Extend the application to supply chains Sample Clauses

Extend the application to supply chains. In its current version the MNE Declaration does not hold MNEs responsible for rights and safety in their global supply chains. However, the evidently growing importance of GSCs seems to make it almost a necessity to extend the application of the MNE Declaration to supply chains. Furthermore, an extension to supply chains seems to be in line with the interest of the social partners. Chapter 3 of this report has shown that an increasing number of GFAs make reference to the GSC of their MNEs and that these references are becoming increasingly binding in their wording. Respect for the provisions in a GFA increasingly serves as a criterion for the MNE in establishing or continuing business relations with suppliers and subcontractors. All this indicates a growing need for more effective social regula- tion in global supply chains. A revised MNE Declaration should reflect these needs as well as the changed economic environment in recent decades, and should provide guidance to workers and firms on how to maximize the positive economic and social impacts of global supply chain operations. The update of the MNE Declaration should therefore extend its application to supply chains. A first step could be achieved by incorporating into the Declaration the human rights due diligence provisions in line with the UN Guiding Principles. The UNGP establish a comprehensive responsibility for MNEs to prevent or mitigate violations of minimum labour standards rights throughout their entire GSC. This duty could be integrated into the MNE Declaration. However, it is important that any update should take into account the tripartite nature of the Declaration. A regulation of GSCs in the MNE Declaration should build on sound labour relations and include trade unions at the local and global levels.