IJTTHL1/2025

of the rules on employment relationships towards the parent company’s system. Progress in remuneration is not all that dramatic for resources of companies based in mature capitalistic Countries if it is gradual and concerns the most skilled employees, who are in any case able to express some professional standing, with the associated aspirations. Referring disputes to the courts of the enterprise’s home State simplifies its organizational decisions and strengthens the effectiveness of its self - regulation, reducing the relevance of labour law in the Countries where operations are carried out and making the exercise of direction powers easier and, therefore, more effective and less expensive. The spreading of the parent companies’ judicial canons, which is unavoidable and has been firmly established for decades, may go along with the most important disputes being attracted towards logics that are usual for them. Over the long term, this should not be disagreeable to multinational enterprises and, although the effectiveness of the work protection rules from international sources may reduce operating margins in the short term, the progressive increase in the relevance of the parent company’s legal system may bring about an even higher judicial colonization. It would be wrong to look at the capitalist system self - reform only as a concession to pay claims, although this component does exist. If the multinational enterprise is a center of production of rules and, to date, it shall assist their implementation in various systems, often different at their core, the imposition, even concerning labour law, of the beliefs and canons that are core to the parent company’s legal system may cause organizational simplification and take place thanks to the attraction of disputes. They may be heard by judges that have higher institutional and cultural accreditation, but, at the same time, multinational groups choose their… playing field, if this metaphor may be acceptable. This should not be to the dislike of enterprises, especially those more scrupulous and less bold in exploiting the unavoidable advantages generated by taking action in far - away continents and in systems providing lower social protection. In the European Union, those phenomena have already taken place to a large extent; the harmonized regulation has offset the crosswise improvement in occupational and living conditions throughout the European Union, with large facilitation in moving capital and in setting integrated and more harmonized production strategies. What has been happening for decades in the European Union can be replicated in a wider scope over the long term. The defeated are by no means multinational enterprises, especially those with a realistic attitude to remuneration and social matters, and, all the more so, are 73 THE CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE

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