Malaysia- 1st- Small and medium enterprises (SMEs)

A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS IS ESSENTIAL TO MEET OUR HUMAN RIGHTS OBLIGATIONS

What is the risk of inaction?

“[…] Limited  suppliers  and  contracted  supply  chains: Supply chain management is inherently complex given that they are often deep and distributed, with nuances based on sector and location. A systemic shift away from standard industry practice requires clear and integrated directives to ensure that suppliers, especially Small and Medium Sized Enterprises (SMEs), are able to respond e¤ectivelyeffectively to new requirements. Failing to have a unified approach that supports SMEs to align with buyer demand risks reducing and concentrating the supplier pool, ultimately increasing the costs of production. These costs often end up being borne by customers.”

THEMATIC PRIORITY 1: GOVERNANCE

UNGP PILLAR 2

No.: G2.3

Action: Support under-resourced companies and SMEs in the company’s supply chain by providing training, capacity building and funding for them to comply with international human rights standards and good practices in governance-related human rights matters. Such support may include practical workshops, seminars and hands-on training on HREDD, ethical labour practices, children’s rights, environmental sustainability and corporate accountability. Companies should facilitate access to financing, grants and low-interest loans that can enable small businesses to invest in compliance measures, strengthen their human rights policies and implement sustainable business practices.