A Perspective for Human Rights Due Diligence Legislation in International Business and the Implications for Korea
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The European Union has legislated the Corporate Due Diligence and Corporate Accountability (CDDCA) Act, which unified different contents among the members related to protecting human rights and the environment. CDDCA binds compulsorily and applies to the largest pool of firms. As CDDCA requires that the final-good manufacturers or service providers are responsible for the due diligence of the entire participants in the supply chain, the relevant firms should monitor and supervise tiers of suppliers and subcontractors. The CDDCA approach responds to the global pressure that calls for more than risk management. While human rights protection is being legislated globally, Korea has no legal guidance. While Korean firms need to prepare a code of behavior, the necessary legislation has been delayed, weakening the competitiveness of Korean exports.
Abstract
The European Union has legislated the Corporate Due Diligence and Corporate Accountability (CDDCA) Act, which unified different contents among the members related to protecting human rights and the environment. CDDCA binds compulsorily and applies to the largest pool of firms. As CDDCA requires that the final-good manufacturers or service providers are responsible for the due diligence of the entire participants in the supply chain, the relevant firms should monitor and supervise tiers of suppliers and subcontractors. The CDDCA approach responds to the global pressure that calls for more than risk management. While human rights protection is being legislated globally, Korea has no legal guidance. While Korean firms need to prepare a code of behavior, the necessary legislation has been delayed, weakening the competitiveness of Korean exports.
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