Tempering or legitimising corporate power? The rule of law and the EU Corporate Sustainability Due Diligence Directive

This chapter critically examines the EU Corporate Sustainability Due Diligence Directive (CSDDD) through the lens of the rule of law. By analysing its legislative process and content, it argues that rule of law principles—particularly legal certainty and clarity—have played a central role in favouring corporate interests and hindering the adoption of more ambitious provisions. The CSDDD thus embodies a paradox: while aiming to enhance corporate accountability for human rights and environmental impacts, it simultaneously reflects a traditional approach that prioritizes corporate protection under the guise of the rule of law. This, in turn, may lead to three unintended outcomes: legitimising businesses authority, enabling corporate capture of due diligence interpretation, and perpetuating power imbalances. The chapter questions whether the rule of law can truly temper corporate power and concludes that the CSDDD’s potential to drive transformative change in its regulation remains uncertain.