Corporate social responsibility (CSR) means that companies are responsible for the effects of their activities on society and the environment. The Swiss Confederation understands CSR to be a contribution to sustainable development made by companies.
CSR covers a wide range of aspects that must be taken into account when managing a company, including working conditions (including occupational health), human rights, environment, anti-corruption measures, fair competition, consumer interests, taxes, transparency, etc. To implement CSR, companies need to take stakeholder interests into account (e.g. shareholders, employees, consumers, local communities and NGOs).
CSR assumes compliance with laws and social partnerships. Society's expectations, which may go beyond legal obligations, are also to be considered. The Swiss Confederation expects companies based or operating in Switzerland to take responsibility for all of the activities they perform there or abroad in accordance with internationally recognised CSR standards and guidelines.
A consistent and broad implementation of CSR plays a key role in improving sustainable development and providing solutions to social challenges. It can also considerably improve companies’ competitive position.
Various terms are used in Switzerland to refer to CSR. Companies use e.g. corporate social responsibility (CSR), corporate responsibility (CR), responsible business conduct or corporate sustainability.
Position Paper and action Plan of the Federal Council
On 15 January 2020 the Federal Council adopted the revised CSR Action Plan 2020-2023. It thus confirms its commitment to responsible business conduct.
On 1 April 2015, the Swiss Federal Council adopted a Position paper and Action Plan on corporate social responsibility. It was prepared as part of an interdepartmental process under the aegis of SECO and based on a consultation between the various stakeholders. It has two main goals: 1. Informing companies and their stakeholders about the federal government’s goals and expectations as regards CSR; 2. Providing an overview of the government’s current and future CSR-related activities.
Obligation to report on non-financial matters and to exercise due diligence with regard to conflict minerals and child labour
On 29 November 2020, the popular initiative “Responsible business – to protect human rights and the environment" has been rejected. This means that the indirect counter-proposal of the Parliament applies, which provides for the following new provisions in the Code of Obligations for companies:
- Obligation to report on non-financial matters (art. 964a-c): Large public companies and financial institutions must report on environmental and labour issues, human rights and the fight against corruption in a similar way to EU Directive 2014/95/EU. This includes reporting on material risks, measures and their effectiveness or the reasons why no such concept is followed (the so-called comply or explain concept). If the report is based on national, European or international standards such as the OECD Guidelines for Multinational Enterprises, these must be mentioned in the report. The report must be approved by the highest management or administrative body and by the body responsible for approving the annual accounts. The Federal Council specified the implementation of sustainability reporting for climate issues for large companies in an ordinance. This provides for the mandatory implementation of the recommendations of the Task Force on Climate-related Financial Disclosures as of the 2024 financial year.
- Obligation to exercise due diligence and to report with regard to conflict minerals and child labour (art. 964j-l): Similar to the EU Regulation (EU)2017/821, an obligation to exercise due diligence and to report is introduced for companies that import minerals or metals consisting of tin, tantalum, tungsten or gold from conflict and high risk areas into Switzerland or process them here. The same applies to companies that offer products or services for which there are reasonable grounds to suspect that they were manufactured or provided using child labour. They must identify the risks and take measures to minimise them. The fulfilment of the duties of care with regard to conflict minerals should be based, inter alia, on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and must be verified by an external expert.
The Federal Council has brought the provisions in the Code of Obligations and the ordinance with the implementing provisions on the due diligence obligation regarding conflict minerals and child labour into force as of 1 January 2022 (see media release). They will apply for the first time in the 2023 business year.
Ministerial Conference and Update of the OECD Guidelines for Multinational Enterprises for Responsible Business Conduct
The Ministerial Conference on Responsible Business Conduct on 14-15 February 2023 adopted a declaration affirming RBC as an essential element of the international rules-based trade and investment system. States committed to closer cooperation on promoting the implementation of the OECD Guidelines.
The OECD Guidelines on Responsible Business Conduct are recommendations addressed by 51 governments to multinational enterprises. They aim to encourage positive contributions enterprises can make to economic, environmental and social progress, and to minimise adverse impacts on matters covered by the Guidelines that may be associated with an enterprise’s operations, products and services. The Guidelines cover all key areas of business responsibility, including human rights, labour rights, environment, bribery, consumer interests, disclosure, science and technology, competition, and taxation. The 2023 edition of the Guidelines provides updated recommendations for responsible business conduct across key areas, such as climate change, biodiversity, technology, business integrity and supply chain due diligence, as well as strengthened implementation procedures for the National Contact Points for Responsible Business Conduct.
Switzerland supported the update of the Guidelines and welcomes the outcome (see media release). The OECD institutional stakeholders representing the interests of business, trade unions and NGOs were closely involved in the update. The Swiss National Contact Point will hold a public information event on the implementation of the updated OECD Guidelines on 30 November 2023.
CSR Risk Check: A digital tool to assess risks in the value chain
Swiss Companies including SMEs that are active in foreign countries (e.g. import, export, production) may use the CSR Risk Check, an online tool to assess the social, environmental and governance risks in their value chain. The CSR Risk Check is anonymous and free of charge and will instantly provide a list of possible risks for countries and products. It also provides information on possible solutions to mitigate risks and suggests additional information sources. The CSR Risk Check serves to implement the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.
Digitalisation and responsible business conduct
The implications of digitalisation for responsible business conduct are manifold. For example, new digital tools can enable businesses to strengthen their efforts to act responsibly, in particular as it relates to responsible supply chain management (e.g. blockchain technology to analyze risks in the supply chain, machine learning). At the same time, the digital transformation can also lead to business causing or contributing to social and environmental harms in new ways (e.g. risk of discrimination in the use of artificial intelligence, and human rights risks associated with surveillance technology and the misuse of online content platforms). The OECD has published the following instruments in this respect:
If no English version exists, the German version will be linked.
Last modification 22.01.2024