USA – Supply chains

Section I: Responsible Business Conduct and Due Diligence
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The U.S. Government Expectation for Businesses on Human Rights Due Diligence

“The USG expects businesses to conduct HRDD throughout their value chains in line with internationally recognized standards set out in the UNGPs and the OECD Guidelines as well as in the International Labor Organization’s (ILO’s) Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (“MNE Declaration”). […] Building up from these standards and principles, businesses should implement sector-specific standards developed in collaboration with governments, civil society, labor unions, and businesses. Such standards should provide credible metrics that meaningfully measure progress on the impact of businesses on people across value chains.” (p.7-8)

Section II: Priority Areas of the National Action Plan on Responsible Business Conduct
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2. Priority Area (2) Strengthening Respect for Human Rights in Federal Procurement Policies and Processes: As the largest single purchaser of goods and services in the world with more than $700 billion in spending last year alone, the USG has unique leverage to protect human rights in federal supply chains. The United States has long had a policy of prohibiting government employees and contractor personnel from engaging in trafficking in persons and procuring products made with forced or indentured child labor. […]
   (p.11-12)

Section III: Additional National Action Plan Commitments
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Table 2: Procurement Commitments

“INL, in partnership with the OECD and under the GPS, will increase integrity in public supply chains by developing a best practice toolbox built on OECD standards for risk-based due diligence, public procurement, and integrity. This toolbox will bring together suppliers, public buyers, and integrity public officials in a trustworthy environment to define practical steps businesses and governments can take to increase integrity in supply chains.”

“The Senior Policy Operating Group’s Procurement & Supply Chains Committee will facilitate the production of a video informing workers of their rights under federal government contracts and subcontracts, with information about where and how to report violations.”

The Department of Health and Human Services will “work with industry partners, civil society, unions, individuals with lived experience, and other subject matter experts to develop and make available a suite of sector-specific tools, including online training, recommendations, model policies, and a resource portal, to prevent forced labor, human trafficking, and related practices in the supply chains (including purchased services) of U.S. health systems and public health institutions, pursuant to the Trafficking Victims Protection Act of 2000 (TVPA), as amended by the National Defense Authorization Act for Fiscal Year 2013, and Federal Acquisition Regulation Subparts 22.15 and 22.17.”

(p.20)

Table 3: Access to Remedy Commitments

The Bureau of International Labor Affairs will “fund a project to improve the implementation of worker-driven social compliance systems that promote fundamental labor rights and acceptable conditions of work, including the elimination of forced labor, in supply chains. Piloted in the Indonesian palm oil sector, this project will create or refine a model for social compliance systems that can be replicated in other countries and sectors to help ensure that workers have a say in securing for themselves fair working conditions. The duration of this project will be three years.” (p.23)

Table 4: Technology Commitments

The Department of State will “designate a labor and AI expert to increase engagement on the impact of AI throughout labor-related workstreams. The expert will consult with regional and functional teams on opportunities to increase attention to the impact of AI on internationally recognized labor rights, workplace safety, worker well-being, and labor rights issues arising within the AI value chain such as in data labeling and content moderation across multiple State workstreams.” (p.27)

Table 5: Workers’ Rights Commitments

The Department of State will “State will encourage high labor standards globally by promoting agreements and frameworks between businesses and worker organizations that ensure respect for labor rights. Through diplomacy, State will elevate and encourage social dialogue between businesses and labor organizations, including with independent and democratic trade unions, and promote highroad or best practices such as enforceable agreements between parties to safeguard rights and promote high labor standards in supply chains, sectors, or industries.”

The Bureau of International Labor Affairs will “launch an online RBC and Labor Rights Information Hub to communicate a clear point of view, expectations for RBC, and a whole-of government approach to labor rights throughout business operations and supply chains of U.S. companies. The RBC InfoHub will provide a central repository of USG agency guidance, tools, and resources to facilitate and incentivize adoption of effective corporate accountability models and practices relevant to labor rights outcomes in business supply chains as well as with U.S. government procurement and accountability officers to facilitate efforts to conduct due diligence.”

(p.32)

Table 6: Environment, Climate and Just Transitions Commitments

The International Development Finance Corporation will “update its ESPP by clarifying its clients’ responsibilities in assessing supply chains with high risks of child labor and forced labor, significant health and safety issues, or significant conversion of critical forest areas or critical natural habitat in order to promote due diligence. Through this update, clients will better understand DFC expectations with respect to identifying and managing risks in their supply chains, and DFC will be better positioned to assess supply chain risks to mitigate harm.”
(p.33)