Human Rights Due Diligence is a growing worldwide movement fueled by new legal requirements on businesses to take responsibility for their human rights impacts across their supply chains, such as the OECD, the Norwegian Transparency Act (Åpenhetsloven), Germany's Supply Chain Due Diligence Act (LkSG), and the French Duty of Vigilance Act, to mention a few. On top of that, the European Commission announced in 2021 that they would adopt their own mandatory supply chain due diligence for all companies operating within the EU – which will likely enter into force already in 2024.
So don’t wait until the last minute – start setting up your Human Rights Due Diligence process in Worldfavor to successfully comply with the upcoming legal requirements in time!
What is human rights due diligence?
Human Rights Due Diligence is a risk management tool that businesses undertake to identify, respond, mitigate and prevent adverse human rights impacts in their own operations and supply chains. Most of the existing and forthcoming Human Rights Due Diligence laws are referencing the OECD Due Diligence Guidance for Responsible Business Conduct as the procedure to follow.
The OECD Human Rights Due Diligence procedure:
1. Develop, implement, and communicate a policy on Human Rights Due Diligence
2. Develop a process to assess and identify the most significant risks within operations, suppliers, and business relationships.
3. Take action on the most significant risks & develop a remediation plan to cease, prevent and mitigate risks
4. Track the implementation and results to evaluate the effectiveness of due diligence procedures
5. Communicate Human Rights Due Diligence procedures, risks, activities, and findings to stakeholders
6. Cooperate with other parties to enable remedy
Implement the OECD Human Rights Due Diligence Procedure with Worldfavor
Set up your OECD-alined automated human rights risk assessment in Worldfavor
Automate your OECD-aligned human rights risk assessment in Worldfavor to monitor risks more accurately, faster, and according to current and upcoming legislation. Worldfavor enables greater visibility to a company’s true risk exposure through automated risk analysis on all of the company’s suppliers – regardless of whether there are 4 or 4000. By digitizing your process in the platform you can get your hands on more data throughout your chain and build resilience effectively by knowing where to focus your efforts.
Benefits of using Worldfavor:
Automated data collection and risk assessment
Manual risk assessment can be just that – risky. Automate your data collection and supplier assessments to handle more supplier data more accurately. Worldfavor automates your entire human rights risk assessment according to World Bank’s Worldwide Governance Indicators (WGI).
Risk assessment to help you prioritize risks
Not all risks are equal. With Worldfavor’s risk assessment, you can find out if your suppliers have an extreme, high, medium, or low country risk of human rights based on data from the World Bank’s WGI. In addition, you can collect data from your suppliers to find out what policies and processes they have in place to mitigate risks. This helps you find which suppliers you should put extra focus on and where additional action is needed – such as on-site audits – to mitigate the risk.
Ensure compliance with the OECD Due Diligence guidelines
Most Human Rights Due Diligence directives are referencing the OECD Due Diligence process as the procedure to follow. Worldfavor supports companies to carry out their risk identification and assessment according to the OECD requirements.
Get an overview of your human rights risks results
Get your own intuitive dashboard where you can manage and get an overview of all your supplier data. Filter, compare, and track information to break down the data into actionable insights.
Act on your insights
While an implemented risk identification and assessment process is essential – it is not enough to ensure resiliency and to align with the OECD guidelines. Successful risk mitigation and resilience require risk action. Carry out periodic internal or third-party reviews or on-site audits of the outcomes achieved, because only then can companies make a true difference. Through automated analyses of real-time data, companies can easily discover where the risks are and act on them before they become a problem. Save valuable time and let the platform do the necessary in-depth research for you, so you can spend your time where it is needed instead.
Get Due Diligence ready with Worldfavor
Setting up your Human Rights Due Diligence procedure doesn’t have to be baffling.
Join Worldfavor to systemize and automize your OECD-aligned risk assessment. Sounds interesting? Our sales team would love to tell you more about how your organization can benefit from using Worldfavor!
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