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European Parliament Weakens Corporate Social Responsibility Laws

by Priya Shah – Business Editor

CGT Statement on European Corporate Accountability Rollbacks – October 15, 2025

In a world grappling⁢ with instability, growing inequality, and crises fueled by multinational corporations, building a strong European social model​ is vital. Though, the European‌ commission is actively dismantling key legislation designed to hold large companies accountable for their social and environmental impact, citing competitiveness concerns.

this deregulation ⁣began in February 2025 with the “omnibus package 1,”​ targeting crucial ⁤reporting requirements (CSRD) and the duty ⁢of ⁢vigilance directive (CSDDD) aimed ⁣at preventing human rights and environmental abuses within ⁢corporate supply​ chains. These measures are essential to prevent ​companies from‍ evading responsibility for harm caused by their operations.

Trade unions,associations,and ⁣NGOs ‌have consistently warned⁣ against these rollbacks,and have ⁢criticized the ⁢biased consultation process ‍favoring corporate lobbyists.

Recent‌ developments in the⁤ European Parliament’s Legal Affairs Committee (October 13th)⁢ demonstrate‌ a dangerous trend. Conservative MEPs‍ threatened alignment with the far-right, resulting in important ⁤regressions to the proposed⁤ legislation. Key ‍setbacks include:

* Increased Applicability Thresholds: ⁤ Raising employee ⁤and turnover requirements for both reporting and duty of vigilance, considerably reducing the number of companies covered.
* Removal‌ of Climate​ Transition Plans: Eliminating the requirement for companies to develop and implement plans for a just transition to a ‍lasting economy.
* Abolition of​ European Civil Liability: Denying victims of human rights⁤ and environmental ⁢abuses the right to seek‌ compensation at ‍a European level.

These‍ regressions are ‍unacceptable. The CGT, ⁤alongside ETUC-affiliated organizations, will continue to fight for corporate accountability, victim recognition, and compensation. We will⁢ also continue to‍ expose the deceptive nature of the far-right and the concerning alliances​ forming between the right and far-right on social and environmental issues.

Montreuil, october 15, 2025

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