EDITORIAL DUE DILIGENCE
Since the unanimous endorsement of the United Nations Guiding Principles on Business and Human Rights( UNGPs) by the UN Human Rights Council in 2011, a new era of socially responsible and sustainable business has taken shape and continues to build momentum. Under the UNGPs, all business enterprises have a responsibility to respect human rights, and the process of continuously conducting human rights due diligence( HRDD) is a core requirement for fulfilling that responsibility. HRDD has rapidly evolved from a voluntary approach to a legal obligation in multiple jurisdictions. For African businesses, this changing landscape offers both strategic opportunities and practical hurdles as they seek to integrate global Business & Human Rights( BHR) standards with domestic legal and operational contexts.
Human rights abuse often occurs in upstream or indirect supplier relationships, which can expose businesses to liability.
Global legislative developments
1
2
European Union( EU) initiatives
Over the past decade, several European countries have enacted or proposed mandatory HRDD legislation. France was among the first with its Duty of Vigilance Law, which requires large French companies to establish and implement HRDD plans. Germany followed with its Supply Chain Due Diligence Act, obliging in-scope companies to exercise human rights and environmental due diligence across their supply chains. The EU’ s proposed Corporate Sustainability Due Diligence Directive( CSDDD) aims to harmonise these requirements across member states. It will compel companies of certain sizes – both EU-based and non-EU-based with significant EU activities – to establish and maintain due diligence processes in relation to human rights and environmental impacts. Beyond the CSDDD, additional EU regulations mandate varying levels of HRDD in specific sectors and industries, including the EU Conflict Minerals Regulation, the EU Forced Labour Regulation, the EU Deforestation Regulation and the EU Battery Regulation. These are part of an ever-growing list of mandatory HRDD and supply chain due diligence instruments.
South Korea ' s proposed HRDD legislation
South Korea recently reintroduced the country ' s first corporate human rights and environmental due diligence legislation. Intended to hold in-scope companies accountable for adverse human rights impacts in their operations and supply chains, this legislation draws on European precedents and reflects a broader trend across Asia towards codifying HRDD obligations. It builds on growing regional discussions about corporate accountability for rights violations and environmental harm.
3
4
Norway ' s Transparency Act
In force since 1 July 2022, Norway’ s Transparency Act was one of the first mandatory HRDD laws to focus specifically on transparency and public accountability. It requires large companies domiciled or offering goods or services in Norway to conduct due diligence aligned with the OECD Guidelines for Multinational Enterprises and to publish an annual due diligence statement. The Act grants individuals the“ right to information”, enabling anyone to request details about how a company addresses adverse human rights and labour conditions in its supply chains. In 2024, the Norwegian Consumer Authority issued its first fine, NOK 450 000( ZAR796 002,75), for non-compliance with this provision. Although the fine was overturned on appeal, it served as a warning that non-compliance could carry tangible consequences. Ahead of the 2025 reporting deadline, companies are expected to ensure board-level sign-off and make their reports easily accessible to the public. Norway’ s model provides a useful benchmark as other jurisdictions consider similar frameworks combining due diligence with enforceable transparency obligations.
Other Asian and global developments Beyond South Korea, HRDD discussions have emerged in several Asian jurisdictions alongside increased scrutiny of supply chain practices – particularly in China – to address potential labour rights violations. These developments are often inspired by international precedents and highlight the globalisation of HRDD as a normative expectation rather than a purely Western construct.
SA PROFILE www. saprofilemagazine. co. za
65