Now more so than ever, companies are required to provide their employees and investors with information on their sustainability practices and corporate culture. One way of doing so is via codes of conduct. KPMG’s study “Swiss Codes of Conduct” shows that most large Swiss companies do have a code of this kind. However, there is room for improvement in terms of the resources deployed on monitoring and ensuring compliance with their code and the use of anonymous reporting tools.
KPMG’s latest study “Swiss Codes of Conduct” analyzes the codes of conduct of Switzerland’s 50 largest listed companies and compares them with those of the 200 biggest firms worldwide. The main difference lies in the form that the codes take: while US and Asian companies mainly make reference to current rule-based legislation and provisions, European companies take more of a principle-oriented approach. European codes are also worded more positively and are shaped more so by the companies’ own interests than by any regulations.
“Codes of conduct are becoming increasingly important in business today,” says Martijn de Kiewit, Head of Ethics & Compliance Management at KPMG Switzerland. Setting up reporting hotlines and providing the necessary human resources can help create more extensive codes of conduct and monitor whether they are being complied with. However, staff training is key in order for a code to be as effective as possible. “The right combination of knowledge and the skills and motivation shown by employees forms the basis for successful learning,” stresses Martijn de Kiewit. “Participants should not only learn new things; they should also gain motivation and the ability to use what they have learned in their day-to-day work. This helps curb potential misconduct and even fraud.”
KPMG evaluated the codes of conduct of Switzerland’s 50 largest listed companies based on a comprehensive list of criteria (see survey page 46 to 48) and the information published on their websites, whittling them down to the ten firms with the most informative codes.
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