Non-judicial grievance mechanisms in global supply chains

Chocolate without child labour, T-shirts without exploitation: If business enterprises violate their human rights due diligence obligations, those affected must be guaranteed effective access to remedy. But how can extrajudicial complaints systems help victims of human rights violations along global supply chains gain access to effective remedy? This question is explored in the final report by a research team from the European University Viadrina Frankfurt (Oder), which was published by the Federal Ministry of Justice and Consumer Protection on 20 September 2021.

Under the direction of Prof Dr Ulla Gläßer, LL.M. (UC Berkeley), holder of the Viadrina Professorship for Mediation and Conflict Management, the research team investigated the potential of out-of-court dispute resolution procedures in the field of business and human rights.

"Effective grievance mechanisms should be an integral part of (regulatory) approaches for improved living and working conditions along global value chains," says Prof Dr Ulla Gläßer, describing the aim of the report. State Secretary of Justice Dr Margaretha Sudhof explains: "The study clearly shows that extrajudicial grievance mechanisms have added value. Not only for those affected, but also for the companies themselves. This is particularly true if they are organised across companies. The study makes practical suggestions for the design of such cross-company mechanisms. Companies can use the pick & choose concept to help them implement the Due Diligence Act. However, they are also expressly intended as an incentive to think bigger and design comprehensive mechanisms which, as learning systems, help companies to fulfil their human rights responsibilities. The study makes it easier for companies and affected parties to recognise and utilise the great potential of extrajudicial grievance mechanisms even more than before."

Building on findings from Alternative/Appropriate Dispute Resolution (ADR) and consumer arbitration, among others, the research report offers practice-oriented guidelines for the institutionalisation, implementation and procedural design of extrajudicial grievance mechanisms for victims of human rights violations along global supply chains. The study argues in favour of regulating the quality and effectiveness of non-judicial grievance mechanisms and creating incentives for the institutionalisation of and participation in cross-company grievance mechanisms.

The full text of the 500-page research report and a compact summary are available for download, as are the press releases from Viadrina and the BMJV and a Viadrina Logbuch interview from one of the research team's trips to India.