Ethos has published a study of best practices in codes of conduct among the largest companies listed in Switzerland. This is a key point for long-term investors, as the adoption and implementation of a code of conduct helps create lasting value in a company. Ethos observes that more and more companies have adopted a code of conduct, but notes that there is room for improvement in content and implementation.
Ethos has published a study of best practices in codes of conduct among the largest companies listed in Switzerland. The study considers the existence, content and implementation of the codes of conduct of 65 of the one hundred largest companies listed in Switzerland that have published a code. For each of the subjects relating to content and implementation, it highlights examples of good practice.
The study brings to light three main trends.
- The subject is a matter of great interest to the companies, more and more of which are adopting and implementing a code of conduct. For the same group of companies, Ethos analysed 27 more codes than in 2006.
- Most of the 65 codes of conduct analysed cover issues relating to the three following main aspects: business ethics, corporate social responsibility and corporate environmental responsibility. Other key issues, such as the relationship with civil society, suppliers and shareholders, are only marginally dealt with.
- There is room for improvement in the way the codes of conduct are implemented, first and foremost in the system for staff whistle-blowing and in how the company monitors supplier compliance with the code's provisions.
Ethos considers that the adoption and implementation of a code of conduct contribute to increase not only the value of the company but for its shareholders and stakeholders as well. In addition, if effectively implemented, a code of conduct is an essential means of corporate risk management.
Ethos therefore encourages companies listed in Switzerland to adopt a code of conduct and to draw on best practices for content and implementation.
