Human Rights Due Diligence

Human rights due diligence is the process by which a company identifies, prevents, mitigates and accounts for the adverse impacts it causes on human rights through its own activities and business relationships. It is based on the UN Guiding Principles on Business and Human Rights and the OECD Guidelines. It is not a one-off audit but a process requiring continuity.

• Suppliers of companies within scope of the German Supply Chain Due Diligence Act
• Groups that will fall within scope of the EU corporate sustainability due-diligence obligation
• Companies managing a multi-tier, international supply chain
• Firms sourcing from high-risk countries and sectors

An increasingly legislated area. In Germany, the Supply Chain Due Diligence Act (LkSG) imposes binding obligations on companies above a certain size; a corporate sustainability due-diligence regulation has been adopted at EU level. It is mandatory for companies within scope, and a contractual expectation for their suppliers.

• Adopting a human-rights policy and ownership of it at board level
• Risk analysis: own operations and direct suppliers; indirect suppliers where necessary
• Identifying priority risks (based on severity and likelihood)
• Preventive measures: contract clauses, training, supplier development
• Corrective actions and remediation of impacts
• Establishing and making accessible a grievance mechanism
• Monitoring and reviewing effectiveness
• Documentation and public reporting
• Supply-chain mapping and transparency

1. 1Determining Scope and ProgrammeThe sites and processes to be audited, and the audit duration the scheme requires, are determined.
2. 2Pre-assessmentA gap analysis is optionally carried out; gaps become visible before the main audit.
3. 3On-site AuditRecords review, site observation and worker interviews are carried out against the scheme's checklist.
4. 4Reporting of FindingsFindings are reported according to the scheme's classification. The output of these schemes is an audit report, not a certificate.
5. 5Corrective Action and Follow-upA corrective action plan is submitted for the findings; it is closed with a follow-up audit under the scheme.

The validity period of audit reports is set by the scheme and is mostly between one and two years. The report is used for the period the buying brand accepts.

• Organisation and site details
• Headcount and shift pattern
• Legal permits and licences
• Relevant policies and procedures
• Payroll, time and personnel records

There is no fixed list price; the cost is calculated based on the following variables and provided in writing in the quote.

• The number of sites to be audited and the headcount
• The audit duration the scheme prescribes
• Whether a pre-assessment (gap analysis) is requested
• Whether a follow-up audit is required

Most of these schemes produce audit reports, not documents, and are subject to the scheme owner's (e.g. Sedex, amfori, RBA) own approval system; Accreditation in the classical sense is not found in every scheme. Auditor competence and report validity are determined by the scheme owner's rules.

The scope under which this scheme can be offered varies according to your product and activity; it is confirmed in writing at the quote stage.

• SMETASedex Ethical Trade Audit
• SedexSedex Membership and Ethical Data Sharing
• amfori BSCIamfori BSCI Social Compliance
• RBAResponsible Business Alliance
• Social Compliance Audit
• Ethical Trade Audit
• SA8000Social Accountability
• WRAPWorldwide Responsible Accredited Production