ALSA 2025 meeting

In response to rising global expectations—embodied notably in the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD)—this paper critically examines how Taiwanese corporations align legal compliance mechanisms with international labor rights obligations. While Taiwan enforces fundamental labor protection through statutes such as the Labour Standards Act and Employment Services Act, it lacks codified requirements for human rights due diligence and supply chain disclosures consistent with the EUA obligations. This study conducts a doctrinal comparison between the EU CSDDD legal framework and Taiwan’s current corporate governance and compliance systems, highlighting discrepancies in scope, enforcement, and accountability.

Drawing upon qualitative interviews with corporate legal officers, regulators, and labor NGOs, alongside an empirical review of sustainability reports from Taiwan’s publicly listed manufacturing firms, this paper investigates the extent to which existing corporate social responsibility (CSR) practices can support the transition toward regulatory-grade due diligence. We find that, while many enterprises demonstrate voluntary CSR disclosures, few have implemented structured mechanisms to identify and redress labor rights violations—particularly among migrant workforces—across supply chains. The paper argues that without legislative amendments introducing mandatory human rights due diligence and standardized reporting requirements, compliance will remain superficial and fragmented.

Ultimately, this analysis proposes targeted adaptations for Taiwanese law, including: (a) the introduction of a tiered due diligence obligation for large exporters; (b) the mandatory inclusion of labor-related performance indicators in sustainability reports; and (c) the establishment of multi-stakeholder oversight committees. These recommendations seek not only to align Taiwan with EU standards, but also to advance equitable labor conditions and corporate accountability across the Asian region, fostering a more inclusive model of economic governance.