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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.
Frank Bold participated in the preparation of a new report examining the changes underway in the European energy sector and the need to modernize electricity grids to accommodate more renewable energy sources with emphasis on Central and Eastern Europe (CEE).
After 18 hours of negotiations, the European Parliament, Council of the EU and European Commission reached a political agreement this morning on the Corporate Sustainability Due Diligence Directive (CSDDD). The decision was preceded by a four-year long legislative process at European level and builds on national laws in France and Germany.
In the context of the last phase of the negotiations on the Corporate Sustainability Due Diligence Directive (CSDDD), Frank Bold initiated a multistakeholder statement together with the Responsible Business Alliance (RBA) and Shift.