No liability regulations for Swiss multinationals

Federal Councillor Karin Keller- Sutter (FDP) adopted a conciliatory tone after the vote. The justice minister had stood shoulder to shoulder with industry groups to oppose the initiative during a referendum campaign that was hard fought on both sides. Swiss companies must also respect human rights and the environment abroad, that’s a given, she said.

“We voted differently, but we all want the same thing.”

Karin Keller- Sutter

Federal Councillor

Due diligence to prevent child labour

With the Responsible Business Initiative having been rejected, an indirect counterproposal approved by parliament last summer automatically comes into force. Unlike the initiative, the counterproposal does not include a liability clause. However, it does oblige major companies to report every year on human rights, environmental and anti-corruption standards compliance and to conduct due diligence regarding child labour and sourcing minerals from war-torn regions. Companies that give false information or fail to report risk fines of up to 100,000 Swiss francs. “The authors of the initiative have something to show for their efforts after all,” said Keller-Sutter.

However, the people behind the initiative are disappointed. They view the measures as inadequate. “Self-policing without effective controls or liability clauses is not enough to ensure that all companies respect international environmental standards and human rights,” lamented law professor and co-chair of the initiative committee Monika Roth, adding that her coalition of supporters would continue to campaign for greater corporate accountability. This is why Swiss firms should still expect their overseas business activities to be scrutinised by a watchful civil society in future.

Voters reject ban on investments in weapons manufacturers

Switzerland rejected the popular initiative “For a ban on financing war material manufacturers”, with around 57 per cent of the electorate voting no. The authors of the initiative wanted to halt Swiss investment in the global arms industry. The Federal Council and parliament believe that existing bans on the funding of nuclear and chemical weapons as well as cluster munitions are sufficient. A decision is still to be made on a cross-party initiative calling for a ban on the export of arms to war-torn regions and to countries in which systematic human rights violations are taking place.