There is growing pressure for corporations to do the right thing, but are EU lawmakers willing to act?

Few ideas are as bold and exciting in Brussels policy circles as that of corporate due diligence. It became a ‘hot topic’ back in April when the EU’s Justice Commissioner Didier Reynders told an audience of movers and shakers that new human rights and environmental rules for business are coming in 2021.

This proposal could be a big milestone in the fight for corporate accountability – but it’s all about getting the nitty gritty right.

The European Commission won’t reveal what exactly the draft law will contain until the public consultation closes in early February, but some burning questions have already been confirmed by Reynders: requirements will apply to companies of all sizes and across all sectors, from cocoa to big tech.

That’s a good start. No sector has escaped the corporate list of shame and expecting all businesses to voluntarily do the right thing has proved naïve. The price paid for this lesson has been high for our global economy’s most vulnerable, but I’m encouraged that we are finally moving away from this wishful thinking and towards solid rules for corporations.

If we’ve learned anything from the infamous collapse of the Rana Plaza garment factory supplying top European fashion retailers, it’s that such tragedies are not unavoidable accidents but the direct result of deliberate decisions by brands at the top of supply chains.

The good news is a lot has changed over the past few years. Everything from risky trade deals to raging fires has helped shift the zeitgeist against an economic model that shamelessly rewards exploitation and destruction with gargantuan profits.

At issue is a hard-fought debate about whether companies should only work to benefit their shareholders, or also everyone affected by their operations.

Now lawmakers around Europe are finally rethinking their hands-off approach to business.