Human Rights Due Diligence
Definition
Human rights due diligence (HRDD) is a process by which organisations identify, prevent, mitigate, and account for how they address their adverse human rights impacts. It involves assessing actual and potential human rights risks across operations and supply chains, taking appropriate action, and tracking effectiveness. The concept is rooted in the UN Guiding Principles on Business and Human Rights.
Why It Matters
Mandatory human rights due diligence legislation is spreading across jurisdictions, including the EU Corporate Sustainability Due Diligence Directive. Companies that fail to conduct HRDD face legal liability, reputational damage, and supply chain disruptions.
Related Terms
Ethical Supply Chain
An ethical supply chain is one in which all participants – from raw material suppliers to final distributors – operate in compliance with environmental, social, and governance standards. This includes fair labour practices, safe working conditions, environmental responsibility, and anti-corruption measures. Managing ethical supply chains requires ongoing due diligence, auditing, and supplier engagement.
UN Global Compact
The United Nations Global Compact is the world's largest corporate sustainability initiative, calling on companies to align their strategies and operations with ten universal principles on human rights, labour, environment, and anti-corruption. Participating companies commit to annual reporting on their progress (Communication on Progress). The initiative connects business with UN agencies, civil society, and governments.
DEI (Diversity, Equity & Inclusion)
Diversity, Equity, and Inclusion (DEI) is a framework for promoting the fair treatment, full participation, and equitable outcomes for all people within an organisation. Diversity refers to the representation of different identities; equity addresses systemic barriers to fair treatment; and inclusion ensures everyone feels valued and can contribute fully. DEI initiatives span recruitment, retention, leadership development, and organisational culture.
Living Wage
A living wage is the minimum income necessary for a worker to meet their basic needs, including food, housing, healthcare, and education, in the location where they live. It typically exceeds statutory minimum wages and is calculated based on local cost-of-living data. Paying a living wage is increasingly seen as a marker of responsible business practice.