Navigating the Future: Assessing the Impact of Due Diligence Rules in the European Union on Business, Environment and Workers

Abstract

This paper explores how the European Union’s new due diligence regulations are reshaping the way companies operate, particularly in relation to environmental protection, social responsibility, and labour rights. As businesses are increasingly required to examine their supply chains and identify potential risks, understanding the broader effects of these rules becomes essential. The study looks at how these regulations have developed, what they aim to achieve, and how they may influence companies’ competitiveness and long-term sustainability strategies. The central idea is that, although companies may initially face higher costs and administrative demands, stronger due diligence standards can ultimately encourage more responsible practices. Over time, these rules may help companies reduce risks, strengthen their reputation, and access new market opportunities. The research also considers how effective enforcement could lead to tangible improvements for the environment and for workers, supporting fairer and safer working conditions. Using a mixed-method approach, the paper evaluates both the challenges and the potential advantages of the EU’s regulatory shift. The findings aim to guide policymakers, businesses, and other stakeholders as they adapt to these evolving expectations. Overall, the study highlights how due diligence regulations can contribute to a more ethical, sustainable, and socially just European economy.