Ready for the German National Action Plan
We help companies to pragmatically realize their human rights due diligence
We offer practical solutions for businesses to address human rights responsibilities. Our approach is tailored to the individual business context, and is compatible with the requirements of the German National Action Plan (NAP). At the core of our approach is a corporate human rights risk assessment, enabling businesses to define an adequate human rights strategy, and to adapt existing risk management systems. Five modules pave the way for a comprehensive human rights due diligence process.
What approach can realize the topic human rights in a business?
1. Workshop: Creating a common ground with regards to human rights due diligence of all business’ stakeholders – Content and scope of the challenge
2. Positioning: Declaration of corporate human rights principles and identification of desired situation
3. Commitment: Obtaining management endorsement for declaration
4. Approach: Laying out a corporate-specific road map for the development of an integrated human rights due diligence approach
These four steps create the basis to address human rights due diligence efficiently and effectively. They are the foundation for success in the long run.
How can violations and new risks be identified early enough?
1. Adaptation: Analysis and development of existing grievance and compensation mechanisms to align them with the declaration of principles, strategies and industry initiatives
2. Integration: Integrating mechanisms in corporate governance, processes and management systems for risk management
3. Implementation: Communication of mechanisms in own operations and to all relevant stakeholders in the supply chain
4. Change management: Training and coaching of people responsible, employees, business partners and stakeholders dealing with grievance and compensation mechanisms
These four steps conclude the human rights due diligence strategy and guarantee reliable access to the business in human rights due diligence questions.
2. Risk analysis
What human rights risks exist for a business?
1. Hotspot analysis: Identification of risks and hotspots in the entire value chain (own operations and supply chain!). Aided by Systain’s Corporate Human Rights Risk Assessment & a Business Context Analysis.
2. Evaluation: Conducting a materiality analysis of identified corporate risks to prioritize risks for course of action
3. In-depth analysis: Gaining an in-depth understanding of prioritized risks through on-site impact assessments
4. Workshops: Presentation of results for stakeholders (internal & external)
These four steps establish a unified, balanced and accepted prioritization of corporate human rights risks. They are the foundation for the development of a course of action.
What information must be reported for human rights due diligence?
1. Design: Selection of communication channels, formats, reporting types and frequency, and determining depth of communication
2. Integration: Integration in corporate governance, processes and management systems of corporate communication
3. Delivery: Creation of content in accordance with human rights due diligence strategy
4. Support: Monitor the feedback on communication, develop dialogue opportunities, and establish necessary steps for crisis communication
These four steps allow businesses to report transparently about their corporate human rights strategy and their activities ensuring human rights due diligence. It supports the development of strong and trusting stakeholder relations.
3. Action plan
How can corporate risks be avoided and reduced?
1. Planning: Development of measures for all identified and prioritized risks according to the corporate declaration of principles. Establishing goals/KPIs, milestones, responsibilities and budgets.
2. Organisation: Integration of action plan/risk management in policies, processes and management systems (controlling, compensation and reporting)
3. Change management: Training and coaching of people responsible, employees, business partners and stakeholder as part of implementation
These three steps establish the topic human rights due diligence permanently in the business. Each element, “foundation”, “risk analysis” and “action plan”, contributes to a tailored human rights due diligence strategy.
Report, Systain 2018:
Managing human rights in the global context
Report, Ministry of Foreign Affairs 2017:
National Action Plan for Business and Human Rights
Human Rights Due Diligence & Risk Assessment
Increasing pressure arises from new legislation and international standards regarding business and human rights (e.g. UK Modern Slavery Act, UN Guiding Principles on Business and Human Rights)
To respect human rights is part of being a responsible business and safeguarding reputation and relationships
Businesses need to identify and address human rights issues that are caused or contributed to by their operations and activities
Stakeholders and investors demand appropriate risk management and transparency