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Only one in the world? What you need to know about the corporate responsibility initiative
At this time, one comes across more and more orange and white flags with the words “Corporate Responsibility Initiative.” But what exactly is the voting proposal about? We enlighten you.
What does corporate responsibility initiative?
The initiative requires that Swiss-based companies also comply with internationally recognized human rights and environmental standards abroad. Companies are expected to conduct regular due diligence checks, take action if necessary, and report back. The initiative also wants corporations to be held accountable not only for their own misconduct, but also for human rights violations and disregard for environmental standards on the part of their subsidiaries. In addition, new liability provisions will be introduced, while corporations would be civilly liable for damages caused by economically controlled companies abroad.
What corporations are affected?
The initiative basically affects all Swiss companies. SMEs with up to 250 employees are excluded from the initiative, unless they operate in so-called high-risk sectors. This includes the extraction or trade in raw materials such as gold or copper, as well as the trade in diamonds and tropical woods.
What exactly would change?
People who have been harmed by Swiss companies abroad can file a lawsuit in Switzerland. The claim is then judged by a Swiss court and in accordance with Swiss law. Usually there is a lawsuit abroad and in accordance with the law of the country in question. A company is not liable if it can prove that all due diligence has been observed. Today, companies are only liable for the damages they cause, not their affiliates.
Who is in favor of the Corporate Responsibility Initiative and why?
Many politicians from all parties believe that anyone who poisons drinking water, disregards human rights and harms the health of local residents must defend it in the future. In poor countries in particular, you often don’t have the opportunity to defend yourself. Defenders want people from countries without a functioning constitutional state to be able to claim damages in Switzerland.
Parties
- Green Liberals, SP, BDP, EVP, JCVP, JGLP, SVP Unterwallis
Organizations and associations
- Swiss Trade Union Confederation, SKS Consumer Protection Foundation, Operation Libero, Swissaid, Helvetas, Pro Natura, Amnesty International, Episcopal Conference, Evangelical Reformed Church, Free Churches
Who are the opponents of the group initiative and what are their counterarguments?
From the perspective of the Federal Council and Parliament, the liability provisions in particular go too far. Additionally, the initiative puts companies under widespread suspicion, leading to an increased risk of legal action. Corporations could circumvent the new regulation by relocating their seats abroad, putting many Swiss jobs at risk.
Parties
Organizations and associations
- Swiss Employers Association, Economiesuisse, Swissholdings, Swissmem, Bankers Association, Scientific Industries
What is the counterproposal?
The counterproposal provides for new reports and due diligence obligations, but these must be coordinated internationally. Unlike the initiative, the counterproposal dispenses with liability rules. Subsidiaries and suppliers would be liable for their damages and would remain liable locally.
What do the surveys say about the corporate responsibility initiative?
According to SRG’s first trend survey in mid-October, the initiative won public approval.
- 63 percent of those polled said they would vote in favor or rather in favor.
- 33 percent were against or rather against.
- 4 percent was undecided.
The Tamedia survey in mid-October shows similar results.
- 57 percent of those surveyed welcomed the initiative.
- 41 percent were against.
- 2 percent are still undecided.
According to the latest polls from Nov. 14, supporters are far ahead at 51 to 48 percent. The opponents of the were able to catch up a lot compared to the fans.
Why is the corporate responsibility initiative so special?
The liability rules in this way would be unique throughout the world. But there are similar regulations in other countries. For example, France passed a due diligence law in 2017. This forces French companies to take action against human rights violations and environmental damage abroad as well.
