Supply Chain Due Diligence (SCDD) is conducted by companies to minimise or even eliminate risks of being involved directly or indirectly in human rights violations. It is part of Human Rights Due Diligence (HRDD) requirement. Through their suppliers companies may be exposed to irresponsible business practices. Considering this, companies should be able to systematically formulate concise demand from their suppliers that they practice responsible business practices which respect human rights. Supplier Relationship Management (SRM) as management tool commonly assist companies to direct suppliers methodically in achieving their financial goals. This research attempts to repurpose SRM concepts to enable companies to conduct SCDD methodically. Defining human rights requirements into practical supplier’s evaluation system is a challenging task. Possible criteria and their indicators are discussed. The structure and processes to implement SRM framework for SCDD purposes are also described.:1. INTRODUCTION AND PROBLEM DESCRIPTION
2. INTENSIFICATION OF PURCHASING FUNCTION AND SUPPLIER
RELATIONSHIP MANAGEMENT FOR IMPROVED COOPERATION WITH
SUPPLIERS
2.1. Procurement and Purchasing Function in Integrative Supply Chain
Management
2.2. Supplier Relationship Management and Purchasing Function
2.2.1. Supplier Relationship Management Framework
2.2.2. Strategy Development
2.2.3. Supplier Observation
2.2.4. Supplier Selection
2.2.5. Classification of Suppliers and Performance Assessment
2.2.6. Cooperation and Collaborating with Suppliers
2.2.7. Development of Suppliers
2.2.8. Disturbance and Dissolution Management
3. RESPECT FOR HUMAN RIGHTS AND IMPLEMENTATION OF SUPPLY CHAIN
DUE DILIGENCE THROUGH IMPACT ASSESSMENT AND REPORTING
3.1. Relation between Business and Human Rights
3.2. Human Rights Due Diligence for Companies
3.2.1. Basic Concept of Human Rights Due Diligence
3.2.2. Relating Human Rights Due Diligence to Common Commercial Due
Diligence
3.2.3. Business Case for Human Rights Due Diligence from Legal and Other
Perspectives
3.3. Human Rights Due Diligence with Focus on Impact Assessment
3.3.1. Approaches and Guidelines to Conduct Human Rights Impact Assessment
3.3.2. Relevance of Human Rights Impact Assessment (HRIA) Approaches to
Practical Implementation within Procurement Activities
3.4. Human Rights Reporting
3.5. Supply Chain Due Diligence Activities as Instrument to Conduct Human Rights
Due Diligence
4. EVALUATION AND CLASSIFICATION OF SUPPLIERS’ PROSPECTIVE HUMAN RIGHTS PERFORMANCE AND HUMAN RIGHTS VIOLATION RISKS:
DETERMINING CRITERIA AND THEIR INDICATORS
4.1. Performance Evaluation and Indicators Development
4.2. Rationalization in Grouping Human Rights Performance Criteria into Three groups of Criteria and Weighing/Scaling/Calculation System
4.3. Sourcing and Regulation
4.3.1. General Standards and Regulations
4.3.2. Specific Product Standards and Requirements
4.3.3. Supplier’s Code of Conduct and Industry Initiatives
4.4. Political and Social Circumstances
4.4.1. Political Condition in Country of Supplier
4.4.2. Risks of Corruption
4.4.3. Social Circumstance and Civil Society
4.5. Suppliers’ Internal Condition
4.5.1. Supplier’s Human Rights Policy
4.5.2. Supplier’s Human Rights Record and Reputation
4.5.3. Supplier’s Corporate Governance and Political Connections
4.6. General Remarks on Groups of Performance Criteria and Framework for
Suppliers’ Classification
5. RESULTS INTERPRETATION OF SUPPLIERS’ CLASSIFICATION FOLLOWING
EVALUATION OF SUPPLIERS’ PROSPECTIVE HUMAN RIGHTS PERFORMANCE AND HUMAN RIGHTS VIOLATION RISK
5.1.
5.1.1. Understanding and Using the Assessment Framework
5.1.2. Determining Indicators’ Scaling Complexity, Weighing System and Cut-off
Points
5.1.3. Interaction Model of the Framework in Determining Overall Performance and
Classification of Suppliers
5.2. Suppliers with Low-Level of Prospective Human Rights Performance
5.3. Suppliers with Medium-Level of Prospective Human Rights Performance
5.4. Suppliers with High-Level of Prospective Human Rights Performance
6. INTRODUCING SUPPLIER RELATIONSHIP MANAGEMENT FRAMEWORK FOR SUPPLY CHAIN DUE DILIGENCE
6.1. Building the Supplier Relationship Management Framework for Supply Chain Due Diligence Framework: Laying Out the Foundation
6.2. Supply Chain Due Diligence Using an Approach of Supplier Relationship
Management: How to Implement the Framework
6.2.1. Purchasing Strategy Development
6.2.2. Observation of Potential Suppliers
6.2.3. Suppliers Selection
6.2.4. Performance Assessment and Classification of Suppliers
6.2.5. Disturbance and Dissolution Management
6.2.6. Cooperation and Collaboration with Suppliers
6.2.7. Development of Suppliers
7. CONCLUSION
REFERENCES
| Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:16113 |
| Date | 21 August 2017 |
| Creators | Panontongan, Inggrid |
| Contributors | Suchanek, Andreas, Suchanek, Andreas, Hausladen, Iris, HHL Leipzig Graduate School of Management |
| Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/publishedVersion, doc-type:doctoralThesis, info:eu-repo/semantics/doctoralThesis, doc-type:Text |
| Rights | info:eu-repo/semantics/openAccess |
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