Taking stock in 2021 of the first decade of action around the UN Guiding Principles on Business and Human Rights, the global gold standard for responsible business conduct, the UN Working Group reflected that: “the rise of mandatory [due diligence] measures will undoubtedly accelerate both uptake and progress. At the same time, the experience of many decades has demonstrated that legal measures are essential but not sufficient to ensure business respect for human rights.” The conclusion that neither voluntary nor mandatory measures on their own are sufficient was reflected in the framing of the 2024 UN Forum on Business and Human Rights, advocating for a “smart mix of solutions” to tackle business-related human rights abuses. 

Sustainability standards have been around for two decades and are one of the most widely used voluntary tools for driving sustainable and responsible business conduct. Evidence supports the positive impact that robust sustainability systems have on workers and communities affected by business operations, with notable improvements in labour conditions, health and safety standards or wages. On workers’ rights, most schemes within the ISEAL community have minimum criteria that reference the ILO’s Fundamental Principles and Rights at Work, but many go further in their requirements and action to protect workers’ rights. In addition, several ISEAL members are at the forefront of the movement towards delivering living wages to workers, demonstrated in part by their involvement in the Global Living Wage Coalition, a pre-competitive platform for living wage action. Given the link between worker rights’ violations and low wages (LeBaron 2021), voluntary systems that set living wage requirements can address one of the root causes of these violations.

This is not to say that voluntary systems such as standards are perfect solutions or that they may guarantee the absence of violations in complex and evolving supply chains. To tackle systemic issues and improve their effectiveness, systems are reviewing their risk assessment and assurance approaches to better identify, monitor, and address potential rights abuses in their supply chains. Many schemes are piloting innovative approaches to go beyond traditional audit mechanisms and strengthen worker-voice through meaningful engagement. They innovate on new ways to identify forced labour risks through new methodologies and community-based approaches. 

When rightsholders are negatively affected by business conduct, the UNGPs also mandate a strong role for multi-stakeholder initiatives like sustainability systems to play a role in remediation. Some schemes implement scheme-wide grievance mechanisms, and others are involved in the provision of substantive remedy, responding beyond a compliance assessment to support the effective access to remedy for affected rights-holders. 

Sustainability systems such as sector roundtables and partnerships that link suppliers and producers to brands, retailers and consumers provide the enabling environment for the systemic change needed to holistically progress on human rights. This is critical considering that rights violations, which may occur at any single point in the supply chain, are the result of decisions taken by many actors along the entire chain. 

While mandatory due diligence by businesses can improve adherence to core labour rights, sustainability standards can help businesses think beyond legal compliance and go further to address the root causes of rights.

ISEAL’s programmatic work in this area is possible thanks to funding and support from our partners and donors. Our work on human rights and decent work has been funded with support from SECO, CGIAR & The Alliance of Bioversity International and CIAT, the Ministry of Foreign Affairs of the Netherlands (Minbuza), Walmart Foundation, and Ford Foundation. We are seeking funding for future activities, with notable interest in the following areas: gender equality; assurance in social issues; access to and provision of remedy.