Responsible business conduct

Responsible business conduct, or RBC, includes promoting workers’ rights and safe working conditions, preventing human trafficking, and addressing other human rights-related risks. As the largest purchaser in the world, the U.S. Government has the potential to raise RBC standards globally by incorporating human rights into federal procurement processes. This module provides a framework for how best practices and resources for responsible business conduct can be incorporated within procurements. It is especially important for contracts with a higher risk for adverse impacts on human rights — risk factors discussed below:

FAR Part 22 — Application of Labor Laws to Government Acquisitions sets forth general policies regarding contractor labor relations and prescribes contracting policy and procedures and contract clauses for implementing pertinent labor laws.
FAR Subpart 22.15 — Prohibition of Acquisition of Products Produced by Forced or Indentured Child Labor sets forth regulatory guidance for the identification of products that the Departments of Labor, Treasury, and State have a reasonable basis to believe might have been mined, produced, or manufactured by forced or indentured child labor. See Federal Register Notice “Federal Acquisition Regulation; Prohibition of Acquisition of Products Produced by Forced or Indentured Child Labor”. The U.S. Department of State’s Fact Sheet “Strengthening Protections Against Trafficking in Persons in Public Procurement” provides additional guidance.
FAR Subpart 22.17 — Combating Trafficking in Persons sets forth regulatory guidance to implement the improved safeguards called for by Title XVII of the NDAA for FY 2013, Ending Trafficking in Government Contracting, and Executive Order 13627, Strengthening Protections Against Trafficking In Persons In Federal Contracts. These safeguards include:
- A number of express prohibitions on certain types of trafficking related activities (for example, prohibition on charging employees recruitment fees; destroying, concealing, confiscating or otherwise denying access to identity or immigration documents)
- Risk management practices (for example, an employee awareness program, a recruitment and wage plan, a housing plan)

See Federal Register Notice “FAR; Ending Trafficking in Persons”. OMB Memorandum M-20-01 [PDF] of 21 October 2019, Anti-Trafficking Risk Management Best Practices & Mitigation Considerations provides additional guidance.

On procurements that entail sourcing products and services from a foreign country, we recommend reviewing the below steps for practices to promote responsible business conduct.

Pre-award best practices

To understand how human rights have been addressed on previous procurements, see case studies tab.

This sample solicitation and contract language may be used as a starting point for addressing common risks associated with responsible business conduct. While the sample language represents one potential approach, other language or equivalent certifications may be used to address these risks. It is important to tailor the goals and requirements to each individual acquisition.

Step 1: Identify risks

Consider risks by sector

Depending on the sector, certain human rights are at higher risk than others. The chart below identifies resources that can be consulted to determine whether and what risks may exist in specific sectors for procurements. This chart is intended to be illustrative, not comprehensive or authoritative. This chart is not a substitute for market research specific to your procurement. The abbreviations are spelled out in a key below the chart.

High risk sector	Trafficking in persons (includes forced labor)	Child labor	Other labor issues (discrimination, wages and hours, safety and health)	Freedom of association and collective bargaining	Land tenure	Security	Privacy
Agriculture, like cattle, cocoa, coffee, cotton, fish, rice, sugarcane, tobacco, tropical fruit	DOL and VERITE	DOL and VERITE	DIFI and IFC 2	ILO	IFC 5	ICoC
Construction materials, like bricks	DOL and VERITE	DOL and VERITE	DIFI and ILO 2	ILO	IFC 5
Construction services*	VERITE	VERITE	IFC 2	ILO		ICoC
Electronics	DOL and VERITE	DOL and VERITE	DIFI	ILO and SOMO	IFC 5
Extractives, like oil, gas, mining*	DOL and VERITE	DOL and VERITE	IFC 2	ILO	IFC 5	ICoC and VP
Fishing and aquaculture	DOL and VERITE	DOL and VERITE	IFC 2	ILO	IFC 5
Forestry	DOL and VERITE	DOL and VERITE	IFC 2	ILO	IFC 5
Furniture	DOL	DOL	IFC 2	ILO	IFC 5
Healthcare	VERITE	VERITE	DIFI and IFC 2	ILO	IFC 5
Hospitality	VERITE	VERITE	ILO and IFC 2	ILO	IFC 5
Housekeeping and facilities operations*	VERITE	VERITE	ILO and IFC 2	ILO	IFC 5
Internet and telecommunications							GNI
Security services*	VERITE	VERITE	ILO and IFC 2	ILO	IFC 5	BHR
Textiles, like carpet, footwear, garments, workwear	DOL and VERITE	DOL and VERITE	DIFI and IFC 2	ILO and SC	IFC 5
Transportation	VERITE	VERITE	ILO	ILO	IFC 5

*These sectors may have particular relevance to human rights risks in federal procurement.

Acronyms key

BHR — Business and Human Rights Resource Centre, Private Military and Security Companies
DIFI — Norwegian Agency for Public Management and eGovernment (DIFI), List of High Risk Goods
DOL — US Department of Labor, Bureau of International Labor Affairs’ List of Goods Produced by Child Labor or Forced Labor, Products Produced by Forced or Indentured Child Labor, and Findings on the Worst Forms of Child Labor. The List of Goods Produced by Child Labor or Forced Labor and the List of Products Produced by Forced or Indentured Child Labor are easily searchable by good/product and by country.
GNI — Global Network Initiative Principles on Freedom of Expression and Privacy
ICoC — International Code of Conduct for Private Security Service Providers
IFC 2 — International Finance Corporation Performance Standard 2: Labor and Working Conditions (2012)
IFC 5 — International Finance Corporation Performance Standard 5: Land Acquisition and Involuntary Resettlement (2012)
ILO — International Labor Organization Country Profile provides information on International Labor Standards (such as ratification information, reporting requirements, comments of the ILO’s supervisory bodies, etc.) organized by country.
ILO 2 — Global Dialogue Forum on Good Practices and Challenges in Promoting Decent Work in Construction and Infrastructure Projects
SC — Solidarity Center
SOMO — Freedom of Association in the Electronics Industry
VERITE — U.S. Department of State-funded report by Verite, Strengthening Protections Against Trafficking in Persons in Federal and Corporate Supply Chains
VP — Voluntary Principles on Security and Human Rights

Consider risks by country

Human rights risks vary not only by sector, but by country. When sourcing from a foreign country, the following resources can help you identify country specific risks.

Consider a human rights procurement assessment

Determine priority issues on which to engage:

Entrepreneur association MVO Nederland’s Corporate Social Responsibility (CSR) Risk Check enables purchasers to search possible CSR risks by product and country and provides guidance and best practices.
Shift’s Business Model Red Flags enables users to filter 24 red flags by sector or industry and provides questions for businesses, mitigation examples and other tools and resources.

Step 2: Notify contractors of risks

If there is a high risk for adverse impacts on human rights, consider using the solicitation to alert contractors to potential human rights impacts related to their supply of goods or services. Also, consider using the solicitation to encourage the contractor to publicly disclose policies and procedures that minimize adverse impacts on human rights. A useful tool that assists companies in developing such disclosures is the United Nations Guiding Principles on Business and Human Rights Reporting Framework. Informing the contractor about these risks and encouraging transparent reporting will help minimize risks to your organization from these practices and let contractors know you are interested in avoiding these impacts.

Step 3: Consider contract requirements

Depending on the risks your market research reveals and the dollar value and complexity of the procurement, consider requiring contractors to implement one or more of the following practices. Such requirements should be narrowly tailored to address the specific risks you have identified.

Organization publicly discloses the names and locations of the factories, farms, mines, and/or other suppliers from which it and/or its suppliers source.
Publicly disclose human rights policies and procedures using the United Nations Guiding Principles on Business and Human Rights Reporting Framework, or other tools (for example, on company’s website).
Comply with a code of conduct that includes International Labor Organization core labor standards and domestic law on wages, hours of work and safe working conditions.
Notify subcontractors and vendors of human rights risks related to the supply of goods or services, and demonstrate this notification to the contracting officer.
Be a member of and/or implement principles in a relevant initiative, guideline, or standard. See business resources tab
Implement a risk-mitigation plan to prevent human rights abuses.
Provide a grievance process and remedies for workers or communities if human rights violations occur.
Cooperate with credible auditing or monitoring programs that incorporate feedback from affected workers and communities.

Step 4: Consider incorporating sample contract language

General language

“This procurement is known to have associated human rights risks relating to X. For additional information about these potential impacts, see Y website or resource.”
“As a condition of this contract, X contractor is required to publicly disclose relevant human rights policies and procedures on X’s website.”
“As a condition of this contract, X contractor is required to publicly disclose the names and locations of the factories used to provide Y good”
“As a condition of this contract, X contractor is required to provide a risk-mitigation plan to minimize adverse impacts on human rights that could be linked to supply of the goods or services.”

Textiles (e.g., carpet, footwear, garments)

“Any apparel provided under this contract must be supplied by a member of the Sustainable Apparel Coalition.”
“Any rugs provided under this contract must be GoodWeave certified.”

Electronics

“Any electronics (IT Hardware, IT Software, Monitors, Cell Phones) provided under this contract must be supplied by a member of the Responsible Business Alliance (RBA). In addition, any contractor or subcontractor providing information and communications technology products under this contract is encouraged to join the Global Network Initiative.”

Food (such as cocoa, coffee, rice, sugarcane, fruit)

“Any beans, coffee, grains, sugar, or tea provided under this contract must be Fair Trade certified.”
“Any seafood provided under this contract must be Marine Stewardship Council certified.”
“Any applicable fruits and vegetables provided under this contract must be supplied by a Participating Grower in the Fair Food Program.”

Security services

“The contractor must be a member of the International Code of Conduct for Private Security Service Providers (ICoCA).”

Healthcare

“Due to the potential for surgical instruments to be sourced or manufactured in locations with a record of human rights violations, the contractor is required to provide yes or no answers to the following questions within 30 days after award of the contract:

Does the contractor have a policy designed to minimize adverse impacts on human rights?
Are applicable subcontractors assessed by the contractor based on their avoidance of impacts to human rights?
Does the contractor place requirements on subcontractors in terms of avoiding impacts to human rights?”

Forestry

“Any wood or forestry products (like paper, packaging) provided under this contract must be {insert a forestry certification addressing corporate social responsibility} certified.”

For questions on procurements with a high risk for adverse impacts on human rights or labor rights, you may contact: HRProcurement@state.gov.

Post-award best practices

Step 1: Share resources with contractor

Share appropriate resources or tools with the contractor that may assist them with conducting business responsibly and developing their organizational policies. Examples include:

International guidelines: The OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights assists contractors with aligning their organizational policies with international guidelines.
Identifying organizational risks:
- Human Rights Compliance Assessment Quick Check: This tool is designed to assist organizations with identifying potential human rights violations.
- International Trade Centre Standards Map provides information on standards, codes of conduct, audit protocols addressing hotspots in global supply chains.
- Responsible Sourcing Tool: This tool assists contractors with understanding the risks of human trafficking in supply chains and implement effective management systems to detect, prevent, and combat trafficking.
Improving organizational performance:
- Social Compliance System: This U.S. Department of Labor online resource provides step-by-step guidance to businesses that seek to develop and improve social compliance systems to address child labor and forced labor in supply chains.
- Business and Human Rights Resource Centre: This website provides comprehensive information on global business and human rights.
- OECD Good Practice Guidance on Internal Controls, Ethics, and Compliance: This international publication is designed to assist firms in complying with anti-corruption laws.
- Investment Climate Statements: This U.S. Department of State website provides annual country reports on investment climate, including labor rights and corporate social responsibility.
- Purchasers Guide for Addressing Labor and Human Rights Impacts in IT Procurements: This guidance assists purchasers with addressing labor and human rights impacts on IT procurements.
Benchmarking organizational performance:
- Global Reporting Initiative: This international organization assists businesses, governments, and organizations with understanding and communicating issues such as human rights.
- UL SPOT: This database allows users to search for products meeting environmental criteria and supplied by organizations having practices in place to prevent and address corporate social responsibility concerns.
- United Nations Guiding Principles on Business and Human Rights Reporting Framework: This framework enables companies to report on their human rights performance.
- United Nations Guiding Principles Reporting Database: This database shows what companies are saying about how they implement the UN Guiding Principles.
Multi-Stakeholder Initiatives: Company membership in a relevant Multi-Stakeholder Initiative assists in publicly demonstrating implementation of the applicable principles.

Sector	Multi-stakeholder initiative
Food (like cocoa, coffee, rice, sugarcane, fruit)	Fair Food Standards Council Fair Labor Association — FLA Marine Stewardship Council
Textiles (like carpet, footwear, garments)	Cascale, formerly Sustainable Apparel Coalition Fair Labor Association — FLA GoodWeave
Electronics	Responsible Business Alliance, formerly Electronic Industry Citizenship Coalition Fair Labor Association — FLA
Extractives (like oil, gas, mining)	Voluntary Principles on Security and Human Rights — VPs Extractives Industry Transparency Initiative — EITI
Internet and telecommunications	Global Network Initiative — GNI
Security services	International Code of Conduct for Private Security Service Providers — ICoCA

Step 2: Validate contractor compliance

Validate that the contractor complies with any responsible business requirements in the contract.

Verification resources:
- Shift’s UNGPs Reporting Database includes disclosures of the world’s largest companies and how they compare to the expectations of the UN Guiding Principles or UNGPs.
- Leading Business & Human Rights (BHR) assessments, including Bank Track, Behind the Brands, Corporate Human Rights Benchmark, Know The Chain, Ranking Digital Rights, and Renewable Energy and Human Rights Benchmark, can help to assess companies’ performance on BHR.
- The Business & Human Rights Resource Centre tracks over 10,000 companies and the International Trade Union Confederation (ITUC) provides information on alleged violations of trade union rights.
Verification practices:
- If the contract requires contractor disclosure or submission of certain documents/items, verify that disclosure or submission is made.
- If the contract requires membership or certification from a particular organization or compliance with a particular organization’s Code, request confirmation of membership/certification from the contractor.
- Joining an independent monitoring organization can assist with verifying whether contract requirements are being properly implemented. Two examples are Electronics Watchand Workers Rights Consortium.
- Take reasonable steps to validate that the contractor complies with other responsible business contract requirements (for example, Federal Acquisition Regulation Clause 52.222-50, Combating Trafficking in Persons and 52.222-19, Child Labor—Cooperation with Authorities and Remedies on U.S. governments procurements).
- For examples of other verification practices that can be used across sectors, see Guidelines For A Better Construction Industry In The GCC [PDF].

Step 3: Remedy identified deficiencies, if applicable

Alert contractor to any identified deficiency and follow-up with contactor to ensure deficiency is corrected.
Work with similar organizations to identify if deficiency is part of a systemic problem and use combined purchasing power to increase leverage for correcting problem.
Encourage transparency about any deficiency and corrective actions taken so similar purchasing organizations and contractors can avoid that deficiency.

Business resources

Resources to help you ensure responsible business conduct for your project are listed below and can be found in the U.S. State Department’s Xinjiang Supply Chain Business Advisory and in Appendix A to the Burma Reporting Requirements [PDF - 74 KB]

Resources related to forced labor

U.S. Customs and Border Protection defines forced labor as all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer work or service voluntarily. To find out what imported goods are subject to a withhold release order or finding, check the CBP Withhold Release Orders and Findings List for information on any merchandise that may be subject to exclusion or seizure.

The Uyghur Forced Labor Prevention Act (UFLPA) establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States.

Verité offers a free introductory course on forced labor. This 15-minute interactive e-learning course provides a brief overview of international frameworks and identifies some of the risky business practices that can lead to forced labor in supply chains.

Case studies

Apparel and uniforms

The city of Madison, Wisconsin established a cooperative contract in consultation with Sweatfree Purchasing Consortium to address the human rights risks on their procurements for apparel and uniforms. Find out more at Uniform Management Program Cooperative Contract.

Coffee, poultry, and surgical instruments

Swedwatch provides three case studies detailing how human rights can be addressed for coffee, poultry, and surgical instrument procurements within their report, Agents For Change: How public procurers can influence labour conditions in global supply chains.

Employing persons with disabilities and combating illiteracy

The United Nations Environmental Programme provides eight illustrative case studies of procurements incorporating sustainable requirements in their report, The Impacts of Sustainable Public Procurement: Eight Illustrative Case Studies. The responsible business conduct considerations include participation of companies employing persons with disabilities in the French case (laser printer toner cartridges) and the fight against illiteracy in the Scotland case (consultancy and temporary staff services).

Freedom of association and worker safety

The Fair Labor Association provides a number of case studies illustrating how purchasers and companies can work with suppliers to ensure fair compensation, worker safety, and freedom of association when procuring products. Learn more at Strategic Projects.