The Impact of enhanced corporate transparency

Human rights reporting by companies has become a hot topic in the business and human rights world, particularly with the passage of an EU Directive making it mandatory for certain large companies to report on their human rights impacts as part of their annual reporting. The Directive requires companies to provide a description of their human rights policy, the main human rights risks they face, including those arising from business relationships, how these risks are managed and the due diligence processes they employ to identify, prevent and mitigate adverse impacts. Corporate groups should disclose the relevant information on a group-wide basis. The Directive is yet to be implemented by EU member states, but some large corporate groups, such as Unilever, Nestle and Ericsson, who fall within the scope of the Directive, have taken a pro-active approach to human rights reporting and endorsed the UN Guiding Principles Reporting Framework.

By Dr. Anil Yilmaz Vastardis. You can follow Anil on twitter: @anil_yv.

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