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Human Rights Due Diligence As Part Of Corporate Risk Management: Insights From The EU Policy Debate

Author

Listed:
  • Izabela Jedrzejowska-Schiffauer
  • Peter Schiffauer

Abstract

Purpose: This paper investigates possible modalities of new EU-wide mandatory human rights due diligence (mHRDD) measures and their implications for the practice of corporate risk management. Design/Methodology/Approach: The contribution originates in a desk-based review and analysis of the EU policy debate and other relevant scholarly and stakeholder contributions. The applied research methodology includes a combination of theoretical and analytical methods. Findings: Businesses’ input pointing out the specificities of branches and suggesting best practices for implementing HRDD obligations is highly relevant for framing upcoming legislation. Proper fulfillment of HRDD obligations will, however, be definitively ascertained in court only. Compliance-oriented risk management accounting solely for the risks to the company may thus prove insufficient regarding HRDD and eventually lead to liability. Practical Implications: Given expectations of high corporate due diligence standards by investors, consumers and civil society on the one hand, and the prospective new EU HRDD measures on the other, it appears desirable for companies to take appropriate steps so as to adapt their business structures and operations for the endorsement of such new HRDD standards. Originality/Value: The contribution provides insights into mHRDD as a prospective new legal standard of care for companies operating on the EU Internal Market.

Suggested Citation

  • Izabela Jedrzejowska-Schiffauer & Peter Schiffauer, 2020. "Human Rights Due Diligence As Part Of Corporate Risk Management: Insights From The EU Policy Debate," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 973-984.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:973-984
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    References listed on IDEAS

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    1. Björn Fasterling & Geert Demuijnck, 2013. "Human Rights in the Void? Due Diligence in the UN Guiding Principles on Business and Human Rights," Journal of Business Ethics, Springer, vol. 116(4), pages 799-814, September.
    2. Luc Fransen & Brian Burgoon & Genevieve LeBaron & Andreas Rühmkorf, 2017. "Steering CSR Through Home State Regulation: A Comparison of the Impact of the UK Bribery Act and Modern Slavery Act on Global Supply Chain Governance," Global Policy, London School of Economics and Political Science, vol. 8(s3), pages 15-28, May.
    3. Luc Fransen & Brian Burgoon, 2012. "A market for worker rights: Explaining business support for international private labour regulation," Review of International Political Economy, Taylor & Francis Journals, vol. 19(2), pages 236-266.
    4. SMIT, Lise & BRIGHT, Claire & PIETROPAOLI, Irene & HUGHES-JENNETT, Julianne & HOOD, Peter, 2020. "Business Views on Mandatory Human Rights Due Diligence Regulation: A Comparative Analysis of Two Recent Studies," Business and Human Rights Journal, Cambridge University Press, vol. 5(2), pages 261-269, July.
    5. repec:bla:glopol:v:8:y:2017:i::p:15-28 is not listed on IDEAS
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    More about this item

    Keywords

    EU law and policy; due diligence; risk management; human rights; corporate and supply chain governance.;
    All these keywords.

    JEL classification:

    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • F15 - International Economics - - Trade - - - Economic Integration

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