Human rights responsibility in procurement

A responsible company understands the human rights risks associated with different parts of its value chain, including procurement. A responsible company identifies the most important human rights risks related to its procurement and takes the measures available to it to minimise the risks. 

We help companies understand how to implement human rights responsibility in procurement and what kind of measures are sufficient to ensure human rights responsibility therein.

We also provide support for implementing human rights responsibility in public procurement.

Opiniojuris palvelut

Managing human rights risks in a company's procurement

Managing responsible procurement is often one of the most frequently discussed issues in companies. How well should a company understand and manage the human rights risks associated with its procurement? What concrete actions should a company take to act responsibly? 

When ensuring corporate human rights responsibility in procurement, it is important to consider the following questions:

  • Corporate human rights responsibility in procurement is also concretised through due diligence (HRDD) which is at the heart of implementing human rights responsibility. The obligation is specified in the UN Guiding Principles on Business and Human Rights.
  • Responsible procurement involves a company having sufficient knowledge of its supply chain (what kind of knowledge is sufficient depends on the extent of the chain, among other things) and the company identifying the most important human rights risks associated with its procurement. In addition, the company must act to reduce risks by using the leverage it has. Responsible procurement also involves responding to actual negative human rights impacts identified in the supply chain.
  • It is important for the parties to the procurement relationship to recognise the roles of the buyer and the seller in implementing responsibility. Each company is responsible for implementing human rights responsibility. The buyer must ensure, with appropriate and sufficient measures, that the procurement partners it uses act responsibly. Nowadays, cooperation and shared responsibility between companies are emphasised. The buyer's unilateral imposition and dictation of responsibility requirements on the seller is not considered responsible. Due diligence requires that the buyer must also take into account the size of the procurement partners: small procurement partners must not be set as strict requirements as large partners.
  • In ensuring corporate human rights responsibility in a company's procurement, it is essential to understand what is sufficient - how much the company must know about the human rights risks related to its procurement and monitor the implementation, and what kind of measures are sufficient and responsible to ensure human rights responsibility. This assessment is influenced by, among other things, the size and leverage of the company.