Many companies operate, or conduct business with partners, in challenging contexts1 that can pose significant human rights risks. This is especially true for large multinationals with complex supply chains, where the threat of modern slavery and human rights violations are a very real concern.
Adopted in 2011, the United Nations Guiding Principles on Business and Human Rights (UNGPs) establish a globally recognized framework for business and human rights. The UNGPs rest on three pillars: 1) the state’s duty to protect human rights; 2) corporate responsibility to respect human rights; and 3) ensuring access to remedy for those affected by adverse impacts.
Operational grievance mechanisms (OGMs) are formal channels to receive complaints from stakeholders affected by a company’s business activities. By fostering two-way dialogue with these stakeholders companies can resolve grievances swiftly and fairly. Establishing effective grievance mechanisms, aligned with international best practice, should be a cornerstone of any company’s strategy to uphold human rights within its operations and supply chains.
While there is no one-size-fits-all approach to building an effective grievance mechanism, all companies should consider a set of criteria when developing their OGM:
- Fit for purpose: OGMs work best when tailored to the operating context. This involves specifying how and where grievances can be lodged, whether through an individual, a form, or an online platform to encourage stakeholders to use the mechanism when needed.
- Clarity: Clearly defined grievance procedures outline how complaints will be handled. Transparently communicating the steps involved in investigating grievances assures stakeholders of the legitimacy of the process.
- Objectivity: All complaints must be investigated objectively and thoroughly. This requires appointing trained individuals who can handle investigations impartially, without bias.
- Timeliness: Promptly acknowledging and addressing complaints is essential to maintain stakeholder trust in the grievance process. This involves setting clear timelines and milestones to provide feedback on investigation outcomes and resolutions to complainants.
- Confidentiality: Ensuring confidentiality and respecting the privacy of the complainant are fundamental aspects to the grievance process. Stakeholders must be assured that their identities will not be disclosed without their consent, except where necessary for investigation purposes.
- Documentation: Keeping accurate records of all complaints is crucial for accountability. This also enables to companies to identify trends, hotspots of concern, and proactively mitigate recurrences.
In May 2024, the European Union formally adopted the Corporate Sustainability Due Diligence Directive (CSDDD), setting human rights standards for large companies operating within the EU. The legislation mandates companies to monitor, prevent, or remedy human rights damages throughout their operations and downstream and upstream value chains. Companies can be held liable for human rights violations they cause and will have to provide full compensation.
Context supports efforts to research, develop, and implement fit-for-purpose strategies unique to companies’ operating environment. If you’d to discuss your organization’s needs, please get in touch by e-mailing us at kyisin.aung@contextamerica.com
1 The UN Office of the High Commissioner for Human rights (OHCHR) defines challenging contexts as those with grave human rights situations due to conflict, political turmoil and/or systematic violations of human rights; those where national laws or regulations require businesses to take actions against internationally recognized rights; and those where states are not able to protect internally recognized rights.
