Document Type : Original Article
Authors
1
Associate Professor, Department of Private Law, Arak University, Arak, Iran
2
PhD in Private Law, Islamic Azad University, Arak Branch, Arak, Iran
Abstract
Extended Abstract
The 1970s are considered a significant turning point in the development of the "Corporate Social Responsibility (CSR)" movement. During this period, with increasing attention to social responsibilities, the importance of evaluating the impact of companies' activities on human rights and the environment throughout the supply chain grew considerably. The term Corporate Social Responsibility, which refers to "voluntary activities undertaken by companies in the areas of environmental protection or the observance of human rights," was first introduced in 1953. However, it did not gain widespread use until the 1970s. In 1971, the Committee for Economic Development, an influential non-profit policy organization, initiated this movement by supporting the idea of a "social contract" between businesses and society, according to which businesses are obligated to strive for the promotion of social responsibility beyond providing goods and services. This movement gained increasing popularity in the following decade and was influenced by other contemporary social movements (such as the environmental movement) and new environmental laws (such as the Clean Air Act and the Occupational Safety and Health Act). Concurrently, the Guidelines for Multinational Enterprises were adopted by the Organisation for Economic Co-operation and Development (OECD) in 1976, and many international organizations developed non-binding guidelines that, if followed, would protect individuals against human rights violations and other abuses committed by companies. Following the adoption of the United Nations Guiding Principles on Business and Human Rights in 2011, an international framework was established for companies to conduct their business activities with respect for human rights. These principles encourage companies to consider the social and environmental impacts of their activities in addition to profitability. Furthermore, companies must prevent human rights violations in all their operations and address the negative impacts of their activities on human rights. Additionally, according to these principles, individuals whose rights have been violated by companies should have access to judicial authorities and be able to receive compensation.
International trade enables companies to relocate activities that lead to environmental degradation and human rights violations to different parts of the world. To counter this challenge, efforts are underway to integrate environmental protection and respect for human rights into national trade policies. The European Union is at the forefront of this endeavor. The European Union announced its commitments to strengthen the regulatory framework for sustainable business conduct in 2020. Two years later, a proposal for a directive on corporate sustainability due diligence was introduced. As part of the overarching agenda for sustainability and the European Green Deal, the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D, or the "Directive") was adopted in 2024 as a tool for the European Union to become a leader in the field of sustainable business conduct. The adoption of this Directive faced significant political hurdles. These challenges began with Germany's withdrawal of political support for the Directive in February 2024. Subsequently, France and Italy also withheld their support. These political controversies necessitated further revisions to the text of the Directive to secure their backing.
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