CHRB B.1.7.S1 Engaging and terminating business relationships
Does the company describe how human rights performance is taken into account in the identification and selection of potential business relationships, including suppliers/extractive business partners AND does the company describe how human rights performance is taken into account in decisions to renew, expand, or terminate business relationships, including with suppliers/extractive business partners?
About the data
This metric is from the Corporate Human Rights Benchmark (CHRB), part of the World Benchmarking Alliance (WBA), which has been assessing the human rights disclosures of some of the largest global companies since 2017. By ranking these companies on their policies, processes and practices, as well as how they respond to serious allegations, the CHRB aims to create a race to the top through which companies strive to fulfil their responsibility to respect the human rights of the individuals and communities that they impact.
Embedding respect for human rights in company culture and management systems
What do the UN Guiding Principles on Business and Human Rights expect?
The company’s statement(s) of commitment should be publicly available in prominent locations and communicated actively to workers, business relationships and others, including investors and stakeholders, so that they are aware of the company’s commitments and integrate the commitments into company culture.
The company should align the policies and procedures that govern its wider business activities and relationships with its responsibility to respect human rights.
Why is this important?
These steps of embedding policy commitments into company culture and broader management systems and reinforcing them with specific due diligence processes ensures that a company takes a systematic and proactive, rather than ad hoc or reactive approach, to respecting human rights.
Embedding respect for human rights in company culture and management systems
What do the UN Guiding Principles on Business and Human Rights expect?
The company’s statement(s) of commitment should be publicly available in prominent locations and communicated actively to workers, business relationships and others, including investors and stakeholders, so that they are aware of the company’s commitments and integrate the commitments into company culture.
The company should align the policies and procedures that govern its wider business activities and relationships with its responsibility to respect human rights.
Why is this important?
These steps of embedding policy commitments into company culture and broader management systems and reinforcing them with specific due diligence processes ensures that a company takes a systematic and proactive, rather than ad hoc or reactive approach, to respecting human rights.
Methodology
The benchmark uses publicly available information from the company’s website(s), its formal financial and non-financial reporting or other public documents, plus statements such as those related to its policy commitments. These could be codes of conduct, policies, values, guidelines, FAQs and other related documents. The CHRB also considers reports, such as annual, corporate social responsibility and sustainability reports, or human rights reports if these are available, or other reports written for other purposes if these contain information applicable to the CHRB indicators. Full methodology for each sector can be found here.
Scoring:
Most CHRB indicators operate using 'OR' and 'AND' rules. Where two or more requirements are separated by 'AND', companies being benchmarked are required to complete both or all of the options listed in order to obtain a full point but they can score half points if they meet at least one of the requirements. Where two or more requirements are separated by 'OR', companies being benchmarked are required to complete one of the options listed.
Scoring:
Most CHRB indicators operate using 'OR' and 'AND' rules. Where two or more requirements are separated by 'AND', companies being benchmarked are required to complete both or all of the options listed in order to obtain a full point but they can score half points if they meet at least one of the requirements. Where two or more requirements are separated by 'OR', companies being benchmarked are required to complete one of the options listed.
Value Type
Multi-Category
Options
HRs performance affects selection suppliers
HRs performance affects selection EX BPs
HRs performance affects continuation supplier relationships
HRs performance affects ongoing BPs relationships
None of the above
Research Policy
Designer Assessed
Report Type
Aggregate Data Report