OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector PDF by OECD

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OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector
by OECD
OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector

Table of contents

Recommendation of the Council on the Due Diligence Guidance
for Responsible Supply Chains in the Garment and Footwear Sector ...................... 9
Terms used in the Guidance ......................................................................................... 13
Overview of the Guidance ............................................................................................ 17
Background ................................................................................................................. 17
Purpose of this Guidance............................................................................................. 17
Target audience ........................................................................................................... 17
Basis for this Guidance ............................................................................................... 19
Legal compliance ........................................................................................................ 19
Benefits ....................................................................................................................... 20
Structure of the Guidance ............................................................................................ 21
Introduction to due diligence under the OECD Guidelines and key concepts
for implementing due diligence .................................................................................... 23
Due Diligence under the OECD Guidelines ................................................................ 25
Meaningful stakeholder engagement .......................................................................... 27
Collaboration on due diligence ................................................................................... 28
Gender considerations when applying due diligence .................................................. 32

 
Section I
Core Due Diligence Guidance for the Garment and Footwear Sector
1. Embed responsible business conduct in enterprise policy
and management systems ........................................................................................ 37
2. Identify actual and potential harms in the enterprise’s own operations
and in its supply chain ............................................................................................. 46
3. Cease, prevent or mitigate harm in the enterprise’s own operations
and in its supply chain ............................................................................................. 68
4. Track ......................................................................................................................... 83
5. Communicate ........................................................................................................... 89
6. Provide for or co-operate in remediation when appropriate .............................. 93

 
Section II
Modules on sector risks
Module 1. Child labour ...............................................................................................105
Module 2. Sexual harassment and sexual and gender-based violence (SGBV)
in the workplace ........................................................................................116
Module 3. Forced labour ............................................................................................126
Module 4. Working time .............................................................................................134
Module 5. Occupational health and safety ................................................................138
Module 6. Trade unions and collective bargaining .................................................146
Module 7. Wages .........................................................................................................152
Introduction to environmental modules ....................................................................159
Module 8. Hazardous chemicals ................................................................................161
Module 9. Water ..........................................................................................................166
Module 10. Greenhouse gas emissions .........................................................................171
Module 11. Bribery and corruption.............................................................................176
Module 12. Responsible sourcing from homeworkers ...............................................184
Tables
1. Information to be collected and stored for the purposes
of conducting due diligence .................................................................................. 45
2. Sector risks in the garment and footwear sector .................................................... 48
3. Factors that may affect the nature and extent of due diligence ............................. 52
4. Factors that may affect the nature and extent of due diligence in relation
to supplier assessments ......................................................................................... 63
5. Factors that may affect the nature and extent of due diligence in relation
to understanding the operating context ................................................................. 65
6. Relationship to harm and appropriate action ......................................................... 66
7. Factors that may affect the nature and extent of due diligence in relation
to preventing and mitigating harm in the enterprise’s supply chain ...................... 81
8. Core criteria of operational-level grievance mechanisms
and example components ...................................................................................... 96
9. Risk factors for child labour in the garment and footwear sector ....................... 106
10. Sexual harassment and sexual and gender-based violence .................................. 118
11. Risk factors for forced labour in the garment and footwear sector ..................... 127
12. Description of anti-union policies and practices ................................................. 149
13. Example measures to reduce GHG missions and monitor improvements
at different stages of a product’s life cycle .......................................................... 173
14. External integrity risk factors .............................................................................. 178
15. Internal enterprise integrity risk factors .............................................................. 179
Boxes
1. Competition law and responsible business conduct .............................................. 31
2. Policy on subcontracting and other due diligence processes ................................. 39
3. Mechanisms to assess and address risks of harm beyond tier 2
(e.g. raw materials) ................................................................................................ 60
4. Prevent contribution to harm through responsible purchasing practices .............. 73
5. Implement control measures when sourcing indirectly ......................................... 76
6. Nature of due diligence in light of leverage .......................................................... 82
7. The role of the State to ensure access to effective remedy .................................... 94
8. Distinguishing between early warning systems and processes
to enable remediation ............................................................................................ 99
9. Organisation of multi-stakeholder grievance mechanisms .................................. 100
10. Discrimination and gender-based discrimination ................................................ 123
11. Factors that may drive excessive working hours at manufacturing ..................... 135
12. Recommendations for small-and-medium sized enterprises (SMEs) .................. 144
13. Protocol agreements ............................................................................................ 150
14. Identification of higher-risk sourcing countries .................................................. 157
15. Framework for preventing and mitigating human rights and labour abuses
when engaging homeworkers .............................................................................. 184

About the OECD Guidelines for Multinational Enterprises
The OECD Guidelines for Multinational Enterprises (OECD Guidelines) are one of four parts of the 1976 OECD Declaration and Decisions on International Investment and Multinational Enterprises (hereafter “the Declaration”). In the Declaration, Adherents recommend that multinational enterprises (MNEs) observe the principles and standards set out in the OECD Guidelines, which aim to ensure an open and transparent international investment environment and to encourage the positive contribution of MNEs to economic, environmental and social progress. There are currently 46 Adherents to the Declaration – all 35 OECD countries and 11 non-OECD countries. The OECD Guidelines have been revised several times, most recently in 2011. They are the most comprehensive set of government-backed recommendations on what constitutes responsible business conduct (RBC). They cover nine major areas of RBC: information disclosure, human rights, employment and industrial relations, environment, combating bribery and corruption, consumer interests, science and technology, competition and taxation. The recommendations set out in the OECD Guidelines are addressed from governments to MNEs operating in or from their territories.

Pursuant to the Decision of the Council on the OECD Guidelines for Multinational Enterprises, Adherents must set up a National Contact Point (NCP) to further the effectiveness of the OECD Guidelines by undertaking promotional activities, handling inquiries and contributing to the resolution of issues that arise relating to the implementation of the Guidelines in specific instances. The OECD Guidelines are the first international instrument to incorporate risk-based due diligence into major areas of business ethics related to adverse impacts.

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