This is the first of three blog posts created with masters students of Swiss Universities of Applied Sciences from a variety of academic fields receiving the Hirschmann foundation scholarship. The goal for the students was to develop creative solutions and innovative outputs on how Swiss companies can strengthen ethical business practices and build positive, long-term relationships with local communities.
Authors: Jakob Reitinger, Felina Klingbeil, Pauline Golüke, Stefanie Gross, Sofia Goetz, Clarissa Levy, Sarvin Amiri
Nestlé has faced criticism and controversy for allegedly promoting unhealthy baby formula in countries where breastfeeding is common, by encouraging early dependence on the sugar in their products. At the same time, certain Swiss companies contribute to environmental and human harm- through child labor in cocoa production or displacement caused by mining. Even NGOs can fail by ignoring local languages or cultural norms, as shown in the example below. Addressing these issues requires new, fairer models of effective collaboration built on mutual understanding and respect. These issues require new, fairer models of cooperation – especially in intercultural education. Swiss companies must engage local perspectives, not just pursue profits.
Building truly beneficial initiatives in the Global South is more complex than assumed. Western actors often misjudge what communities actually need. Stefanie Gross, a Hirschmann grant holder who has experience working in Southeast Africa, shares an example:
„I remember an NGO that traveled to Central-Africa to help improve living conditions in local communities. They saw that women had to walk long distances to fetch water and decided to build a well in the village. However, just days after its construction, the women destroyed it. For them, the daily walk was more than a necessity. It was an important social time and a break from daily responsibilities. This example shows how crucial it is to engage directly with communities, understand their way of living, and listen carefully to what they truly value.“
This illustrates why good intentions alone are insufficient. Effective sustainability actions must balance social, environmental, and economic goals. Companies that foster genuine intercultural collaboration benefit from stronger community relationships and more resilient teams.
Understanding the Problem: Unconscious Bias
Part of addressing this topic involves acknowledging unconscious bias. Academic research defines implicit bias as “introspectively unidentified (or inaccurately identified) traces of past experience that mediate attributions of qualities to members of a social category”. These biases are automatic and operate without conscious awareness, yet they significantly influence our judgments and behaviors. Recognizing unconscious bias is essential because it directly impacts fairness and inclusivity in professional environments, often shaping outcomes without our conscious intent. This makes it a critical factor when exploring equity, diversity, and systemic barriers. For those interested in exploring their own biases, Harvard University offers a well-known Implicit Association Test (IAT).
Cultural Understanding Comes First
Best practices must be rooted in cultural understanding. Swiss NGOs and companies should work with local communities, not for them. Acting globally requires understanding local needs. Only through genuine sensitivity can companies build trust and reduce inequality.
Practical steps companies can take:
- Create platforms (online/in-person) to engage with local voices and needs
- Make product origins transparent (e.g., packaging)
- Hire cultural consultants with knowledge of local traditions and social norms
- Ask communities what “development” means to them, rather than assuming
- Employ bilingual local staff as cultural mediators
- Start early by supporting intercultural education in schools
- Promote diverse, inclusive work environments that value different perspectives
When Ethics Fail
It’s optimistic to assume all companies act ethically. Many companies operate abroad in ways that would be illegal at home. A powerful solution would be to require companies to follow the same laws abroad that they must follow domestically, respecting human rights and environmental standards, with local adaptations.
If Nestlé had to meet Swiss health standards globally, problems like excess sugar in baby formula could be avoided. Developing countries are often targeted because of weaker laws. Unless the media or whistleblowers intervene, harmful practices go unchecked.
Can we expect ethical behavior from global giants like Glencore or Nestlé? That’s unclear. Glencore, for example, introduced an ethics code after public criticism—but without strong independent monitoring, long-term impact is uncertain. Until there’s clear accountability, some companies will avoid meaningful action.
Key measures to ensure accountability:
- Expose unethical practices — media plays a key role
- Raise public awareness in the home country
- Create legal and civic mechanisms for holding companies responsible
Conclusion
It’s not all negative. Many companies already follow strong ethical standards and act responsibly. In recent years, a shift has begun—driven by growing ecological and social demands. New laws, like the EU Sustainability Reporting Directive, Switzerland’s due diligence obligations, and Germany’s Supply Chain Act, now require companies to address risks in their operations.
More businesses are recognizing the strategic value of intercultural cooperation—not just as a moral duty, but as a long-term asset that strengthens brand image and global resilience.
Still, it still seems to be the case that too many companies treat these legal shifts as compliance tasks instead of true commitments. To ensure real change, the pressure for ethical business must remain high. Only then can social responsibility become an integral part of global corporate culture.