Advocating Human Rights in Supply Chain

Abstract

This paper will provide an overview of human rights implementation in the PETRONAS supply chain since the establishment of the company's Human Rights Commitment in 2015. The implementation involved embedding relevant human rights elements throughout the entire supply chain management process, starting from contractor licensing and registration to the performance evaluation of contractor at the end of contract lifecycle. This paper will also discuss on the key success factors and challenges faced in ensuring effective implementation. The key success of PETRONAS Human Rights Commitment implementation in supply chain is derived from many factors, namely top leadership support in driving the execution and strong collaboration between Social Performance and Procurement fraternities. As a result, PETRONAS has embarked on a series of enhancement to its procurement process, which includes the introduction of Contractors Code of Conduct on Human Rights and inclusion of human rights in the General Terms and Conditions of all contracts. PETRONAS also intensified its capability building efforts for both employees and contractors to ensure that the human rights requirements are cascaded effectively and well-understood across the supply chain.