Companies which fail to check for infringements on human rights in their business and their suppliers are putting themselves at legal and reputational risk, according to a new report.
The study published on Monday from British Institute of International & Comparative Law (BIICL) and global law firm Norton Rose Fulbright found that almost half of major companies are not performing a due diligence assessment of potential human rights impact on their business or their supply chain.
Using online surveys, the study found only 51 percent of 152 companies were performing a dedicated assessment. Of these, 77 percent identified actual or potential human rights impacts and 72 percent found impacts linked to the activities of third party relationships.
According to the surveys, the two main incentives for those undertaking human rights due diligence was to avoid legal risks and protect the company's reputation.