Today, December 10th, marks the anniversary of the Universal Declaration of Human Rights, a landmark document that outlined fundamental human rights for all. Since its adoption in 1948, significant strides have been made in advancing human rights globally. However, challenges persist, particularly in the realm of corporate responsibility.
Despite the Universal Declaration of Human Rights, and the introduction of other international standards such as the UN Guiding Principles on Business and Human Rights, many companies continue to struggle with preventing human rights abuses in their supply chains. Studies by the Corporate Human Rights Benchmark and Sustainalitics highlighted this critical gap, with assessed companies demonstrating low scores on human rights indicators[1]. The lack of preparedness by companies has real-world consequences. As recent research by Walk Free highlights, G20 countries import over $460 billion worth of goods annually that are potentially linked to forced labor[2].
To further strengthen corporate accountability, the EU has taken a significant step with the adoption of the Corporate Sustainability Due Diligence Directive (CSDDD). The legislation imposes binding obligations on large companies to identify, prevent, and mitigate human rights and environmental risks throughout their global supply chains. Companies will need to undertake due diligence regarding certain specific rights which are on a designated list of human rights in the directive.
Companies can take the following steps to start proactively managing human rights risks and preparing for CSDDD:
By proactively addressing human rights risks and implementing robust due diligence processes, companies can not only mitigate legal and reputational risks but also enhance their brand reputation, attract ethical investors, and build stronger relationships with stakeholders.
If you are unsure how to prepare for CSDDD or other sustainability-related regulations, why not get in touch with us. We can help.
High-profile cases have underscored the urgency of addressing human rights abuses in supply chains:
Despite these challenges, there are signs of progress. A study by the Danish Institute for Human Rights revealed a positive trend in corporate human rights reporting, with a significant increase in disclosures between 2010 and 2020[5]. This growing transparency can be attributed to increased public scrutiny and activism, as well as a global shift towards incorporating international human rights standards into domestic legislation. Countries like France, the UK, and Germany have already taken steps to implement relevant laws, and this trend is expected to continue.
Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world.
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