Which statement is true about the human rights impacts of businesses?

The statement that small and large businesses must assess their human rights impacts is correct because the responsibility to respect and uphold human rights applies to all businesses, regardless of their size. This principle is grounded in the United Nations Guiding Principles on Business and Human Rights, which establish that all companies have a duty to identify, prevent, mitigate, and account for how they address their impacts on human rights.

Conducting a human rights impact assessment allows businesses to understand the potential risks associated with their operations, supply chains, and relationships with stakeholders. This process is essential for fostering a responsible corporate culture and ensuring compliance with legal and ethical standards related to human rights. Addressing human rights impacts proactively can lead to enhanced reputational benefits, stakeholder trust, and ultimately, better business performance.

In contrast, the other statements do not capture the comprehensive nature of human rights responsibilities for businesses. Impacts cannot universally be classified as abuses without context, as some may be inadvertent or unintentional. Additionally, the notion that only large corporations have responsibilities undermines the role of smaller businesses, which also contribute to social and economic systems. Lastly, the idea that companies only need to report major impacts overlooks the importance of a thorough assessment of all impacts, which may include those that are less