Social Risk encompasses threats related to workforce treatment, supply chain labor conditions, community displacement, product safety, data privacy, and societal impacts of business activities. It has gained prominence as investors, regulators, and consumers demand corporate accountability for social outcomes beyond financial performance. Social risks materialize through strikes, boycotts, lawsuits, regulatory penalties, talent retention challenges, and reputational damage. Apparel companies face social risk when suppliers use child labor or unsafe facilities, potentially triggering consumer backlash and investor divestment. Organizations assess social risk through human rights due diligence, stakeholder engagement, supply chain audits, and alignment with UN Guiding Principles on Business and Human Rights.