University of Twente Student Theses
Navigating Human Rights Due Diligence in Financial Institutions : Creating A Roadmap for Implementation
Koene, T.P. (2025) Navigating Human Rights Due Diligence in Financial Institutions : Creating A Roadmap for Implementation.
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| Abstract: | This research investigates how financial institutions (FIs) can effectively implement Human Rights Due Diligence (HRDD) on their direct business partners. Both the downstream and up- stream part of the value chain is covered. A systematic literature review (SLR) is used to com- bine the existing academic and gray literature on the HRDD process, the CSDDD and its key parts, current guidelines and frameworks, and the Action Research Model by Warner Burke. Complementing the SLR, the research utilizes a mixed-method approach featuring semi struc- tured interviews (SSIs) with industry experts from a leading financial institution, from now on Company X. Empirical data reveals challenges, opportunities and best-practices for both im- plementing HRDD and performing HRDD itself. The results show the necessity of clear defini- tions, stakeholder engagement, standardization of processes, and integration with existing risk and compliance systems. Drawing on the Action Research Model by Warner Burke, the study develops a roadmap that provides a high-level, step-by-step guide to HRDD implementation on direct business partners, thereby bridging theory and practice. The contributions of this thesis are threefold. Firstly, FIs are integral participants in the global economy. These institutions provide liquidity within the financial system and play a crucial intermediary role. Secondly, their global operations extend their impact to be far-reaching. For this reason, their actions significantly influence human rights and sustainability. Finally, effective implementation of the upstream part of HRDD on the upstream part of the value chain is imposed by the EU for compliance by large FIs. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science, 86 law |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/106352 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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