Switzerland: National Council adopts draft law establishing reasonable due diligence requirement for multinationals

In order to avoid a more demanding law, which could result from the so-called ‘responsible business initiative’, and a vote on the issue, the lower house of the Swiss parliament decided to bring forward legislation that would oblige companies to incorporate due diligence in the protection of human rights. If the ‘counter proposal’ is adopted by the Federal Council (the government’s executive body) as it is, the associations that initially promoted the initiative are expected to withdraw it.
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In 2016, some 77 civil society organisations gathered enough signatures for its popular initiative to have a place on the Swiss political agenda (see article n°9620). If the draft bill, which was approved by the National Council on 14 June, is not modified by the Council of States (the parliament’s upper house), the group of associations behind the push are expected to withdraw the initiative. The looming framework sets out due diligence requirements for companies, to make sure that they respec

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