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The other issue with the counter-proposal is that parent companies are not liable for their suppliers, but only those companies they directly control. So this wouldn't create liability for events like Rana Plaza, or abuses caused by Shell's suppliers in Ogoniland.
Isn't the main proposal also only for companies that are controlled? (i.e. as implied by 'parent company') -- it says can include suppliers where they are essentially controlled eg. they only have one customer, but not the broad supply chain responsibility you suggest?
Yes, it's common to both proposals: the Responsible Business Initiative from NGOs, and the counter-proposal. Both emphasise 'control'.
But the parent company is NOT liable if it can show that it has undertaken due diligence, to identify and mitigate risks of abuses. So even if the abuse occurs, they are okay, if they have taken steps to reduce this risk.
i.e. Rana Plaza would be excluded from the original proposal also? Are the MNCs supporting the proposal or the counter proposal?
So, it is very surprising but the original proposal has the public support of 33 companies, and the Swiss group of MNCs endorsed the counter proposal.
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