Responsible contracting 
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A Primer

Responsible contracts make the commitment to HREDD between buyers and suppliers across the supply chain legally binding. They also facilitate the flow of information between the contracting parties and across the supply chain. Investors need to engage with their portfolio companies to ensure that they are using their contracts to support and not undermine effective HREDD processes. For HREDD to be effective, companies should move away from the traditional one-sided, strict compliance model of contracting toward a due diligence-aligned model that is dynamic, responsive, cooperation-based, and supported by responsible purchasing practices. 

To learn more about responsible contracts click through the topics below:

✦ What is HREDD? 

✦ ​Why are contracts important to HREDD? 

✦ Why are contracts important for promoting human rights in global supply chains?​

​✦ What does the RCP Toolkit include?​​

​✦ How is contracting relevant to HREDD?

​✦ Why should investors care  about contracts?

​​✦ Why is HREDD-alignment so important? 

Although contracts are widely used to manage supply chain risks, they are typically misused in managing human rights and environmental risks. All too often, companies use their contracts to shift risks and responsibilities onto their contract counterparties and other actors in their supply chains.