Council of States decides on indirect counter-proposal to the Corporate Responsibility Initiative
Background: In November 2017, the Committee for Legal Affairs of the Council of States proposed an indirect counter-proposal to the Corporate Responsibility Initiative, whereupon the National Council drew up a concrete proposal. On 12 March 2019, the Council of States did not agree to the National Council's concrete proposal, after which the matter went back to the National Council. The National Council stuck to its original counter-proposal.
At its meeting on 18 December 2019, the Council of States voted in favour of the much weakened proposal of the Commission's minority, which does not provide for any liability provisions for Swiss companies. This proposal basically corresponds to the Federal Council's proposal and provides for a reporting obligation. The matter will now go back to the National Council.
The liability issue was the most controversial element of the Corporate Responsibility Initiative and the indirect counter-proposal. The liability provision of the initiative text in the sense of a mild causal liability provided that Swiss companies would be liable for the damage caused by controlled companies due to the violation of internationally recognised human rights or international environmental standards in the course of their business activities, whereby a company could exonerate itself by proving that it had complied with due diligence.
This article was written by Rebecca Isenegger, lawyer.