On Legislating the Corporate Responsibility to Respect Human Rights--A Set Back in Switzerland

 (Pix (c) Larry Catá Backer 2015)

The UN Guiding Principles for Business and Human Rights was endorsed unanimously in June 2011 by the UN Human Rights Council.  The Guiding Principles distinguish between a state duty to protect human rights, grounded in the obligation of states to apply their own laws and constitutional systems, and to abide by their obligations under international law relating to human rights and business, and a corporate responsibility to respect human rights, grounded in an autonomous obligation to ensure that in their operations these enterprises respect international human rights norms and law.  

Since their endorsement there has been little by way of agreement on the path that the operationalization of the Guidelines should take, the meaning of the Guidelines or the role of states and enterprises in the development and enforcement of governance systems that may take on the character of law or of societally mandatory rules developed by non-state actors. See here and here and here.

One of the more interesting recent developments has seen states turn away from any serious effort to order their own domestic legal orders in light of substantive international law, and to strengthen their domestic judicial systems to afford greater remedial protections, in favor of seeking somehow to extend the regulation of the corporate responsibility to respect human rights within the law of states. The effect, of course, would produce as great an incoherent patchwork of law relating to corporate responsibility reporting as it has produced a patchwork of domestically cognizable bits and pieces of international human rights law within the disparate domestic legal orders of states with quite distinct tastes for law and for human rights.  This is most acutely felt in the context of legislating corporate human rights due diligence.  The effort propduces great press, and is useful in managing mass emotions, to great political effect.  It is of dubious utility for the task fo developing a coherent and comparable global system for enterprise human rights due dilifgence.

The politics of this great distraction has recently played out in Switzerland,  There follows a description of the events provided by The Swiss Coalition for Corporate Justice (SCCJ) is a coalition of 60 development and human rights organizations, environmental and women’s organizations, trade unions, church groups and critical shareholder associations. The Coalition advocates for clear rules for international companies, so that they must respect human rights and environmental standards worldwide

Press Release
Berne, 13 March 2015

Swiss parliament motion for mandatory human rights due diligence narrowly turned down
Conservative backlash blocks increased corporate accountability

Following a turbulent debate, the Swiss lower chamber of parliament initially accepted a motion yesterday for increased corporate accountability only to repeat the vote and ultimately dismiss the motion.This decision shows how a narrow majority in the lower chamber of the Swiss parliament continues to obstruct a sustainable Swiss human rights and foreign economic policy. The Swiss Corporate Justice Campaign is launching a popular initiative for responsible business this April so that Swiss citizens can weigh in on this important issue.

The Foreign Affairs Committee requested the introduction of mandatory human rights and environmental due diligence for Swiss corporations. This parliamentary proposal, focusing on prevention, has gained broad support from business and political circles. ProfessorJohn Ruggie, the former UN Special Representative and author of the UN Guiding Principles on Business and Human Rights, welcomed this motion as well. Yesterday’s evening vote had a promising start; after an in-depth debate about this important issue, the motion was accepted by one vote, with the President of the lower chamber breaking a tie (91 voting in favour, 90 against). For roughly one and a half hours Switzerland was a political leader in international corporate accountability.

Despite a broad alliance, an about-face followed later that evening. Due to pressure from the conservative business lobbies (SwissHoldings, Economiesuisse), the right political parties requested a re-vote. Shortly before the end of the session at 6:47 PM, the second vote ended with 95 voting against the motion and 86 in favour.

A very significant minority of elected Swiss representatives wants Switzerland to strengthen the accountability of its multinational enterprises, while conservative forces, ignoring the international trend towards more corporate accountability, continue to stand in the way. The blockage of this pivotal aspect of the UN Guiding Principles on Business and Human Rights clearly shows that without further pressure, Switzerland will not change. That’s why over 60 non-governmental organizations are jointly launching the Popular Initiative for Responsible Business in April. This political tool is urgently needed and more promising then ever.

Media contact:

Rahel Ruch, Coordinator, Swiss Coalition for Corporate Justice, Tel. +41 76 517 02 08, rahel.ruch@alliancesud.chrahel.ruch@alliancesud.ch

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Michel Egger, Coordinator, Swiss Coalition for Corporate Justice, Tel. +41 79 599 97 30, michel.egger@alliancesud.chmichel.egger@alliancesud.ch>
Notes to the editor:
Popular Initiatives in Switzerland: This quite unique Swiss instrument allows for a binding popular vote on a proposal of a constitutional amendment if 100’000 signatures can be collected in an 18-month period.

The Swiss Coalition for Corporate Justice (SCCJ) is a coalition of 60 development and human rights organizations, environmental and women’s organizations, trade unions, church groups and critical shareholder associations. The Coalition advocates for clear rules for international companies, so that they must respect human rights and environmental standards worldwide. www.corporatejustice.ch
Swiss Coalition for Corporate Justice l c/o Alliance Sud l Monbijoustrasse 31 l P.O. Box l 3001 Bern l www.corporatejustice.ch l rahel.ruch@alliancesud.ch l +41 31 390 93 36 l +41 76 517 02 08