• Thu. Jun 20th, 2024

Finland Plays Pivotal Role in Shaping Corporate Responsibility Directive’s Controversial Clause on Class Actions

BySamantha Jones

May 24, 2024
Arto Satonen praises Finland for the passing of the Corporate Responsibility Act in the EU Council

The Corporate Responsibility Directive was approved by member states of the European Union today during the Competitiveness Council meeting. This directive mandates that companies must comply with the duty of care in their value chains. The rules are designed to address issues such as child labor, biodiversity impoverishment, and pollution of natural heritage. It applies to companies with over a thousand employees and a turnover of more than EUR 450 million.

Finland played a pivotal role in altering the content of the directive, particularly objecting to the clause on class action. After the meeting, Finland’s Minister of Labor, Arto Satonen, highlighted the achievement of removing the class action clause, which was a key issue for the country. The European Parliament also gave its final approval to the directive in April, with Deputy Speaker Heidi Hautala mentioning the importance of representative actions for disadvantaged groups.

The directive allows trade unions or non-governmental organizations to represent the disadvantaged through a representative action. It is essential to note that a representative action and a class action are not the same. The Finnish government made a conscious decision to exclude the class action clause, and details about the representative action can be obtained from the Ministry of Justice’s experts.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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