Stéphanie Looser

Stakeholder Mapping of CSR in Switzerland

Purpose - – This paper aims to investigate, using stakeholder map methodology, showing power, urgency, legitimacy and concerns of different actors, the current state of corporate social responsibility (CSR) in Switzerland. Previous research on CSR in Europe has made few attempts to identify stakeholders and their contribution to this topic. Design/methodology/approach - – To derive this map, publicly available documents were explored, augmented by 27 interviews with key stakeholders (consumers, media, government, trade unions, non-profit organisations [NPOs], banks, certifiers and consultants) and management of different companies (multinational enterprises [MNEs], small- and medium-sized enterprises [SMEs] and large national companies). Using MAXQDA, the quantified codes given for power, legitimacy and urgency were triangulated between self-reporting, external assessments and statements from publicly available documents and subsequently transferred into stakeholder priorities or, in other words, into positions in the map. Further, the codes given in the interviews for different CSR interests and the results from the document analysis were linked between stakeholders. The identified concerns and priorities were quantitatively analysed in regard to centrality and salience using VennMaker. Findings - – The paper identified SMEs, MNEs and cooperating NPOs as being the most significant stakeholders, in that order. CSR is, therefore, not driven primarily by regulators, market pressure or customers. Further network parameters substantiated the importance of SMEs while following an unconventionally informal and idiosyncratic CSR approach. Hence, insights into these ethics-driven, unformalised business models that pursue broader responsibility based on trust, traditional values, regional anchors and the willingness to “give something back” were formed. Examples of this strong CSR habit include democratic decisions and abolished hierarchies, handshake instead of formal contracts and transparency in all respects (e.g. performance indicators, salaries and bonuses). Research limitations/implications - – In total, 27 interviews as primary data that supplements publicly available documents are clearly only indicative. Practical implications - – The research found an innovative, vibrant and practical CSR model that is emerging for reasons other than conventional CSR agendas that are supposed to evolve. In fact, the stakeholder map and the CSR practices may point at a very different role businesses have adopted in Switzerland. Such models offer a useful, heuristic evaluation of the contribution of formal management systems (e.g. as could be found in MNEs) in comparison to the unformalised SME business conduct. Originality/value - – A rarely reported and astonishing feature of many of the very radical SME practices found in this study is that their link to commercial strategies was, in most cases, not seen. However, SMEs are neither the “poor relative” nor the abridged version of CSR, but are manifesting CSR as a Swiss set of values that fits the societal culture and the visionary goals of SME owners/managers and governs how a sustainably responsible company should behave. Hence, as a new stance and argument within CSR-related research, this paper concludes that “informal” does not mean “weak”. This paper covers a myriad of management fields, e.g. CSR as strategic tool in business ethics; stakeholder and network management; decision-making; and further theoretical frameworks, such as transaction cost and social capital theory. In other words, this research closes scientific gaps by at once applying quantitative as well as qualitative methods and by merging, for the first time, network methodology with CSR and stakeholder research.

CSR Mapping: Swiss Stakeholder Salience, Concerns, and Ethics

Previous research on Corporate Social Responsibility (CSR) in Switzerland has made few attempts to identify actual and potential stakeholders and their diverging contributions to this topic.Using stakeholder map methodology, showing power, urgency, legitimacy, and concerns of different actors, the paper investigates the current state of Swiss CSR. To derive this map, publicly available documents were explored, augmented by 27 interviews with key stakeholders (consumers, media, government, trade unions, Non-Profit Organisations (NPOs), banks, certifiers, and consultants) and management of different companies (Multinational Enterprises (MNEs), Small- and Medium-sized Enterprises (SMEs), and large national companies).Using MAXQDA, the quantified codes given for power, legitimacy, and urgency were transferred into stakeholder priorities or, in other words, into positions in the map. Further, the codes given in the interviews for different CSR interests and the results from the document analysis were linked between stakeholders. The identified concerns and priorities were quantitatively analysed in regard to centrality and salience using VennMaker.The paper found SMEs, MNEs, and cooperating NPOs as being the most significant stakeholders. Swiss CSR is therefore not primarily driven by regulators, market pressure, or customers. Further network parameters substantiated the importance of SMEs while following an unconventionally informal, but innovative, vibrant, and practical CSR approach, emerging for reasons alter than conventional agendas are supposed to evolve. In fact, the findings may point at a very different and highly sophisticated role businesses have adopted in Switzerland, manifesting in democratic decisions and abolished hierarchies, handshakes instead of formal contracts, and transparency in all respects (e.g. performance indicators, salaries, and bonuses).Hence, as a new stance and argument within CSR related research, this paper concludes that “informal” does not mean “weak”.

To (Crafts) Man Up: How Swiss SMEs Cope with CSR in Harsh Times

Many Small and Medium-sized Enterprises (SMEs) in Switzerland have highly sophisticated Corporate Social Responsibility (CSR) agendas. In many cases they are unintended, informal as they are coming from corporate cultures that nurture a “raison d’etre” and a noble business purpose beyond profit-maximisation. Previous research aggregated this core logic to an overarching SME business model, L’EPOQuE, making Swiss SMEs, arguably, hidden CSR champions with regard to social, economic, and environmental responsibilities. This model is borne by a set of key features: i.e., the process of work socialisation, soft assets, proximity and informality, agility, the nexus of company ownership and government, the focus on education, and long-range planning. By the methods of focus group discussion with seven SME owner-managers combined with case studies located in the French-speaking part of Switzerland this research looked at the impact of different financial crisis on the Swiss CSR business model. The results show surprisingly strongly, that there is no substantial leverage. The psychological and sociological tradition of stewardship and the SMEs’ emphasis on excellent craftsmanship help sustain morale and ethics despite economic downturns. As their business model evolves from CSR as “moral activity” it prevents the potential sacrifice of ethics due to financial scarcity. At the same time, it mirrors a highly competitive business approach that can be generalised to other unconventional, “non-standard” milieus where money might be short (e.g., in start-up companies). Considering the economic, political, and social competitiveness of Swiss SMEs and their relevance within CSR, this study demonstrates the power of the small business approach as it works detached from economic situations.

Schweizer KMU und interne CSR-Kommunikation: Ergebnisse einer Interviewstudie

Informelle Organisationsstrukturen, die auf engen, auch internationalen Netzwerken beruhen, Mut, dem Wachstumsdiktat zu widerstehen, daraus resultierende Agilitat und Fahigkeit zur schnellen Reaktion und Innovation, die Werte der Handschlagqualitat, sprich Vertrauen und Transparenz, und demokratische Entscheide sind einige der Schlusselmerkmale wie Schweizer Klein- und mittelgrose Unternehmen (KMU) ihre gesellschaftliche Verantwortung (Corporate Social Responsibility – CSR) im Geschaftsalltag implizit wahrnehmen. Anstand, die Umsetzung von langfristigen Werten, der Ehrgeiz und Anspruch an sich selber, sowohl exzellenter Handwerker und/oder Dienstleister als auch sorgender Arbeitgeber zu sein, und die Eingebundenheit in die Gemeinden sind essenzielle Wertetreiber. Diese machen KMU zur Stutze der Gesellschaft. Dies geschieht, ohne das dazugehorige explizite Vokabular bekannter Berichtskonzepte, Standards etc. zu benutzen, sondern aus intrinsischer Absicht und Motivation heraus, was sich in impliziter interner (wie auch externer) Kommunikation manifestiert. Als Schweizer KMU tut man Gutes und spricht nicht daruber! In anderen Worten: Die gesellschaftliche Verantwortung wird gelebt, nicht zur Schau gestellt.

Ethics of the firm, for the firm or in the firm? Purpose of extrinsic and intrinsic CSR in Switzerland

Purpose - Despite the increased recognition and emphasis on Corporate Social Responsibility (CSR) as a topic and highly formalised CSR control systems, numerous well-publicised problems and scandals often involving Multinational Enterprises (MNEs) continue to emerge. These companies are mostly extrinsically motivated in CSR. They operate with highly formalised CSR systems that in many cases miss the prevention of anti-social and illegal behaviour. This might reflect the failure of extrinsic CSR to integrate the ethical dimension and/or the failure of intrinsic CSR to formalise and thus benefit from economies of scale. Currently the conviction is growing that if CSR is to have a meaningful impact it should be a matter of intrinsic motives, morale, and ethical values rather than a formalised management tool. The research focuses on a sample of small and large companies in Switzerland, aiming at a comparison of key motives for CSR related to actual CSR implementation, performance, and company size. - Design/methodology/approach The study examined two groups: seven owner-managers of Small and medium-sized Enterprises (SMEs) and seven managers of MNEs. Each group met for two focus group discussions, which were qualitatively and visually analysed using MAXQDA. - Findings The results show that CSR implementation in the examined Swiss SMEs is more related to moral commitment than to profit maximisation. These companies are often driven by soft assets, such as networks, by the nexus of mission and value-set, by a system of initiatives and integrated behaviour, by proximity, and informal, flat organisational structures, by the aspiration and ambition of craftsmanship or excellent service (instead of profit), by community involvement, by recruiting from the local community, by the willingness to grow slowly and steadily, by the avoidance of atomic markets, and finally, by the mental set-up and sociological tradition of the stewardship concept. This contrasts the extrinsically motivated approach of the MNE under research. - While MNEs follow their approach of “ethics for the firm that must pay” the findings here identified potential transition cases of “ethics in the firm” and “ethics of the firm” within Swiss SMEs. This is consistent with others, which resembles the need of this dichotomy to be revised. Research limitations/implications - The cross-sectorial approach limits the degree to which motives can clearly be attributed to actual CSR performance or company size. Practical implications - The results imply that policy makers, public institutions, the scientific community etc. should be careful when establishing systems that favour financial returns from CSR engagement, because, firstly, other research showed that a behaviour attributed to extrinsic motives is mostly perceived as dishonest and misleading, for instance, consumers. Secondly, extrinsic motivation might crowd out morale and paying lead actors for behaving altruistically or philanthropically might decline their intrinsic motivation. Notably, the crowding out of intrinsic motivation by extrinsic incentives is a phenomenon well-researched not only in regard to CSR but in various other areas linked to human behaviour. This has important implications for nearly every business operation, especially for mergers and acquisitions as well as on the growth of businesses. - Originality/value In sum, this study showed that CSR is meaningful and justifiable even if it is not profitable in the first place or implemented in and managed through formalised systems. This leads to two conclusions, firstly, care should be taken when emphasising the extrinsic approach in relation to social goods, secondly, the cost of a possible mismatch in a climate of ethical principles might be substantial for societies’ moral inclination.