Millions of people around the world are trapped in modern slavery, forced to work in dangerous conditions to produce goods that end up on European shelves. Child labour in mines and fields. Rivers run black from factory waste. And yet, the companies at the top of the supply chains that profit from this are rarely held to account. On 17 July 2026, Alexander Gian-Carlo Baumann defends his dissertation at Erasmus School of Law. He wrote his dissertation at Erasmus School of Law and the University of Lucerne, supervised by Klaus Mathis and Michael Faure, in which he asks: how to regulate transnational corporate responsibility?
The problem with "doing good voluntarily"
For decades, the dominant approach to corporate responsibility was voluntary. Companies published sustainability reports, signed pledges, and adopted codes of conduct, but without legal teeth, these commitments were easy to ignore. Baumann's research examines what happens when governments step in and make responsibility mandatory.
His dissertation compares two regulatory attempts: Switzerland's current national legislation on corporate due diligence and the European Union's Corporate Sustainability Due Diligence Directive (EU CSDDD), entered into force in July 2024. The verdict is clear. "The Swiss norms must be qualified as a failed attempt," Baumann says, "while the EU CSDDD represents a viable approach, even in its current, watered-down form." The EU Directive is far from perfect. It was significantly scaled back during negotiations, and has already been amended again, but it points in the right direction.
A new lens: combining law with economics
What makes Baumann's research distinctive is not just what he studied, but how. He combines traditional legal analysis with economic theory, an approach known as law and economics. This allows him to evaluate legal rules not only by asking whether they adhere to the will of the lawmaker, but also by asking whether they work, so whether they create the right incentives for businesses to change their behaviour.
Crucially, however, Baumann does not simply apply standard economic thinking. The traditional neoclassical model, which prioritises efficiency above all else, is insufficient when dealing with environmental destruction and, even more so, with human rights abuses . So, he extends it. His innovative methodology is truly multi- and interdisciplinary. "The two underlying approaches, legal and economic, should not be seen as a rivalry, but rather as a fruitful combination of different perspectives and normative goals," he explains. The result is a framework that takes efficiency seriously without sacrificing sustainability and justice.
Based on this analysis, Baumann formulates ten regulatory principles and proposes a new model of corporate responsibility. Two conditions emerge as fundamental: seriousness of intent and the courage to take a holistic view. Restrained and fragmented solutions, he argues, are not enough.
Who benefits, and who is still being left behind
Baumann is explicit about who his research is for. Policymakers gain a set of concrete tools for designing better legislation. Businesses learn about both their legal obligations and the genuine opportunities that come with responsible supply chain management. But a third group is equally important: the actual victims.
"People affected by modern slavery, child labour, and environmental harm need to know the dimensions of their legitimate claims towards policymakers and businesses," Baumann says. "That knowledge ultimately helps them to defend and exercise their rights." In a field often dominated by corporate interests and technical legal debate, this focus on the people at the other end of the supply chain is a meaningful corrective.
For consumers and the broader public, the research also helps reduce a fundamental imbalance: most people have no idea what conditions underlie the products they buy. Transparency and accountability rules, if properly designed, can begin to change that.
Why this matters now
The debate around transnational corporate responsibility is far from settled. The EU CSDDD continues to be contested, national governments are revising their own approaches, and empirical evidence on how these laws play out in practice is still accumulating. Baumann's research arrives at precisely the right moment.
His interest in the topic goes back further than the academic literature. In 2015, he worked pro bono in Sydney on a human rights and sustainability project. "For the first time, I realised how big the issues of modern slavery, child labour and environmental harm are," he recalls. "The question arose as to why those problems are still not solved." That question became a master's thesis, and then a PhD.
Looking back on the journey, Baumann is characteristically grounded. "Completing a project such as a PhD thesis is the success; everything else is a bonus." And to those just starting out, his advice is simple: "You will get there. Just keep going, step by step."
- PhD student
