The respect of human rights is the most fundamental value that we have as a society. Nevertheless, economic globalisation has lead to the massive exploitation of human rights in developing countries for the benefit of multinational enterprises (MNEs). The outsourcing and offshoring of production and services have had huge environmental and social costs.
European MNEs have been continually associated with violations of workers' rights, environmental damage, and harm to local communities. The reason for these continued violations is complex and multifaceted, yet of central significance is the law that governs these MNEs’ legal structures and accountability.
Subject to certain exceptions, the parent companies and boards of directors of MNEs are not legally responsible for the adverse human rights impacts directly linked to their operations, products, or services by their business relationships, including those caused by their subsidiaries, subcontractors, or customers. While victims of human rights abuses are typically entitled to pursue legal action in the country where the abuse took place, there may exist significant practical barriers, including the lack of an effective judicial system.
An additional problem is that even if the victims of corporate related abuse can make a legal case against the parent company of an MNE under the jurisdiction of an EU Member State, the existence of legal, procedural, and institutional barriers still prevent these victims from gaining access to an effective remedy.
The concept of human rights due diligence has recently garnered attention as a major tool that has the potential to bridge this governance gap. It sits at the core of the United Nations Guiding Principles for Business and Human Rights, which recognize and clarify the state duty to protect human rights, the corporate responsibility to respect them, and the right of people to access remedy for violations of human rights.
We work with the European Coalition for Corporate Justice (ECCJ), of which we are a Steering Member, and other civil society groups, and renowned legal experts to develop and promote solutions to the above mentioned problems.
Dear Members of the European Parliament, In the next couple of weeks, various committees in the European Parliament will vote on their proposals to reform the EU Corporate Sustainability Reporting Directive (CSRD). In view of that, the co-signing organisations are calling for broadening the scope of the companies to be covered by the new rules by including all listed SMEs, as well as non-listed SMEs operating in high-risk sectors, subject to proportional rules.
In response to demands from investors and companies, the European Commission presented a proposal for a Corporate Sustainability Due Diligence Directive (CSDDD) in February 2022. The Directive is also a response to France, Germany and Norway adopting legislation on due diligence and attempts to harmonize and introduce one European standard of responsible business conduct.
After several months of delay, today, the European Commission presented its proposal for a Corporate Sustainability Due Diligence Directive in Brussels. The main objective of this new legislation is to integrate into European law international standards such as the UN Guiding Principles on Business and Human Rights - adopted globally over a decade ago - and standards developed and approved by the OECD.
