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Why all companies need to be included in due diligence and corporate accountability legislation

Why all companies need to be included in due diligence and corporate accountability legislation

An analysis of the Dutch textiles and garment sector

Publication

8 July 2021

This study, commissioned by the Clean Clothes Campaign, shows the restrictive effects of using so-called ‘threshold values’ on future legislation on corporate social responsibility in the clothing and textile industry. The issue is which companies should be subject to a corporate social responsibility obligation. In the Netherlands, a draft law has been submitted that uses 250 employees as the lower limit.

The analysis shows that, of the companies participating in the Convenant Duurzame Kleding en Textiel (CKT), only a third will have to comply with a legal obligation to operate responsibly if they have 250 employees. At sector level, the contrast is even greater: it is estimated that 95 per cent of companies in the sector fall below the threshold of 250 employees and are therefore outside the scope of the bill.