The world’s biggest companies are facing the prospect of tougher ethical regulations in Switzerland as a four-year debate reaches a conclusion in parliament, the Financial Times reports.
Members of Parliament have less than three weeks to agree on a compromise to a proposed change to the law brought by the Responsible Business Initiative (KVI), which makes businesses in Switzerland liable for abuses of human and environmental rights anywhere in their supply chains.
The KVI emerged in 2016 with the support of more than 100,000 citizens, the threshold for triggering a referendum. The country’s lawmakers may formulate an alternative to the proposal. If the initiative’s sponsors accept it, it becomes law. However, if they don’t, their original proposal is submitted to a vote — and since lawmakers can’t seem to agree, a vote on the most radical law seems likely.
Critics say the proposed changes would make businesses liable for abuses beyond their control, but supporters say it will make Switzerland the leader of a global move towards greater corporate, social and ethical responsibility.
Source: The Financial Times; https://www.ft.com/content/ce25644f-20ed-4595-9785-96f8eea97d4e