The European Union has adopted a proposal requiring large businesses to respect human right and protect the environment.
The Wednesday release of the proposed law would require companies to identify and prevent adverse effects of their activities on human right, including child labor and exploitation, and on the environment.
The EU stated that the new diligence rules would apply to more than 16,000 EU-based companies, including foreign firms with a certain number or annual sales.
These companies would be required by law to create a code to guide their employees and affiliates.
Businesses that do not comply with the rules will be subject to fines.
Thierry Breton, European Commission for the Internal Market, states that the proposal will ensure the market leaders play a leading part while supporting smaller companies in adapting and coping with the changes.
Joe Biden, the US President, signed a bill that prohibits imports from China’s Xinjiang Uygur Autonomous Region. Businesses must prove that their products were not made using forced labor.
