The European Parliament has voted in favor of a diluted supply chain law, marking a significant shift in the region’s approach to corporate responsibility. The new EU supply chain directive will now only apply to large companies, leaving smaller businesses off the hook for stricter regulations. For those hoping for sweeping reforms, this comes as a bittersweet moment—like ordering a large pizza and getting a single slice.
What’s Changed?
The original law aimed to hold all companies operating in the EU accountable for their entire supply chains, ensuring ethical practices from start to finish. But after much debate, parliament members decided to limit the scope, citing concerns about economic impact and administrative burden on smaller firms. Only the big players will now carry the burden of compliance, while smaller businesses can breathe a sigh of relief—or perhaps, just keep their fingers crossed.
Industry Impact
This move will likely please many corporate lobbyists, but leaves advocates for broader corporate responsibility disappointed. The intention to create a more transparent and fair supply chain remains, but the execution feels like someone swapped out the main course for a starter.
Will this watered-down law actually make a difference? Only time will tell, but one thing is clear: in the world of EU regulations, compromise is always on the menu.
Sources:
FashionUnited – EU parliament majority votes for weaker supply chain law
