Despite the current geopolitical climate and recent uncertainty in the EU, there’s growing clarity that businesses must move beyond identifying risks to actively addressing them. The overall legislative direction remains consistent: companies are expected not only to detect risks but to take meaningful action. Even where regulatory pressure softens, the broader trend is toward increased accountability. Supplier capacity-building is now widely recognised as essential to turning policy into practice.
At the same time, companies are shifting from transactional supplier relationships to more collaborative partnerships, recognising that trust and long-term capability-building are key to preventing harm and embedding lasting change.
This is the real test of HRDD: not just identifying risks, but what happens next — how businesses move from paper to practice across the entire process.
At Impactt, we’re seeing this in action. Companies are becoming more intentional about how they work with suppliers to prevent harm, strengthen systems, and track progress in more dynamic, data-driven ways. This is where Supplier Improvement Programmes come in. Done well, they enable businesses to drive transformative change through collaboration — delivering lasting impact for workers and strengthening business resilience.
Why Supplier Improvement Programmes?
Supplier Improvement Programmes are a practical, collaborative way to operationalise HRDD. Rooted in the OECD framework, these programmes start with in-depth needs assessments to identify specific areas for improvement, from working conditions to grievance systems.
Through tailored support and ongoing partnership, businesses and suppliers can build trust, address risks proactively, and drive continuous improvement. While not focused on individual remedy, these programmes play a vital role in strengthening grievance mechanisms and creating a culture where worker voice and feedback are genuinely valued.
At their best, Supplier Improvement Programmes help suppliers embed the systems, behaviours, and feedback loops needed to manage human rights risks effectively, not just to meet buyer expectations, but to build more resilient, responsible businesses.
Our experience delivering Supplier Improvement Programmes for more than two decades has shown us they have the power to:
1. Understand root causes, not just symptoms
During an Impactt needs assessment at a furniture manufacturer in Malaysia, everything looked compliant on paper. The supplier had all the required policies and risk assessments, and workers were wearing PPE during the site visit. From an audit perspective, this would likely provide satisfactory evidence of compliance.
However, when reviewing absenteeism records, we found regular unplanned leaves amongst workers in the woodwork and paint departments, and management teams were not only unable to explain why but also seemed surprised by this. We then had follow up conversations with line managers, and medical staff, which led us to medical records, which in turn indicated regular and recurring respiratory infections and inflammations of workers in these sections, and through some very candid worker interviews, we identified that operators in this department were often removing their face masks due to the heat and discomfort.
Not only did this enable us to identify a significant health risk to workers, but equally as importantly the underlying capacity gaps that were perpetuating this issue. It wasn’t just that consistent mandate of PPE was not enforced, but a lack of alignment, information sharing, and collaboration existed within management teams including H&S, HR, and medical teams, and further, there was clearly a gap in dialogue between workers and management to raise awareness and solve these issues.
That’s where Supplier Improvement Programmes come in. They’re not about ticking boxes — they’re about going deeper, identifying root causes, and actually fixing the issues that affect people on the ground. Workers don’t live in audit reports. They live the consequences of weak systems, poor communication, and gaps in management that often don’t show up in a two-day visit. Supplier Improvement Programmes give us a way to move beyond surface-level compliance and really engage with the realities workers face — and to do something about it.
2. Strengthen supplier relationships and trust
Supplier Improvement Programmes help build supplier trust by shifting the relationship from transactional to collaborative. Rather than relying on audits and enforcement, these programmes focus on practical support, co-created solutions, and regular engagement fostering a sense of partnership rather than pressure. By aligning expectations with suppliers’ realities and investing in their capability to improve, businesses demonstrate that they’re in it for the long term. Trust grows when suppliers feel heard, supported, and see tangible benefits – from better worker retention to increased efficiency. Ultimately, trust is what turns compliance into commitment.
3. Translate policy into action on the ground
Supplier Improvement Programmes are one of the most effective ways to translate human rights policy into real-world action. They move businesses beyond checklists and audits by helping suppliers understand not just what’s expected, but why it matters and how to achieve it. Through needs assessments, tailored support, and collaborative strategy development, these programmes embed human rights due diligence into daily operations. They tackle root causes, build capability, and create the systems, behaviours, and culture needed to drive sustained change. Regular engagement, practical implementation, and worker dialogue all help ensure that policy commitments are not only understood, but truly lived, resulting in measurable improvements for workers and stronger, more resilient supply chains.
4. Reduce risk – financial, reputational, and operational
Supplier Improvement Programmes are a powerful tool for reducing all forms of risk. By proactively addressing root causes of harm, these programmes help prevent issues like excessive overtime, wage violations, or poor working conditions from escalating into costly crises. They support suppliers in strengthening grievance mechanisms, improving management systems, and building internal capacity, all of which reduce the likelihood of legal action, production disruptions, or import bans. Crucially, they also protect brand reputation by demonstrating genuine commitment to responsible business. As we’ve seen in real cases, the cost of prevention is almost always lower than the cost of remediation — making Supplier Improvement Programmes not just the right thing to do, but the smart thing to do.
How to decide which suppliers need deeper support
Not every supplier will need a full Supplier Improvement Programme — so how do you decide where to go deeper? A good starting point is asking three key questions: Is the supplier truly aware of their own human rights risks? Are they genuinely committed to responsible business, and is there evidence of that commitment? And do they have the capacity — in terms of systems, resources, and culture — to manage human rights due diligence effectively? If the answer to any of these is “no” or unclear, it’s a strong signal that a more tailored, supportive approach could unlock real progress. These programmes are especially valuable where risk is high, capacity is low, and the potential for lasting impact is significant.
How to make the business case: from concept to action
Securing buy-in for Supplier Improvement Programmes requires demonstrating both their strategic value and their tangible returns. One of our clients who has made supplier improvement a core part of their HRDD strategy shares her four key tips to build internal buy-in:
1. Start with a simple, big-picture theory of change
A clear narrative that connects supplier improvement to your organisation’s strategic goals is essential, for example across risk reduction, cost savings, more reliable delivery, and alignment with ESG targets.
Keep it visual and high-level—something senior leaders can grasp in two minutes.
2. Focus efforts on one to two priorities
Rather than trying to fix everything at once, identify one or two high-risk areas—a specific geography, supply chain, or persistent issue. This shows strategic thinking and makes the initial ask more manageable.
3. Pilot to prove the concept
Start small with a targeted pilot that can demonstrate impact quickly and at relatively low cost. Track meaningful metrics focused on outcomes, not just activities, such as reductions in delays or disruptions, quality improvements and worker retention rates.
4. Use the pilot to build momentum
As the pilot progresses, use it as a live case study. Share early results, lessons learned, and how you’re adapting.
This helps shift the conversation from “why should we do this?” to “how can we scale it?” Refine your theory of change as you go — each insight strengthens your internal case.
From Insight to Action
At Impactt, we see time and again that real change in supply chains comes from people, not checklists. Supplier Improvement Programmes help make that happen, turning insight into action and moving from compliance to real transformation.
And when it works, everyone wins — suppliers, their customers, and the workers at the centre of it all.
Want to learn more about how Supplier Improvement Programmes could strengthen your HRDD strategy? Contact info@impacttlimited.com to learn more about how we can help.
