Guidance

The scope of this KPI includes company-level activities for manufacturers that sell beauty and personal care products in the United States. Company-level activities for products sold in other regions are not to be considered.


  • For B, the human rights policy must address the following issues:  child labor, compensation, discipline, discrimination, forced labor, freedom of association and right to collective bargaining, management systems for human resources, and working hours.
  • For D, risk assessments should use tools to determine if a country is low risk or high risk for rights violations.  The tool should measure the strength of a country's ability to govern and enforce laws, regulations, and internationally recognized principles.  This assessment may be a first party systematic review assessment, or external risk analyses tools may be utilized.  It must be conducted at least once per year.
  • The assessments and audits must be verifiable and must address freedom of association & collective bargaining, forced & child labor, fair income, and equality of opportunity & treatment, as outlined by the United National Global Compact or the International Labour Organization Declaration on Fundamental Principles and Rights at Work.  Other standards, certifications, and tools may also be applicable.  Where freedom of association & collective bargaining are restricted by law, employers can use other forms of non-union employee representation and relations to respect this aspect of workers' rights.  Audits must have been completed within 12 months of the completion date of this question.
  • For C and E, public reporting and third-party audits are valid for vertically integrated organizations.


Resources

Business Social Compliance Initiative Countries' Risk Classification:  This list classifies countries' risk of social injustice in an effort to assist companies in determining high and low risk for their sourcing and operations.


United Nations Global Compact Human Rights and Business Dilemmas Forum:  United Nations Global Compact Human Rights and Business Dilemmas Forum present an introduction to, analysis of, and business recommendations fo minimizing social sustainability risks in the supply chain.


Social Accountability International SA8000 Standard:  SA8000 is a human rights standard that can be used for audits of workplaces across industries.  It is based on principles developed by the United Nations Declaration on Human Rights and the Conventions of the International Labour Organization.


International Labour Organization Declaration on Fundamental Principles and Rights at Work:  This declaration outlines the universal rights of all workers regardless of citizenship status, gender, or the local level of economic development.


Definitions

Human rights incident:  An incident which violates the human rights of workers within the value chain.


Human rights:  Universal rights of all human beings as born free and equal in dignity and rights as described in the United Nations Universal Declaration of Human Rights.


Public disclosure:  voluntary corporate reporting, sustainability reporting programs, or reporting as part of regulatory compliance.


Risk assessment:  A systematic process to evaluate potential risks within an operation, system, or supply chain.  It can include an on-site audit by a second party or third party or a country risk classification analysis that judges the site risk due to prevailing conditions, controls, or other mitigating factors.


Third-party-audit:  An audit conducted by external, independent auditing organizations, such as those providing certification of conformity to a standard.