2020 is off to a great start for those of you who already work systematically with supply chain monitoring. On November 28, the Norwegian government was presented with a draft of a new law, "Proposal for a law on companies' transparency about supply chains, duty of knowledge and due diligence". With a law like this, we will have a fairer playing field - it will pay to take responsibility. The result is a clear competitive advantage for responsible companies.
But what does the draft law say? And what does it mean for you as a business?
You should know your supply chain. The short summary is that you should know. A duty of knowledge and information is imposed on all businesses. It becomes mandatory by law to be aware of significant risks of negative impacts on fundamental human rights, also in your supply chain.
The law focuses on human rights and covers forced labor and other forms of slavery-like work, child labor, discrimination and lack of labor rights. Larger companies are subject to so-called due diligence assessments. There are good reasons for this. Unfortunately, violations of fundamental human rights are all too common throughout our supply chains, and we have the opportunity to influence this by setting requirements and following them up.
"Far too many goods sold in Norwegian stores are produced under poor working conditions. Living wages, lack of health, safety and environmental measures, indecent working hours and child labor are among the global challenges. Forced labor and other slavery-like work is also widespread. We must fight this type of modern slavery."
Minister for Consumer Affairs Kjell Ingolf Ropstad
Read more about the committee's work and recommendations here.
The bill does not stand alone
The Norwegian bill is part of a general development. Today, it is common for customers to make demands on suppliers regarding responsible procurement. Ethical guidelines, risk assessments and follow-up are commonplace for many. For companies that already work systematically with responsible sourcing, this will not be something that tips the balance.
Do you want to know more?
While the UN Global Compact and the OECD's guidelines(read more about them here) for responsible business conduct form a common international framework, there are several countries that also choose to legislate specifically on human rights.
National human rights laws
Public Procurement Act 2017 (Norway) - find the law here.
The Modern Slavery Act 2015 (UK) - follow this link.
Duty of Vigilance 2017 (France) - find an introduction to the law here.
Child Labor Due Diligence Law (Netherlands) - learn more about the law here.
Examples of requirements in public procurement
Norway: Suppliers of products and services shall have appropriate procedures to promote respect for fundamental human rights where there is a risk of violation. Read the guidance here.
