Mandatory European approaches to human rights due diligence in Southeast Asian supply chains: embedding human rights in procurement and risk management practices across regional contexts and industries.

Details

Supervisors

Desmet, Carlos

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

With Southeast Asia playing a key role in global value chains and the spotlight on human rights risks in the region, mandatory Human Rights Due Diligence (mHRDD) legislation is very likely to have substantial repercussions for the operations of EU companies and their suppliers in Southeast Asia. Existing research on HRDD for the region is less mature and has a narrow scope. Broader literature and the HRDD process itself points to the need for locally adapted approaches to HRDD. This thesis examines how the various HRDD processes are organised and adapted in Southeast Asia, their advantages and limitations in improving outcomes for rightsowners, and procurement's key role in HRDD for local suppliers. The data was collected through semi structured interviews with HRDD process owners in 11 different companies sourcing or operating from Southeast Asian, and 7 HRDD-related practitioners based in Southeast Asia also involved in HRDD implementation for companies and local suppliers. The results highlighted four key obstacles: internal and external process silos, change communication, a lack of rightsholder input in the HRDD process and insufficient supplier development. Referencing other sustainability, management, procurement, cultural and historical studies, this thesis puts forth that instating HRDD process owners responsible for HRDD implementation in Southeast Asia, selecting local HRDD ecosystem actors, increasing investment in supplier development, formally integrating rightsholder consultation into HRDD process creation and building innovation into HRDD process owner job design may be the best ways to overcome these obstacles.