While Switzerland’s favourable business conditions attract businesses, the country’s discretion and limited transparency requirements have led to questions of corporate responsibility and ethical practices.

A detailed briefing of Switzerland, published in the July-August edition of Ethical Corporation magazine, reveals how Switzerland’s stability, low taxes, hands-off legislative approach, discretion, and marginal transparency apply to businesses’ ethical behaviour.

Considering the advantages and disadvantages for businesses of the country’s stability, neutrality, and modesty, the briefing describes how Switzerland is seeking to improve its business practices by encouraging more openness and responding well to criticism.

In terms of government involvement, the Swiss government applies corporate responsibility legislation only as needed, according to the briefing.

As such, the briefing asserts that Switzerland’s corporate modesty allows businesses to avoid government interference.  Consequently, Swiss companies face little pressure for corporate responsibility and maintain only moderate ethical business ratings.

“There is no great movement in Switzerland to lead the pack,” says Jean-Pierre Méan, president of the Swiss chapter of international campaign group Transparency International, in the briefing.

They are “not among the best, but they are not among the worst”.

Furthermore, the briefing credits Swiss banking practices as the source of the country’s reputation for corporate secrecy.  Currently, Swiss banking officials are claiming to fight the country’s image as a tax haven.  Yet the banks’ determination to keep client confidentiality a priority leaves some transparency to be desired, particularly when it comes to identifying account owners and requiring private companies to publish their accounts.

Addressing the influence of Switzerland’s role as a hub of NGOs, international organizations and the UN, the briefing reveals that Swiss businesses have not adopted higher ethical standards as a result.  Analysis proves that Swiss business pairings with non-profits are on the rise, but most charity involvement in Switzerland stems from a local level.

The briefing also includes case studies of Swiss companies Switcher and Intersport, highlighting their success with responsible business practices.

To read Ethical Corporation’s complete country briefing, go to this link

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Ethical Corporation was established in 2001 and provides business intelligence for sustainability to more than 3,000 multinational companies every year. Ethical Corporation publishes the leading responsible business magazine, website, and research reports. 

For more information on this briefing or Ethical Corporation contact:

Liam Dowd
Marketing Manager
Ethical Corporation: Business Intelligence for Sustainability
+44 (0)20 7375 7238
liam.dowd@ethicalcorp.com

 



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