What Is Human Rights Risk? Should My Company Be Concerned about It?

Human rights risk (HRR) is the risk to an individual or company that results from its own practices and those of its suppliers, partners, and supply chain—practices that do not respect the human rights of individuals and the communities they impact and interact with. HRR can manifest in legal, operational, and reputational costs for business. By operating in ways consistent with the United Nations Guiding Principles on Business and Human Rights, companies may avoid HRR. Drawing from the experience of noted companies, practical recommendations include: (1) educate employees, (2) develop tools, (3) build oversight, and (4) look for partners.