Boardroom Risk & Reputation

Business & Human Rights Risk

Every business bears a responsibility to uphold human rights. The repercussions of involvement in or association with human rights violations are severe, including reputational damage, financial ramifications, and potential legal consequences. Prudent management of human rights risks not only supports a sustainable business model but also has the potential to enhance commercial performance.

There is a growing demand from various stakeholders—including governments, consumers, employees, markets, and investors—for businesses to demonstrate respect for human rights. While adopting a responsible business model aligned with international standards is crucial, it's equally important to manage human rights considerations within the framework of legal requirements and associated risks.

The regulatory landscape is evolving rapidly, with increasing mandates for transparent reporting on human rights risk management and the implementation of due diligence measures. The prospect of civil or criminal litigation related to human rights issues against companies, their directors, and employees cannot be overlooked. Furthermore, businesses must be cognizant of risks not only stemming from their own actions or oversights but also from those of their business partners, including within supply chains.

Effective leadership, guided by a risk-based boardroom strategy, is paramount. Clifford Chance collaborates with some of the world's leading companies to establish robust governance frameworks around human rights and integrate them throughout the organization.

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