Chains of Command: Divergent Approaches to Mandatory Human Rights Due Diligence in Transatlantic Corporate Law

Authors

  • Professor Elena K. Vostrov Institute for Transnational Commercial Law, The Hague

Abstract

The era of "soft law" corporate social responsibility (CSR) is effectively over. In its place, a fragmented landscape of "hard law" mandatory human rights due diligence (mHRDD) is emerging, fundamentally altering the liability exposure of multinational enterprises (MNEs). This article provides a critical comparative analysis of this transition in the European Union and the United States. It contrasts the EU’s maximalist "Corporate Sustainability Due Diligence Directive" (CSDDD)—which imposes a proactive duty of care extending across the entire value chain—with the United States’ targeted, trade-based enforcement mechanisms exemplified by the Uyghur Forced Labor Prevention Act (UFLPA) and the narrowing interpretation of the Alien Tort Statute. The article argues that we are witnessing a bifurcation of global corporate law: a "Brussels Model" focused on ex-ante civil liability and behavioral conduct, and a "Washington Model" focused on ex-post border enforcement and specific exclusionary sanctions. The paper concludes by assessing the extraterritorial impact of these regimes on the Global South and the potential for a "conflict of laws" crisis in international supply chain management.

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Published

30-06-2023

Issue

Section

Research Articles