Human Rights Due Diligence in the EU Context and its Relation with Corporate Social Responsibility, Trust, Investment and Risk Management

The EU regulatory approach upon issues of corporate governance and risk management has been changing, especially after the last world economic crisis. 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 therefore be implemented in EU law regarding corporate governance rules. Binding norms and orientations on human rights due diligence processes are evidently needed both from a social responsibility perspective and for the corporation’s benefit as a precondition of trust by stakeholders, as well as in terms of investment attraction and risk mitigation. Strengthened rules on that matter will ensure not only a better performance of the social responsibility of companies, but also enable States to better perform their own human rights duties.