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                                INTERNATIONAL BUSINESS PAGES
law, which requires very large French
companies and other companies with
a substantial presence in France to
publish and implement a “vigilance
plan”and account for how they address
human rights impacts in their global op-
erations.
Enforcement
The responsibility and mechanisms for
enforcing legal compliance varies sub-
stantially across jurisdictions. Broadly
and across legislation, formal monitor-
ing and evaluation efforts are general-
ly limited and not all laws include an
active enforcement of the competent
authority. Non-governmental organisa-
tions often play a role in informal mon-
itoring on implementation by business-
es. There are a number of differences
on purpose, monitoring and enforce-
ment of legislation, but they can be
generally classified by type of penal-
ty.chains in the garment and footwear sector, business members pointed to policy
coherence on mandatory due diligence expectations as one of their top con-
cerns.
In addition to the above, where flexibility is not adequately integrated, legisla-
tion lead to derisking through disengagement from particular sourcing coun-
tries, by companies or to reporting a bare minimum in order to avoid legal
liabilities. The best means of monitoring and enforcing legislation also remains
a point of learning that requires further research.
Where mandatory due diligence is pursued, governments are encouraged to
consider the following good practice:
-Legislation builds on existing negotiated and government-backed interpreta-
tions of due diligence, including the OECD Due Diligence Guidance for Re-
sponsible Business Conduct and sector-specific guidance, where relevant.
-Legislation incorporates the overarching components of due diligence, in-
cluding that due diligence: is preventative; involves multiple processes and
objectives; is commensurate with risk (risk-based); can involve prioritisation
(risk-based); is dynamic; does not shift responsibilities; concerns interna-
tionally recognised standards of RBC; is appropriate to an enterprise’s cir-
cumstances; can be adapted to deal with the limitations of working with
business relationships; is informed by engagement with stakeholders and
involves ongoing communication.
-Legislation enables recognition of industry and multi-stakeholder collabora-
tion while also ensuring such collaboration is aligned with due diligence
expectations. Within this context, the OECD Alignment Assessment pro-
cess can support the recognition of industry and multistakeholder initiatives
and provide governments with a neutral evaluation of how initiatives incor-
porate and align with OECD due diligence guidance.
-Legislation seeks to align with existing regulatory requirements, to the ex-
tent possible, to support a level playing field for companies across jurisdic-
tions.Learnings
Supply chain transparency and due
diligence laws are a relatively recent
phenomenon, and in some cases are
still not in force, so their effectiveness
in driving overall impact has not yet
been evaluated in full. Nonetheless,
some preliminary lessons can be
gleaned. Some studies have found that
legislation has increased awareness
among businesses, notably senior
business leaders and in some cases
has catalysed action to prevent and
address risks, including through col-
laboration with stakeholders.
However, while regulations can be a
strong inducement for companies to
carry out due diligence, they can also
pose challenges in the area of imple-
mentation. The requirements of man-
datory due diligence legislation vary
across jurisdictions and therefore can
create various and divergent under-
standings of what due diligence means
in practice. Additionally, this can du-
plicate processes and increase the ad-
ministrative burden on companies. In
consultations on the 2020-2022
programme of work for the OECD’s
sector project on responsible supplyOECD Due Diligence Guidance for Responsible
Supply Chains in the Garment and Footwear
Sector
OECD (2019), The alignment of industry and multi-stakeholder programmes
with the OECD Garment and Footwear Guidance: Assessment of the Sus-
tainable Apparel Coalition
The OECD launched the OECD Due Diligence Guidance for Responsible Sup-
ply Chains in the Garment and Footwear Sector (the “OECD Garment Guid-
ance”) in 2017. The OECD Garment Guidance sets a common framework to
help companies carry out supply chain due diligence - to identify, prevent, mit-
igate and address adverse impacts in their own operations and their supply
chain. It has been approved by 48 governments and endorsed by business,
trade unions and civil society and seeks to be aligned with the UN Guiding
Principles on Business and Human Rights in relation to human rights due dili-
gence.
The OECD Garment Guidance establishes a six-step framework1 for identify-
ing and addressing risks in a company’s supply chain. It includes targeted
recommendations for applying this framework across 11 issues common to the
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