FRANCE Law and Practice Contributed by: Sophie Scemla, Didier G Martin, Diane Paillot de Montabert and Calypso Korkikian, Gide Loyrette Nouel
1. Market Overview 1.1 Market Comparison
challenges under due diligence and vigilance laws. • Elder care & childcare – scandals in elder care facilities (EPHADs) and childcare facilities have exposed issues of negligence, fraud, and governance failures, which are triggering responses from the government and lawmak- ers. • Water – scandals regarding water pollution leading to environmental and public health concerns have led to stricter regulations and reputational risks. • Public sector & corruption – scandals involv- ing officials have driven demand for stronger governance and compliance. Furthermore, past crises have led to a reinforce- ment of governance and compliance measures: • stricter environmental and anti-corruption rules; • enhanced supply chain transparency; • regulatory reforms; • sustainability investments; and • stronger whistle-blower protections. To mitigate similar future risks, the authors expect key measures to be implemented which could include the following. • Enhanced compliance & due diligence – stricter supply chain monitoring in energy and textiles. • Regulatory reforms & governance – tighter oversight and monitoring from regulatory authorities. • Crisis communication strategies – proactive reputation management. • Whistle-blower protections & anti-corruption policies – stronger internal controls and reporting mechanisms.
Over the past year, crisis management in France has expanded beyond criminal and tax issues to include human rights, driven by heightened public awareness and regulatory focus on CSR and ethics. The authors have notably observed the following key trends. • Reputational risk awareness – companies are increasingly proactively addressing ethical concerns to protect public perception. • Human rights and environmental focus – companies are increasingly taking into account and prioritising social and environ- mental concerns. • Integrated communication strategies – legal and communication efforts are now more aligned for greater transparency towards all stakeholders, as well as heightened efficien- cy. These evolutions highlight the need for a holis- tic and preventive approach, combining com- pliance, governance, and strategic communica- tion. 1.2 Key Sectors Impacted by Crises Several sectors in France have faced heightened vulnerabilities due to regulatory scrutiny, reputa- tional risks, and compliance challenges in recent months. • Energy – geopolitical tensions and regulatory oversight have intensified risks related to sup- ply chains, notably regarding the enforcement of the duty of vigilance. • Textile – human rights concerns in supply chains have led to legal and reputational
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