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Article

21 Apr 2020

Author:
SOMO, ECCHR, PAX

Paper on responsible disengagement from business relationships during COVID-19

"Corona crisis lays bare the need for responsible conduct in dealing with business relationships", 20 April 2020

As the corona crisis grips the globe, some of its most severe health and economic impacts are felt by vulnerable workers and communities that sustain the global supply chains for sectors like agriculture, textile, technology and mining. While companies consider cancelling and postponing orders with their suppliers at the other side of the world, millions of families risk losing their livelihoods...

In the joint position paper ‘Responsible disengagement in the time of corona’, SOMO, ECCHR and PAX call upon companies and policy-makers to carefully consider the human rights impacts from disengagement, reminding them of the principles set out in the OECD Guidelines for Multinational Enterprises (OECD Guidelines) and the UN Guiding Principles on Business and Human Rights (UNGPs)...

[T]he paper argues that companies should first of all avoid disengagement for economic reasons, providing a range of concrete recommendations to prevent hasty, irresponsible departures...

If cancelation of supplier relations and disengagement is absolutely unavoidable, companies should ensure it is done responsibly by mitigating its impacts and by formulating a responsible exit strategy, in consultation with suppliers, workers and other stakeholders...

Companies should [...] begin developing a post-corona responsible business model...