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Corporate social responsibility

16 April 2021 | Anaëlle Idjeri

CSR: The subcontractor’s failure to comply with the client’s code of ethics justifies the immediate termination of the business relationships with the supplier

Almost ten years after the Rana Plaza scandal and while many voices are being raised about human rights violations in the textile industry, the Paris Court of Appeals has recently issued a particularly interesting ruling combining corporate social responsibility and sudden termination of established business relationships.

Specifically, on March 24, 2021, it held that if a supplier fails to ensure that its subcontractors comply with its client’s code of ethics, the immediate termination of the business relationships cannot be considered as sudden within the meaning of Article L. 442-6 I §5 of the French Commercial Code.

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