• Information Systems Review
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• v.26 no.1
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• pp.93-117
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• 2024

In February 2022, the EU announced a draft of the EU Corporate Sustainability Due Diligence Directive requiring due diligence and disclosure of information on environmental and human rights risks in corporate supply chains. This study evaluated the ability of 13 Korean pharmaceutical/bio companies to respond to the EU's demand for due diligence in the supply chain and compared it to 13 globally leading pharmaceutical/bio companies which are considered good in environmental and human rights risk management. For comparative analysis, text mining analysis was performed using R. Basic word frequency and concurrent words were analyzed and topic modeling was performed by applying Latent Dirichlet Allocation. As a result of the analysis, it was found that compared to advanced companies, domestic pharmaceutical and bio companies lack negative issue reporting and identification systems and supply chain due diligence implementation processes, and require advancement of data management for environmental and human rights information disclosure. Accordingly, domestic pharmaceutical and bio companies need to prepare differentiated support measures to systematically identify and reduce risks in the supply chain of small and medium-sized businesses beyond simply providing financial support. It is also desirable for the government to provide policy support by mandating Korea's own supply chain environment and human rights due diligence system, along with support for strengthening the ability to respond to due diligence of domestic pharmaceutical and bio companies, such as expert consulting and financial support.