The importance of Root Cause Analysis in Human Rights Risk Assessments

The importance of root cause analysis in human rights risk assessments

Human rights risk assessments are a critical part of responsible business conduct and Human Rights Due Diligence (HRDD). They allow companies to identify human rights risks and impacts so that they can implement effective actions to address them. However, to design truly effective interventions, companies need to understand not just the symptoms, but the systemic conditions and contributors that drive adverse impacts.

Root Cause Analysis (RCA) helps companies gain this deeper understanding. Rather than stopping at the identification of issues, such as finding child labour in the supply chain, RCA pushes companies to ask why those issues occur and to uncover the underlying drivers.

The 5 Why’s method

One practical tool for RCA is the 5 Why’s method. By repeatedly asking “why” a problem occurs, companies can trace an issue back through the successive layers of causality to identify the root cause, or at least get much closer to it.  

Here’s an example applied to child labour at a supplier farm:

• Why are children working on the farm? 
  Because families cannot meet their basic needs from adult wages alone.
• Why can't families meet their basic needs from adult wages? 
  Because farm workers are paid less than a living wage.
• Why are farm workers paid less than a living wage? 
  Because the supplier keeps labour costs as low as possible.
• Why does the supplier keep labour costs low? 
  Because otherwise they risk losing contracts to competitors.
• Why does competitiveness depend on low costs? 
  Because buyer companies prioritise low prices and profit margins over fair value distribution and labour standards.  

By the fifth “why,” the company uncovers a systemic driver of child labour: pressure within the supply chain that keeps wages low and sustains conditions where families may involve children in farm work. This insight enables corrective actions such as adjusting sourcing policies, integrating fair wage requirements, and adopting responsible purchasing practices.  

The 5 Why’s example above reflects only one possible root cause pathway. In reality, child labour often stems from multiple, coexisting factors such as poverty, lack of access to education, or cultural norms. The 5 Why’s method is therefore not about producing a single answer, but about helping companies dig beneath the surface to understand drivers of risks in their supply chains.

The value of RCA in Human Rights Due Diligence

By incorporating RCA into their human rights risk assessments, companies move beyond surface-level analysis and uncover the structural drivers of harm. This deeper understanding enables them to design credible, actionable interventions that prevent adverse impacts, protect human rights, and build more resilient and sustainable supply chains. Embedding RCA into HRDD is a demonstration of genuine commitment to tackling root causes and ensuring that business practices contribute to fair and sustainable outcomes. 

 

This blog is written by Lisanne Hekman. Want to know more? Please, contact Lisanne.