How to operate a robust sourcing programme to manage human rights risks, and why you should do it

Abstract

This paper focuses on the context in which labour rights violations are systemic in the global supply chains of food retailers. It outlines what the problems are, based on Oxfam’s experience and recent research. It discusses growing inequalities and highlights evidence that farmers and workers in supply chains that produce the food we eat are often unable to put food on the table for their own families. Women predominate in jobs that are more precarious, lower paid and lack effective representation. The paper outlines reasons for companies to act, highlighting the shortcomings of traditional compliance and audit approaches adequately to identify and mitigate risks. It explains why and how investors are scrutinising companies’ management of risks and opportunities associated with their workforce, including in the supply chain. And it alerts readers to a ratcheting up of legislation putting a duty on companies to take their responsibility to respect human rights in their operations and supply chain more seriously. Increasing awareness of social and human rights risks, opportunities and incentives can open new avenues to improve business effectiveness. Drawing on Oxfam’s experience of working with companies to address these challenges, the paper concludes with suggestions for the role of procurement professionals in ensuring good practice. It highlights the importance of understanding and support for these developments from C-suite and suggests ways that supply chain professionals can tackle these issues proactively.