Hot off the press from the United Nations are Guiding Principles on Business and Human Rights. Why should businesses pay attention to these Guiding Principles? And what do they mean for businesses? We give some quick answers.
‘The Guiding Principles on Business and Human Rights: Implementing the United Nations ‘’Protect, respect and remedy’’ Framework’ have been developed by the well-respected Special Representative of the UN Secretary-General and Harvard Professor, John Ruggie. Over a six-year Mandate, Professor Ruggie, has held many consultations with businesses, governments, individuals and communities directly affected by the activities of businesses, in many parts of the world. 10 companies have tested the draft principles internally, corporate law professionals from over 20 countries have poured over the details, and state officials have had their say. The principles were the subject of a major conference of International Human Rights Institutions in Edinburgh, an on-line consultation attracting over 3,750 unique visitors from 120 countries, and have featured in many other conferences, meetings and journals. The final text which went before the Human Rights Council in June 2011 is therefore the product of an extensive global consultation, including stakeholders from all parts of society. That consultation in itself, gives these principles considerable legitimacy.
The principles do not create any new legal obligations, but they do establish clear expectations for States, and for businesses. They clearly delineate the respective roles of the state, and of business, and give a clear indication of what the corporate responsibility to respect human rights requires companies to do in practice. These are expectations which business, and governments, must now expect campaigners, local communities, and consumers to judge them against. The principles are already informing the development of key international frameworks which shape the business operating environment, such as: the OECD Guidelines for Multinational Enterprises, the International Finance Corporation’s Performance Standards, and the Global Reporting Initiative. Further, they have sparked the interest of many governments, the European Union, and in particular in the emerging economies of the South, where the social impacts of business activities are often hardest felt.
Businesses should take heed of these Guiding Principles for the following reasons:
- They will increasingly shape the operating context, as States look to address the principles, and international frameworks and social expectations are informed by them
- They have given activists and communities a clear set of benchmarks against which to judge business performance, not just in dealing with human rights impacts but in preventing them
- They provide business with direction on how to put a commitment to respect human rights into practice
- They provide guidance on how to operate responsibly when companies find themselves in conflict ridden, or post conflict societies where human rights abuse is prevalent
- They offer considerable insight into what it takes for a business to thrive, be sustainable, and well regarded in the 21st Century.
The Guiding Principles themselves address the implementation of the UN ‘Protect, Respect and Remedy’ framework. This framework recognises:
- The States’ duty to protect against human rights abuses, including those perpetrated by companies
- The corporate responsibility to respect human rights
- And the need for appropriate and effective remedies when human rights are breached.
The core messages of the guiding principles for businesses are:
- Companies can impact the full range of internationally-recognised human rights
- Businesses need to know what their human rights impacts are, and to show how they are addressing them
- These impacts go beyond their boundaries, and include impacts that are directly linked to their operations, products or services through business relationships
- Businesses require a clear commitment to respect human rights, and to embed this commitment throughout their operations
- Businesses should carry out human rights due diligence to assess actual and potential human rights impacts, integrate findings, track progress and communicate how the impacts are as addressed
- Human rights due diligence needs to be an on-going process and goes beyond existing forms of social risk assessment to the business, moving the emphasis to the risks that the business poses to rights-holders affected by its operations
- Wherever possible, this process requires direct and meaningful engagement with those who are potentially affected by the business’ activities
- In some environments, such as conflict/ post conflict affected areas the risk of being complicit in gross human rights abuses committed by others is increased, and specific care is required –a matter which businesses should treat as a question of legal compliance
- Businesses should establish effective grievance mechanisms which allow individuals and communities who may be impacted to raise their concerns, and have them dealt with
- Businesses should listen carefully to such grievance mechanisms, seeing them as important early warnings, and be prepared to alter their practices accordingly.
States, meanwhile, are encouraged to; set out clear expectations of domiciled businesses to respect human rights, not just at home, but abroad; enforce existing legislation more effectively; pay careful attention to whether existing law is adequate, and review whether corporate law constrains or enables business respect for human rights. They are asked to provide guidance to businesses on human rights and, where appropriate, require businesses to communicate (ie report) on how they address their human rights impacts. Further, they are encouraged to incorporate human rights criteria into state-owned enterprises and their dealings with other businesses, whether as outsourcers, suppliers or where support is provided such as export credits.
This is a short summary. To find out more:-
To download pdf of full text of the Guiding Principles here.
Read more about business and human rights, including sector briefings and our ‘What are human rights’ article on our website here.
Find out about our forthcoming training course on business and human rights here.
TwentyFifty Ltd, 20 June 2011