Since 2002, good business management in Switzerland has been guided by the 'Swiss Code of Best Practice for Corporate Governance'. The self-regulatory work was last revised in 2014 and is being published this year in a newly revised edition.
The 'Swiss Code of Best Practice for Corporate Governance' provides Swiss companies with recommendations on the structure of their corporate governance. As such, it is aimed at managers and is regarded as a reference work for boards of directors and executive board members. It provides them with guidelines that go beyond the legal requirements and at the same time ensures their organizational flexibility. Since its introduction in 2002, the 'Swiss Code' has had a significant impact on the development of corporate governance in Switzerland and has proven its worth as an instrument of self-regulation. It has made a significant contribution to Switzerland's position as an international leader in this field.
Political and social developments made revision necessary
Since the last revision of the 'Swiss Code' in 2014, there have been important developments to incorporate. The 2023 revision took place against the backdrop of the new stock corporation law and the intensified development in sustainability. The revision has made it possible to take up developments and experiences of recent years in Switzerland as well as internationally. The 'Swiss Code' has thus been brought up to date.
At the same time, the special features of Switzerland have been considered. For example, the "comply or explain" approach has proven its worth since the last revision. This means that companies can continue to implement their own corporate governance ideas. However, they must explain themselves if their corporate governance deviates from the recommendations of the 'Swiss Code'. The changes to the 'Swiss Code' also pursue the goal of contributing to the consolidation of trust in business.
Board of Management has adopted revision
The proposals for amendments to the 'Swiss Code' drawn up by a high-profile working group were put out to broad consultation in the summer of 2022, and the inputs were discussed by the working group. On November 14, 2022, the Board of economiesuisse approved the revision of the 'Swiss Code'. David Frick, President of economiesuisse's Legal Commission, is satisfied with the result and emphasizes "that the success of the 'Swiss Code' is based on its broad acceptance, while creating sustainable added value for everyone."
