The standpoint of economiesuisse

The (Responsible) Business Initiative does not provide better protection for humans and the environment in any way, shape or form – quite the contrary. The Initiative not only focuses on the wrong place but also applies the wrong instruments. It is already possible for companies to be sued for damages. There are also established procedures to solve any abuses by means of dialogue. Additionally, the Initiative fails to recognise the great contribution that Swiss companies are already making to development and welfare. It is superfluous, counterproductive for human rights and environmental issues, and dangerous for Swiss business.

The Initiative makes multiple bogus claims. It alleges that companies are intentionally violating human rights and environmental standards. It also pretends to merely establish duties of due diligence and only affect group companies. None of this is true. The Initiative essentially demands an extreme, automatic liability without fault for all activities abroad, which would be unprecedented in the world. SMEs are also not exempt from such liability.

The Initiative is formulated in very broad legal terms and therefore conceals numerous dangers. It violates fundamental principles of company, liability and private international law. It revokes decision-making capacity from newly industrialised and developing countries, and blocks their legal development. What is more, this legal imperialism represents an explosive political issue and would obstruct delicate foreign relations. The Initiative creates great uncertainty in Switzerland and undermines the properly functioning system of addressing conflicts via conciliation proceedings before the government-supervised National Contact Points.

The Initiative would directly and seriously damage the Swiss economy. Switzerland would lose its appeal as a centre for international enterprises, because the world's strictest liability clauses would be introduced. The economic consequences of this Swiss solo venture would also be extensive. The administrative burden on companies of all sizes would grow substantially.

The threatened juridification of the social responsibility of companies shifts the discussion from a constructive search for solutions to the confrontational – into the courtroom. This is of no benefit to anyone. The situation for humans and the environment in various regions would certainly not improve if investments are withheld or companies from countries with much lower standards replace Swiss companies. Therefore, the Initiative would ultimately harm just those whom it allegedly is supposed to protect.