GLOBAL IMPACT OF THE EU DUE DILIGENCE IN SUPPLY CHAINS NORMATIVE FRAMEWORK

Abstract

Responsibility for respecting human rights and environmental standards in supply chains has been raised to a new level with the introduction of various European Union regulations, which affect all participants in supply chains, including non-member countries. This creates a global effect that impacts the economy, as well as the quality of safety and health at work measures and respect for workers’ basic economic rights. In this regard, a series of questions arise regarding application of these standards, perception of the European Union’s position as a trendsetter globally, and actual impact that the application of due diligence regulations will have on production relations and the desirability of EU countries as trading partners. The research tracks these challenges and analyses existing and potential effects of implementing regulations such as the Corporate Sustainability Due Diligence Directive, the Forced Labour Regulation and the Corporate Sustainability Reporting Directive. These normative solutions are presented in the research only within basic outlines, which are relevant for their understanding. The mechanisms of global action are explained in more details, as well as the tasks that are set before companies in supply chains as their essential obligations. Furthermore, potential consequences of applying these regulations are investigated – how their full implementation will be ensured, how EU companies will treat partners outside the EU, and how soft pressure can be applied to partner companies to make them comply with basic human rights standards and environmental regulations. Finally, some attention is also given to interim grievance mechanisms – how and whether they can lead to greater changes in global employers’ practices. The aim of the research is to show whether it is realistic to expect that fully functional envisioned legal framework will protect workers and the environment in the countries from which suppliers of large European companies originate. The aim is also to demonstrate how realistic it is to expect the EU to position itself in this way as a global leader in promoting due diligence in supply chains, i.e., how complementary such a policy is to the efforts of the UN and other states’ individual and collective endeavours. In accordance with the research topic, the normative method and the comparative method are applied.