1. Due diligence a standard of conduct for contracting authorities

The concept of due diligence is a cornerstone in international law, serving as a standard of conduct for both businesses and states. The UN Guiding Principles on Business and Human Rights (UNGPs) establish the responsibility of businesses to respect human rights across their operations. This responsibility is operationalized through human rights due diligence, a comprehensive process defined by the OECD Due Diligence Guidance for Responsible Business Conduct (OECD Guidance). This six-step process enables businesses to identify, prevent, address, and remedy harms related to human rights, the environment, and climate change. States, on the other hand, have a duty to protect human rights by preventing and remedying business-related abuses, as outlined in the UNGPs. This duty includes conducting due diligence and requiring businesses to do the same, though the application of these principles in public procurement remains underexplored. This blog post summarizes a working paper written by our ESR Laura Treviño-Lozano that aims to bridge this gap, focusing on how contracting authorities can implement due diligence in public procurement.

2. Abstract

Due diligence in international law is a well-established standard for both businesses and states. However, the most widely accepted standards for implementing due diligence, the UNGPs and the OECD Guidance, are primarily directed at businesses. The current literature highlights the necessity for contracting authorities to undertake and require due diligence from their contractors. Despite this, the practical implementation of states’ duty through due diligence in public procurement remains underdeveloped.

This working paper addresses the existing legal and practical gaps in contracting authorities’ due diligence. This study begins by grounding the theory of the first three steps of businesses’ due diligence as per the UNGPs and OECD Guidance. It then explores their practical implementation based on forty interviews with public buyers and experts, focusing on prioritization, leverage, and collaboration. The research employed qualitative methods, using semi-structured interviews with procurement practitioners at city council and regional levels in Spain, and experts in EU and Spanish public procurement and human rights.

The study reveals insights into the ways contracting authorities enforce labour rights in global supply chains through their purchasing practices. Discover them by accessing the full working paper through the link below.

About Sapiens Working Papers

This analysis is part of the latest issue of SAPIENS Working Papers, an initiative dedicated to showcasing the research of our Early Stage Researchers. These working papers are preliminary drafts of original research, providing a unique glimpse into the innovative ideas and studies emerging within our network. By sharing these works in progress, the SAPIENS Network aims to foster scholarly dialogue, encourage collaboration, and accelerate the dissemination of research insights. This series reflects our commitment to advancing knowledge and supporting the next generation of scholars across various disciplines.