More and more legal requirements are set for companies’ social responsibility. This includes requirements in charters with which a company is connected, certifications, trade association codices, etc. These requirements are also called soft law, and the real legal requirements are called hard law.
With these new requirements, companies now have to explain how their business models consider social responsibility. They must further explain several policies regarding, for example, the environment, the climate, labour rights, human rights and anti-corruption.
For each policy area, they must account for what they have improved, what risks there are, who is being affected, what they have planned to change, and what specific targets (KPIs) they use. There are today, then, very detailed legal requirements for CSR in the largest companies. In time, it can be expected that these requirements will spread to medium-sized and small companies.
Several directives have also come from the EU regulating areas such as circular economy, plastics and waste. And there are directives on reporting on due diligence in, e.g., human rights, child labour, slavery, and even tougher requirements for companies on annual reporting on sustainable operations.
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