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New Business and Human Rights Laws—Support for Social Upgrading?

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Economic and Social Upgrading in Global Value Chains

Abstract

A governance gap regarding the responsibility of lead firms for working conditions in supplier firms characterizes global value chains (GVCs). While international “hard law” treaties exist for human rights and labour standards, these instruments only address national governments. A long-standing approach to creating accountability for lead firms has been private standard setting through corporate social responsibility (CSR). Both its voluntary nature and the attempt to solve the structural human rights deficits in GVCs on a micro/business level have prevented CSR from having crucial impact. Against this backdrop, regional and national mandatory laws in the field of business and human rights are increasingly being passed to fill the liability gap and establish responsibility of lead firms for human rights of workers and communities.

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Notes

  1. 1.

    France, La loi n°2017–399 relative au devoir de vigilance des sociétés mères et entreprises donneuses d’ordre.

  2. 2.

    Germany, Lieferkettensorgfaltspflichtengesetz, 11 June 2021, BT Drs. 19/28649.

  3. 3.

    European Union, In a legislative initiative procedure the Committee on Legal Affairs of the European Parliament on 11 February 2021 brought forward a Report with recommendations to the Commission on corporate due diligence and corporate accountability (2020/2129(INL)), with a motion for a proposed Directive; https://www.europarl.europa.eu/doceo/document/A-9-2021-0018_EN.html. On 10 March 2021 the plenary of the European Parliament adopted the proposed Directive on Corporate Due Diligence and Corporate Accountability; https://www.europarl.europa.eu/doceo/document/TA-9-2021-0073_EN.html. At the time this chapter was written, the EU Commission’s reaction and further legislative process was pending.

  4. 4.

    Decreto Legislativo 8 giugno 2001, n. 231, Disciplina della responsabilità amministrativa delle persone giuridiche, della società e delle associazioni anche prive di personalità giuridica, a norma dell'articolo 11 della legge 29 settembre 2000, n. 300.

  5. 5.

    Section 54 (4), UK Modern Slavery Act (2015).

  6. 6.

    Section 54 (5), UK Modern Slavery Act (2015).

  7. 7.

    Section 54(6), UK Modern Slavery Act (2015).

  8. 8.

    Section 54 (7), (8), UK Modern Slavery Act (2015).

  9. 9.

    Section 54 (11), UK Modern Slavery Act (2015).

  10. 10.

    Sec. 23 Australian MSA.

  11. 11.

    Sec. 16 Australian MSA.

  12. 12.

    Pub. L. No. 114–125 Trade Facilitation and Trade Enforcement Act of 2015 (United States Public Laws 2015–2016 Edition).

  13. 13.

    19 U.S.C § 1307.

  14. 14.

    https://www.cbp.gov/sites/default/files/assets/documents/2017-Jan/170103_Forced Labor Importer Due Diligence Fact Sheet.pdf.

  15. 15.

    18 USC § 1761–§ 1762.

  16. 16.

    18 USC § 1593.

  17. 17.

    18 USC § 1595.

  18. 18.

    French Commercial Code, Art. L. 225–102-4, para. 2.

  19. 19.

    French Commercial Code, Art. L. 225–102-4, para. 5.

  20. 20.

    French Commercial Code, Art. L. 225–102-4, para. 3.

  21. 21.

    French Commercial Code, Art. L. 225–102-4, para. 3.

  22. 22.

    French Civil Code, Art. 1240–1241.

  23. 23.

    Formal notices to Total S.A. of 19 and 25 June 2019, resp. 23 October 2019 and 14 January 2020 filing of court action.

  24. 24.

    Formal notices to EDF 26 Sept. 2019.

  25. 25.

    Formal notice to Casino in September 2020, resp. March 2021 filing of court action.

  26. 26.

    Formal notice to Teleperformance 18 July 2019; formal notice to XPO Logistics Europe 1 Oct. 2019; formal notice to Suez July 2020.

  27. 27.

    EY Study July 2020, EP Resolution December 2020, Consultation Summary 18 May 2021.

  28. 28.

    §§ 3, 4 German Supply Chain Due Diligence Act 2021.

  29. 29.

    § 2 (7) German Supply Chain Due Diligence Act.

  30. 30.

    § 9 German Supply Chain Due Diligence Act.

  31. 31.

    § 14 seqq. German Supply Chain Due Diligence Act.

  32. 32.

    § 10 German Supply Chain Due Diligence Act.

  33. 33.

    § 24 (2), (3) German Supply Chain Due Diligence Act.

  34. 34.

    § 22 (2) German Supply Chain Due Diligence Act.

  35. 35.

    § 11 German Supply Chain Due Diligence Act.

  36. 36.

    § 6 (3) no. 2 German Supply Chain Due Diligence Act.

  37. 37.

    European Parliament of 10 March 2021 (2020/2129(INL)).

  38. 38.

    §§ 14, 17 German Supply Chain Due Diligence Act.

  39. 39.

    § 24 (4) no. 7 German Supply Chain Due Diligence Act.

  40. 40.

    § 106 (3) no. 5b Works Constitution Act.

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  1. HWR Berlin (Berlin School of Economics and Law), Berlin, Germany

    Stefanie Lorenzen

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  1. HWR Berlin (Berlin School of Economics and Law), Berlin, Germany

    Christina Teipen

  2. HWR Berlin (Berlin School of Economics and Law), Berlin, Germany

    Petra Dünhaupt

  3. HWR Berlin (Berlin School of Economics and Law), Berlin, Germany

    Hansjörg Herr

  4. HWR Berlin (Berlin School of Economics and Law), Berlin, Germany

    Fabian Mehl

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Lorenzen, S. (2022). New Business and Human Rights Laws—Support for Social Upgrading?. In: Teipen, C., Dünhaupt, P., Herr, H., Mehl, F. (eds) Economic and Social Upgrading in Global Value Chains. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-87320-2_17

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