Exploring the determinants for the adoption of human rights policy

The growing interest in non-financial information has led companies to publish more and more environmental, social and governance information in the different existing tools of voluntary or mandatory reporting. By disclosing non-financial information, companies also express their commitment to respecting human rights standards and their efforts to reduce potential risks and impacts. In a global context that emphasises sustainable practises, companies are also called upon to commit to respecting human rights and to disclose the policies adopted and their impacts, as well as the associated risks and management practises. By establishing clear and well-structured policies, companies can demonstrate their commitment to protecting fundamental human rights in their relationships with stakeholders such as employees, suppliers, customers, and local communities. A company's human rights policy plays a pivotal role in providing stakeholders with important information to assess a company's ethical practises and social impacts. In addition, the policy adoption enables the company to cultivate an organisational culture that upholds the intrinsic value of human rights. Given the limited number of studies in the literature, this study aims to investigate the determinants of human rights policy adoption in European companies through a quantitative analysis.