Making Sense of Human Rights in Business: A Qualitative Case Study on the Practical and Paradoxical Challenges of Implementing Human Rights Due Diligence following the Norwegian Transparency Act

Abstract

Corporations are increasingly assuming a pivotal role in the global governance of human rights. This responsibility is underscored by Norway’s recently implemented Transparency Act (TA), which mandates Human Rights Due Diligence (HRDD) assessments. These assessments require companies to address actual and potential human rights violations in their operations and supply chains, posing a paradoxical challenge of balancing human rights responsibilities with economic objectives. This thesis explores how managers in a Norwegian company make sense of and manage these obligations, focusing on the influence of the external environment and the Chief Sustainability Officer’s (CSO) sensegiving efforts. Utilizing a qualitative, single-case study with semi-structured interviews, the research is framed within Hahn et al.’s (2015) paradoxical sensemaking theory, contrasting the business case and paradoxical cognitive frames in managerial decision-making. Our research reveals that legislative ambiguities and supply chain dynamics impede managers’ sensemaking processes. These challenges lead to a diminished focus on- and resource allocation to HRDD, which subsequently constrains the CSO’s influence on organizational sensemaking. While the CSO’s paradoxical strategies provide managers with a comprehensive perspective on HRDD, they also create internal tensions due to a “resonance gap”. Conversely, strategies that frame HRDD within a business context have effectively fostered organizational acceptance of these routines. Our analysis suggests that a synergistic response that combines paradoxical approaches with pragmatic strategies is paramount to implementing HRDD routines that genuinely address human rights issues.