USA Trends and Developments Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
The NAP calls on all businesses – regardless of size, sector, or structure – to integrate due dili - gence throughout their value chains. It aligns with key international standards, including the UN Guiding Principles on Business and Human Rights, the OECD Guidelines, and the Interna - tional Labour Organization’s MNE Declaration. Importantly, the NAP encourages companies to treat these standards as a baseline, urging con - tinuous improvement and adaptation to evolving best practices. Together, these efforts reflect a comprehensive and co-ordinated approach to fostering ethical business conduct. By providing both normative guidance and practical tools, the US govern - ment is helping to embed human rights consid - erations into the core of corporate governance and global supply chain management. Federal leadership: the 2024 National Action Plan on Responsible Business Conduct The Biden administration released an updated National Action Plan (NAP) on Responsible Busi - ness Conduct in March 2024. Building on the 2016 version, the updated NAP reflects a more comprehensive and proactive approach to inte - grating human rights into business operations. The NAP emphasises HRDD as a foundational expectation for US companies, aligning with international standards such as the UNGPs, the OECD Guidelines for Multinational Enterprises, and the ILO Tripartite Declaration. It encourages businesses to embed HRDD into their risk man - agement systems, focusing on risks to people rather than just financial or reputational risks to the company. Key features of the NAP include:
• establishment of a Federal Advisory Com - mittee on Responsible Business Conduct to coordinate stakeholder engagement and advise on HRDD and critical minerals; • strengthened enforcement of anti-trafficking and forced labour rules in federal procure - ment, including new risk mapping tools and improved access to forced labour data; • enhanced grievance mechanisms across federal agencies, including reforms to the USNCP to improve transparency and media - tion capacity; • initiatives to promote rights-respecting artifi - cial intelligence (AI), combat tech-facilitated gender-based violence, and develop investor guidance on technology-related human rights risks; • support for climate-resilient labour rights and just transitions, including programmes to empower women in climate adaptation and enhance civic participation in environmental governance; and • implementation of the Corporate Transpar - ency Act and development of anti-corruption toolkits and regional hubs. While the NAP is not legally binding, it can shape expectations, inform procurement and invest - ment decisions, and encourage voluntary com - pliance with global norms. Federal trade and procurement measures In recent years, the United States has taken significant legislative steps to confront forced labour and human trafficking in global com - merce, signalling a shift toward more transpar - ent supply chains. Uyghur Forced Labor Prevention Act (UFLPA) The UFLPA, enacted in 2021, is a cornerstone of US efforts to combat forced labour in global supply chains. It prohibits the importation of
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