REGULATION OF INNOVATION: ENVIRONMENTAL AND LABOR STANDARDS

REGULATION OF INNOVATION: ENVIRONMENTAL AND LABOR STANDARDS

GIUSEPPE SIGILLO' MASSARA, Sofia Hina Fernandes Da Silva Ranchordas

Obiettivi formativi

This course explores how regulatory frameworks—such as labor and sustainability standards, human rights obligations, and ESG instruments—shape corporate innovation, labor conditions, and human resource management. The course focuses on the labor and sustainability challenges of different types of innovative work settings: global value chains, platform works, and start-ups. Special attention is paid to the regulatory challenges of global value chains and existing regulatory frameworks, both in terms of labor and sustainability protection. The course will examine how companies respond to labor laws across jurisdictions, engage with transnational regulation, and navigate emerging due diligence duties related to climate, human rights, and governance. The course considers a range of business contexts, including start-ups, traditional firms, and global value chains. This course offers tools to understand regulatory risks, evaluate compliance obligations, and assess the effectiveness of legal standards in driving sustainable and responsible corporate practices.

Risultati di apprendimento attesi

• Understand the legal and normative foundations of business and human rights in the context of sustainability and labor. • Identify the key labor and sustainability challenges posed by global value chains. • Understand the key labor regulations applicable to innovative and transnational corporations. • Identify the structural labor problems of platform work and gig economy models. • Evaluate the benefits and limitations of algorithmic management and its impact on human resources. • Understand what ESG (Environmental, Social, and Governance) entails and how it differs from traditional corporate social responsibility (CSR). • Analyze how ESG frameworks shape corporate behavior and decision-making. • Critically assess the effectiveness and limitations of ESG in addressing environmental, labor, and human rights issues. • Evaluate the risks of greenwashing and social-washing within ESG reporting and ratings systems. • Analyze how financial regulation can incentivize or constrain innovation and sustainable business practices. • Evaluate the role of investors, regulators, and multilateral institutions in enforcing environmental, labor, and human rights standards across global markets. • Apply human rights principles to real-world business dilemmas, particularly those arising in global value chains and platform economies.

Contenuti Del Corso

Transnational regulation on labor and sustainability standards; Global value chain regulation; Standards and certifications; ESG; Corporate Social Responsibility; Platform Work; Startups and labor conditions; Green finance and corporate responsibility. Case studies on transnational cases of global value chains, CSR, ESG reporting.

Testi Di Riferimento

All materials will be uploaded on Luiss Learn

Metodologie Didattiche

Interactive discussion, problem-based learning

Modalità di verifica dell'apprendimento

10% Class participation 50% Group presentation and paper on case study (weeks 10-11); 40% Oral exam

Criteri per l’assegnazione dell’elaborato finale

N/A

Settimana 1

Introduction to the regulation of labor and sustainability standards: - a) traditional regulatory standards: labor, health, and safety (e.g., rules designed to protect safe and fair and working conditions, minimum wages, occupational safety); - b) modern, global approaches to regulatory standards: private standards, certifications, and codes of conduct (e.g., supplier codes, ethical sourcing, Fair Trade certification), regulation on sustainability reporting, supply chain regulation (e.g., German and French Supply chain regulations) Introduction to ESG (Environmental, social and governance standards) in Corporate regulation

Settimana 2

Global Supply Chain Regulation (I): general introduction to regulatory challenges. Existing regulatory challenges (e.g., the cases of Bhopal and Rana Plaza); recent regulatory approaches to address these challenges; Legislative framework for the regulation of global supply chain and compliance challenges Corporate social responsibility Introduction to environmental and labor standards in global supply chains

Settimana 3

Global Value Chain Regulation (II): Labor Standards National vs. global labor regulations and the role of international labor standards (ILO) Fragmentation in global value chains in the context of labor and human resource management EU and national regulation of legal frameworks designed to protect labor and safety conditions in global value chains and prevent modern slavery: e.g., EU Corporate Sustainability Due Diligence Directive (CSDDD); French Duty of Vigilance Law; UK Modern Slavery Act; RanGerman Supply Chain Act (LkSG) Cases: Qatar World Cup & Caporalato (labor exploitation in the Italian agricultural sector)

Settimana 4

Global Value Chain Regulation (III): Sustainability Standards ESG Reporting Ethical dimensions. Green-washing. Audit failures. Case studies Soft law vs. hard law.

Settimana 5

The Case of Platform Work: A business and human rights perspective The definition of “employee”: is your Deliveroo rider self-employed? Informality, precarity, migrant work in platform work

Settimana 6

Labor regulation and human resources management: traditional vs. innovative start-up contexts (I)

Settimana 7

Labor regulation and human resources management: traditional vs. innovative start-up contexts (II) Human rights management and HR Tech: algorithmic management of performance and digital monitoring. Datafication of labor. AI regulation and HR ethics Labor law, biometrics, and privacy of workers

Settimana 8

Labor regulation and human resources management: traditional vs. innovative start-up contexts (III) Non-competition clauses and innovation. The case of California Collective bargaining and industrial relations Trade unions Global Framework Agreements

Settimana 9

ESG and Sustainable Finance: -EU Legislative framework (e.g., Sustainable Finance Disclosure Regulation (SFDR), CSRD, EU Taxonomy) and global standards. -green finance vs. sustainable finance; -role of investors, stakeholders, and regulators in ESG accountability and rating systems; -sustainable finance and regulation of innovation, labor, and sustainability: Greentech, due diligence requirements and responsible supply chain financing.

Settimana 10

Case studies for group debate and classroom discussion (I): Evaluation -Temu supply chain regulation and sustainability -Cobalt mines and batteries for electric vehicles.

Settimana 11

Case studies for group debate and classroom discussion (II): Evaluation -Shell in Nigeria; -Shein factories (fast fashion and sustainability standards);

Settimana 12

Remedies and Accountability Mechanisms and Course wrap up