Wartime reveals contrasts in how businesses respond to crises. An international company, still operating in Ukraine, proudly exports goods labelled, “Made in Ukraine.” When asked how the war has affected their workforce, the CEO explained; “Jobs were saved, but we decreased salaries to protect the company financially.”

Another example is a Ukrainian business owner that chose a people-centred approach: “We set up a safe space for our employees’ kids. Parents feel calmer if their children are nearby during air raid alarms.”

Both responses reflect real pressures, highlighting what’s at stake as Ukraine begins to rebuild. Should businesses focus on financial survival or protecting people? And is it possible to do both?

Despite the ongoing war Ukraine’s recovery has already begun, with numerous efforts and initiatives aimed at addressing urgent needs while also planning for long-term reconstruction. As recovery efforts gain momentum, the international community faces the vital responsibility of reconciling these aspirations: to ensure that investments and operations are not only efficient and strategic, but that they contribute to human rights and peace. 

To achieve these goals, businesses must apply conflict-sensitive human rights due diligence, a process that enables them to identify and address how their operations might harm people or exacerbate conflict. This approach demonstrates that economic activity and responsible conduct should go hand in hand, ensuring a sustainable early recovery that benefits both people and the environment. 

Ukraine’s commitment, with UNDP’s support

Ukraine’s government has indicated that responsible business is central to both early recovery and its integration to the European Union (EU). National strategies align with the UN Guiding Principles on Business and Human Rights. As a candidate country, Ukraine strives to abide by the EU Corporate Sustainability Due Diligence Directive, which calls on businesses in conflict-affected contexts to conduct heightened human rights due diligence. 

UNDP is proud to be a partner in this process. Together with Ukrainian institutions such as the Ministry of Economy, Yaroslav Mudryii National Law University, the  Social Action Centre, UN Global Compact Ukraine and many others, UNDP has supported the country’s effort to ensure businesses make heighted human rights due diligence a reality.

This support aims to be very practical. UNDP has helped over 900 Ukrainian companies improve their understanding on how to apply conflict-sensitive human rights due diligence.  

At a national conference on responsible business during wartime, co-organized by UNDP, participants agreed Ukraine’s early recovery must be built on ethical, inclusive, and accountable practices. And heightened human rights due diligence provides the blueprint.

Global momentum 

Some development partners and investors are already on board to lead this shift. Norway now requires companies receiving grants for reconstructing Ukraine to conduct conflict-sensitive heightened human rights due diligence. A recently-adopted EU directive will compel EU-based companies to take the same approach. 

Alas, this is not enough. Not all actors, public or private, have fully integrated heightened human rights due diligence into their operations in Ukraine. Inconsistencies in expectations and oversight leave critical risks unaddressed. 

In 2022-2023, UNDP and partners documented and analyzed these risks, including unfair dismissal, informal employment, exploitative conditions, and the undermining of collective bargaining, especially for small business workers. The war has not only created new challenges for people in Ukraine, but has also exacerbated preexisting issues, especially for vulnerable groups, such as veterans, the internally displaced and persons with disabilities. 

These risks show that for Ukraine’s recovery to be sustainable it must feature responsible businesses. 

UNDP is committed to support the government and the private sector of Ukraine in advancing strengthened human rights due diligence as a critical pathway to de-risking finance, promoting sustainable development and realizing the vision of a reconstructed Ukraine that is more resilient, inclusive and grounded in respect for human dignity.