Download article

Authors: Szabó, Éva

Title: The Role of Corporate Responsibility and Quality Legislation in Achieving the Sustainable Development Goals: Legal and Practical Interconnections and Hungarian Legislation

Abstract: The adoption of Directive (EU) 2024/1760 on Corporate Sustainability Due Diligence (CSDDD) constitutes a significant step in the EU’s efforts to promote responsible business conduct. It imposes binding obligations on large companies to identify, prevent, and mitigate adverse human rights and environmental impacts throughout their operations and value chains. Member States must transpose the directive into national law within two years, raising important legal and practical challenges. This paper provides a legal analysis of the CSDDD, focusing on its scope, enforcement mechanisms, and alignment with principles of legislative quality. It places the directive within the broader international sustainability agenda, particularly the UN Sustainable Development Goals (SDGs), highlighting the relevance of SDG 16 and SDG 17 to strengthening institutions and partnerships. The study also explores the evolving concept of corporate due diligence as a cornerstone of ethical governance. In the Hungarian context, it examines Act CVII of 2023 on ESG, identifying overlaps and gaps in relation to the CSDDD. This comparison offers insights into Hungary’s readiness for implementation. In addition to normative analysis, the paper showcases best practices from companies engaged in responsible conduct, illustrating how legal compliance can go hand in hand with positive social and environmental impact. The study further examines how the new unified directive fits within the broader framework of previous regulatory efforts from a legal perspective.

Keywords: Sustainability, Corporate Social Responsibility (CSR), Due Diligence, Corporate Sustainability Due Diligence Directive (CSDDD), Sustainable Development Goals (SDGs)

Cite as: Szabó, É. (2025). The Role of Corporate Responsibility and Quality Legislation in Achieving the Sustainable Development Goals: Legal and Practical Interconnections and Hungarian Legislation. Studia Juridica et Politica Jaurinensia, 12(2), 33–55. https://doi.org/10.71100/STUDIA.2025.2.3

Doi: 10.71100/STUDIA.2025.2.3

References:

1. Act CVIII of 2023 laying down the rules of corporate social responsibility taking into account environmental, societal and social considerations to promote sustainable finance and unified corporate responsibility, and amending certain related Acts (ESG Act).
2. Arner, D. W., Buckley, R. P., Zetzsche, D. A. & Veidt, R. (2020). Sustainability, FinTech and financial inclusion. European Business Organization Law Review, 21(1), 7–35. https://doi.org/10.1007/s40804-020-00183-y
3. Bowen, H. R. (1953). Social responsibilities of the businessman. Motilal Banarsidass.
4. Ciacchi, S. (2024). The newly-adopted Corporate Sustainability Due Diligence Directive: An overview of the lawmaking process and analysis of the final text. ERA Forum, 25(1), 29–48. https://doi.org/10.1007/s12027-024-00791-y
5. Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (Whistleblower Protection Directive).
6. Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (CSRD).
7. Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859 (CSDDD).
8. Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (NFRD).
9. European Commission. (2001a). Green paper: Promoting a European framework for corporate social responsibility. Commission of the European Communities. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52001DC0366
10. European Commission. (2001b). Green paper: Promoting a European framework for corporate social responsibility. Commission of the European Communities. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52001DC0366
11. European Commission. (2011). A renewed EU strategy 2011–14 for corporate social responsibility. European Commission. https://www.europarl.europa.eu/meetdocs/2009_2014/documents/ com/com_com(2011)0681_/com_com(2011)0681_en.pdf
12. Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. The New York Times. https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html
13. Korten, D. C. (1996). When corporations rule the world. Kumarian Press; Berrett-Koehler Publishers.
14. (2011). OECD guidelines for multinational enterprises, 2011 edition. https://doi.org/10.1787/9789264115415-en
15. (2023). OECD guidelines for multinational enterprises on responsible business conduct. OECD Publishing. https://doi.org/10.1787/81f92357-en
16. Paris Agreement under the United Nations Framework Convention on Climate Change (Paris Agreement).
17. Sinnig, J. & Zetzsche, D. A. (2025). The EU’s Corporate Sustainability Due Diligence Directive: From disclosure to mandatory prevention of adverse sustainability impacts in supply chains. European Journal of Risk Regulation, 16(2), 628–652. https://doi.org/10.1017/err.2024.100
18. U Thant. (1969). Statement to the UN Economic and Social Council [Video]. United Nations Audiovisual Library. https://media.un.org/avlibrary/en/asset/d259/d2599664
19. United Nations General Assembly. (2015). Transforming our world: The 2030 Agenda for Sustainable Development (A/RES/70/1). United Nations.
20. United Nations. (1993). Agenda 21. In Report of the United Nations Conference on Environment and Development, Rio de Janeiro, 3–14 June 1992. https://www.un.org/ esa/dsd/agenda21/Agenda%2021.pdf