The Role of the EU Due Diligence Directive in Advancing Corporate Sustainability and Labour Rights

The Corporate Sustainability Due Diligence Directive (CSDDD), adopted by the EU in 2024, establishes binding obligations for large companies and high-risk sectors to identify, prevent, mitigate, and remediate adverse human rights and environmental impacts across their global value chains. Companies must perform risk assessments, involve stakeholders, and incorporate due diligence into their governance. Transparency is essential, and grievance procedures and public reporting are required. Enforcement entails judicial remedies, civil liability, and national oversight, strengthening accountability and empowering impacted communities. The CSDDD is critically examined in this thesis in light of the larger global regulatory environment. It looks at its legal reach, methods of enforcement, and labour rights implications, particularly in light of the 2025 Omnibus Package reforms. Real-world application and challenges are demonstrated through case studies on Nestlé and Inditex. The study draws attention to the directive's transformative potential as well as its drawbacks, including inconsistent implementation and legal ambiguities. In the end, it evaluates whether the CSDDD can promote true corporate sustainability and maintain the EU's position as a leader in ethical business practices.