The current regulatory landscape on fostering inclusiveness in the private sector

As businesses navigate the evolving regulatory and multi-stakeholder landscape, the impact on corporate inclusion initiatives is becoming increasingly evident.

What does the current landscape mean for businesses today?

Corporate Responses to Policy Shifts

Amid growing pressures, some companies are scaling back inclusion initiatives, while others reaffirm their commitment—though this stance is becoming less common. The shift away from efforts reflects a broader re-evaluation of corporate strategies in light of new legal and regulatory considerations.

Risks of Scaling Back Inclusion Programs

As businesses adjust to policy changes, their responses vary, leading to potential risks and challenges. Companies eliminating inclusion programs may face increased risks (Reuters), with potential discrimination lawsuits looming. A recent article discusses the legal implications businesses could face if they abandon policies. Legal experts warn that scaling back efforts could increase exposure to discrimination claims. Policies such as pay equity audits, diverse hiring practices, and fair promotion processes help ensure compliance with anti-discrimination laws. Eliminating these measures may serve as evidence of bias in future lawsuits, making businesses vulnerable to legal action.

Challenges for Global Companies

Beyond policy shifts and potential risks, multi-national corporations face an additional layer of complexity in maintaining inclusiveness across different regulatory landscapes. For multi-national corporations with operations at a global level, determining the impact and implications of these policy changes can be particularly complex. Regulations, reporting requirements, and corporate commitments may vary across jurisdictions, creating challenges in maintaining compliance and engagement in topics on gender equality and the broader inclusiveness agenda.

The Path Forward: Strategic Adjustments to Inclusion Initiatives

Adapting Inclusion Strategies for Long-Term Success

The World Economic Forum insight report – Diversity, Equity and Inclusion Lighthouses 2025 report – highlights best practices, methodologies, and success factors for corporate Inclusion programs. HR leaders emphasize that fostering inclusiveness is here to stay but must be integrated into core business objectives with a renewed focus on inclusion, belonging, data-driven goals, and transparent communication about progress and impact.

Refining Programs with Measurable Outcomes

Businesses are shifting towards programs that emphasize measurable outcomes. Some companies are adjusting their messaging, while others are refining their approaches to align with legal and cultural shifts. This ensures that initiatives centred around inclusion remain both impactful and compliant with evolving regulations.

Supplier Diversity as a Business Imperative

Supplier diversity remains a crucial business priority, despite regulatory changes. Companies can take a compliance-focused approach to fostering inclusion by linking initiatives to key business metrics, such as cost savings and market access. Additionally, businesses can leverage evolving reporting regulations to drive engagement beyond Tier 1 (direct) supplier bases, ensuring broader and more effective supplier diversity programs. As the policy landscape continues to evolve, businesses must carefully navigate these changes to mitigate risks while maintaining their commitment to fostering inclusion. By focusing on compliance, measurable impact, and strategic adaptation, companies can ensure that gender equality and inclusiveness remains an integral part of their corporate culture and business strategy.

(Empowered by BSR.)

What does this mean for Switzerland?

These global trends also influence national approaches, such as in Switzerland, where inclusiveness is increasingly embedded in legal frameworks.

  • Switzerland is actively working towards achieving the Sustainable Development Goals (SDGs) by implementing them at the national level. To align with the 2030 Agenda, the country has adapted the international targets to its specific context. Gender equality as well as reduction of inequalities are part of the UN Sustainable Development Goals (SDG 5 and 10). Read more here.
  • Switzerland is embedding inclusion initiatives into its legal framework through regulations such as Article 964a of the Swiss Code of Obligations, which mandates non-financial reporting for certain companies. Under Article 964b, paragraph 1 CO, these reports must address key social and employee-related issues, including diversity, inclusion, and equal opportunities. Additionally, companies are required to report on their commitment to human rights, ensuring transparency and accountability in fostering an inclusive and socially responsible business environment. Read more here.
  • According to the Swiss Federal Office of Justice report dated November 19, 2019, the social issues to be covered in the non-financial report include in particular measures taken to protect various stakeholders (shareholders, employees, customers, suppliers, creditors, the media, trade unions, the authorities, critical interest groups and local communities) as well as the social dialogue and communication with these stakeholders (p. 9 of the report).
    • As regards the obligation to report on respect for human rights, it must follow, first and foremost, the relevant international provisions that are binding on Switzerland, which include for example the provisions contained in the International Covenant on Economic, Social and Cultural Rights (and in particular articles 7a(i) and 7(c), right to equal pay and equal opportunities for promotion), International Covenant on Civil and Political Rights, International Convention on the Elimination of All Forms of Racial Discrimination, Convention on the Elimination of All Forms of Discrimination against Women, ILO Core conventions (including ILO Equal Remuneration Convention and ILO Discrimination (Employment and Occupation) Convention).
    • Regarding employee-related issues, the non-financial report shall in particular cover the working conditions for employees, respect for the right of employees to be informed and consulted, respect for trade union rights, health protection, the safety of employees in the workplace, and gender equality (p. 9 of the report).

Ultimately, as regulations evolve, companies must balance compliance with meaningful action, ensuring inclusiveness remains a core pillar of their corporate strategy. For an overview of the key legal and practical issues regarding workplace inclusion requirements and initiatives in Switzerland, see here.

(Empowered by Walder Wyss.  For more information feel free to reach out to our partner Walder Wyss Ltd vincent.pfammatter@walderwyss.com).

ADDITIONAL RESOURCES

Deloitte

UN Women – Women’s Empowerment Principles

Business for Social Responsibility (BSR)

  • Six Actions for Business in 2025 – How to protect your workforce and navigate the evolving landscape of fertility access restrictions and other restrictions. Read more here. 
  • A Year of Uncertainty: Ten Big Questions Facing Sustainable Business Leaders in 2025 – key challenges for companies in light of the recent disrupting regulations, including responding to attacks on sustainable business practices, determining thresholds for upholding the rule of law, and addressing potential consequences for missing sustainability targets. Read more here.
  • Guide on how companies can engage on social issues – how can companies currently engage on social issues, what a corporate social justice approach entails, and what companies can do to advance social justice. Read more here.