Last week the Organisation for Economic Cooperation and Development (OECD) released guidance designed to help companies identify and prevent potential “negative impacts” related to human rights, labour, the environment, and corruption in garment and footwear supply chains worldwide.

Called Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, it recommends that enterprises take a collaborative and risk-based approach to identify ways to address impacts of their operations and sourcing decisions and monitor progress over time, while encouraging ongoing engagement with business partners in developing economies. The guidance also calls on buyers to embed social, human rights, and environmental considerations into their purchasing practices.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...