Swiss Review 1/2021

Swiss Review / February 2021 / No.1 17 Politics THEODORA PETER Despite losing at the ballot box, the authors of the initiative “for respon- sible companies – protecting human rights and the environment” (Respon- sible Business Initiative) achieved a respectable result. A narrow major- ity of voters (50.7 per cent) voted yes on 29 November. However, the initi- ative was unable to obtain the can- tonal majority required for any con- stitutional amendment, with only nine out of 26 cantons voting in fa- vour. In the context of Swiss direct democracy, it is extremely rare for an initiative to achieve a popular major- ity and fail to win a cantonal major- ity. It shows howwell disposed voters were to the initiative, which was backed by an alliance comprising 120 relief agencies aswell as churches and environmental and human rights or- ganisations (see “Swiss Review” 5/2020). Federal Councillor Karin Keller- Sutter (FDP) adopted a conciliatory tone after the vote. The justice minis- ter had stood shoulder to shoulder with industry groups to oppose the initiative during a referendum cam- paign that was hard fought on both sides. Swiss companies must also re- spect human rights and the environ- ment abroad, that’s a given, she said. “We voted differently, but we all want the same thing.” Due diligence to prevent child labour With the Responsible Business Initi- ative having been rejected, an indi- rect counterproposal approved by parliament last summer automati- cally comes into force. Unlike the in- itiative, the counterproposal does not include a liability clause. How- ever, it does oblige major companies to report every year onhuman rights, environmental and anti-corruption standards compliance and to con- duct due diligence regarding child la- bour and sourcing minerals from war-torn regions. Companies that give false information or fail to re- port risk fines of up to 100,000 Swiss francs. “The authors of the initiative have something to show for their ef- forts after all,” said Keller- Sutter. However, the people behind the initiative are disappointed. They view the measures as inadequate. “Self-policing without effective con- trols or liability clauses is not enough to ensure that all companies respect international environmental stand- ards and human rights,” lamented law professor and co-chair of the in- itiative committee Monika Roth, adding that her coalition of support- ers would continue to campaign for greater corporate accountability. This is why Swiss firms should still expect their overseas business activ- ities to be scrutinised by a watchful civil society in future. No liability regulations for Swiss multinationals The Responsible Business Initiative failed to win a cantonal majority. Nevertheless, Swiss companies are under increasing pressure to act in an ethically responsible manner abroad. Voters reject ban on investments in weapons manufacturers Switzerland rejected the popular initiative “For a ban on financing war material manufactur- ers”, with around 57 per cent of the electorate voting no. The authors of the initiative wanted to halt Swiss investment in the global arms indus- try. 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. (TP) Federal Councillor Karin Keller-Sutter’s conciliatory message: “The authors of the initiative have some- thing to show for their efforts after all.” Photo: Keystone