Corporate responsability pays off for companies
Using the example of large Swiss companies, Terra Institute has examined which success factors are decisive for sustainability and corporate responsibility. The results show how important it is to involve everyone from management and employees to customers at an early stage in the project. The economic effects are the preservation of future viability thanks to competitive, image and cost advantages.
Companies that focus on sustainability (NH) and corporate responsibility (CR) benefit economically. This is one of the key findings of a recent survey conducted by the Terra Institute in major Swiss companies. "This result refutes a widespread prejudice of many bosses that sustainable thinking and acting is expensive, but that it does not bring any economic benefits," explains Ralf Nacke, who, together with Hans W. Steisslinger and Günter Lenz, interviewed the managers responsible for CR and sustainability at companies such as COOP, Migros, Ikea, Die Post, Swiss Federal Railways, Swisscom, Swiss Re, Zurich Versicherung and Züricher Kantonalbank.
Top management must support goals
The main advantages that companies associate with their NH/CR commitment are
- Reputation/Image
- Securing the future viability
- Greater employer attractiveness
- Cost savings
To actually realize these advantages, this commitment must be lived in the organization and consistently supported by top management. The respondents explained that short-term thinking, cost pressure and the pressure to grow could lead to conflicting goals. Another problem, they said, is that the concepts of sustainability and corporate responsibility alone can hardly be applied to employees and customers. However, positive examples, such as those from Coop and Migros, would show that this can certainly be achieved with interesting topics. According to Günter Lenz, a professional communication strategy is therefore required to give CR/NH activities the desired impact.
Identify market potential at an early stage
The Terra Institute study, in the course of which 14 success factors were examined, also illustrates why sustainably acting companies are often more successful on the market than their conventional competitors. "The pioneers recognize customer needs earlier and have more committed employees. They also act more value-oriented and know how to combine ecological sustainability goals and climate protection with cost savings and the use of new product and market potential," confirms Hans W. Steisslinger.
Desire and reality
The survey also reveals the reasons why there may be a gap between desire and reality with regard to sustainability and corporate responsibility in companies. The consultants found, for example, that these issues are still insufficiently anchored in corporate culture. Sometimes the human resources departments also do not sufficiently mobilise employees. In order to give companies the opportunity to better reconcile desire and reality, interested parties can download the detailed information on the results of this study and on the master's thesis "Zielkonflikte zum CR/NH-Engagement von Unternehmen wissenschaftlich beleuchtet" ("Conflicts of Objectives on Corporate CR/NH Commitment").
via the websites www.terra-institute.eu and www.cmpartners.ch/terra-institute-schweiz/studie-erfolgsfaktoren request.
Here they will also find articles on how to involve top management in sustainability projects, on CR fields of action and anchoring, as well as on corporate culture and NH/CR communication.
