How Business Audits Are Transforming to Safeguard Human Rights in Supply Chains
Unveiling the Purpose Behind Sustainability Audits
Picture this: a consumer picks up a product, perhaps a box of fair-trade certified tea, with the satisfaction that it comes from a supply chain committed to sustainability. At first glance, these certifications suggest a supply chain free from human rights abuses. However, researchers Martin Zeitler and Jonas Schwarzkopf felt that there was a disconnect between the assurance these labels provide and the reality behind them. Their study, published in “Management Decision,” probes the mechanisms – specifically, auditing practices – that certify these supply chains as compliant with principles like the United Nations (UN) Guiding Principles on Business and Human Rights.
The interest of Zeitler and Schwarzkopf was piqued by this apparent paradox, inspiring them to investigate what sustainable auditing entails. Reviews of these auditing practices revealed that while audits are conducted, their alignment with substantive human rights standards may be lacking. This disconnect offers critical insights into the legitimacy, or perhaps the lack thereof, of these sustainability efforts.
The Quest for Legitimacy: What Audits Are Missing
Diving into the core of auditing practices, the researchers relied on legitimacy theory. This framework posits that for companies to be perceived as legitimate, their actions and claims must align with societal norms and values, such as upholding human rights. By dissecting audit protocols of selected initiatives, Zeitler and Schwarzkopf set out to determine how deeply integrated the UN Guiding Principles are within these processes.
What they found was eye-opening. Surprisingly, key areas like stakeholder engagement and effectiveness measurement were often overlooked. Audits provided little guidance on these fronts, and there was a distinct lack of rigorous impact assessments. The researchers argue that for corporate efforts to gain genuine legitimacy, they must go beyond mere formalities and integrate these essential elements into their auditing practices. Without substantive alignment with human rights standards, the legitimacy of sustainability initiatives remains tenuous at best.
Implications: Beyond the Surface of Certifications
The implications of Zeitler and Schwarzkopf’s findings are profound. By pointing out the gaps in auditing practices, they highlight the need for a paradigm shift in how supply chain audits are conducted. Auditing should not just fulfill a checklist but should create a framework that genuinely evaluates and ensures human rights adherence.
This study challenges both practitioners and scholars to delve deeper into the normative dimensions of supply chain management. The researchers emphasize that legitimacy is not just about adopting the appearance of alignment with human rights principles. It demands real, tangible changes in practices to reflect these values. This shift could redefine how businesses approach their supply chains, moving beyond surface-level commitments to fostering genuine accountability.
The Broader Context: A Call to Action
The revelations from this research come at a time when consumers are more socially conscious than ever. They expect more than just reassurances from companies – they demand transparency and accountability. In this era, where the demand for ethical business practices is growing, Zeitler and Schwarzkopf’s work insists that companies embark on a journey where human rights are not at the periphery but at the core of their operations.
The study invites readers to reflect on other ongoing conversations about environmental ethics, corporate responsibility, and regulatory reforms. It resonates with global movements pushing for greater corporate accountability and policy changes aimed at ensuring companies adhere not just to economic goals but to ethical standards as well.
The Road Ahead: Rethinking Supply Chain Narratives
Zeitler and Schwarzkopf’s study is a timely reminder that certification is not the endpoint but a part of an ongoing story of ethical business practices. As companies strive to meet increasing societal demands for ethical conduct, the struggles highlighted in this paper become more pertinent. Auditing practices need to evolve, adopting a more holistic approach that marries prescribed standards with actionable insights.
While their study acknowledges its limits, centering on a restricted sample of audit protocols, it opens the floor for further research into larger swaths of initiatives. This is just the beginning of unraveling complex narratives, urging us all to rethink how we approach human rights within the context of supply chains.
By addressing these compelling challenges head-on, the researchers have offered valuable insights and posed significant questions about our collective future. The call is for action, deeper inquiry, and ultimately, a reimagined framework for sustainability – one where human rights become an inextricable part of the supply chain lifeline.
Reference:
Zeitler, M., & Schwarzkopf, J. (2025). Assessing human rights due diligence in supply chains. Management Decision, 1-18.
