Desegregating Business and Human Rights: Including Due Diligence in the Corporations Act

The Corporations Act 2001 (Cth) does not currently contribute to legislative efforts to hold companies accountable for human rights harms or to provide remedies for affected individuals. While the United Nations Guiding Principles on Business and Human Rights anticipate a central role for corporate law, international obligations have been implemented outside corporations law. Some jurisdictions – such as France, Germany, and the European Union – have introduced mandatory human rights due diligence (mHREDD) regimes. France embeds these in its corporate code; Germany's regime operates alongside it. However, these reforms remain politically contested, with both the German Act and the EU Corporate Sustainability Due Diligence Directive facing delays. This article considers whether, and in what form, a due diligence obligation could be introduced into Australian corporations law. Drawing on international developments, it proposes a model requiring risk analysis, compliance systems, grievance mechanisms, and remedy access, and considers ASIC's potential role in supervision and enforcement.