Swiss vote on making firms liable for rights abuse

Swiss voters decide on Sunday on a law that would make Swiss businesses financially and legally liable for human rights violations or environmental damage.

The law would affect their supply chains anywhere in the world.

Switzerland may be a small country, but its business reach is long.

Companies such as Nestlé, Syngenta, Glencore or Novartis source products all over the world and Switzerland is a world centre for commodity trading.

A third of all commodities consumed worldwide are traded by companies based in Switzerland.

Aren't firms already liable for damage they cause?

Corporate responsibility is a priority for multinationals and companies such as Nestlé say they scrutinise their supply chains from start to finish to ensure fair working practices, and to prevent child labour or environmental damage.

The new law seeks to enforce these standards, allowing victims of alleged human rights violations or environmental damage to sue Swiss companies in Swiss courts. The companies would have to prove they had taken all necessary measures to prevent any harm.

"Many companies do the right thing already," says campaigner Andreas Missbach, "but in cases where they don't then [under this new law] victims of a subsidiary of a Swiss company abroad could sue the Swiss parent company for damages."

He points specifically to the extractive industry as an area of concern. Mines in Latin America that supply Swiss companies are, he claims, causing serious harm.

"Communities are mistreated, people are put off their land, water poisoned, and we have this with companies that are headquartered in Switzerland." BBC