Beyond Carrots and Sticks: How the EU’s Hybrid Model Outperforms the US’s Soft Touchand Builds Stairs for the Developing Countries

Minghan Yang

doi:10.54254/2753-7048/2025.BR26251

Lecture Notes in Education Psychology and Public MediaOpen access

Beyond Carrots and Sticks: How the EU’s Hybrid Model Outperforms the US’s Soft Touchand Builds Stairs for the Developing Countries

Research Article

Open Access

Beyond Carrots and Sticks: How the EU’s Hybrid Model Outperforms the US’s Soft Touchand Builds Stairs for the Developing Countries

Minghan Yang ^1*

¹ Dalian Maritime University

^*Corresponding author: yangminghan@dlmu.edu.cn

Published on 27 August 2025

LNEP Vol.112

ISSN (Print): 2753-7056

ISSN (Online): 2753-7048

ISBN (Print): 978-1-80590-339-0

ISBN (Online): 978-1-80590-340-6

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Abstract

This paper comparatively analyzes Human Rights Due Diligence (HRDD) governance models of the European Union and the United States, alongside implementation challenges in developing countries. The EU's hybrid "hard law and soft law" model, anchored in the Corporate Sustainability Due Diligence Directive (CSDDD) and market access leverage, demonstrates greater effectiveness in mitigating supply chain labor rights violations than the US's disclosure-oriented approach, which suffers from enforcement gaps and inadequate remedies. However, developing countries face dual dilemmas: capacity deficits in regulatory infrastructure exacerbate policy conflicts between external standards and local development priorities. To reconcile rights protection with developmental needs, the paper proposes a regulatory adaptation framework for localizing the EU model. The key recommendations include three main points. First, differentiated legislation should exempt SMEs from non-core obligations while prioritizing high-risk industries. Second, adaptive technical reuse must be implemented to address technological gaps. Third, transitional buffers should allow for phased compliance. Sustainable implementation requires shifting global governance from unilateral standard export to collaborative capacity building—establishing a "North-South Compliance Fund", technology partnerships, and inclusive consultation mechanisms. This approach builds essential "stairs" for developing economies to achieve rights protection without compromising development.

Keywords:

Human Rights Due Diligence, Supply Chain Governance, EU-US Comparative Governance, Developing Countries, Localization Reform

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References

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[2]. Ford, J. and Nolan, J. (2020) Regulating Transparency on Human Rights and Modern Slavery in Corporate Supply Chains: The Discrepancy Between Human Rights Due Diligence and the Social Audit.Australian Journal of Human Rights, 26, 27-45.

[3]. Alwishewa, H. (2024) Human Rights Due Diligence for Arms Companies: Lessons from Supply Chain Regulations. European Journal of Risk Regulation, 1-17.

[4]. Smit, L., Holly, G., McCorquodale, R. and Neely, S. (2021) Human Rights Due Diligence in Global Supply Chains: Evidence of Corporate Practices to Inform a Legal Standard. The International Journal of Human Rights, 25(6), 945-973.

[5]. Bueno, N. and Bright, C. (2020) Implementing Human Rights Due Diligence through Corporate Civil Liability. International and Comparative Law Quarterly, 69, 789-818.

[6]. Chambers, R. and Birchall, D. (2024) How European Human Rights Law Will Reshape U.S. Business. UC Law SF Bus. J., 20(1), 3-58.

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[8]. Schleifer, P. and Fransen, L. (2024) Smart Mix Politics: Business Actors in the Formulation of Global Supply Chain Regulation. Review of International Political Economy, 31(6), 1710-1734.

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[10]. Saloranta, J. (2021) The EU Whistleblowing Directive: An Opportunity for (Operationalizing) Corporate Human Rights Grievance Mechanisms? European Business Organization Law Review, 22(4), 753-780.

References

[3]. Alwishewa, H. (2024) Human Rights Due Diligence for Arms Companies: Lessons from Supply Chain Regulations. European Journal of Risk Regulation, 1-17.

[5]. Bueno, N. and Bright, C. (2020) Implementing Human Rights Due Diligence through Corporate Civil Liability. International and Comparative Law Quarterly, 69, 789-818.

[6]. Chambers, R. and Birchall, D. (2024) How European Human Rights Law Will Reshape U.S. Business. UC Law SF Bus. J., 20(1), 3-58.

[7]. Ruggie, J.G., Rees, C. and Davis, R. (2021) Ten Years after: From UN Guiding Principles to Multi-Fiduciary Obligations. Business and Human Rights Journal, 6, 179-197.

[8]. Schleifer, P. and Fransen, L. (2024) Smart Mix Politics: Business Actors in the Formulation of Global Supply Chain Regulation. Review of International Political Economy, 31(6), 1710-1734.

Cite this article

Yang,M. (2025). Beyond Carrots and Sticks: How the EU’s Hybrid Model Outperforms the US’s Soft Touchand Builds Stairs for the Developing Countries. Lecture Notes in Education Psychology and Public Media,112,8-17.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICILLP 2025 Symposium: Digital Governance: Inter-Firm Coopetition and Legal Frameworks for Sustainability

ISBN: 978-1-80590-339-0(Print) / 978-1-80590-340-6(Online)

Editor: Renuka Thakore, Tonejit Gad-Harry

Conference website: https://2025.icillp.org/Bristol.html

Conference date: 18 September 2025

Series: Lecture Notes in Education Psychology and Public Media

Volume number: Vol.112

ISSN: 2753-7048(Print) / 2753-7056(Online)

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