Swiss Review 3/2019

Swiss Review / May 2019 / No.3 13 Liquid gold at the Metalor gold refinery in Neuchâtel. Photo: Keystone dustry open upmore, e.g. on customs declarations, regarding the origin of its gold. However, the government sees no need for action on due dili- gence, pointing to the sustainability standards implemented voluntarily by the industry. Switzerland also sup- ports implementation of the OECD Due Diligence Guidance for Respon- sible Supply Chains of Minerals from Conflict-Affected and High-Risk Ar- eas, in order to prevent the gold trade from fuelling armed conflict in places including the Democratic Republic of Congo. The Federal Council wishes to examine whether blockchain – a tech- nology of decentralised databases – can be used to improve the traceabil- ity of gold. An initiative targeting multinationals The Federal Council believes that fur- ther regulation is unnecessary. Citing intense competition fromabroad, the Swiss government would prefer it if the gold industry regulated itself. Non-governmental organisations (NGOs) are not the only stakeholders criticising this pro-business ap- proach. In an opinion piece published on swissinfo.ch, Basel-based criminal lawprofessor and anti-corruption ex- pert Mark Pieth said that the Federal Council were “shooting themselves in the foot”, showing that they “cared more about business than about hu- man rights” – thereby “giving more ammunition” to those who support the Responsible Business Initiative (RBI). The aim of the RBI, which was proposed by around 50 NGOs in 2016, is for Swiss companies and their sub- contractors abroad to be held ac- countable for any human rights vio- lations or environmental damage that they cause. Pieth’s main criti- cism of the Federal Council’s gold re- port is that it places the blame for these problems “squarely on the shoulders of artisanal and small- scaleminers”, when in truth it is mul- tinationals that are often responsible for producing mountains of toxic waste, for contaminating water and for appropriating land from indige- nous communities. Opinion polls show that there is a lot of public support for the RBI. The National Council opted for a counter- proposal to take the wind out of its sails. This counterproposal would have introduced provisions on corpo- rate liability into Swiss company law. Yet the Council of States would have none of it. InMarch, amajoritywithin the small chamber of parliament re- jected the initiative without consider- ing the counterproposal. Ruedi Noser, FDP member of the Council of States for the canton of Zurich, argued that provisions on corporate liability would put companies at a significant disadvantage and could even result in Swiss businesses having to withdraw from numerous countries. The issue now heads back to the National Coun- cil. If the chambers fail to agree on a way forward, the RBI is likely to go to a popular vote without any counter- proposal. A voting date has not yet been set.