Human rights due diligence is the process by which a business identifies, prevents, mitigates and accounts for the adverse human rights impacts that it causes, contributes to or is linked to through its business activities. The concept was established in the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011.
Key takeaways
- The UNGPs have three pillars: the State duty to protect, the corporate responsibility to respect, and access to remedy.
- Businesses respect human rights through a policy commitment, a due diligence process and remediation mechanisms.
- The UNGPs underpin many mandatory regulations, such as the EU's CSDDD.
The three pillars of the UNGPs
| Pillar | Content |
|---|---|
| Protect | The State has a duty to protect human rights against impacts from third parties, including businesses |
| Respect | Businesses have a responsibility to respect human rights in their operations and business relationships |
| Remedy | Those affected must have access to effective remedy |
Implementation within the business
1. Policy commitment
A human rights policy approved at the highest level of leadership, made public and communicated to employees and suppliers.
2. Impact assessment
Prioritise according to severity for people (not just risk to the business): labour, safety, land, communities, privacy.
3. Action and tracking
Integrate measures into purchasing, HR and operational processes; measure effectiveness using metrics and feedback from those affected.
4. Grievance mechanisms
Under the UNGPs, an effective grievance mechanism should be legitimate, accessible, predictable, equitable, transparent, rights-compatible and a source of continuous learning.
5. Communication
Disclose how the business identifies and addresses impacts in its ESG report.
Common human rights risks in Vietnam
Overtime, occupational safety, the rights of migrant workers, forced labour in supply chains, impacts on communities where projects are located, and data privacy.
Frequently asked questions
Are the UNGPs mandatory?
The UNGPs are a set of voluntary principles, but they have been incorporated into many national laws and EU regulations, so they have become a practical requirement for businesses in global supply chains.
How does human rights due diligence differ from a social audit?
An audit checks compliance at a point in time; human rights due diligence is a continuous process, prioritised by severity and including remediation.
Do small businesses need a human rights policy?
They should have one proportionate to their size; the UNGPs emphasise processes appropriate to a company's size and level of risk.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
