ABSTRACT
Chapter 6 focuses on the legal implications of giving effect to the corporate responsibility to respect human rights as defined in the UNGPs through EU and national mandatory disclosure legislation. The focus is on Directive 2014/95/EU, of 22 October 2014, as regards the disclosure of non-financial and diversity information by certain large undertakings and groups (‘the Directive’). The chapter analyses the so-called ‘indirect’ and ‘direct’ effects of the Directive. It concludes that by enacting the Directive, the EU opted for a type of legal instrument that has potentially sweeping implications in the rights of stakeholders when it comes to the disclosure obligations of corporations. However, as will be explained, in particular, in relation to the ‘comply or explain’ framework, it is uncertain whether the content of the Directive will contribute to further the rights of stake-holders. This chapter also argues that the Directive, in the light of its objectives and pursuant to well-established case-law supporting a purposive interpretation of secondary EU legislation, should have certain extraterritorial effects.
