The government is currently rejecting a six-party initiative law that forces companies to do business in a socially responsible manner. Ministers Schreinemacher and Adriaansens briefed the drafters of the law at a meeting.
Ministers fear that the new law, with all its ramifications, will make rules in the Netherlands significantly more stringent than in neighboring countries.
Employers’ organizations have been criticizing the initiative law for months. Dredger Boskalis threatens to leave the Netherlands if the law is passed.
This is a bill that will compel (international) companies to do something about child labour, exploitation and environmental pollution. ChristenUnie, SP, PvdA and GroenLinks announced the International Corporate Social Responsibility Act 2021. D66 and Volt joined later.
The bill would require companies to report abuse in their annual reports and submit a plan of action to address it. This will be monitored by the Dutch Consumers and Markets Authority (ACM), which can impose sanctions if necessary.
not in current form
Trade ministers Schreinemacher and economy ministers Adriaansens, meeting with the drafters last week, pointed out that the government will not implement the initiative law in its current form.
Schreinemacher said in a statement that the cabinet agreed that companies should be “responsible for the world around them, from affecting the climate to eliminating child labour.” However, according to Schreinemacher, it is important that the agreements on this issue are the same for all EU countries. According to him, the current proposal will make the rules in the Netherlands more stringent than in other countries.
According to Minister Adriaansens, this has an impact on the attractiveness of the Netherlands for companies. He repeatedly pointed to the consequences in parliamentary debates and to the NOS, the business environment.
“What the cabinet does not want is for our economy to lag behind its competitors across borders and elsewhere in the EU. In addition, the cabinet does not want companies to be held responsible for matters beyond their control, such as the production process at suppliers.”
The Council of Ministers asked the proposers to examine the bill through the lens of previous agreements.
De Graaf, ChristenUnie’s initiator and Member of the European Parliament, told NOS that petitioners are “convinced of the importance of legislation.” This is important to “combat exploitation and child labor and promote sustainable trade abroad”. According to De Graaf, talks with ministers are ongoing and ‘no conclusion has yet been reached’.
Tomorrow there will be a discussion in the Parliament about the business environment in the Netherlands.
Source: NOS
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
