Human Rights Due Diligence and its Relation with Corporate Social Responsibility, Investment and Risk Management in the EU Context: an Innovative Trend in Public Law

The EU regulatory approach upon issues of corporate governance and risk management is changing, especially after the last world economic crisis and the COVID-19 pandemic. Sustainability and long-term shareholder engagement are widely debated, while growing thoughtfulness about human rights guarantees in corporate’s context has only led to few practical measures. Such guarantees, as detailed by the UN Guiding Principles on Business and Human Rights, should be incorporated into the corporate governance rules of EU law. Binding norms and orientations on human rights due diligence processes are needed both from a social responsibility perspective, for the corporation’s benefit in terms of investment attraction and risk mitigation. Such rules will be part of a new generation of public law, insofar as they not only ensure a better performance of the social responsibility of subjects of private law, but also enable States to better perform their own human rights duties.