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Plan to boost big Swiss firms' liability fails in referendum - The Associated Press

GENEVA (AP) — A proposal to stiffen penalties against companies based in Switzerland if they violate human rights or harm the environment abroad failed in a Swiss referendum on Sunday.

Voters were evenly divided on the initiative titled “Responsible companies — to protect people and the environment,” according to projections by SRF public television. But with votes from most areas counted, it failed because a majority of the country’s cantons, or states, came out against it.

Under Switzerland’s system of direct democracy, which gives voters a direct say several times each year on a variety of issues, proposals need to win both a majority of votes cast and of cantons to pass. The referendum had originally been planned for May, but was delayed because of the coronavirus.

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The federal government opposed the plan championed by left-leaning groups and some big civil society organizations, asserting that it goes too far. Parliament has proposed a countermeasure that would also boost scrutiny of such companies’ actions.

The measure could have made large Switzerland-based companies liable in the country’s courts for their flawed operations or those of their subsidiaries and subcontractors in foreign nations, unless they were able to show that they conducted proper due diligence beforehand.

It would have required Swiss-based companies to better verify their activities in foreign countries and could have made them more liable for any damage caused. It could potentially have affected multinationals like mining and minerals company Glencore, agribusiness company Syngenta, and cement firm LafargeHolcim — which have at times faced criticism over their activities abroad.

Parliament’s alternative, which is supposed to take effect since the measure failed, wouldn’t require companies to answer to Swiss courts, and would focus on issues like mining of minerals drawn from conflict zones or child labor. It also seeks more cooperation among countries on such matters.

Another measure being considered Sunday would have banned the financing by the national bank or pension funds among others of any weapons destined for export, from handguns to assault rifles to tanks. That proposal also was projected to fail.

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Plan to boost big Swiss firms' liability fails in referendum - The Associated Press
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