Get in touch: +44 (0) 1273 491423 | hello@ardeainternational.com
Member Account
Menu
  • Home
  • Consultancy
    • Modern Slavery & Supply Chains
    • Sustainable Business
    • Business & Human Rights
    • Business Training, Guides & Toolkits
    • Fees for Environmental And Human Rights Consulting
    • Packages
  • Training
    • Online learning
    • Webinars
    • Workshops
    • Ardea Academy
  • Resources
    • Toolkits
    • Guides
    • Publications
  • Projects
  • About
    • Meet the team
    • Testimonials
    • Partnerships
    • Working with Universities
    • Volunteering
    • Modern Slavery Statement
    • Our Code of Conduct
    • Sustainability Policy
    • Join us
  • Insights
  • Contact
  • Home
  • Consultancy
    • Modern Slavery & Supply Chains
    • Sustainable Business
    • Business & Human Rights
    • Business Training, Guides & Toolkits
    • Fees for Environmental And Human Rights Consulting
    • Packages
  • Training
    • Online learning
    • Webinars
    • Workshops
    • Ardea Academy
  • Resources
    • Toolkits
    • Guides
    • Publications
  • Projects
  • About
    • Meet the team
    • Testimonials
    • Partnerships
    • Working with Universities
    • Volunteering
    • Modern Slavery Statement
    • Our Code of Conduct
    • Sustainability Policy
    • Join us
  • Insights
  • Contact
Home • Insights • Business & Human Rights • What new due diligence laws mean for procurement

What new due diligence laws mean for procurement

By Colleen Theron
1 Apr 2021

By Colleen Theron, CEO, Ardea International.

First published by CIPS (Access their article here)

There is momentum growing among governments worldwide to require companies to undertake mandatory human rights due diligence.

On 10 March, the European Parliament backed a report on mandatory corporate due diligence and accountability. We are moving away from an era of relying on voluntary due diligence standards, such as the UNGPs, the OECD and self regulation, towards mandatory legislation setting out the requirements for organisations to put effective strategies in place to address potential and actual negative human rights impact.

A Dutch Bill for Responsible and Sustainable International Business Conduct has been introduced. It follows the Child Labour Due Diligence Act. In Germany a historic Lieferkettengesetz – meaning “supply chain law” – is expected to be passed the next six months.

There are principles common to all of these proposed pieces of law:

  • The ability to demonstrate effective due diligence to respect actual and potential adverse impacts on human rights and the environment
  • Corporate due diligence obligations defined in law will be derived from the requirements in voluntary frameworks like the UNGPs and the OECD
  • The requirement to have policies in place that capture the organisation’s commitment to ensuring that it will prevent or mitigate negative impacts of human rights
  • The requirement for published statements or a due diligence strategy
  • An understanding of the organisation’s value chain and mapping this out
  • Proportionate and appropriate risk management
  • An ongoing due diligence management process and the ability to demonstrate action taken in line with their strategy or action plan
  • Effective and informed discussions with stakeholders and trade unions
  • Effective grievance mechanisms with remedy in place for victims of negative human rights abuses.

The proposed regulations will have implications for all functions across a business as addressing human rights impacts is not limited to one department, for example, human resources.

Procurement managers will find themselves at the heart of these developments. Traditionally procurement has been focused on ensuring that businesses obtain value for money in any spend, reducing cost bases and ensuring a resilient supply chain.

Procurement functions will have to identify training they need to understand how to address human rights in their roles and also in managing tenders and monitoring suppliers.

Additional considerations for procurement will be:

1. Achieving the buy in of senior management

2. Determining whether current systems are ‘fit for purpose’- or whether new technology/ data solutions should be implemented

3. Managing time and resources effectively with the additional considerations that will have to be met

4. Developing a risk based approach to supply chain management

5. Creating a unified approach to address human rights in procurement

6. Ensuring that there are systems that track and monitor the effectiveness of measures

7. Being able to communicate critical information to key stakeholders in the business

8. Working effectively alongside other key functions within the business such as the legal and ESG/ Sustainability officers.

The real challenge will be for businesses to start being proactive in developing and strengthening their due diligence systems and not being reactive to issues arising from failure to account for negative human rights impacts, as we have recently seen in relation to Boohoo.

 

Contact us:

Contact us to see how we can support you.

You can opt out of hearing from us at any time using the unsubscribe link in our emails. Read our full privacy policy.

Post navigation

Last story
Next story
Ask us anything. From simple queries to complex questions, we're always ready to chat with you. Give us a call. +44 (0) 1273 491423
Ardea International
  • About
  • Join us
  • Contact us
  • Membership Account
  • Newsletter Sign up
Our Services
  • Sustainable Business – Toolkits
  • Modern Slavery in your Supply Chain
  • Training, Guides & Tools
  • Ethics and Compliance

Leading Business Beyond Compliance

T +44 (0) 1273 491423
hello@ardeainternational.com

Ardea International
Fieldview • 21 Staples Barn • Henfield • West Sussex • BN5 9PP • United Kingdom

Get social with us

© Copyright 2023

  • Terms & Conditions
  • Accessibility
  • Privacy
  • Disclaimer

Insights & news straight to your inbox

Subscribe to our newsletter!

Insights & news straight to your inbox

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.