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Report

30 May 2018

Author:
Norton Rose Fulbright and the British Institute for International and Comparative Law

Report: analysis of human rights due diligence in supply chains

Making sense of managing human rights issues in supply chains: 2018 report and analysis, May 2018.

The UNGPs provide for supply chain HRDD which extends beyond the company to third parties...[and] has caused a shift in social expectations, regulatory reforms and corporate behaviour...However, the concept of supply chain HRDD is new, and even the leading companies are only beginning with their supply chain “human rights journey”. In many companies, efforts are currently still confined to first tier suppliers...One particular challenging aspect of supply chain HRDD is the lack of control which individual companies have over the activities of suppliers as separate legal entities...[C]ompanies identify the usefulness of collective engagement with peers and other stakeholders...A prominent and recurring theme is the current underperformance of states in this area...[A]s long as there is a lack of monitoring, enforcement and adequate remedy at state level, legal developments are effectively outsourcing enforcement of human rights to companies themselves, through self-regulation, and to civil society...[C]ompanies are at different stages in terms of the maturity of their [HRDD] program…In all cases, it is important to have a coherent strategy which informs a credible, defensible methodology implemented by individuals with appropriate expertise and resources…

[Refers to Barber, Caparo Industries, Cape PLC, Chandler, Costco, Cotton on, Dana, Das, Dickman, Doe, George Weston, Hershey, H&M, Hodson, Jabir, Keo Ratha, KiK Textilen un Non-Food GmbH, Kiobel, Marc Kasky, Mars, McCoy, Nestlé, Nike, Phattsana Seafood Co, Royal Dutch Petroleum, The Renwick Group PLC, Thompson, Sud,  Walmart, Wirth]