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May 14, 2026Global Policy0 citationsOpen Access

Can Scope Make a Difference? Assessing the Reach of Due Diligence Laws in Supply Networks

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VSVera SăvulescuLFLuc Fransen

Key Points

  • The research aims to evaluate how human rights and environmental due diligence laws affect companies in the apparel industry and their supply chains.
  • Utilized social network analysis to assess nearly 50,000 buyer-supplier relationships.
  • Analyzed the reach of mandatory human rights and environmental due diligence laws.
  • Examined both direct and indirect connections between regulated and unregulated entities.
  • Fewer than 40% of buyers are directly regulated by HREDD laws.
  • Obligations extend to about two-thirds of suppliers through indirect connections.
  • Weak connections among suppliers limit the diffusion of due diligence practices across the supply network.

Abstract

ABSTRACT Human rights and environmental due diligence (HREDD) laws seek to make companies legally accountable for adverse social and environmental impacts across their supply chains. Although jurisdictionally bounded, these laws rest on the assumption that their influence can extend globally through supply networks. This study assesses the reach of mandatory HREDD in the apparel industry using social network analysis on almost 50,000 buyer–supplier relationships. Although fewer than 40% of buyers are directly regulated, their obligations extend to around two‐thirds of suppliers, suggesting substantial indirect (vertical) reach. Shared suppliers further create potential pathways for the diffusion of due diligence norms and practices to unregulated buyers. However, the predominance of weakly connected suppliers and out‐of‐scope, yet structurally central, buyers limits opportunities for diffusion toward the network periphery. This research contributes to the debate on supply chain governance by showing that network structure can be a critical, yet often overlooked, factor for the effectiveness of transnational due diligence regulation.

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Cite This Study

Săvulescu et al. (2026) studied this question.

synapsesocial.com/papers/6a05684ea550a87e60a20b6bhttps://doi.org/10.1111/1758-5899.70175
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