The Corporate Responsibility Directive has been approved by the member states of the European Union at a recent Competitiveness Council meeting. This directive aims to address issues such as child labor, biodiversity impoverishment, and pollution of natural heritage by requiring companies to comply with the duty of care in their value chains. It applies to companies with over a thousand employees and a turnover of more than EUR 450 million.
The directive was praised by several individuals, including Belgian Minister of Labor Pierre-Yves Dermagne, who stated that it provides an opportunity to punish actors who do not meet their obligations and is a significant step towards a better life for everyone. However, there were earlier concerns about overturning the directive when it was under scrutiny during the spring council meeting. Finland played a crucial role in changing its content, particularly objecting to the clause on introducing class actions.
Finnish Minister of Labor Arto Satonen emphasized that Finland’s advocacy was successful in removing this clause from the directive. The European Parliament also gave its final approval to the directive, with Deputy Speaker Heidi Hautala stating that it provides opportunities for trade unions or NGOs to represent disadvantaged groups.
According to the Ministry of Justice’s website, the appointment of a trusted entity to represent consumers in a representative action is highlighted under this new directive. While there is a representative action provision included in this directive, Finland adamantly opposed including class actions. When asked about this distinction and its importance, Arto Satonen stressed that it was a deliberate decision made by Finnish officials and directed inquiries about specific details to experts from within that ministry.
