oboloo Glossary

Supply Chain Due Diligence Act

oboloo Glossary

Supply Chain Due Diligence Act

The Supply Chain Due Diligence Act is a federal law enacted in 2019 that requires businesses to perform due diligence and monitor their supply chain for sources of labor abuses around the world. The law aims to improve corporate accountability by requiring companies to identify and address forced labor, human trafficking, and other forms of exploitation in their global supply chains. Businesses must now document their efforts to ensure compliance with this Act, including conducting regular reviews of suppliers, establishing policies and procedures to prevent violations, and addressing any potential non-compliance issues.