Proactive contracting in the context of EU CSDDD

The EU CSDDD underscores the necessity for companies to integrate sustainability into their policies and management systems, encompassing the identification, prevention, and mitigation of adverse human rights and environmental impacts. Proactive contract theory plays a crucial role in translating these abstract obligations into specific contracting practices, fostering shared responsibility and collaboration in supply chains.

This speech is highlighting four ways to promote corporate sustainability due diligence in supply contracts through proactive contracting. A main aspect is therefore shifting from one-sided safeguarding to shared responsibility and collaboration, which concludes in contracts that are more balanced and fairer. Further promotive contract clauses, wherein goals are presented as opportunities and safeguards are expressed as rewards.

Anna Hurmerinta-Haanpää / Juho Saloranta – Proactive contracting in the context of EU CSDDD

The EU CSDDD underscores the necessity for companies to integrate sustainability into their policies and management systems, encompassing the identification, prevention, and mitigation of adverse human rights and environmental impacts. Proactive contract theory plays a crucial role in translating these abstract obligations into specific contracting practices, fostering shared responsibility and collaboration in supply chains. This speech is highlighting four ways to promote corporate sustainability due diligence in supply contracts through proactive contracting. A main aspect is therefore shifting from one-sided safeguarding to shared responsibility and collaboration, which concludes in contracts that are more balanced and fairer. Further promotive contract clauses, wherein goals are presented as opportunities and safeguards are expressed as rewards.

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