UN Guiding Principles on Business and Human Rights

Although they are not legally binding, the UNGPs have significantly influenced national and regional legislation, such as Germany’s Supply Chain Due Diligence Act (LkSG), France’s Duty of Vigilance Law, and the EU Corporate Sustainability Due Diligence Directive (CSDDD). These laws have integrated key elements of the UNGPs, particularly human rights due diligence (HRDD) requirements, reinforcing corporate accountability on a global scale.

Objectives of the UN Guiding Principles

The UNGPs aim to promote a socially sustainable global economy, rooted in the broader “Protect, Respect, and Remedy” framework established by the United Nations. They critically assess the limitations of traditional risk management approaches and advocate for standardized human rights due diligence practices across industries and regulatory environments.

In response to global governance challenges, the UNGPs seek to establish mechanisms for corporate accountability, emphasizing the role of businesses in human rights protection—particularly in global supply chains, where many human rights violations occur. The principles clarify the extent to which private entities (such as corporations) are responsible for upholding human rights and outline practical steps for fulfilling these responsibilities. Additionally, they highlight the importance of effective remedy mechanisms when human rights violations occur.

“Protect, Respect, and Remedy”: The Three Pillars of the UNGPs

The UNGPs are structured around three core pillars, defining the responsibilities of both states and businesses in ensuring respect for human rights in business operations. The principles encourage businesses to communicate their compliance with these pillars while urging states to promote and enforce transparency in corporate human rights practices.

Protect (Pillar 1)

States have the duty to set clear expectations for companies through laws, policies, and regulations designed to prevent, investigate, penalize, and provide remedies for human rights abuses. This includes ensuring corporate accountability and enforcing compliance with human rights due diligence laws.

Respect (Pillar 2)

Businesses have a responsibility to identify, prevent, and mitigate their human rights impacts. This includes:

• Establishing clear human rights policies
• Conducting continuous human rights due diligence (HRDD)
• Engaging with stakeholders and ensuring remediation mechanisms for adverse impacts

Remedy (Pillar 3)

Effective judicial and non-judicial grievance mechanisms must be available for victims of human rights violations. These mechanisms should ensure legitimacy, accessibility, predictability, fairness, transparency, and alignment with human rights standards.

Enforcement of Businesses’ Human Rights Responsibilities

The UNGPs clearly distinguish between the roles of states and businesses in human rights protection and remediation.

• State Responsibilities: As the primary duty-bearers in international human rights law, states must prevent corporate human rights violations through legal frameworks, enforcement mechanisms, and access to justice. This includes promoting the rule of law, ensuring equality before the law, and fostering legal certainty.
• Business Responsibilities: Businesses must align with globally recognized human rights standards as part of their legal and ethical responsibilities. Corporate economic activities can either safeguard or violate human rights, making business responsibility essential to sustainable development.

Responsibility for Enforcing Corporate Accountability

The UNGPs recommend that states enforce human rights compliance beyond their own territories when a legitimate link exists—for example, when a corporation domiciled or incorporated in a state commits human rights violations abroad.

Although legal enforcement beyond national borders is not mandatory, it has become a defining feature of global supply chain regulations. Many countries have adopted laws that hold companies accountable for human rights abuses beyond national borders, including:

• France’s Duty of Vigilance Law (2017) – Requires large French companies to assess and mitigate human rights risks in their global supply chains.
• Germany’s Supply Chain Due Diligence Act (LkSG) (2023) – Mandates human rights due diligence in their supply chains.
• USA Uyghur Forced Labour Prevention Act (UFLPA) (2021) – Prohibits imports linked to forced labor in Xinjiang, China.
• EU Corporate Sustainability Due Diligence Directive (CSDDD) (2024) – Expected to set a mandatory EU-wide corporate due diligence framework.

Conclusion

While the UNGPs themselves are non-binding, their influence on binding national and international regulations continues to grow, shaping the evolving legal landscape of corporate accountability and supply chain transparency worldwide. As businesses navigate these responsibilities, adherence to the UNGPs not only mitigates legal and reputational risks but also strengthens corporate sustainability and ethical business practices on a global scale.