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France adopts law imposing due diligence on multinationals

Tuesday, March 21, 2017

On February 21, the French Parliament adopted a new law that imposes due diligence on multinationals’ human rights abuses in supply chains.

This new law will affect companies with 5,000+ employees, which will have to adhere to a vigilance plan to prevent violations of human rights and environmental damage throughout their production chains. There is no legal obligation for results, just diligence.

The bill was initially proposed as a response to the Rana Plaza drama in 2013, when a factory in Bangladesh collapsed killing 1,000 people. This event highlighted the responsibility of companies in their dealings with subcontractors.

In relation to this, in April 2017, CSR Europe will publish an issue insight on Human Rights regulation and reporting which will include more details about this, in addition to other relevant policy developments since 2015 (Modern Slavery Act, conflict minerals, etc).

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