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Step 2: Assess risk 2.2 Identify adverse impact

Incidence of poverty and risk of adverse labour rights

Begin by analysing the labour rights context and the incidence of poverty in your supply chain. Review the implementation and effectiveness of international labour rights agreements on national legislation and policies. The legal analysis provides the basis for gathering practical insights into the application labour rights on the ground. Similarly, investigate the poverty profile in the specific country/area.

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Risk of low wages and low incomes

After developing and understanding of the labour rights and poverty landscape around your supply chains, the next step is to conduct an in-depth assessment on the identified risk areas. It is crucial to identify stakeholders affected and potentially affected by company operations and supply chain partners. This requires an in-depth fact-finding review of company operations and stakeholders, and evaluating company performance against human rights (labour) standards.

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