The Human Rights Standards, Simplified

B Lab U.S. & Canada

August 27, 2025

A practical guide to HR1 – HR4 for businesses committed to dignity and due diligence

Every business touches human lives. The coffee shop sources beans from farms halfway around the world. The tech company relies on factories that employ thousands. The consulting firm shapes decisions that ripple through entire communities. In each of these connections lies both opportunity and risk: the chance to support human dignity or, inadvertently, to undermine it.

That’s the reality driving B Lab’s Human Rights Standard. These aren’t abstract principles or feel-good initiatives. They’re practical tools designed to help companies move beyond good intentions and into meaningful action, embedding human rights due diligence into the decisions business leaders make every day.

Rooted in the UN Guiding Principles on Business and Human Rights, these standards help you identify where your business poses the greatest risks to people, take concrete steps to prevent and address harm, and build operations that are both more ethical and more resilient.

The goal is both simple and urgent: improve outcomes for people who are suffering or at risk of harm because of how your company operates, what it produces, or whom it serves. This isn’t a one-and-done project. Just like financial reporting or quality control, human rights due diligence is an ongoing responsibility: something that should become as routine and systematic as any other critical business function.

If you’re ready for a clear, structured approach to getting started, this guide breaks down the four pillars that form the backbone of the Human Rights Standards. (Note that this overview is a simplified introduction; specific requirements can vary depending on your company’s size, sector, and industry. To understand how these standards apply to your own business, visit B Lab’s Standards page):

  • HR1: Make a public commitment to human rights
  • HR2: Identify your most salient human rights risks and build a strategy
  • HR3: Prevent, address, and repair harm
  • HR4: Partner with suppliers to meet human rights goals

Together, these pillars create the foundation for genuine accountability, reducing legal and reputational risk while building deeper trust with customers, employees, and the communities where you operate.

HR1: Make a Public Commitment to Human Rights

The first step is going on record—clearly, publicly, and without wiggle room. HR1 ensures companies align with international frameworks by making formal, accountable commitments to respect human rights.

HR1.1: Make a public commitment

Your company must issue a public statement that explicitly references three key frameworks:

Your statement should be easy to find on your website (not buried in a CSR report or tucked away in legal documents). If you operate in high-risk environments, you may need to adapt how you share this commitment for safety reasons; but the commitment itself remains non-negotiable.

Why this matters: A visible commitment builds external trust and signals internally that ethics and equity aren’t optional add-ons; they’re core to who you are as a company.

HR1.2: Publish a formal human rights policy

Beyond the public commitment, you need a human rights policy that:
  • Commits to respecting rights across your operations and value chains
  • Describes how you’ll assess risks and respond when harm occurs
  • References the same international frameworks as your public commitment
  • Has been reviewed and approved by your highest governing body (board of directors, executive team, etc.)

Why this matters: A policy transforms good intentions into accountability. It defines how rights will be protected and clarifies who’s responsible for doing the protecting.

Together, HR1.1 and HR1.2 establish the credibility foundation for everything that follows. A strong public stance, backed by formal governance approval, sends an unmistakable message to your team and stakeholders: human dignity is non-negotiable here.

HR2: Identify Your Most Salient Human Rights Risks, and Build a Strategy

Once you’ve made your commitment public, the next step is figuring out where harm is most likely to occur in your business. Not all risks are created equal. Some human rights issues are more “salient” than others, meaning they’re both severe in their potential impact and likely to actually happen. HR2 helps you focus on those critical risks and build targeted strategies to address them.

HR2.1: Identify your salient human rights issues

Meeting this requirement means conducting a thorough risk assessment that:
  • Combines desk research with stakeholder input (talking to workers, communities, suppliers, and experts)
  • Focuses on risks to people, not just risks to your business (though the two often overlap)
  • Identifies both actual harm that’s already happening and potential impacts that could occur
  • Maps where risks are most relevant (specific geographies, supply chain tiers, business units)
  • Prioritizes based on severity and likelihood, with severity getting more weight than probability
  • Gets refreshed at least once every three years

For example, a clothing company might identify low wages and forced overtime in supplier factories as salient issues, especially in regions with weak labor protections. A food company might focus on smallholder farmer income or land rights in the areas where key ingredients are sourced.

Why this matters: Effective action requires focus. Understanding your most serious risks helps you put resources where they’ll make the biggest difference.

HR2.2: Share what you find

Transparency is key. You must publicly disclose:
  • Your company’s identified salient human rights issues
  • The methodology you used to assess and prioritize them
Why this matters: Openness builds trust, invites accountability, and helps other companies learn from your approach.

HR2.3: Build a strategy to address salient issues

Based on your assessment, you need a strategy that:
  • Has been reviewed or approved within the past 12 months
  • Is backed by your highest governing body
  • Reflects how your company is connected to each issue (Do you cause it directly? Contribute to it? Or are you linked to it through business relationships?)
  • Includes measurable goals, clear indicators, stakeholder input, and assigned roles
Why this matters: A strategy turns insight into action. By assigning clear roles and setting measurable targets, you can drive real change across departments and supply chains.

HR2.4: Evaluate effectiveness, and make improvements

Regularly assess whether your strategy is actually working by:
  • Tracking performance against your targets
  • Documenting what you’ve learned
  • Making necessary adjustments
  • Sharing evaluation results with leadership
Why this matters: Human rights work is complex and constantly evolving. Regular evaluation helps you adapt to new insights and emerging risks.

HR2.5: Report progress publicly

You must publish an annual human rights progress report that includes:
  • Updates on your performance against targets
  • Lessons learned and how your strategy has evolved
  • Results from your internal evaluations
Why this matters: Public progress reports demonstrate that you’re serious about learning, adapting, and following through on your commitments.

HR2.6: Align internal policies with your salient issues

Create or update internal policies and procedures that explicitly address each of your salient human rights issues. Make sure these policies apply where the risk actually exists, whether that’s in your own operations or your supply chain.

HR2.7: Train the right people

Ensure that relevant employees receive training on how to implement your company’s policies and procedures related to your salient human rights issues.

HR2.1 through HR2.7 form a practical roadmap for turning human rights awareness into strategy, and strategy into measurable results. These requirements help you act where the risks are real, document your progress, and continuously improve in service of the people your business impacts.

HR3: Prevent, address, and repair harm

Identifying risks is just the beginning. HR3 ensures you act on what you’ve learned by putting robust systems in place to prevent harm before it happens, respond quickly when it does occur, and repair damage when prevention falls short. These standards form the operational backbone of ethical business conduct.

HR3.1: Establish systems to collect and escalate information

You need processes that:
  • Assign clear roles and responsibilities for gathering and acting on human rights information
  • Prioritize issues by severity and likelihood
  • Outline when and how to gather additional information or consult stakeholders
  • Include internal “triggers” that prompt reassessment of risks or responses
Why this matters: High-performing evaluation systems don’t just collect information; they ensure the right people see it and take action. Well-designed escalation processes help you surface serious risks before they cause lasting harm.

HR3.2: Take action to prevent, address, and repair harm

You must address both actual harm (already happening) and potential harm (could happen) by:
  • Preventing and reducing impacts before they occur
  • Providing remediation when harm has already happened
  • Considering your role in the harm (Do you cause it, contribute to it, or are you linked to it through business relationships?)
  • Involving affected stakeholders in your response efforts
Why this matters: Action is the ultimate test of commitment. How you respond to harm speaks louder than any policy document.

HR3.3: Evaluate and strengthen your response

Beyond taking initial action, track and improve the effectiveness of your human rights responses over time by:
  • Monitoring whether your responses are actually working
  • Capturing lessons learned
  • Making adjustments based on what you discover
Why this matters: Risks evolve constantly. Your response systems should evolve with them.

HR3.4: Assess risk in new client relationships and projects

Before taking on new organizational clients or projects, you must:
  • Conduct documented risk assessments
  • Outline specific steps to reduce identified risks
  • Report annually on your three most significant assessments
  • Track outcomes and effectiveness in Years 3 and 5
Why this matters: Human rights due diligence doesn’t stop at your front door. Vetting clients and projects upfront helps you avoid becoming complicit in harm and maintain integrity in who you work with and what you support.

HR3.5: Evaluate investments

Similarly, assess and address human rights risks in your investment decisions through:
  • Formal review processes that consider human rights impacts
  • Annual reporting on your three most significant investment assessments
  • Tracking the actions you take and their effectiveness
Why this matters: Every dollar has consequences. Your investment choices can shape real-world outcomes for better or worse.

HR3.6: Conduct Human Rights Impact Assessments (HRIAs)

At least once every five years, commission a comprehensive Human Rights Impact Assessment that:
  • Focuses on a high-risk context or one of your salient issues
  • Involves meaningful input from stakeholders (especially affected communities)
  • Is led by qualified external experts
  • Covers both actual and potential harm
  • Results in at least a public summary of findings and planned actions
Why this matters: Some risks demand deeper, more localized understanding. HRIAs provide a grounded, community-informed view of your impact that internal assessments might miss. For example, a construction company expanding into rural areas might commission an HRIA to understand how land acquisition affects local communities’ access to housing, water, and livelihoods.

HR3.7: Apply extra diligence in conflict-affected areas

If you operate in conflict zones, enhanced safeguards are required, including:
  • Identifying conflict-affected locations where you operate
  • Publicly disclosing your operational role in those areas
  • Taking additional steps to assess and reduce potential harm
  • Engaging local experts or affected communities for guidance
  • Appointing responsible internal contacts for conflict-related issues
  • Establishing clear triggers for escalating concerns or reassessing your presence

Why this matters: Conflict dramatically heightens human vulnerability. Operating in these regions without enhanced due diligence can worsen instability and violence. This standard ensures companies proceed with both caution and care.

Together, HR3.1 through HR3.7 help you build strong operational safeguards that ensure harm is not just acknowledged, but actively prevented, quickly addressed, and properly repaired when it occurs.

HR4: Partner With Suppliers to Meet Human Rights Goals

Many of the most serious human rights risks hide deep in supply chains: embedded in raw material extraction, outsourced labor, or complex sourcing relationships that span multiple countries and layers of vendors. HR4 asks you to move beyond simply monitoring suppliers and instead engage them as genuine partners in prevention, transparency, and accountability.

HR4.1: Identify limits on supplier oversight

Start by honestly assessing where and how your supplier oversight breaks down:
  • Source countries with elevated human rights risks
  • Raw materials with known or suspected links to harm
  • Gaps in visibility or traceability (where you lose sight of your supply chain)
  • Weaknesses in current audit and certification systems
Why this matters: You can’t fix what you can’t see. Understanding your oversight limitations helps you move from assumptions to informed action.

HR4.2–HR4.3: Factor human rights into procurement decisions

Every year, you must explicitly consider the actual and potential human rights impacts of your most significant procurement decisions: at least three in your first year, and five in subsequent years.
These assessments should focus on decisions involving:
  • High spend or volume
  • Known or likely human rights risks
  • Connection to your salient issues (like forced labor or unsafe working conditions)
Why this matters: Procurement decisions are fundamentally human decisions. Building rights-based criteria into your purchasing process helps you prevent harm before it happens.

HR4.4: Collaborate with priority suppliers

For suppliers connected to your salient risks, you must:
  • Identify which suppliers to prioritize for deeper collaboration
  • Work with them to set shared goals, create action plans, and monitor progress
  • Track and document improvement efforts in Years 3 and 5
Why this matters: Lasting change doesn’t come from issuing demands; it comes from working toward shared goals. Collaborating with high-risk suppliers creates space for genuine, long-term impact.

HR4.5: Make sourcing documents mutual

Update your sourcing contracts and agreements to reflect:
  • Supplier feedback on what you’re asking them to do
  • Your responsibilities as a buyer, not just supplier obligations
  • Joint commitments to human rights due diligence, providing remedy when harm occurs, and responsible exit strategies if the relationship ends
Why this matters: One-sided contracts create unrealistic expectations and power imbalances. Shared commitments build the foundation for trust, equity, and real progress.

HR4.6–HR4.7: Trace high-risk raw materials

You must:
  • Identify which of your raw materials carry high human rights risks
  • Develop and execute a time-bound plan to trace those materials back to their source
  • Document the percentage of high-risk materials you successfully trace each year
Why this matters: Traceability is the foundation of accountability. The more you know about where your inputs come from, the more power you have to act on that knowledge responsibly.

HR4.8: Act on raw material risks

Knowledge without action is meaningless. You must collaborate with suppliers to:
  • Prevent and reduce harm connected to high-risk raw materials
  • Provide remedy when actual harm occurs
  • Develop concrete action plans and track progress annually
Why this matters: Mapping your supply chain is just the first step; you have to intervene when you find problems. These requirements ensure that knowledge translates into meaningful action.

HR4.9–HR4.10: Address wage gaps in service contracts

You must:
  • Assess whether workers under service contracts (cleaning, security, food service, etc.) are paid living wages or wages set through collective bargaining
  • Identify potential wage gaps where workers aren’t earning enough to meet basic needs
  • Reference living wages in your procurement processes when you discover these gaps
Why this matters: Outsourced workers are often the most vulnerable in any business ecosystem. Including fair wage considerations in service contracts helps ensure dignity and equity beyond your core workforce.

HR4.11: Share a public plan to address wage, income, and bargaining gaps

Create and maintain a time-bound public plan that:
  • Identifies both known and suspected wage or bargaining gaps in your supply chain
  • Prioritizes key areas for action based on severity and your influence
  • Sets realistic three-year targets
  • Involves ongoing supplier and stakeholder engagement
  • Gets reviewed annually and approved at the executive level
  • Includes a publicly shared progress update each year

Why this matters: Wage gaps are systemic problems, but they’re not invisible ones. Publicly tracking your progress builds momentum and accountability throughout your supply chain while demonstrating genuine commitment to economic justice.

Taken together, HR4.1 through HR4.11 represent a fundamental shift from extractive sourcing relationships to shared responsibility. By working with suppliers rather than simply watching them, you can uncover hidden risks, reduce harm, and help build a more transparent and just global economy.

Building a More Ethical Economy, One Business at a Time

Respect for human rights isn’t just a moral imperative; it’s a business necessity in our interconnected world. The Human Rights Standards provide a clear, practical pathway for companies to operationalize their values, embedding dignity, accountability, and care into the decisions they make every day.

HR1 through HR4 offer the structure you need to meet rising stakeholder expectations, navigate growing regulatory demands, and build stronger, more trusted relationships with workers, suppliers, and communities. These standards are designed for companies that take their impact seriously and want to lead with integrity.

Whether you’re building the foundation for your first human rights program or evolving an existing approach, understanding where you currently stand is the first step forward.

Ready to begin? The B Impact Assessment can help you benchmark your current practices and identify your next steps. Your human rights due diligence journey starts with a single decision: the choice to take responsibility for your impact on human lives.

Copyright B Lab U.S. & Canada
Header photo by Bradford Zak
Body photo by Dibakar Roy

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