National Contact Point of Switzerland Relevance and significance of OECD Guidelines for Swiss Multinational Enterprises Results of study on behalf of SECO and SDC National Contact Point of Switzerland

Content Context, Mandate Goals and Methodology Results and Interpretations Recommendations

Context: OECD guidelines of MNE / National Contact Point Oldest comprehensive CSR Standard (adopted in 1976) 9 thematic chapters: employment, human rights, environment, bribery, taxation, etc. Recommendations to their enterprises by 45 States Duty of the state: promote the Guidelines and set up a National Contact Point (NCP) NCP: Non-judicial platform for dialogue and mediation

OECD Due Diligence Guidances OECD Due Diligence Guidance for Responsible Mineral Supply Chains (2011) OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector (2015) FAO-OECD Guidance for Responsible Agricultural Supply Chains (2015) OECD Due Diligence Guidance for Responsible Supply Chains in the Garment & Footwear Sector (2017) OECD Responsible Business Conduct in the Financial Sector (good practice papers for institutional investors, 2017) OECD Due Diligence Guidance for Responsible Business conduct (cross sectorial, aligned with UNGP, 2018)

Mandate Multistakeholder advisory board decided to conduct a study on awareness of OECD GL by Swiss Enterprises Elaboration of TOR by NCP secretariat in close consultation with NCP advisory board Invitation of 3 offers by research institutes Co financing of SECO and SDC (50’000 CHF in total) Members not on photo: SGV-USAM, Travail Suisse, Academia, FDFA Mandate offered to: ZHAW Zurich University of Applied Sciences / Center of Corporate Responsibility in collaboration with FHNW University of Applied Sciences and Arts Northwestern Switzerland and öBU – Association for sustainable business

Goals of study: 5 questions Awareness of OECD-GL and NCP by Swiss Enterprises (as well in comparison with other CSR instruments Which topics of the OECD-GL are implemented by Swiss Enterprises? Which management elements are used by enterprises? How are the OECD GL and other CSR instruments are used by enterprises? What support would be needed to support further the implementation of the OECD GL?

Methodology Combination of qualitative and quantitative research (multimethod approach) Analysis or reporting of top 500 Swiss Enterprises (in terms volumes of sales) and 10 SME (Top 500: 38 % Finance and Insurance, 8 % Retail) Online survey (questionnaire): sent to 639 enterprises, 203 answered partially, 57 completely) Sample of 57 enterprises: 67% large enterprises, 26% SME, 7% not defined (according to the EU commission, SME are defined with less than 250 employees and max 50 Mio Euro volumes of sales) 3. Interviews with representatives of enterprises focus group A (6 rep. large enterprises), B (4 rep. SME) Study on the OECD GL in comparison with the following other CSR instruments: UNGP, UNGC, GRI, ISO 26000

Results: Awareness and application

Implementation of chapters of OECD GL Active implementation means: definition of a strategy and goals, implementation procedures, involvement of stakeholders, monitoring and communication, over all systemic approach (results of survey) Employment Environment Competition Combatting bribery Human Rights Taxation Local communities Consumer interests None

Awareness of different aspects of OECD GL (Results of survey) OECD GL are part of CSR standards Implementation of OECD GL are recommended by Swiss Gov. Aware of sector specific instruments Aware of NCP Aware of possibility to submit specific instances Aware of good offices of NCP Aware of marketing activities of NCP

Active application (results of analysis TOP 500) Assumption by authors: “Reference to a standard in sustainability reporting means, that enterprise actively applies this standard” % of large enterprises actively apply standard

Active application (results of analysis TOP 500) Assumption by authors: “Reference to a standard in sustainability reporting means, that enterprise actively applies this standard” % of SME actively apply standard

Use of international CSR Standards Source of inspiration, commitment, guidance, external assurance (certification), assessment of business partners (e.g. suppliers), frame of reference for communication

Recommendations (1) : Increase awareness Increase promotional activities, such as: Publications Information meetings Roundtables Creation of an award for outstanding corporate behaviour Work with specific industry associations

Recommendations (2): define benefit (USP) of OECD GL OECD-GL cover all relevant CSR topics Gives clarity to enterprises regarding international (governmental) expectations Guidance for enterprise internal holistic analysis Comparison: GRI: clear focus on reporting, guidance for materiality analysis, indicators for measurement UNGC: commitment and communication, exchange with peers SGD: communication of positive messages

Recommendations (4): Increase dissemination of CSR-standards Recommendations (3): Bridge the perceived gap between OECD GL and enterprises Involve enterprises and sector business association in NCP advisory board Develop promotional activities with sectorial business associations Recommendations (4): Increase dissemination of CSR-standards Provide orientation to enterprises regarding different CSR-standards Conduct alignment studies between OECD-GL and CSR-standards developed by private initiatives