The duty of vigilance

MODULE CONTENTS

This module introduces the Duty of Vigilance Act, which came into force in 2018 and requires major companies to adopt a vigilance plan to prevent serious human rights and environmental abuses. It explains the context and reasons behind the introduction of this law, as well as the measures to be implemented to protect populations and the environment, notably through risk mapping, third-party assessment and the implementation of a warning system.

TRAINING OBJECTIVES

  • Understand the legal framework and obligations of due diligence for multinational companies
  • Discover the due diligence measures to be put in place to prevent human rights and environmental violations
  • Learn how the law aims to improve corporate social and environmental responsibility
  • Identify supply chain risks and how to mitigate them
  • Understand the legal consequences of breaching the law and the benefits of implementing it for the company

Duty of Vigilance: A Legal Commitment to Protect Human Rights and the Environment

Globalization has placed multinational companies in a position of power and influence comparable to that of states, leading to major human rights and environmental abuses. It was against this backdrop that the March 27, 2017 law on duty of care was passed in France. It requires companies with more than 5,000 employees in France (or 10,000 worldwide) to draw up a vigilance plan to prevent serious violations of human rights, personal safety, public health and the environment.

The vigilance plan must include a number of measures, such as risk mapping, regular assessments of subcontractors and suppliers, risk mitigation actions, and an alert system for collecting reports. This plan must be made public and regularly evaluated to ensure its effectiveness.

Companies can be held civilly liable if they fail to meet this obligation. If a company fails to put in place a sufficient plan, or fails in its implementation, it could be forced to pay damages to the victims concerned.

This law provides an essential framework for meeting citizens' demands for transparency, and for ensuring that the activities of multinationals are no longer carried out at the expense of human rights and the environment. For companies, it also offers advantages: better control of risks, protection of reputation, strengthening of investor confidence, and promotion of decent work.

The Duty of Vigilance Act is therefore an opportunity for companies to improve their social and environmental responsibility, while guaranteeing the continuity of their activities within an ethical and sustainable framework.