Topic

Human Rights & Value Chain

Companies have a responsibility to respect human rights in their business activities. Until recently, they were primarily following voluntary framework. Now, however, a rising number of countries are introducing mandatory regulations on due diligence.

Respecting Human Rights and Due Diligence Along the Value Chain

While state institutions are primarily responsible for protecting human rights, businesses also have a duty to respect human rights. In order to prevent or mitigate damage, companies must be continuously aware of the impact of their actions. Yet this is proving challenging given the complexity of global value chain networks.

Until now, companies were following voluntary frameworks such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the National Action Plan for Business and Human Rights (NAP), which recommend exercising human rights due diligence. Starting from 2023, large companies in Germany will need to adapt their processes to the binding requirements of the Supply Chain Due Diligence Act (LkSG). Further adaptation may be necessary in the near future when the EU Directive on Corporate Sustainability Due Diligence has been passed.

At econsense, we closely monitor how the frameworks governing business and human rights develop and assist our members in understanding and implementing requirements. As an institutional stakeholder, econsense is represented at the National Stakeholder Forum on Business and Human Rights, which advises the Federal Government, and at the stakeholder advisory council of the authority charged with enforcing the Supply Chain Due Diligence Act (BAFA). We set up the cluster human rights & value creation to offer our members an opportunity to learn from each other and to exchange views with external stakeholders and experts. In addition, we explore approaches to improving traceability in global value chain networks and to introduce and measure effective safeguards along the value chain.

Publications

Publication
Values & Valuations

Values & Valuations

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Publication
Additional Excel Sheet – Values & Valuations

Additional Excel Sheet – Values & Valuations

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