SMS Praxis - Mehrwert
There are enough indications that socially responsible management has a positive effect on the overall success of an organisation.
- De Paul (University of Chicago) proved that the market value of companies with a high ethical profile is rather higher than the value of comparable companies without. [Verschoor (1999)].
- Studies carried out within the German building industry show that the acceptance of company policies by employees increases if ethical management systems are implemented.
- According to a German study, social criteria are becoming more and more important for consumers [Devries (1997)].
- Employees whose expectations are included in decision-making processes tend to be more motivated, more loyal and more productive. Employee commitment to the company is reinforced, creativity and productivity are increased.
- The general public responds sensitively to companies that are perceived as acting irresponsibly. This has once again been proved by the reactions of the public in regard to the role of the big Swiss banks in the failure of Swissair. (Example: UBS, Credit-Suisse – the role of the Swiss banks in the Swissair-grounding).
- The need for ecologically and socially oriented investment vehicles is increasing. Banks are responding with ever more sophisticated rating instruments. With their help, companies are assessed on their relevant performances, such as, for example, their social or environmental performance.
- Incorporating stakeholder groups increases the motivation of all participating persons. Furthermore, stakeholders are an excellent resource for innovation. By leading a dialogue with these groups or individuals, these resources can be tapped. An additional benefit can be shown in risk management. Internal controlling allows for the identification, evaluation and management of risks from the relationship to stakeholder groups. Potential risks in the social field are usually related to image damage or liability suits.
