In the latest episode of the podcast ‘A Quem de Direito’, a joint initiative of VdA and Jornal Económico, Isabel Gião de Andrade reflects on the growing importance of human rights and business — and the challenges companies will face with the new EU directives and regulations.
The episode focuses on the requirements under the European legislative package, in particular the future Due Diligence Directive and the Regulation on forced and child labour, which will apply as early as 2027. Warning that, although the directive only directly covers large companies, the entire business fabric will inevitably be impacted — directly or indirectly — especially in terms of reputation and value chain.
‘This is not atemporary trend. It is a new regulatory paradigm that will force companies to act — and not just communicate that they are acting,’ she says.
Isabel Gião de Andrade also highlights the need to embed human rights in organisational culture, management systems and decision-making models, warning that non-compliance could jeopardise not only competitiveness but also the very viability of companies. Despite the challenges, the episode ends on a positive note: the EU and Member States will provide support, tools and funding to help SMEs in particular to adapt.
