business, it also helps a company uncover where rights-related risks to the business are likely to be found. Certain risks to human rights can be integral to what a company does, where it works, how it is structured and the way it makes decisions. The board should periodically review these high-level risks. Examples include: Business model risks: for example, companies that rely on bringing cheap products to market with narrow profit margins for suppliers, on being fastest to market, or on highly seasonal production, may incentivise suppliers to pay their workers below the living wage, require excessive overtime, and cut corners on safety. Business relationship risks: for example, a company in a joint venture with a government that has a poor human rights record may find that its licence to land or mineral rights is awarded without due process and consultations with local communities, or that police or military suppress community opposition. Operating context risks: for example, a company working in regions with high levels of conflict, corruption or weak rule of law is likely to face increased risk of involvement with human rights abuses, which arise more easily and are less likely to be remedied in these contexts. Workforce risks: for example, a company with a significant proportion of low-skilled migrant labour in its workforce or supply chain, or which encourages the use of workers on contract from a third-party employer, may find that these workers lack full legal protection, freedom of association rights and access to remedy, and also face exploitative working conditions.
business, it also helps a company uncover where rights-related risks to the business are likely to be found. Certain risks to human rights can be integral to what a company does, where it works, how it is structured and the way it makes decisions. The board should periodically review these high-level risks. Examples include: Business model risks: for example, companies that rely on bringing cheap products to market with narrow profit margins for suppliers, on being fastest to market, or on highly seasonal production, may incentivise suppliers to pay their workers below the living wage, require excessive overtime, and cut corners on safety. Business relationship risks: for example, a company in a joint venture with a government that has a poor human rights record may find that its licence to land or mineral rights is awarded without due process and consultations with local communities, or that police or military suppress community opposition. Operating context risks: for example, a company working in regions with high levels of conflict, corruption or weak rule of law is likely to face increased risk of involvement with human rights abuses, which arise more easily and are less likely to be remedied in these contexts. Workforce risks: for example, a company with a significant proportion of low-skilled migrant labour in its workforce or supply chain, or which encourages the use of workers on contract from a third-party employer, may find that these workers lack full legal protection, freedom of association rights and access to remedy, and also face exploitative working conditions.