In this series, we bring you views and commentary from EMBA professors at the University of Geneva. Their knowledge and research inform both current trends and future developments, offering valuable guidance for businesses and professionals alike.
Ignazio Ziano, Assistant Professor at the Geneva School of Economics and Management, University of Geneva, shares his views on the proposal by ‘The Alliance of Sustainable Enterprises’ to the Swiss Federal Parliament for the creation of a ‘Sustainable Enterprise’ status for companies.
The proposed “Sustainable Enterprise” status has the potential to reshape how Swiss companies engage with sustainability, but its adoption will depend on its credibility and alignment with company goals. A voluntary status could serve as a valuable signal of commitment if backed by rigorous, measurable standards. Companies will be more inclined to adopt it if it offers tangible benefits, such as enhanced reputation or consumer loyalty, while avoiding accusations of greenwashing.
However, businesses may resist if they perceive the status as benefiting larger firms or imposing excessive costs. For smaller, innovative companies, this status could be a key differentiator in sustainability-focused markets. Drawing from my work in Sustainable Behavioural Science at the University of Geneva, I know that transparent frameworks are essential for building trust among both consumers and companies. If the “Sustainable Enterprise” status is perceived as inauthentic or not sufficiently substantiated, it risks eroding trust rather than fostering it.
Ultimately, the success of the status will depend on whether it is framed as a leadership opportunity and a market differentiator, rather than a regulatory burden. Swiss companies, known for their innovation and foresight, could lead the way—if the status offers clear value to both businesses and consumers while guarding against misuse or superficial claims.
