In today’s complex global marketplace, many companies operate without a clear understanding of the human rights risks lurking within their supply chains. To better grasp the risks, companies often make use of traditional compliance audits – a process that is too often a simple checkbox (or tick-box) exercise. True risk management requires moving beyond traditional models to develop a concrete, nuanced understanding of how labor violations can emerge at every tier of production—from raw material extraction to final assembly.
The European Union (EU) reached a historic deal on the Corporate Sustainability Due Diligence Directive (EU CSDDD). For the first time, large companies and those in high-risk sectors will be required to implement risk management systems to address their adverse impacts on people, communities, and the environment if they wish to do business in the EU market.
Embedding human rights means integrating them into your company’s DNA, its culture, strategy, and daily operations. It’s about placing human rights on par with other core business priorities like efficiency, quality, cost, and environmental sustainability. This requires a fundamental shift in how businesses perceive their role and responsibilities in the global economy, moving beyond mere compliance to proactive engagement with human rights issues.
Andrea Galvez, Verité’s First Mile Due Diligence Lead on why brands need to take supplier engagement seriously.
In today’s rapidly evolving global business landscape, due diligence is no longer just a buzzword it’s a critical component of sustainable and ethical business practices. As directors of Sustainability, CSR, or Supply Chain Management for multinational brands, you’re likely grappling with a significant shift: the transition from voluntary to mandatory due diligence.
