Sustainable Purpose-Driven Enterprises
Where do we stand in Switzerland and what could be a possible policy option?
Social enterprises (in a broad sense), including those launched by social (or sustainable) entrepreneurs (or Sustainable Purpose-Driven Entities) are important players to achieve the Sustainable Development Goals (SDGs). Developing a legal framework that allows them to prosper has been a priority of the European Commission since 2010. These entities have recently been endorsed by the United Nations General Assembly. The Federal Council has, to date, refused any legislative intervention, arguing that Swiss law is flexible enough to incorporate such entities. Reliance on voluntary commitments and on the flexibility offered by the law prevents however homogeneity and thus to sort the enterprises that are truly sustainable from the others. Besides, a closer legal analysis reveals that available legal forms under Swiss law are either unappealing for investors and donors or present uncertainty as regards to the validity and enforceability of provisions of the articles of association that…
