Traditional contracting regimes used by international fashion brands and retailers can often work in opposition to the principles of human rights due diligence, and thus have the potential to undermine a company’s own human rights standards. In 2021, a working group formed under the auspices of the American Bar Association Business Law Section published a set of model contract clauses – the MCCs 2.0 – to help buyers and suppliers redesign their contracts to better protect human rights in their supply chains. MCCs 2.0 are the first model contract clauses that attempt to fully integrate the principles contained in the UNGPs and the OECD Due Diligence Guidance into international supply contracts. As such, their adoption can help reduce human rights risks and, by extension, reputational and legal risk. It can also facilitate compliance with current and contemplated human rights due diligence legislation. This session will explain the problems that arise from poor contracting practices, highlight the legal and litigation risks associated with such practices, and present the MCCs as a possible solution for improving commercial practices and human rights in supply chains.

The webinar took place on Friday, February 25, 2022.