Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Switzerland votes against boosting business liability for rights abuses abroad

Switzerland votes against boosting business liability for rights abuses abroad

A vote on whether Swiss companies like Nestlé and Glencore should face greater liability at home for human rights and environmental abuses committed abroad is set to fail after a divisive campaign.
While provisional results from the government Sunday showed that more than 50% of voters approved of the Responsible Business Initiative, it did not garner support from the majority of cantons, or Swiss states. Both are necessary for a referendum in the country to pass.

The initiative split public opinion in Switzerland, a hub for consumer goods, finance and commodities trading. Supporters of the Responsible Business Initiative hung banners and signs from balconies and fences across the country. Swiss banks and other powerful businesses, meanwhile, took out expensive newspaper ads warning of dire consequences for the economy, ramping up their efforts in recent weeks.

"Accepting this initiative would prompt Swiss companies to move to other countries, leading to the loss of valuable jobs and taxable assets in Switzerland," Credit Suisse (CS) CEO Thomas Gottstein and other top executives at the bank warned a newspaper advertisement.

The Responsible Business Initiative would have mandated that Swiss firms assess the human rights and environmental practices not just of their own operations, but also of subsidiaries, suppliers and business partners, ensuring they're in line with international standards. Companies could then have been held liable in Swiss courts for violations committed by subsidiaries and suppliers they control, unless management was able to prove proper due diligence had been carried out.

The Swiss government also opposed the initiative and backed a watered-down alternative. That counterproposal will now take effect, compelling companies to increase reporting on environmental and social issues, with a particular focus on child labor and conflict minerals.

In a statement, Glencore welcomed the result of the vote Sunday. The countermeasure, a spokesperson said, is "internationally aligned and will effectively promote the protection of human rights and the environment with new transparency and due diligence measures."

The Swiss campaign comes amid a broader shift in how societies are thinking about the role and responsibilities of corporations.

France previously enacted a broad law that holds companies responsible for abuses throughout their supply chains, though the Swiss government claimed that the Responsible Business Initiative would have imposed even tougher liability on companies. The European Commission is expected to propose new rules for due diligence on human rights and the environment throughout supply chains in 2021.

In the United States, President-Elect Joe Biden has said he'll require public companies to make greater disclosures on climate risks in their supply chain. And earlier this year, the US House of Representatives passed a bill that would force publicly traded firms to audit their supply chains for forced labor in China's predominantly Muslim Xinjiang province.

"The calls for this are growing louder and louder, and there's a lot of momentum behind it," Rachel Barrett, environmental and climate change partner at global law firm Linklaters, told CNN Business last week.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×