Wednesday 18 November 2020

Why is LafargeHolcim against the Responsible Business Initiative?

On 29 November, Switzerland will hold a referendum on the Responsible Business Initiative. If the initiative succeeds, Swiss-based firms – including LafarageHolcim parent of Aggregate Industries:  
will be legally responsible for human rights abuses and environmental violations anywhere in the world, caused by companies under their control. Victims of human rights violations and environmental damage will be able to seek redress in Switzerland.
The corporate lobby is fighting hard against the initiative, saying it will make Swiss companies “guilty until proven innocent” for abuses anywhere in their supply chains, and open the door to “blackmail” by activists.
IndustriALL general secretary Valter Sanches said: “For too long, multinational corporations have been able to hide their abuses behind a veneer of respectability, using plausible deniability whenever bad behaviour is highlighted. The Responsible Business Initiative is part of a global movement by unions and civil society organizations to hold companies responsible for their behaviour. “Our message is this: we are coming for you. There is nowhere to hide. We will hold you accountable.” 

The president of the board of Swiss cement manufacturer LafargeHolcim called the initiative’s demands “a gigantic absurdity”.  
Johannes Blankenbach from the Business & Human Rights Resource Centre argues:
“Responsible companies… have nothing to fear, and indeed stand to gain from such legislation” 
Florian Wettstein, a business ethics professor at the University of St Gallen says companies’ strong pushback on the initiative says something about their confidence – or lack thereof – in their own due diligence efforts: 
“Companies say they are aligned with the UN Principles, but many know that they aren’t doing what they should when it comes to due diligence”