Human rights in business under growing pressure: Moldova must balance economic growth and new investments with fundamental rights – People’s Advocate warns.
Date of article: 02/12/2025
Daily News of: 02/12/2025
Country:
Moldova
Author: People's Advocate Office of the Republic of Moldova
Article language: en
Human rights are increasingly marginalized worldwide, as economic pressures, market competition, geopolitical instability, and the ongoing war in Ukraine intensify their impact in the Republic of Moldova as well. At a time when the economy develops, and the country’s path toward the European Union requires clearer standards, both the state and the business sector must take genuine responsibility for protecting fundamental rights.
For the first time in Moldova, a comprehensive national assessment of the impact of economic activities on human rights has been carried out at the initiative of Ombudsman Ceslav Panico. The study was launched on November 26, 2025, in the presence of representatives from public institutions, the private sector, academia, and civil society. The initiative is a consequence of increasing concerns about human rights violations in the economic area, the absence of a legal framework on business due diligence, and the urgent necessity to align the Republic of Moldova with European and international standards.
“We cannot speak of sustainable development without responsibility in business. Moldova needs not only investors and companies that grow their business at any cost and contribute to the budget, but above all, responsible economic stakeholders who assume obligations, costs, and due diligence to protect workers and the environment, respect community interests, promote gender equality, prevent workplace harassment, and help combat corruption and undeclared/under-declared labor. While companies create jobs and drive the economy, they can also generate significant risks to human rights if there are no clear rules, effective control, and adequate state support meant to guide and encourage the business environment to assume these responsibilities,” stated the People’s Advocate Ceslav Panico.
At the launch event, Alexandru Iacub, Deputy Secretary General of the Government, confirmed the State Chancellery’s support, noting that the study aligns with the Government’s activity plan and that its recommendations would consolidate responsible practices nationwide.
Søren Jensen, Ambassador of Denmark, emphasized the importance of this evaluation for Moldova’s European path, pointing out that Denmark’s experience shows business responsibility and respect for human rights are not optional – they are prerequisites for a modern, competitive economy.
The study highlights that Moldova’s Constitution and national legislation provide a solid foundation for human rights protection, but integration of these principles into business practices remains inconsistent. The assessment aims to identify gaps, risks, and opportunities so that public policies can be adjusted in the interest of people and communities.
The analysis focused on key sectors of the economy – agriculture, construction, HoReCa, the IT sector, state enterprises, and public procurement, as well as business and human rights in the Transnistrian region, highlighting systemic problems that require quick and coordinated interventions.
The assessment examines the extent to which the legal and institutional framework, as well as current practices, are aligned with the United Nations Guiding Principles on Business and Human Rights (UNGPs), structured around three pillars: the state’s duty to protect human rights, the responsibility of companies to respect them, and access to effective remedies.
The study was developed by the People’s Advocate Office (PAO) in partnership with the Danish Institute for Human Rights under the 2024 – 2025 Memorandum of Understanding. It was published with financial support from the Danish Ministry of Foreign Affairs.
Main findings of the Study:
- The law framework is mostly aligned with international standards, but its implementation is still fragmented
Moldova’s Constitution and national legislation provide a solid foundation for human rights protection. However, integration of these principles into business practices is inconsistent. Sectoral policies systematically do not include human rights obligations, leading to gaps in protecting rights holders, especially in areas such as the environment, investment, and public procurement.
- Human rights due diligence is missing from legislation, and practices are underdeveloped
Moldova lacks a legal framework requiring companies to conduct human rights due diligence. Small and medium‑sized enterprises – representing more than 99 percent of all companies – do not have the capacity to identify and prevent risks in the human rights area. The increase in the number of foreign‑owned enterprises presents opportunities but also highlights the urgent need for a modern regulatory framework in this area.
- Remedy mechanisms exist, but their effectiveness is limited
Civil, criminal, labor, and administrative laws establish accountability for companies, yet effective access to remedies is still a challenge. Costs, geographic distances, and institutional barriers reduce people’s chances of obtaining efficient remedies in cases of abuse. Extrajudicial mechanisms are useful but remain underutilized.
- High‑risk economic sectors
Agriculture, construction, and HoReCa are marked by informal labor and precarious conditions. The expanding IT sector faces risks related to outsourcing and unstable contracts. State enterprises have not fully integrated sustainability and corporate responsibility standards.
Public procurement sector – valued at 13.32 billion lei in 2024 – lacks clear requirements for human rights compliance of economic agents, despite major risks such as forced labor, trafficking, discrimination, and unsafe conditions.
Day workers remain among the most vulnerable, with incomes below subsistence levels even under maximum legal working hours.
- The conflict‑affected region is still a major challenge
In Transnistria, the absence of a functional protection framework exposes companies and workers to high risks of abuse, including discrimination and exclusion.
At the EU level, promoting human rights in business is a priority. The new EU Directive on Corporate Sustainability Due Diligence marks a decisive step forward. Aligning the Republic of Moldova with these developments is crucial for EU accession and for strengthening economic transparency.
The study formulates 47 recommendations, most harmonized with EU standards, directed at authorities, oversight institutions, businesses, and civil society. These recommendations aim to strengthen the legal and institutional framework, reduce informal labor, advance equality, combat discrimination, and protect the right to a healthy environment.
To ensure implementation, Ombudsman Ceslav Panico proposes the creation in 2026 of a Working Group or Council, bringing together government, the private sector, academia, and civil society. This body will initiate discussions on the recommendations and, most importantly, begin drafting the first National Action Plan on Business and Human Rights in the Republic of Moldova. Similar plans already exist in many European countries, including Germany, France, the Netherlands, Czechia, Georgia, Lithuania, Poland, Slovenia, and Ukraine. For Moldova, this step is essential to modernize the economic environment and safeguard the rights of all people.
You can access the full study via the following link: https://ombudsman.md/en/national-baseline-assessment-on-business-and-human-rights-in-the-republic-of-moldova-2/
