Anti-economic and unrealistic – this is how some opponents see the corporate responsibility initiative. However, many entrepreneurs see it differently. Samuel Schweizer, for example, who successfully runs a family business in the metal construction sector. For him, the initiative creates justice between responsible and irresponsible companies. “Swiss Made” would no longer just stand for high quality, but also for high responsibility.
Ernst Schweizer AG has decided to support the Corporate Responsibility Initiative (Covid-19). Why?
We have anchored sustainability as a vision for our company, i.e. the simultaneous and equal consideration of social, ecological and economic concerns, in our mission statement since 1978. For us, it is clear that the economy and companies have a social and ecological responsibility. Compliance with human rights and international environmental standards is the absolute minimum.
Did this require a lot of internal discussions?
This initiative simply corresponds to our “DNA”. As a result, it was very well received by the company management right from the start.
The instrument that Covid-19 provides for is the due diligence obligation. What would this change for Ernst Schweizer AG?
Supplier management with a supplier assessment is common practice today. It is also required by quality management certifications such as ISO 9001 and 14001 (environment) and OHSAS 18001 (occupational health and safety). This means that strategic suppliers in the company are checked and approved. Only with a supplier assessment can a company ensure that quality, deadlines and requirements for health, safety at work, etc. are met. The initiative adds new aspects, specifically human rights and the environment. However, a completely new system is not necessary. Supplier assessments are already standard in the industry today. New aspects are simply being added. Overall, therefore, not much would change for our company if the initiative were adopted.
There is a view that states, not companies, are responsible for ensuring that human rights and environmental standards are respected. How do you see that?
Respecting human rights and protecting the environment is a task for society as a whole. Of course, the state has an important role to play here, but private individuals and companies also bear responsibility for this.
Why is Covid-19 necessary from a business perspective?
The corporate responsibility initiative leads to a strengthening of Swissness, especially in exposed sectors. “Swiss Made” would no longer only stand for high quality, but also for high responsibility. Unfortunately, Switzerland has experienced in the past that sensitive sectors were inadequately regulated and international trends were missed.
Finally, the initiative creates fairness between responsible and irresponsible companies. The entire economy and society will benefit if no one can make short-term profits at the expense of people and the environment.
One fear is that companies will be held liable for things over which they have no control. Value and supply chains can be complicated. Doesn’t that make you a little nervous?
Liability only applies to subsidiaries, not to suppliers. Although the Federal Council has clearly stated this, it is repeatedly misrepresented by opponents. Although there is an obligation to avoid human rights and environmental risks along the supply chain, there is no liability mechanism. In contrast, the liability mechanism for subsidiaries is necessary and is based on a tried and tested legal mechanism: liability with proof of due diligence. The Swiss Code of Obligations recognizes this mechanism, for example, in the case of principal’s liability.
Critical voices say that opportunities for influence and control outside the company’s own structure are limited. After all, you are not authorized to issue instructions. How do you see that?
As a customer, you definitely have an influence on your suppliers, all the more so if suppliers realize that many such demands will come from Swiss companies after the initiative has been accepted. In practice, smaller suppliers are assessed by means of a self-declaration, while medium-sized and large suppliers or suppliers of critical materials are assessed by means of detailed information and, in certain cases, an on-site audit. We use these supplier assessments to check quality, environmental and social management in equal measure. This differentiated supplier assessment (depending on the risk) is an expression of the principle of proportionality, which is anchored in the initiative.
There are fears that the “legalization” of corporate responsibility will lead to a hardening of fronts, so that companies will no longer engage in constructive dialogue with NGOs. Do you agree with this?
The initiative will help to clarify what can be expected as a minimum standard. This minimum standard will be binding. Companies will have an interest in engaging with the relevant stakeholders – including NGOs – on these issues. I am therefore convinced that the existing dialogs will continue. At the same time, companies that have so far closed themselves off to dialog will also ask themselves these questions. That is positive.
How do suppliers react to your specifications and requirements?
We are observing a global trend in business towards greater responsibility. This is why such concerns are hardly ever met with incomprehension.
Does Ernst Schweizer AG have a competitive advantage by taking corporate responsibility?
Sustainable corporate management has certainly become part of our brand essence. This can be an advantage when it comes to awarding contracts. It also has a positive impact on our attractiveness as an employer.
If so, this advantage would disappear with the new legal requirements. Why do you want that?
The initiative creates a minimum standard. There is more than enough room to continue to distinguish yourself as a responsible company. The initiative also strengthens Swissness, especially in exposed sectors. “Swiss Made” would no longer only stand for high quality, but also for high responsibility.
