What can Public Authorities do?
Companies’ behaviour is shaped by the business operating environment. Companies and buyers cannot be held solely responsible for realising human rights of those people that contributed to their supply chains. Governments in both purchasing and sourcing countries have a significant role to play in shaping the public policy environment in which businesses operate.
Who is responsible?
The respective responsibility of companies and governments is a huge area of debate. This section suggests areas in which a stronger government role is needed, both in changing existing public policy instruments as well as developing new instruments, both within their country and internationally. As part of the Responsible Purchasing Initiative’s on-going consultation we aim to stimulate discussion, and would be happy to hear what you think on any of these topics.
Competition Policy
Existing competition policies are designed to deal with problems when companies are competing against each other, such as a monopoly, which damage consumers’ interests. They do not tackle ‘buyer power’ which can cause purchasers to pass disproportionate risk onto their suppliers and can cause damage to vulnerable producers overseas. Please see EU retail – when is a market not a market for further information.
International Labour Organisation (ILO)
Most countries have signed and ratified the core ILO conventions but not all implement them. Exporting countries could be encouraged to raise awareness of ILO core conventions amongst workers and increase resources for their labour departments.
Corporate Responsibility and Reporting
There is a need to create a level playing field so that all companies are legally accountable for their impacts on human rights and the environment, so that those that chose to respect them are not undermined by their less responsible rivals. To help governments, investors and others to understand a company’s impact and to demonstrate company management understand their impacts, some countries have legislation requiring public reporting on supply chain issues.
Supply management – for sectors in oversupply
With the collapse of commodity prices there is a growing rationale for the EU to investigate supply management agreements. Supply management agreements could be developed market by market according to specific technical or political conditions.
Public Procurement in coherence with public policy commitments
EU member states could review their procurement of products originating in developing countries, in line with characteristics of responsible purchasing.