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Supply chains

Despite the fact that suppliers are also companies, and therefore bound by the same responsibility to respect human rights as their buyers, companies face supply chain challenges around the world.  

The scope of a company's responsibility to respect human rights includes its relationships; therefore, part of human rights due diligence is examining, preventing, and mitigating potential infringements on human rights through suppliers and partners.

Questions for discussion:

  • For the purposes of this discussion, who is a supplier?  Do suppliers include providers of goods and services not related to core business, i.e. does an apparel company need to vet its stationery supplier?  Do suppliers include those who provide goods and services procured through the open market, rather than through ongoing relationships?
  • How should the boundaries of a company's responsibility to respect human rights with regard to its supply chain be described, regardless of industry?
  • To meet their responsibility to respect human rights, must companies engage with states and other parties to improve systemic conditions around their supply chains, for example government capacity to enforce labor laws or provide social services such as education?
  • Some suggest that the corporate responsibility to respect human rights includes supply chains all the way back to raw materials, e.g. apparel companies should be responsible for human rights conditions in cotton plantations, electronics retailers for iron ore mining, beverage companies for sugar cane harvesting.  Some say this would be unreasonable.  What do you think?

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Discussion

posted by: Lcb911 on Tuesday December 1, 2009
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The issue of a company's obligation to engage with host states to improve systemic conditions is a sensitive one.  On the one hand, companies are in essence at the front line of operationalization, not merely of international and social norms, but also of the domestic law of host states.  On the other hand,  the long history of foreign multinational corporation's interference in the internal affairs of smaller and weaker host states, especially states recently emerging from colonialism might raise significant suspicions about motives.  In addition, some substantial work might have to be done in some host states to convince local elites that, for example, multinational corporations are not the unofficial tools of their home states.  With some sensitivity to these realities perhaps it can be possible to engage companies in this worthwhile role.  For that purpose it might be useful to stress good behaviors--for example transparency, engagement not only with states but with directly affected stakeholders and procedures that enhance the appearance of sensitivity to local sovereignty.

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posted by: marcusC on Tuesday March 30, 2010
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In recent years, more and more work has been contracted out.  In addition to product procurement, more and more core and non-core services are being outsourced.   Many workers providing these services work alongside directly employed employees – janitors, security guards, food service workers, etc. – while many others are physically further removed.   The decision to outsource a service, whether core or non-core, should not erase a company’s responsibility to ensure that human rights are respected in the provision of those services. 

UNI Global Union has pioneered one mechanism through which multinational companies publicly commit to respecting workers’ rights: the Responsible Contractor Policy.  More information on RCPs is available at http://www.uniglobalunion.org/Apps/iportal.nsf/pages/20090122_jjxmEn

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