The prevailing global purchasing practices model is built upon a power imbalance between global brands & retailers on the one hand, and suppliers & workers on the other, a disparity brought to light during the COVID-19 pandemic when apparel brands unilaterally canceled over $3 billion in orders, instantly jeopardizing millions of garment workers’ jobs. Similar impacts are expected as a result of shifting tariff regimes and global economic instability.
Our Theory of Change
The integration of responsible contracting principles (adapted from the Model Contract Clauses) into buyer and supplier contracts has the potential to transform supply chains by requiring shared responsibility for human rights into contract language.
The Business Case for Action
Current and emerging HREDD regimes will raise the bar for global corporate human rights due diligence expectations and already make clear that the risk-shifting common to traditional contracts will not support company compliance. Rather, the adoption of responsible contracting principles will give companies more and higher quality information about their supply chains, which will aid their preventative and remedial obligations under both HREDD and forced labor-related legislation.
Current Initiatives
Through a combination of dialogue and the filing shareholder resolutions, ICCR’s members are pressing companies to commit to implementing contractually enforceable obligations with their suppliers.
Our Impact
How ICCR is achieving meaningful gains for rights holders by encouraging responsible contracting.
The number of apparel & footwear brands pressed by investors to promptly pay suppliers for existing orders, with no punishment of suppliers for COVID-related delays.
Updated its Human Rights and Labor Policy to address human rights impacts associated with customer use of its products and services, including access to remedy.
has agreed to additional disclosures related to its supplier responsibility program with a goal of eliminating use of forced Uyghur labor in the company’s supply chain.