Swiss Corporate Responsibility Counter-Proposal Faces Fierce Criticism

Switzerland's Federal Council is facing significant backlash over its indirect counter-proposal to the corporate responsibility initiative, with business and conservative groups vehemently opposing the new liability rules.

Justice Minister Beat Jans presented an ambitious special law in the spring, dubbed "on sustainable corporate governance," which serves as the indirect counter-proposal to the corporate responsibility initiative submitted in May 2025 with 126,000 signatures. The proposed legislation outlines due diligence obligations for large Swiss companies operating globally, covering their entire value chain from production to customer service. It also includes enhanced sustainability reporting, the creation of a new national supervisory authority, and a sanctions regime.

However, the draft law has met with fierce rejection during the consultation process. The Swiss Trade Association (SGV) has labeled the Federal Council's argument, that Switzerland must align with European law on corporate responsibility and sustainability regulation, as "misleading." They contend that Switzerland is not obligated to adopt EU legislation in this area, and existing EU treaties do not impose such requirements.

The most significant resistance is directed at the new liability rules. While the Federal Office of Justice assures that the special law does not exceed EU regulations and avoids a "Swiss Finish," critics disagree. Economiesuisse points out that the EU's Omnibus regulation, effective since March, has eliminated a harmonized liability regime. This leaves considerable uncertainty about how individual EU member states will proceed. The SGV further warns that the liability provisions could extend beyond large corporations, potentially leading larger companies to shift risks onto small and medium-sized enterprises (SMEs).