only slowly reaching the public. Implenia (PRI 59.2), Holcim (58.1) and Glencore (41.0) all have critical Purpose gaps in public perception. With an average PRI of 52.8 points, the industry is thus at the lower end of the ranking. Consumer brands such as Nestlé (49.8) or Philip Morris (48.3) have frequently been criticized in recent years and also rank far behind in the 2023 PRI.
Source and further information: Globeone
