Beautiful Virgin Islands

Saturday, Jul 05, 2025

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.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
×