FAQ.- Practical measures to adopt to prevent and mitigate adverse impacts?

Companies are required to take the following measures, where relevant:

• developing and implementing prevention and corrective action plans (only for complex issues);
• seeking to obtain contractual assurances from a direct business partner, including cascading requirements through the chain of activities;
• making the necessary financial or non-financial investments, including in their chains of activities (for example, upgrading infrastructures);
• providing support (such as capacity building) to their SME business partners where necessary in light of the resources, knowledge and constraints of the SME;
• providing financial support (such as direct financing, low-interest loans, guarantees of continued sourcing, or assistance in securing financing) to their SME business partners where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SME;
• adapting their business plans, strategies and operations (including purchasing practices, design and distribution practices); and
• collaborating with other entities to resolve the issues including with a view to increase their leverage over business partners.