After a dozen years of arduous negotiation, the Corporate Sustainability Due Diligence Directive (CSDDD) was finally approved in April 2024, heralded as a landmark step towards fostering responsible corporate behaviour across global value chains. Dubbed the anti-look-away law, it mandated that companies understand not just their direct operations but also the murky origins of their products, ensuring ethical standards throughout the supply chain. For larger corporations, reporting was set to begin in 2027, with smaller firms to follow suit.

But then the business lobby struck back. Armed with the argument that the CSDDD could jeopardise Europe’s competitiveness, organisations like Business Europe launched a concerted lobbying effort that successfully pressured the European Commission to scale back this pivotal legislation through the Omnibus proposal. This retreat raises critical questions about the future of corporate responsibility in Europe.

The changes to the CSDDD are alarming. First, companies will now only be required to scrutinise their direct suppliers, ignoring the deeper, often hidden layers of their supply chains where exploitation frequently occurs. For instance, the labour conditions under which cotton is harvested or the treatment of factory workers in Bangladesh will remain shrouded in mystery. This superficial approach is akin to treating a symptom while ignoring the underlying disease.

Second, the frequency of monitoring the adequacy and effectiveness of their due diligence measures hasbeen slashed from annually to every five years. This change creates a gaping loophole for companies to kick the can down the road, allowing them ample opportunity to do nothing while the world’s most vulnerable continue to suffer in silence.

Moreover, the new rules strip civil society organisations of their power to support local residents or workers in legal proceedings. Only those directly affected will be able to take action, effectively silencing the voices of advocates who shine light on abuses and hold corporations accountable.

Lastly, the directive’s restriction on obtaining information from companies with fewer than a thousand employees poses significant challenges for tracing human rights violations. This arbitrary cut-off means that countless workers remain invisible, their rights and welfare ignored in the eyes of the law.

This retreat from responsibility not only undermines the rights of factory workers outside the EU but also reflects a troubling hypocrisy. Europeans often pride themselves on their high labour standards while criticising other nations for labour violations and environmental degradation. Yet, we conveniently overlook the fact that the very products we consume - often produced under dire conditions - are the result of this exploitation. Moreover, when we dispose of these products, we send them back to the countries from which they came, further burdening those already struggling with waste management issues.

When will we recognise that cleaning up our 'European street' is insufficient? The notion that the Omnibus proposal will enhance European competitiveness is a fallacy. True competitiveness lies in managing risks and ensuring ethical practices .

As we stand at this crucial juncture, it is imperative for policymakers, businesses and consumers alike to reconsider their roles in the global economy. We must advocate for robust regulations that hold corporations accountable - not just for their profits but for their impact on people and planet. The fight for the CSDDD is far from over; it is a call to action for all of us to demand a future where corporate accountability is not just a directive but a fundamental principle.