Duty of vigilance is a key concept in Corporate Social Responsibility (CSR). It aims to prevent violations of human rights, fundamental freedoms and environmental standards in corporate activities. What are the outlines of these obligations? Let's decipher together.
The duty of vigilance is a legal obligation imposed on large companies to ensure that the social, environmental and ethical impacts of their activities are taken into account. This measure is part of a logic of protection and prevention.
Adopted in France by the Law No. 2017-399 of 27 March 2017, this concept imposes new legal responsibilities on large companies to avoid the risks associated with their operations. The law requires the companies concerned to set up a Vigilance plan.
The main objective of due diligence is to empower businesses and to combat abuse. By abuse, we mean in particular the exploitation of workers, attacks on the environment or violations of fundamental rights.
Not all businesses are subject to the duty of care obligation.
According to French law, it only applies to companies that:
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However, the impact of the law goes well beyond the businesses directly targeted. The subcontractors, suppliers and business partners of these large companies must also comply with the standards set out in the vigilance plan. Thus, many SMEs are indirectly involved in this approach.
Today in France, there are three main obligations in terms of responsibility. We will take stock later in this article.
Businesses need to develop a Vigilance plan detailed. This plan, which must be made public, includes several mandatory elements:
Be careful, however, the vigilance plan is a scalable tool. It must be updated every year to incorporate new risks and adjust measures accordingly.
Beyond writing the plan, businesses need to take concrete measures to prevent identified risks.
First of all, it is important to carry out regular audits with subsidiaries and partners. La employee training is also essential to prevent the risk of fraud.
Want to know more about document fraud, keep reading: documentary fraud between figures, trends and the fight against fraud
In the event of non-compliance with the duty of care, companies may be held legally responsible. They then risk:
Read on: What are the legal obligations in anti-fraud banking compliance?
While duty of care is often perceived as a constraint, it can nevertheless bring significant benefits to businesses.
France was a pioneer with the law on the duty of vigilance but other countries are following this path: the Netherlands in 2019, then Germany in 2021.
Most recently, April 24, 2024, the European Parliament has accepted a new directive imposing a “duty of care” to businesses. This initiative would enhance the impact of due diligence and facilitate compliance for businesses operating in several countries.
With these new guidelines, it becomes crucial for companies to equip themselves with adapted tools in order to respond effectively to the duty of vigilance imposed by regulations.
The latter aims to prevent the risks associated with document fraud, to ensure the compliance of operations, and to strengthen transparency in the management of partners and customers.
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