Human rights due diligence in global supply chains: evidence of corporate practices to inform a legal standard
Lise Smit, Gabrielle Holly, Robert McCorquodale, Stuart Neely
Abstract
Lise Smit, Gabrielle Holly, Robert McCorquodale, Stuart Neely
Abstract
Human rights due diligence in supply chains is increasingly important for companies, as mandatory due diligence standards are being drafted and considered in domestic jurisdictions, at the European Union level and in an international treaty negotiation process. In applying a legal standard of care for human rights due diligence, a core consideration will be what can reasonably be required of a company in a supply chain. Yet evidence of companies’ actual practices in this area remains rare. This article remedies this by exploring some specific examples of what companies do in this area, in order to assist in an assessment of what is possible, what is challenging, and what is already being done in terms of human rights due diligence in supply chains. It analyses how companies have identified human rights impacts, what actions have been taken to prevent and respond to impacts, to track and monitor actions taken, and to communicate this. This article identifies key themes and clarifies the relevant applicable standard of human rights due diligence in practice, which is relevant for judges, regulators and claimants. This analysis will assist all companies in understanding what is expected of them and in formulating good practices.
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Human rights due diligence in supply chains is increasingly important for companies, as mandatory due diligence standards are being drafted and considered in domestic jurisdictions, at the European Union level and in an international treaty negotiation process. In applying a legal standard of care for human rights due diligence, a core consideration will be what can reasonably be required of a company in a supply chain. Yet evidence of companies’ actual practices in this area remains rare. This article remedies this by exploring some specific examples of what companies do in this area, in order to assist in an assessment of what is possible, what is challenging, and what is already being done in terms of human rights due diligence in supply chains. It analyses how companies have identified human rights impacts, what actions have been taken to prevent and respond to impacts, to track and monitor actions taken, and to communicate this. This article identifies key themes and clarifies the relevant applicable standard of human rights due diligence in practice, which is relevant for judges, regulators and claimants. This analysis will assist all companies in understanding what is expected of them and in formulating good practices.
Key concepts: Due diligence, Human rights, Business, Supply chain, Negotiation, Treaty, Law and economics, Accounting