Human Rights Due Diligence: Is It Too Risky?
This article describes the various legal risks companies face if they fail to implement a human rights due diligence system to identify, prevent, mitigate and account for how they address their human rights impacts and, conversely, the benefits that such due diligence can bring. Such risks can include liability under the United States' Alien Torts Statute, common law negligence claims, and misrepresentation claims instituted by shareholders and customers. The article also discusses the role of confidentiality protections (such as attorney-client privilege and self-evaluation privilege) and the limitations of immunities laws. One of its authors, John F. Sherman III, is Shift's General Counsel and Senior Advisor.