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Guide for Integrating Human Rights into Business Management

Guide for Integrating Human Rights into Business Management 7
BUSINESS LEADERS INITIATIVE ON HUMAN RIGHTS A Guide for Integrating Human Rights into Business Management   www.respecteurope.com www.realizingrights.org Contents Preface Business Leaders Initiative on Introduction Human Rights Getting Started United Nations 1 Strategy Global Compact 2 Policy and the Office of the 3 Processes and High Commissioner Procedures for Human Rights 4 Communications Disclaimer The views expressed in this publica- tion do not necessarily represent 5 Training the views of the Global Compact Office or the Office of the High Commissioner for Human Rights or 6 Measuring Impact any of the individual companies participating in BLIHR or whose and Auditing case examples are included. More- over, the Global Compact Office and the OHCHR make no repre- 7 Reporting sentation concerning, and do not guarantee, the source, originality, accuracy, completeness or reli- Conclusion ability of any statement, informa- tion, data, finding, interpretation, advice or opinion contained within Appendices the publication. The publication is intended as a learning document. The inclusion of examples of com- pany experiences does not in any way constitute an endorsement of the individual companies nor their human rights policies or practices by the Global Compact Office and/ or the OHCHR. otohp stiderc egap 4/ from left to right: all photos © istockphoto.com except for numbers 1 and 5, © United Nations Capi- tal Development Fund/Roger Adams add photo captions Preface A growing number of companies are becom- anti-corruption (see the Appendices). It has been ing aware of the contribution they can make to endorsed by all 191 Heads of State and Govern- advancing human rights within their spheres of ments of the United Nations and has further been influence and the benefits such an approach can legitimized through a consensus resolution by the have for their businesses. While human rights General Assembly. The first two principles of the continue to be the primary responsibility of govern- Global Compact are derived from the Universal Dec- ments, companies can do a lot within the context laration of Human Rights, which is the foundational of their own business to support and respect the framework of the international human rights system. observance of human rights. Being proactive on human rights can make good business sense, as • Business should support and respect the pro- well as being the right thing to do. tection of international human rights; and • Business must not be complicit in abuses of This publication, a joint product of the Business human rights. Leaders Initiative on Human Rights (BLIHR), the United Nations Global Compact Office, and the The Global Compact Office works with participants Office of the High Commissioner for Human Rights and other stakeholders to provide support, commu- (OHCHR), offers practical guidance to companies nications, governance, and programs related to the that want to take a proactive approach to hu- Global Compact initiative and principles. For more man rights within their business operations. It is information, see www.unglobalcompact.org principally for business leaders and managers in large and medium-sized enterprises, private and What is the Ofc fi e of the High Commissioner state-owned, who would like to develop their un- for Human Rights? derstanding of human rights in business practice. The Office of the High Commissioner for Human Rights (OHCHR) is an important branch of the UN What is the Business Leaders Initiative on human rights structure. The current High Com- Human Rights? missioner, Louise Arbour, is responsible to the UN The Business Leaders Initiative on Human Rights Secretary General for encouraging the international (BLIHR) is a business-led program that is developing community and nation states to uphold universal practical tools and methodologies for applying hu- human rights standards. The Office seeks to work man rights principles and standards across a range with an ever wider range of participants, including of business sectors, issues, and geographical loca- the private sector, to promote respect for and com- tions. The ten member companies of BLIHR took the mitment to human rights as widely as possible. lead in this Guide’s development, in which they share For more information, see www.ohchr.org some of their experiences and lessons they have learned. For more information, see www.blihr.org Why we chose to produce this Guide Human rights is one of the most challenging areas What is the United Nations Global Compact Ofc fi e? of corporate responsibility for companies to ad- The United Nations (UN) Global Compact is the dress; more human rights tools and guidance are UN’s voluntary corporate citizenship initiative based needed. This Guide is intended to help meet this on ten universal principles in the areas of hu- need and, in doing so, help companies make hu- man rights, labor standards, the environment and man rights a successful part of their business. Introduction Human rights are the basic rights of each human For business, human rights provide a universal being, independent of race, sex, religion, political benchmark for minimum standards of behavior. opinion, social status, or any other characteristic. Many national laws and regulations have evolved as Through international human rights conventions, a result of a State’s obligation to implement human governments commit to respect, protect, promote rights standards. Business must, of course, observe and fulfill the human rights of their citizens and such laws in all countries and jurisdictions in which other individuals within and beyond their borders. they operate. A list of the human rights contained in the Universal Declaration, the International Covenant on Civil and The debate about the nature and scope of com- Political Rights, and the International Covenant on panies’ human rights responsibilities is a relatively Economic, Social and Cultural Rights – the three recent one, as is the idea of applying human rights fundamental United Nations agreements on human to business decisions and operations. A number rights – is included in the Appendices to this Guide. of international efforts have been undertaken to Businesses should also be aware of the core con- elaborate on the content of human rights relevant ventions of the International Labour Organisation. In to business. One of the most comprehensive efforts addition, a specific body of law applies in situations resulted in the “Draft Norms on the Responsibilities of armed conflicts: international humanitarian law. of Transnational Corporations and Other Business Its rules have two aims: first, protecting people who Enterprises with Regard to Human Rights” (Draft are not or no longer taking part in hostilities and, Norms), developed by a United Nations expert secondly, regulating means and methods of warfare. group, the UN Sub-Commission on the Promotion and Protection of Human Rights. While the Draft At this time in history, there are compelling reasons Norms have no formal legal status, the inter-gov- why businesses should involve human rights in ernmental UN Commission on Human Rights has their policies and practices. Businesses increasingly observed that they have useful elements. Many of need a stable international environment in which the companies that have contributed to this Guide, to operate, with sustainable markets and a “level especially the companies involved in BLIHR, agree playing field” of opportunities. Human rights offer that the content of the Draft Norms provides a help- a common framework for businesses to under- ful framework for human rights in business. stand societies’ expectations and deliver value to stakeholders in a more sustainable way. This Guide demonstrates that, in a business context, advancing human rights is as much about realizing new op- portunities and managing risk as it is about meeting essential global standards. introduction Structure This Guide is based on a conventional management Global Compact system. It follows the Global Compact Performance Model, which is a map for responsible corporate citi- Performance Model zenship. The model allows business to implement the Global Compact principles without undermining their other business goals. The Performance Model was built on practical experience, identifying methods Vision that actual companies followed to mainstream the Global Compact principles into their own business operations and activities. More information about Leadership implementing the Performance Model in practice is available on the Global Compact website (www. Empowerment unglobalcompact.org) and in the publication entitled Policies Raising the Bar: Creating Value with the United Na- Resources Strategy tions Global Compact, listed in the Appendices. Processes Innovation This Guide is intended to be a technical manual and a hands-on toolkit to help any company integrate prac- Impact on Impact on tices consistent with human rights standards into an Value People Impact Chain existing management system. It is made up of seven on Society elements common to most management systems: Strategy, Policy, Processes and Procedure, Communi- Reporting cations, Training, Measuring Impact and Auditing, and Reporting. The Getting Started section identie fi s the initial steps a company should take to implement the performance model, and in the Appendices at the end of the Guide you will n fi d tools and resources which the BLIHR companies have found to be helpful in bringing human rights into their businesses. The examples in this Guide illustrate how aspects of the model have been implemented and are designed to inspire other businesses. The human rights processes and procedures included in this Guide are ongoing projects for the companies concerned. There is much still to learn. We welcome com- ments on the content of this Guide as we seek to constantly improve the business and human rights tools available to companies. introduction  results enablersGetting Started understanding human rights in a business context Human rights in your business: getting started 1 Develop the business case for human rights 2 Familiarize yourself with the broad content of human rights and the available resources 3 Understand the implications of the r fi st two principles of the Global Compact 4 Develop and encourage a rights-aware approach to your business • Enhanced corporate reputation 1. Develop the business and brand image case for human rights • A more secure license to operate There is a strong moral and ethical case to support the notion that business entities should integrate • Strengthened shareholder confidence human rights principles into their business practices • More sustainable business relationships within their sphere of influence. The concept of with governments, business partners, trade businesses as a ‘force for good’ and as a powerful unions, sub-contractors and suppliers. actor in economic, environmental and social devel- Human rights can be a way of identifying new busi- opment has been strengthened in recent years. ness opportunities; sometimes what might be first perceived as a risk to a business can be converted In terms of the ‘business case’ for human rights, into an asset. The Human Rights Matrix, introduced although the precise logic can vary between each in the Strategy section of this report, is a good way business sector and country of operation, the fol- to map both risks and opportunities and the man- lowing main benefits have been identified: agement approaches that can link the two. • Improved stakeholder relations In addition to the business case for human rights, • Improved employee recruitment, there are also important strategic reasons for busi- retention, and motivation ness to take a long-term interest in good governance • Improved risk assessment and and a stable social environment in places where management they do business. There are many good resources on • Reduced risk of consumer protests the business and strategic case for human rights; a selection is listed in the Appendices to this Guide. GEttinG St AE tr d Getting Started understanding human rights in a business context 2. f amiliarize yourself with the broD a content of human rights anD the aailable resources v Which human rights are relevant to business? The short answer is: all human rights are relevant. The Business Leaders Initiative on Human Rights has developed a Human Rights Matrix which Businesses should look first at what is often follows the Universal Declaration of Human Rights and other international agreements. The categories referred to as the “International Bill of Human Rights” made up of three international agreements: in the Matrix are those developed in the Draft Norms; the content covers the following areas: • The Universal Declaration of Human Rights A General Obligations • The International Covenant on Civil and B Right to equal opportunity and non-discrimi- Political Rights natory treatment • The International Covenant on Economic, C Right to security in persons Social and Cultural Rights D Rights of workers A short description of the rights contained in E Respect for national sovereignty and human these documents is included in the Appendices rights to this report. F Obligations with regard to consumer protec- tion A business should consider the full range of civil, G Obligations with regard to environmental political, economic, social, and cultural rights protection when examining the impact of its operations (see Sphere of influence overleaf). In addition, in H General provisions of implementation situations of armed conflict businesses should be aware of the rules of international humanitarian The full content of the Matrix and explanatory law, in particular those contained in the Geneva notes on the Draft Norms are available at www. Conventions of 1949 and their Additional blihr.org and www.ohchr.org respectively. A longer Protocols of 1977. list of resources is included in the Appendices. GEttinG St AE tr d 3. u n Dnatsre D snoi teh tafcoilpm ieht tsrif s oewltpicnirp fo eht g labol c tcapmo The first two principles of the Global Compact call on businesses to support and respect the protection of international human rights within their ‘sphere of influence’ and to make sure they are not complicit in human rights abuses. The two concepts of ‘sphere of influence’ and ‘avoiding complicity’ are very useful when trying to decide what your business can do, and what tools are needed, to ensure human rights consistent policies and practices in a business context. Sphere of influence “While the concept of sphere company’s sphere of influence by a business’ operations. A of influence is not defined in is likely to be.” (“The Global key stakeholder group that detail by international human Compact and Human Rights: Un- will normally lie at the center rights standards, it will tend to derstanding Sphere of Influence of any company’s sphere of include the individuals to whom and Complicity: OHCHR Briefing influence will be employees. the company has a certain Paper,” in ‘Embedding Human Other groups, such as business political, contractual, economic Rights in Business Practice’ partners, suppliers, trade or geographic proximity. Every – listed in the Appendices.) unions, local communities, and company, both large and small, customers will follow. The final has a sphere of influence, Understanding a company’s group will usually be govern- though obviously the larger or sphere of influence can be ment and the wider society. more strategically significant accomplished by mapping the the company, the larger the stakeholder groups affected OMPANY ONTRACTORSOMMUNITY3OCIETY Fig: This diagram is developed from the publication: Business as Partners in Development: Creating wealth for countries, companies and communities, Jane Nelson/The Prince of Wales International Business Leaders Forum, in collaboration with The World Bank and The U.N. Development Programme, London: 1996 GEttinG St AE tr d  Avoiding complicity in human rights abuses “A company is complicit in hu- rights issues. Four situations 4 When the company is silent man rights abuses if it autho- help to illustrate how the no- or inactive in the face of sys- rises, tolerates, or knowingly tion of complicity might arise: tematic or continuous human ignores human rights abuses rights violations e.g. inaction committed by an entity associ- 1 When the company actively or acceptance by companies ated with it, or if the company assists, directly or indirectly, of systematic discrimination knowingly provides practical in human rights violations in employment law against assistance or encouragement committed by others e.g. particular groups. that has a substantial effect where a company provides on the perpetration of human information to a government Where an international crime rights abuse. The participation that it knows will be used to is involved, complicity may of the company need not actu- violate human rights; arise where a company ally cause the abuse. Rather assisted in the perpetration the company’s assistance or 2 When the company is in a of the crime, the assistance encouragement has to be to partnership with a govern- had a substantial effect on a degree that, without such ment and knows, or should the perpetration of the crime participation, the abuses have known before agreeing and the company knew that most probably would not have to the partnership, that the its acts would assist the occurred to the same extent government is likely to com- perpetration of the crime or in the same way.” (“The mit abuses in carrying out even if it did not intend for Global Compact and Human its part of the agreement e.g. the crime to be committed. Rights: Understanding Sphere forced relocation of peoples; of Influence and Complicity: State-owned enterprises OHCHR Briefing Paper,” in 3 When the company benet fi s should be aware that ‘Embedding Human Rights in from human rights violations because they are part of the Business Practice’ – listed in even if it does not positively state, they may have direct the Appendices.) assist or cause them e.g. responsibilities under interna- abuses committed by secu- tional human rights law. Avoiding complicity in human rity forces, such as the sup- rights abuses is an important pression of a peaceful protest Business risk assessment and challenge for business. As the against business activities management tools are needed dynamics between govern- or the use of repressive to identify the potential for ments, companies, and civil measures while guarding complicity as it arises and to society organizations change, company facilities; and develop policies and proce- so too does the understand- dures to ensure non-complicity. ing of when and how different Some of these tools are being organizations should take on developed and are referred to responsibilities for human in this Guide. GEG S ttin t AE tr d any technical or investment decisions are made. In 4. Develop anD encourage a this way, a rights-aware approach can enable better- rights-aare approw ch ta o informed business decisions. our businessy Understanding the relationship a business has with human rights Starting to integrate human rights into business means taking a ‘rights-aware approach’ to business management requires the support of senior execu- practices. This allows the business to understand tives, along with a shared understanding of the challenges and dilemmas from the perspective of advantages a rights-aware approach offers the other stakeholders and to better manage social risk. business. This often means some initial invest- It will also enable the business to choose a globally ment to fully understand the nature of the risks and recognized strategic framework for the full range of opportunities that human rights present to the com- its economic and social activities – the ways in which pany. One such investment might be sourcing the the business can be a ‘force for good.’ Human rights necessary expertise from outside the business or provide a universal and legitimate framework that is training in human rights for key members of staff. applicable everywhere and to any stakeholder group. Many of the BLIHR companies are able to provide A human rights analysis can help highlight additional examples of where such an approach has delivered business benefits. risks and opportunities for a particular project before The ‘rights aware’ approach The ‘rights aware’ approach A ‘rights-aware approach’ still many dilemmas and also 1 Identify the rights at issue, means that a business is will- ‘competing rights’ in which the 2 Identify its responsibilities ing to accept that its stake- interests of one stakeholder in terms of international hu- holders have universal rights group might oppose another. A man rights standards, and and that any decisions made human rights-aware approach 3 Determine the appropriate by the business should strive to would mean that a business action. respect these. Clearly, there are would: GEG S ttin t AE tr d 0  Overview of the management components outlined in this Guide 1. Human rights in STRATEGY 1.1 Find out what you are already doing 1.2 Identify risks and opportunities and then the priorities for action 1.3 Develop a human rights strategy for your business 1.4 Define and embed appropriate management responsibilities 1.5 Integrate human rights into your company’s activities 1.6 Develop your strategy through a circle of continuous improvement 2. Human rights in POLICIES 2.1 Include human rights in your existing policies 2.2 Develop specific human rights policies where appropriate 2.3 Develop local policies to meet local situations 2.4 Ensure full implementation of your policies and review their outcomes E N A 3. Human rights in PROCESSES and PROCEDURES B 3.1 Consider the full scope of your business activities and functions L 3.2 Establish procedures for identifying your human rights-related risks and opportunities 3.3 Establish control systems for managing human rights in your business E 3.4 Learn from sector-wide business initiatives 3.5 Expect the unexpected – how to react when procedures are not enough R S 4. Human rights in COMMUNICATIONS 4.1 Share understanding of why human rights are important to business communications 4.2 Integrate human rights into your internal communications 4.3 Integrate human rights into your external communications 5. Human rights in TRAINING 5.1 Identify target groups in your business to receive human rights training 5.2 Review the different types of training materials available 5.3 Select, organize and evaluate the training program for target groups 6. Human rights in MEASURING IMPACT AND AUDITING 6.1 Set relevant performance indicators for measuring human rights impact across the different functions of your business R 6.2 Undertake human rights based audits E 6.3 Analyze the results of audits and use the results to inform the strategic development of your business S U L 7. Human rights in REPORTING 7.1 Decide which human rights impacts are priorities for you to report on T 7.2 Consider who your main target audiences are S 7.3 Develop an effective reporting format 7.4 Publish this information on its own or as part of a regular business report 7.5 Submit a link/description to the Global Compact website (Global Compact participants) introductionGEG S ttin t AE tr d 0 1 Strategy Human rights in strategy: key steps for your business 1.1 Find out what you are already doing 1.2 Identify risks and opportunities and then the priorities for action 1.3 Develop a human rights strategy for your business 1.4 Define and embed appropriate management responsibilities 1.5 Integrate human rights into your company’s activities 1.6 Develop your strategy through a circle of continuous improvement 1.1 inD f out what you are alreaD y Doing The debate on the nature and scope of companies’ responsibilities concerning human rights may be relatively recent, but many related issues are already managed by business through established procedures and practices. Legal requirements, negotiated agreements and policies on such issues as data protection, wage fixing, working hours and holidays, non-discrimination, occupational health and safety, and product safety, are all founded in human rights and form part of a company’s relationship with stakeholders. 1.2 D i yfit nseksirna D seit inutnaroppo D neht seehittir oriorfn poitca It is important for a company to map its existing policies and undertake a gap analysis to establish how well human rights issues are covered and whether additional policies are needed. A crucial part of the gap analysis is to identify human rights risks and dilemmas facing your business operations. There are many examples of human rights dilemmas faced by businesses around the world on a daily basis; a few are listed here, but many more are cited in the resources listed in the Appendices to this Guide. Human rights risks and dilemmas – some examples • Privacy: how do you balance the marketing advan- • Corruption: how do you operate within international tages of registering your customer information with their standards when there are local corrupt financial prac - legitimate request for protection of their right to privacy? tices, a lack of laws, and the improper administration of • Rest, leisure and paid holidays: how do you keep justice, leading to limited respect for human rights? production costs competitive when you operate in a • Security: how do you obtain protection for personnel country where there is no legal mandate for paid holi- and plant when the state security forces are known to days, but you wish to follow international standards? use excessive violence and commit other human rights • Housing: do you evaluate the financial impact of abuses against the local population? upgrading staff quarters to international minimum • Discrimination: how do you reconcile the realities of requirements when performing a due diligence of a traditional work and cultural practices with your own factory that you plan to take over? policies and adherence to international standards? How do you ensure disabled workers have equal job opportu- nities within the company? StrA EG t y StrA EG t y 1 Strategy Additional risks emerge if dilemmas are not properly managed. ated locally and internationally. However, if dilemmas are properly These might include negative impacts on stakeholder relations, managed, they can become opportunities for your business. such as with employees, contractors, local communities, local and Turning risk into opportunity is a key component of a strategic national governments, and others. There might also be possible approach to human rights in business. During the initial scoping operational disruption or a negative impact on investor cond fi ence phase, a company may also identify other opportunities to promote and share value. There is also a risk of negative publicity, gener- human rights in the conduct of their regular business activities. Human rights opportunities – some examples • Positive impacts upon stakeholder relations, including with employees, contractors, trade unions, local communities, non-governmental organizations, local and national governments and others. • A minimization of operational disruption. • Better opportunities for positive public relationships with society, the press, and other media • A positive impact upon investor confidence and share value • Improving employee morale due to good safety performance Once risks and opportunities are identified, the next step is philanthropic and charitable donations or the donation of to identify human rights priorities based on these conclu- technical expertise to help the most disadvantaged. sions. The Human Rights Matrix designed by the BLIHR companies (see diagram overleaf) can be used to allow a The pyramid (left) shows that any business to map what it sees as its ‘essential’, ‘expected,’ human rights strategy should align Desirable and ‘desirable’ priorities against a broad spectrum of hu- the essential, expected and Expected man rights categories. It allows risks and opportunities to desirable actions of a company. be shown together and helps to identify the human rights It makes no sense for Essential content of a company’s ‘sphere of influence.’ a business to take desirable actions to address a human rights concern, • Essential – is the action that must be taken by the such as providing charitable donations, if it is not already company to follow relevant legal standards, eg interna- demonstrating its essential and expected action in the tional human rights law, national laws, and regulations, same area. including in situations where a government is unwilling or unable to fulfill its obligations. The Human Rights Matrix is a general version for the pur- • Expected – is the action which should be taken by the poses of example only. Your business would need to produce company to meet the expectations of, and accept its its own version drawing on all the relevant data from your shared responsibilities to, relevant stakeholders. What is company’s activities across specic fi geographic areas. A expected may vary according to your business sector. great advantage offered by a rights-aware approach is that • Desirable – is the action through which the busi- the categories (shown across the column headings of the ness could demonstrate real leadership. This can take Matrix) are universal and therefore global in application, as a number of forms depending on the circumstances, are many of the international standards upon which ‘essen- but could include partnerships with other stakeholders, tial’ actions are based. StrA EG t y StrA EG t y A Human Rights Matrix (template version) A Human Rights Matrix B2. A1. F13. Obligations G14. Obligations A C.Right to security of persons D. Rights of workers E. Respect for national sovereignty and human rights H. General provisions of implementation Right to equal with regard to General with regard to R opportunity and consumer obligations environmental protection non- C3. Right to C4. Security D5. Forced or D7. Safe and D8. Adequate D9. Freedom of E10. Respect for E11. Bribery E12. Contribution to H15. E D6. Childrens’ H16. Monitoring H17. Reparations protection discriminatory arrangements association / security of persons compulsory labour healthy workplace national governance rights remuneration realisation of human Internal rules A collective treatment practices rights of operation bargaining E Essential requirements in compliance with international human rights standards, including: The Universal Declaration of Human Rights, the International Covenant on Essential requirements in compliance with international human rights standards, including: The Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights, the Convention against Torture, the Convention on the Elimination of Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights, the Convention against Torture, the Convention on the Elimination of S All Forms of Racial Discrimination, the Convention on the Elimination of All Forms of Discrimination against Women and the Convention on the Rights of the Child. All Forms of Racial Discrimination, the Convention on the Elimination of All Forms of Discrimination against Women and the Convention on the Rights of the Child. S These commitments are universal and enforced by governments, but also apply in situations where a government is unwilling or unable to enforce these standards. These commitments are universal and enforced by governments, but also apply in situations where a government is unwilling or unable to enforce these standards. E N T Compliance with the ‘core’ Conventions of the International Labour Organisation Compliance with the ‘core’ Conventions of the International Labour Organisation I A Compliance with national laws and regulations in the countries of operation Compliance with national laws and regulations in the countries of operation L Public statement of Equal opportunities Employee self- Criteria in contracts for Global HSE guide- Pay at least living Bribery and On-going studies Environment policy Code of conduct 3rd party verifi- Corporate policy Train managers to Supplier screening / Do not interfere Commitment to lines specifying wage in all corruption into the safety of cation of CSR commitment to policy protection advice / for security services on protection ensure they are monitoring with union political neutrality standards, countries prevention policy products and reporting for whistle-blowing human rights able to detect activities after training implementation and of operation services different forms of hours and Develop compliance process forced labour cooperate with understanding from union and workers Public statements of Progressive standards such as Safety management Pension provision Board Committee Letter of Assurance Offer fair and timely Rigorously Carry out a risk Formal to participate in in all countries of with terms of refe- Maternity, Adoption, the Voluntary system compensation commitment to ILO environmental inspect work process assessment study union business rence covering Family leave, Principles on operation Core conventions, facilities to of the home and management during working environmental and Harassment policies Security and Human ensure that host countries system(s) UDHR, OECD hours social issues including Rights on how to premises are free and of actors in human rights. guidelines, etc. best manage from all forms of the supply chains Committee) E Focused diversity Publication of Merit-based pay Board Audit and Procurement Annual review of relations with Refrain from forced labour in both countries. performance data and performance Compliance initiatives/ security staff and process assessed policies X exerting any system Committee programmes and engage in training of inappropriate P relevant staff on the leadership structure influence that E protection of human might jeopardize rights. the independence C Training for Wage level Transparent public Diversity awareness/ Goals for reduction Public reporting, of the union Work with the employees and T training for incorporated into reporting in Annual of energy for example selected employees local police consumption supplier screening Report according to GRI Establishment of E (public) or security Third Parties or other reporting criteria Consultative D service providers standards Committees (e.g. (private) in Health and safety) Participation in Support for specific Established risk advance of a programmes e.g. industry safety management process project to develop black empowerment forums and a common in South Africa initiatives understanding and agreement to protect human Public reporting of Certification of rights in the event basic performance ISO14001 of a dangerous metrics environmental situation requiring management intervention. programme(s) Cooperation with Chairman's award Employee personal Withdrawal from Safety working Enhanced pension Trade union Participation in Training on Matched giving Supplier development Internal audits of Public reporting, Internal audits of Human Rights to promote best accident insurance countries where groups schemes consulted on all public good compliance / (support employee's programme social and environ- human rights for example related institutions practice business changes that governance debate mental performance complaints forced labour is Grey zones according to GRI or charitable giving) prevalent impact employees incl. corruption mechanisms other reporting in relevant areas andards. Membership of Employee Assist Community safety Share ownership Models to meet Community Business develop- Rigorously forums promoting (24 hour Investment strategy, ment / due diligence education schemes employee needs in inspect suppliers’ diversity, gender confidential policy and program- processes programmes countries with diffi- facilities to D balance etc. help line) mes focusing on incorporate human cult official policies ensure that E human rights issues rights risks premises are free S from all forms of Training programs Public safety forced labour Avoid actions I and work placement awareness which may for vulnerable / campaigns R undermine the excluded groups union’s credibility A with members B Targeted products / HIV/AIDS awareness Support to L educational services for and treatment programmes / E disadvantaged programmes local enterprise groups Corporate standards Corporate applied within foundation business partnerships giving and supply chain introduction  THESE STANDARDS ARE NOT FIXED AND WILL EVOLVE OVER TIMEA Human Rights Matrix (template version) B2. A1. F13. Obligations G14. Obligations A C.Right to security of persons D. Rights of workers E. Respect for national sovereignty and human rights H. General provisions of implementation Right to equal with regard to General with regard to R opportunity and consumer obligations environmental protection non- C3. Right to C4. Security D5. Forced or D7. Safe and D8. Adequate D9. Freedom of E10. Respect for E11. Bribery E12. Contribution to H15. E D6. Childrens’ protection H16. Monitoring H17. Reparations discriminatory arrangements association / security of persons compulsory labour healthy workplace national governance rights remuneration realisation of human Internal rules A collective treatment practices rights of operation bargaining E Essential requirements in compliance with international human rights standards, including: The Universal Declaration of Human Rights, the International Covenant on Essential requirements in compliance with international human rights standards, including: The Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights, the Convention against Torture, the Convention on the Elimination of Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights, the Convention against Torture, the Convention on the Elimination of S All Forms of Racial Discrimination, the Convention on the Elimination of All Forms of Discrimination against Women and the Convention on the Rights of the Child. All Forms of Racial Discrimination, the Convention on the Elimination of All Forms of Discrimination against Women and the Convention on the Rights of the Child. S These commitments are universal and enforced by governments, but also apply in situations where a government is unwilling or unable to enforce these standards. These commitments are universal and enforced by governments, but also apply in situations where a government is unwilling or unable to enforce these standards. E N T Compliance with the ‘core’ Conventions of the International Labour Organisation Compliance with the ‘core’ Conventions of the International Labour Organisation I A Compliance with national laws and regulations in the countries of operation Compliance with national laws and regulations in the countries of operation L Public statement of Equal opportunities Employee self- Criteria in contracts for Global HSE guide- Pay at least living Bribery and On-going studies Environment policy Code of conduct 3rd party verifi- Corporate policy Train managers to Supplier screening / Do not interfere Commitment to lines specifying wage in all corruption into the safety of cation of CSR on protection commitment to policy protection advice / for security services ensure they are monitoring with union political neutrality standards, countries prevention policy products and reporting for whistle-blowing human rights able to detect activities after training implementation and of operation services different forms of hours and Develop compliance process forced labour cooperate with understanding from union and workers Public statements of Progressive standards such as Safety management Pension provision Board Committee Offer fair and timely Rigorously Letter of Assurance Carry out a risk Formal to participate in with terms of refe- Maternity, Adoption, the Voluntary in all countries of compensation commitment to ILO system inspect work process assessment study environmental union business rence covering Family leave, Principles on operation Core conventions, facilities to of the home and management during working environmental and Harassment policies Security and Human UDHR, OECD ensure that host countries system(s) hours social issues including Rights on how to premises are free and of actors in human rights. guidelines, etc. best manage from all forms of the supply chains Committee) E Publication of Merit-based pay Board Audit and Focused diversity Procurement Annual review of relations with Refrain from forced labour in both countries. and performance initiatives/ performance data Compliance process assessed policies security staff and X exerting any system Committee programmes and engage in training of inappropriate P relevant staff on the leadership structure influence that E protection of human might jeopardize rights. the independence C Diversity awareness/ Training for Wage level Transparent public Goals for reduction Public reporting, of the union employees and T training for Work with the incorporated into reporting in Annual of energy for example local police selected employees supplier screening Report consumption according to GRI Establishment of E Third Parties (public) or security or other reporting criteria Consultative D service providers standards Committees (e.g. (private) in Health and safety) Support for specific Participation in Established risk advance of a programmes e.g. industry safety management process project to develop black empowerment forums and a common in South Africa initiatives understanding and agreement to protect human Public reporting of Certification of rights in the event basic performance ISO14001 of a dangerous metrics environmental situation requiring management intervention. programme(s) Cooperation with Chairman's award Employee personal Withdrawal from Safety working Enhanced pension Trade union Participation in Training on Matched giving Supplier development Internal audits of Internal audits of Public reporting, Human Rights to promote best groups consulted on all public good social and environ- accident insurance countries where schemes compliance / (support employee's programme for example human rights related institutions practice business changes that governance debate mental performance complaints forced labour is Grey zones charitable giving) according to GRI or impact employees incl. corruption prevalent other reporting mechanisms in relevant areas andards. Membership of Employee Assist Community safety Share ownership Models to meet Community Business develop- Rigorously forums promoting (24 hour education schemes employee needs in Investment strategy, ment / due diligence inspect suppliers’ diversity, gender confidential policy and program- processes programmes countries with diffi- facilities to D balance etc. help line) mes focusing on incorporate human cult official policies ensure that E human rights issues rights risks premises are free from all forms of S Training programs Public safety forced labour Avoid actions I and work placement awareness which may for vulnerable / campaigns R undermine the excluded groups union’s credibility A with members B Targeted products / HIV/AIDS awareness Support to L educational services for and treatment programmes / E disadvantaged programmes local enterprise groups Corporate standards Corporate applied within foundation business partnerships giving and supply chain introduction  THESE STANDARDS ARE NOT FIXED AND WILL EVOLVE OVER TIME Identifying human rights priorities – some examples Energy Utilities National Grid has produced Extractive Sector Statoil has applied the a variation of the Human Rights Matrix, which Human Rights Matrix in detail as a strategic relates the different human rights areas of the tool to better understand the total impact of its company’s responsibilities to different stake- activities in Venezuela. holder groups such as government, business and domestic customers, local communities, Media and Entertainment Industry MTV investors, employees, and suppliers. Networks Europe has applied the Human Rights Matrix to all On-Air and Off-Air operations in the Pharmaceutical Sector Novartis has used a UK and Ireland and as a result is one of the first corporate citizenship matrix containing human media companies to develop policies based on rights principles to help define the sphere of human rights considerations. influence of the pharmaceutical sector as it relates to the Access to Medicines policy and the For more information on the above examples, ethical principles of the Declaration of Helsinki please go to www.blihr.org or visit the company on clinical trials. websites shown in the Appendix to this Guide. 1.3 Develop a human rights strategy for your business Having identified the human rights risks and opportunities, it is necessary to set out what the organiza - tion wants to achieve (the vision) and how it intends to achieve it (the strategy). For many companies, this will entail setting out how they will integrate human rights considerations into their existing management systems and cover issues such as leadership, planning, defining roles and allocating resources. 1.4 D enifena D ebme D s eitil it bneietsmne ogpasiaernrpaomrppa A strong commitment to human rights from a company’s senior leaders is a prerequisite for embedding human rights into a company’s operations and activities. Support from senior leaders ensures that human rights issues are taken seriously and become part of business strategy. A number of companies have found that having a member of the board of directors or executive management team assume overall responsibil- ity for human rights-relevant issues has been important in ensuring that these matters receive the required degree of attention. Clear lines of accountability have also proven to be vital. These companies typically have a designated senior manager who is responsible for implementing the company’s human rights policies and driving performance improvement. The senior manager generally reports to the executive level and may be responsible for one of several possible functions / departments in the company, such as human resources, procurement, legal affairs, public affairs, or the sustainability department. StrA EG t y  Embedding management responsibilities – some examples Articles of Association Novo Nordisk’s Articles Ethical Guidance Council Copel, whose vision of Association specify that the company will ‘strive statement makes explicit its aim to “become the to conduct its activities in a n fi ancially, environ - best company within the Brazilian power sector mentally and socially responsible way.’ The Novo by 2006, striking a balance between the interests Nordisk commitment to sustainable development is of the community and of its shareholders,” has an anchored in the company’s corporate governance Ethical Guidance Council whose role is to discuss and its fundamental business principles, called the and guide Copel’s actions, examine submitted “Novo Nordisk Way of Management.” The Novo cases, and recommend appropriate sanctions, to Nordisk Way of Management explicitly refers to the ensure that the Company’s actions are conducted Triple Bottom Line (TBL) — social, environmental in accordance with sound principles and to over- and n fi ancial responsibility — as the company’s see the dissemination and effective application of underlying business principle. Since 1999, the Novo the Copel Code of Conduct across all sectors of Nordisk Way of Management has included a com- the Company. To ensure its autonomy, the Council mitment to support the United Nations Universal is made up of the Company’s employees, each Declaration of Human Rights and to integrate hu- representing their respective different professional man rights considerations into its daily business. categories, and is coordinated by a representative of civil society. Board-level representation National Grid’s board subcommittee, the Risk and Responsibility Com- Mainstreaming Human Rights Novartis has mittee, is chaired by a Non-executive Director and developed and implemented human rights related has responsibility for reviewing the management Corporate Citizenship Guidelines and implemented of non-n fi ancial issues, policies, and standards and them through line management. for reviewing the performance of the Group. Where appropriate, this includes that of its contractors Direct involvement of the Chief Executive Ofc fi er and suppliers. The Committee’s remit includes The Managing Director of each Tata company is also occupational and public safety, occupational health, its Principal Ethics Ofc fi er who nominates an Ethics environment, inclusion and diversity, human rights, Ofc fi er and a team of Location Ethics Counsellors. business ethics, and community involvement. Together this team is responsible for the Management of Business Ethics (MBE) in the company and for Executive level representation ABB’s human ensuring compliance of the Tata Code of Conduct – a rights policy is embedded in its social policy and written document. is the responsibility of the head of the Sustain- ability Affairs group. He reports on the economic, Human Resources In January 2005, the CEO of environmental, and social aspects of the group’s Valeo, an automobile company based in France, business activities and the human rights poli- decided that the responsibility for implementing cies and commitments to a member of the group and monitoring the Group’s Human Rights policy executive committee who has overall responsibility should be an integral part of the Human Resources for sustainability issues. Environmental and social function. The Group Human Resources Director is policies are monitored and enforced by country now responsible for dealing with any human rights and regional sustainability controllers in the 100 violations, as are the Human Resources Directors countries where ABB operates. across the Group entities. StrA EG t y DO ACT 2 Policy 1.5 iet anragm eusthtnhg iortn ’iryunoaypmso ecsitivitca Particularly in large companies, integration of human rights may be a complex process that involves several organizational levels and different types of operations in different parts of the world. To track progress, adequate indicators and goals must be developed for different activities; internal audits can prove key in tracking progress. The main purpose of audits is to check that the system is working according to plan, that new issues are captured by the system, and that performance is continually improved. Often progress on an issue across an entire company is gradual and incremental. In the meantime, imple- mentation efforts for the company as a whole can be complemented by local strategies and special plans for certain operations and units. These ‘bottom-up approaches’ can be developed quickly to meet the challenges a business faces in a particular geographic location or a specic fi production process. 1.6 D pol eyrvg ueehotguyoarrhtts a elcric s fuoounitnoc vementimpro To help ensure that implementation efforts remain on track, it is a good idea to adopt a continuous improvement approach from the start. The plan-do-check-act circle may help in the process of learning and improving along the way. • Identify risks and • Define roles and opportunities responsibilities • Set goals • Document • Impose operational control • Management • Measure results review • Internal audit • Records of results Fig: The plan-do-check-act circle of continuous improvement with examples of activities to be undertaken in different steps First developed by Walter Shewhart, it was popularized by Edwards Deming. SA tr tEGy  CHECK PLAN2 Policy Human rights in policies: key steps for your business 2.1 Include human rights in your existing policies 2.2 Develop specific human rights policies where appropriate 2.3 Develop local policies to meet local situations 2.4 Ensure full implementation of your policies and review their outcomes 2.1 D nclui e human rights in your existing policies A policy statement sets out the direction and gives the overall goals for a company in a certain area of activity. It should drive the management of the activity in the company and be supported by programs and objectives throughout the organization, to ensure that the policy and related commitments are implemented and maintained. More and more companies include human rights either as a policy in itself or as part of other policies in the governance structure. Including human rights in existing policies – some examples Barclays Barclays developed a human rights existing social and environmental supplier framework in 2004 to draw together a wide screening/engagement criteria to incorporate range of existing policies relevant to its human human rights aspects more explicitly into the rights impact as an employer, purchaser of goods assessment of sourcing proposals. While it is and services, and provider of n fi ancial services paramount that contracts deliver commercial to customers. Policies were mapped using the benet fi , human rights aspects can be a signic fi ant Human Rights Matrix to ensure areas of strength factor in decision-making. From a workforce and to identify any “gaps.” The framework was perspective, Barclays – like many businesses – has formally approved by the heads of each business longstanding policies on human rights-relevant line and supports the Corporate Responsibility issues including health and safety, equality and Board Governance Standard, one of a series of diversity, non-discrimination, and many others. The standards through which the Barclays Board tracks human rights impact of lending, however, is the compliance with desired business objectives and area where most dilemmas arise, as the impact is regulatory requirements. Since adoption of the indirect. Here, Barclays’ human rights framework framework, work has continued in integrating focuses on risk management and the identic fi ation human rights considerations into practice. For of social and environmental risks in assessing and example, Sourcing management is strengthening sanctioning n fi ancial propositions. policy Including human rights in existing policies – some examples Hewlett-Packard’s Global Citizenship Policy Human Rights are integral elements of Corporate states its commitment to the Universal Declaration Citizenship at Novartis. To put the Novartis of Human Rights and includes specific policies human rights responsibilities in the wider context on human rights and labor, as well as employee of a fair societal division of labor, the Novartis privacy. HP’s Global Citizenship organization Corporate Citizenship Guideline on Human Rights provides the governance for human rights and the is supported by a commentary. other key aspects of its commitment to corporate http://www.novartis.com/corporate_citizenship/ citizenship. en/guidelines.shtml 2.2 D pocliefveic enapmsu hst hgseieirtci laeoirprehpworppa A good human rights policy should give consideration to the points in the checklist below: Checklist for a human rights policy q Does the policy comply with existing international human rights conventions and norms, such as the United Nations Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work? q Is the policy relevant to your company and its sphere of influence? q Does the policy include a commitment to respect, protect and promote human rights and to avoid complicity in human rights abuses? q Does the policy extend to all parts of the organization and other existing policies such as health and safety, procurement, and human resources? q Does the policy include your company’s expectations of its partners, joint ventures, customers, and supply chain? q Has consideration been given to tie in with existing codes and guidelines where appropriate, such as the Global Compact Principles, the ILO’s Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, the Organisation for Economic Co-operation and Development’s Guidelines for Multinational Enterprises, and Social Accountability 8000 (SA 8000)? A more detailed list of existing codes and guidelines is included in the Appendices. policy 0 0  Getting started Companies that have been recognized for including human rights in policies The Business and Human Rights Resource Centre of adopting a formal company policy statement (www.business-humanrights.org) is a valuable explicitly referring to human rights. resource for people interested in understanding It also notes which companies are participants in different perspectives of business and human the Global Compact. rights. It lists companies that have taken the step 2.3 Develop local policies to meet local situtionsa It may be benec fi ial for international businesses to use local policies based on corporate standards and national requirements. These local policies need to be translated into local languages to facilitate their under- standing and implementation. However, local policies should not contradict the general corporate standards. For example, in some cultures it is common practice for bribes to be sought and made, while at the interna- tional level such practices are unlawful as well as being irreconcilable with a commitment to human rights. Human rights embedded in local policies – some examples of tackling national and local discrimination Equity (South Africa) Eskom has incorporated Professionals with disabilities (Mexico) issues of human rights - especially those relating Through the Mexico-based program Congru- to employment equity and the local social needs encia, CEMEX Mexico has developed a policy of of the country - into its decision-making proc- inclusion for workers with disabilities, intended to esses. In South Africa, Eskom developed employ- enhance their job opportunities and to raise com- ment equity policies, performance indicators and munity awareness on the issue of social equity. reward systems to ensure that the organization is This program is managed through a specialized representative of the country in which it operates. website that provides information on vacancies Affirmative action, gender equity and the rights of and human rights. In 2004, the program was people with disabilities are key elements. Simi- opened to other companies and currently involves larly, targets and performance indicators are set more than 20 public and private institutions, for procurement practices that proactively support which promote favorable conditions for social and and develop Black Economic Empowerment (BEE) labor inclusion. and, in particular, Black Woman Owned business and small and medium sized enterprises. policy 0  3 Processes and Procedures Human rights embedded in local policies – some examples of tackling national and local discrimination Women’s rights (Sri Lanka) MAS Holdings balance initiatives recognize and support the (an apparel manufacturer) has a business model multiple roles played by career women and the that supports the empowerment of women. With need for a healthy balance between work and 92 per cent of the total workforce of 34,000 personal life. MAS also rewards high-achievers employees in the company being made up of in academia, sports, science, commerce, and women, MAS has developed best practices in arts and culture. Employees are encouraged to its corporate citizenship program to empower perform better through annual awards such as women. The “Go Beyond” program at MAS the ‘Empowered Woman of the Year Award.” recruits economically less affluent, rural women Community initiatives, especially those that im- and teaches them English language skills and prove educational and healthcare infrastructure how to use IT-enabled tools to advance their ca- for young women, have been a long standing reers. The female employees are also trained to tradition at MAS. The company ensures that manage their finances, to have an understand - its predominantly female workforce has a high ing of sexual and reproductive health and to level of confidence and self-esteem. This in turn achieve a better work-life balance. The work-life has helped the company to grow its business 2.4 ensure full implementtion of y a our policies anD review their outcomes Group and local policies should be the overall responsibility of identie fi d individuals within the business who are tasked with ensuring the policies are fully implemented. These individuals should ensure that there are sufc fi ient resources for implementation, the results are moni - tored, and the policies are regularly reviewed. Even the most clearly den fi ed policies will require interpretation. The policy owner should act as a focal point for dealing with human rights issues that arise through imple- mentation and should have access to both local and international expertise. policy  3 Processes and Procedures Human rights in processes and procedures: key steps for your business 3.1 Consider the full scope of your business activities and functions 3.2 Establish procedures for identifying your human rights-related risks and opportunities 3.3 Establish control systems for managing human rights in your business 3.4 Learn from sector-wide business initiatives 3.5 Expect the unexpected – how to react when procedures are not enough 3.1 onsicDer the full scope of your business activities D an functions As part of human rights policy implementation, it is crucial to den fi e the pro - cesses and procedures that will make the policy a reality. The processes and procedures may differ according to business context within the same company. However, what they will all have in common is that they are intended to achieve the same result, are documented, and have measurable indicators and outcomes. The executive management team of the business is responsible for ensuring that roles, responsibilities, authority, and resources are defined and allocated in a way that enables efficient implementation and main - tenance of human rights management in the organization. 3.2 ablish proceest Dures for iDentifying your human rights-relaD te risks anD opportunities As already outlined in the section on Strategy, the key to managing human rights in an organization is to analyze and understand the risks and opportunities in a company’s operations. Ensuring compliance with legal requirements and international treaties is essential to this analysis and should be reviewed regularly as part of the management process. procESSES A nd E proc durES  Getting started Human rights as an important factor in a country risk assessment – an example Statoil has formulated country and reputation mitigation measures reflect Statoil’s corporate risk guidelines to ensure the company has wide- social responsibility strategy and its require- ranging knowledge and understanding of local ments for social investment management. Risk conditions, business culture, and external factors assessments are performed regularly and when as early as possible in a business project. The significant events occur. The risks are divided aim is to minimize Statoil’s country and reputa- into 19 factors within the following categories: tion risk exposure through the early identifica - • Political risk elements tion, prioritization, and mitigation of risks that • Country-specific operational risk elements may affect a project or business opportunity. Risk mitigation alternatives are specified for • Reputational risk every significant risk factor that is identified; the Human rights and possible violations are impor- level of detail depends on how far the project tant factors within the political risk category. or business opportunity has progressed. Risk The Human Rights Matrix developed by BLIHR can help companies identify risks and opportunities. Stakeholder panels may give advice on external concerns regarding a company’s operations and may also provide input on possible solutions. Mapping a company’s sphere of influence may also help to identify the risk of complicity when operating in a country with a poor record on human rights. In addition, calling for regular checks and updates is advisable if a particular country ranks low on an index of corruption levels for instance. Finally, input from non-governmental organizations (NGOs) and external country assessments can provide additional value. 3.3 e hsilbats lortnoc smetsys rof gniganamn amuh sthgir ni ruoyssenisub Once risks and opportunities have been identified for each business operation, a company should develop and implement adequate control processes for those op- erations. Control processes could range from a supplier qualification process with a mandatory risk review of customer projects, to a code of conduct that ensures equal opportunity and minority rights, or a checklist and instructions for business operations in sensitive areas. Guidelines for suppliers and contractual agree- ments with customers and suppliers have proven to be powerful tools for ensuring that risks are minimized or eliminated and opportunities are maximized. procESSES A nd E proc durES  Introduction Human rights in different types of control systems – some examples Identifying market opportunities National Grid quality, and innovation – when deciding where to does not have extensive operations in countries that place orders. At the same time, Gap recognizes are considered to be ‘of urgent concern’ in relation that its own business practices can have an to some aspects of human rights. The utility com- impact on compliance, and is actively exploring pany has therefore focused on extending its existing better ways to work with its manufacturers. To risk management by identifying and understanding avoid contributing to excessive overtime, Gap is the areas where the Group might be exposed to hu- making a greater effort to ensure that garment man rights risks and opportunities when developing manufacturers have accurately assessed their new business in emerging markets. As a result, it capacity and capabilities before orders are has revised its business development procedures placed with them. Gap is also working to reduce to include an analysis of human rights risks when inefficient purchasing practices such as rush identifying market opportunities. It has also devel- orders and last-minute changes. oped protocols to enable an analysis of potential target companies, to assess their approach and Lending assessments Human rights issues record on human rights issues. such as the rights of indigenous peoples, are included in the Equator Principles which den fi e Editorial practices MTV Europe is developing social and environmental criteria that apply to a Code of Editorial Conduct, which will be one project n fi ancial transactions (see the Appendices of the first in the industry to be based on human for details). Barclays was one of the original group rights values. The Code and its procedures for of banks to adopt the Principles in June 2003 application will be based on MTV’s understand- and, while the criteria is specic fi to project-related ing of its spheres of influence and would provide lending, Barclays extends the “spirit” of the Prin- internal processes for creative thinking and ciples when assessing other types of lending. decision-making. This in no way will involve censorship; instead it will enable the company to Performance standards for resettlement The take better-informed risks. International Finance Corporation (IFC) is in the process of adopting a new set of performance Purchasing practices Gap Inc. is working standards that it will require its clients to adhere towards better human rights compliance by im- to as a condition of lending. One of the perfor- proving supply chain operations and embedding mance standards addresses involuntary resettle- labor standards directly into business practices. ment – a process in which governments move Ultimately, Gap believes garment manufacturers, people to make way for projects in the public most of whom are multinational corporations, interest such as roads or water treatment plants. must take responsibility for conditions in the In preparing the new performance standard, IFC factories they own and operate. To encourage reviewed the human rights protections in the them to take that responsibility seriously, Gap is right to housing and incorporated those aspects developing a formal tool that will enable them to of the right to housing that the private sector can consider a garment manufacturer’s compliance take action on within a project context. record – along with criteria such as cost, speed, (continued on next page) procESSES A nd E proc durES  Human rights in different types of control systems – some examples (continued) For example, anyone moved must Managing Third Party relationships The be provided with security of tenure in their new objective of Novartis’ Third Party Guidelines is location, even if they did not have security of to provide criteria, tools, and procedures for: (1) tenure in their previous location. This ree fl cts the assessment and approval of Third Parties; the right to housing with emphasis on providing and (2) the continuous management of business everyone with security of tenure – i.e. protection relationships. The standards set forth in this Third against illegal eviction. If an IFC-n fi anced project Party Guideline apply to Corporate Functions involves involuntary resettlement, the company and all Novartis Divisions and Business Units. No- must prepare a detailed plan for resettlement, vartis Divisions and Business Units either adopt including plans for providing informal settlers with these guidelines as is or issue an equivalent security of tenure in a new location. IFC then guidance note of their own. http://www.novartis. reviews and approves the plan as a condition com/corporate_citizenship/en/guidelines.shtml of n fi ancing. As a further condition of n fi anc - ing, the client must implement the plan, monitor Supply chain management Human rights are a and ensure that the actions taken achieve the central focus of Hewlett-Packard’s Supply Chain objectives set out in the performance standard Social and Environmental Responsibility (SER) Pro- and the resettlement plan. If the resettlement is gram. One of HP’s biggest challenges is to apply sufc fi iently large or difc fi ult, IFC will require an its Human Rights Policy in its supply chain, where independent third party to monitor implementa- it does not have direct control. One way HP is tion of the resettlement activities. addressing this is through the Electronic Industry Code of Conduct (EICC), which HP co-developed Scheduled and unscheduled inspections Li with Dell, IBM, and several large contract manu- & Fung (Trading) Limited, based in Hong Kong, is facturers in 2004. The Code provides an important a global trading group that manages the supply foundation for ongoing supplier audits and other chain for high-volume, time-sensitive consumer efforts to ensure compliance with the HP Human goods – particularly garments, furnishings, gifts, Rights Policy. Most importantly, it makes supplier home products, toys, and sporting and travel performance easier to audit and verify. goods. From Hong Kong, it co-ordinates the manu- facture of goods through a network of ofc fi es in Gap Inc. views SA8000 as a premier set of global almost 40 countries. All suppliers to Li & Fung labor standards towards which they hope gar- are required to commit to the Code of Conduct ment manufacturers will aspire. A few of their to Vendors, which has 14 principles, including no suppliers have already received SA8000 certi- child labor and non-discrimination principles. A fication. As a member of Social Accountability signed copy must be returned to Li & Fung within International’s Corporate Involvement Program, 30 days, and failure to give a timely response will Gap Inc. recently conducted a gap analysis of cause it “to review its relationship with the sup- their Code of Vendor Conduct relative to the plier.” The code is enforced through scheduled SA8000 standard and are examining areas in which they can bring their policies and program and unscheduled inspections. into closer alignment with SA8000. In addition, they have asked their entire internal monitoring team to take the SA8000 auditor course. procESSES A nd E proc durES  Getting started 3.4 l nrae morf - rotces iw D e ssenisubsevitaitini Some business sectors already have an interest in sharing knowledge and experiences about human rights-based processes and procedures. It is worthwhile researching which sector-specic fi groups might be available to you and which might have valuable tools for you to adapt to your business. Some examples are shown below: Examples of sector-specific initiatives with expertise in human rights codes and procedures Business Sector Relevant Initiatives Retail • Ethical Trading Initiative • Fair Labor Association • Social Accountability 8000 • Clean Clothes Campaign: Model Code Mining • The Voluntary Principles on Security and Human Rights • Kimberley Process (indirect human rights protection) • The Extractive Industries Transparency Initiative (indirect human rights protection) Financial Services • The Equator Principles Oil and Gas companies • The Voluntary Principles on Security and Human Rights • The Extractive Industries Transparency Initiative (indirect human rights protection) Information Technology • Electronic Industry Code of Conduct • Global e-Sustainable Initiative (GeSI) 3.5 expect the unexpecteD – how to react when proceDures are t enoughno Given the rapidly changing nature of international business, processes and procedures constantly require adaptation and review. Sometimes unexpected events can provoke human rights issues that had not been anticipated or prepared for. In such situations, management is best able to deal with the situation if they have the knowledge (see the section on Training) and resources to act quickly, professionally, and in ways that provide a just solution. Clear lines of ac- countability within business strategies and policies make such flexibility possible, as does a commitment to transparency. Reacting when confronted with unforeseen human rights issues An example of responsiveness to unforeseen human rights mitments within the region of the pipeline. BP responded issues is how BP responded to Amnesty International’s by opening a dialogue with Amnesty International over a 2003 Report on the Baku-Tbilisi-Ceyhan oil and gas period of several months during 2003. The talks resulted pipeline. The report highlighted a number of human rights in a legally binding additional contract designed to protect concerns relating to the Host Government Agreement the rights of the three host governments to promote and signed between the consortium of companies and the gov- regulate human rights and environmental issues. ernments of Azerbaijan, Georgia, and Turkey, and the ability (This case study appears in ‘Embedding Human Rights in of these governments to uphold future human rights com- Business Practice’ – listed in the Appendices) procESSES A nd E proc durES  4 Communications Human rights in communications: key steps for your business 4.1 Share understanding of why human rights are important to business communications 4.2 Integrate human rights into your internal communications 4.3 Integrate human rights into your external communications 4.1 hare uns DanD erst ing of why human rights are ant ttimpor o business communications The act of communicating is in itself an essential part of a human rights approach; balancing freedom of expression with the protection of personal or private information and the participation of stakeholders is essential. Your company’s human rights policy, procedures, and performance should be documented and communicated to employees; for instance, through codes of business conduct. They should also be made available through the corporate website, company publications, annual reports, and notice boards – and in local languages, where ap- propriate. In addition, companies should encourage suppliers to publicize to their employees the obligations they have undertaken to uphold human rights in their business relations. 4.2 iet anragm eusthtnhgs inoroittn ir ulaoacniryneutmnmioc Internal communication is critical to developing an effective human rights management system. Consistent and well-presented top-down communication within a company serves to inform about human rights within the business strategy. Employees should be informed about human rights risks and opportunities that the company faces in its operations. The performance indicators that are used to monitor and measure the efc fi iency of the human rights management system should also be communicated to all. It is particularly important for businesses to communicate to all employees the principal drivers behind human rights based initiatives and their relevance to the long-term strategy of the company. The latter can prevent the marginaliza- tion of initiatives and ensure that specialized departments handling human rights issues are fully integrated into the company. An interactive approach to internal communications may generate greater understanding and a o fl w of innovative ideas and proposals on how to improve established practices and procedures. Efc fi ient lines of communication with employees are also needed to ensure effective non-compliance reporting and whistle-blowing. This requires clearly den fi ed policies and procedures on the subject and clear contact points in the organization. Human rights issues should be communicated using simple and straightforward terminology, translated into relevant languages, and made widely accessible, including to employees with disabilities. It may be useful to initially address human rights issues using business terminology, since human rights may appear overly political or legalistic and may create barriers or misunderstanding. It is key that communications are followed up by encouraging a culture of human rights recognition and respect in the organization; it may be necessary to develop change management strategies to best facilitate this. coMMunicA tionS  Getting started 4 Communications Human rights in internal communication – some examples Communicating human rights within a number of systems to ensure that it lives up to company’s code of conduct to employees its commitment to corporate responsibility. Each Human rights is a key part of Novartis’ code of year, the company defines a number of corporate conduct. Setting out standards of professionalism responsibility targets that are contained in the for the day-to-day conduct of associates around company’s “balanced scorecard.” Staff apprais- the globe, the code describes how associates als and management bonuses are dependent should handle themselves ethically and safely in on performance toward these targets. Facilita- a variety of potentially challenging situations. An tors, who are a group of experienced staff with on-line e-learning package is being developed to an international background from the holding help managers and associates around the world company Novo A/S, make independent assess- understand the real dilemmas that might occur in ments of individual departments’ compliance to the workplace and how the code can be applied. the Novo group’s values. Any effective human rights communication should be appealing and attractive enough to awaken Communicating with staff throughout the and sustain the necessary level of interest, whilst workplace The accomplishments of Taj Hotels (a accurately presenting key messages. For this reason, prominent member of the Tata Group) in the area the Novartis Foundation for Sustainable Development of human rights are largely the result of its em- provides a human rights helpdesk for the whole phasis on corporate ‘values.’ The company has company and has also developed a ‘roll-out kit’ that different ways of communicating and reinforcing is available to potential users of the code. its values in the workplace, including e-mail foot- ers, screen savers, posters, quiz programs and Human rights within a ‘balanced scorecard’ billboards. A Performance Management System is used for staff appraisals Novo Nordisk has a also used by the company. A company needs to do more than just report on its human rights approach; it should ensure that human rights are protected in all of its communications, including data protection, personal privacy, and company confidentiality. Companies may also be responsible for the actions of their employees while at work, such as the use of the internet or possible e-mail abuse. 4.3 te human rights int integra o your external commu - tionsnica A company’s human rights record is central to its accountability and can affect its reputation. To be accountable to stakeholders, a company must be transparent about its policies, ap- proach and performance. Open and transparent communications on performance and a willingness to act constructively following external advice are keys to success. The sphere of influence of some businesses, such as those involved in the media and communications, may lead them to have a significant impact (positive or negative) on how human rights are viewed and respected in society. MM co A unic tionS  Getting started As for internal communications, a company should ensure that pany does not agree with the message or the style of communi- human rights are protected in all of its external communications. cation. In gathering and retaining information about employees, For example, if local communities want to communicate with customers, or others, companies should follow data protection the company through protest, the company should respect their rules and respect the right to privacy. This is especially true right to freedom of expression and should not seek to repress where companies hold sensitive health or other private informa- demonstrations or ask governments to do so, even if the com- tion gathered for the company’s human resources lfi es. Human rights in external communication – some examples Human rights on the high street As a helped overcome concerns. The partici- cluding the development of accessible high street retailer, The Body Shop wants pants in the Forum have now agreed services and products, outreach and to use its windows and daily contact with to establish a more formal Stakeholder awareness-raising with Telefónica’s thousands of customers to raise awareness Advisory Group under the sponsorship of stakeholders, labor integration and on human rights issues. Over the years, The the Department of Health. employment policies, internal regula- Body Shop has run numerous campaigns tions that promote accessibility, and to support human rights causes around the Providing the opportunity for stakehold- research and development. world. Currently, the company is focusing ers with opposing views to voice their on issues facing customers, employees, concerns has proved to be extremely Human rights and on-air program- and the communities in which the com- beneficial, both for the broader under - ming For MTV Networks Europe, “hu- pany operates with a successful campaign standing of relative positions on the man rights in external communications” to Stop Violence in the Home, as well as subject and for the development of is less about communicating its internal raising awareness of HIV/AIDS. sensible policy in this area. practices to the outside world than about human rights in action: promoting hu- Stakeholder Advisory panel Although Consultation with key stakeholders man rights on air and on the ground, in most scientic fi evidence states that Telefónica, a global telecommunications particular to its core youth audience. electric and magnetic e fi lds do not result company, has made a name for itself in The two strongest examples are two in adverse health impacts, National Grid fostering equal opportunity and support- ongoing multi-platform MTV human recognizes that there is some limited ing the rights of people with disabilities. rights campaigns: MTV’s Exit Campaign scientic fi evidence suggesting the Through the “Accessible Telefonica” plan, to End Exploitation and Trafc fi king, and opposite, and that parts of society are the company uses stakeholder dialogue the Staying Alive HIV/Aids Campaign. Both concerned about this issue. and engagement to enhance equal op- campaigns comprise of MTV program- portunities and access to its telecommu- ming (MTV specials such as the trafc fi king In 2003, National Grid took the initiative nications services and products. awareness and prevention documentary to improve the dialogue between parties “Inhuman Trafc fi ,” hosted by Angelina with an interest in this issue by creat- The plan is coordinated by Telefónica’s Jolie, and the Staying Alive special “Meet- ing a Stakeholder Forum. The Group CSR Department and involves a number ing Mandela”), awareness and prevention engaged an independent body, the UK’s of business lines and subsidiaries. It events, multi-language websites www. Environment Council, to set up and has been developed through a partner- mtvexit.org and www.staying-alive.org, facilitate a workshop to which represen- ship and framework agreement with the and support for NGOs working to g fi ht tatives from industry, Government, aca- main platform that represents people trafc fi king and HIV/AIDS. demia, professional bodies, and interest with disabilities in Spain. As part of groups were invited. This brought people the plan, consumers with disabilities By developing and implementing such with differing views to the table for the participate in consultation processes, campaigns on issues critical to its r fi st time. Although there was suspicion test products and services, and give core audience, MTV maximizes the of why National Grid had established the feedback about the degree to which promotion and realization of certain Forum, involving some of the interest their needs and expectations are met. fundamental human rights within its groups in the planning for the meetings The plan involves a range of projects in- key spheres of influence. MM co A unic tionS 0 0 Introduction 5 Training Human rights in training: key steps for your business 5.1 Identify target groups in your business to receive human rights training 5.2 Review the different types of training materials available 5.3 Select, organize and evaluate the training program for target groups 5.1 iDentify target groups in your business to receive human rights training General employee training needs to provide an understand- ing of how human rights relate to the business and must raise awareness of human rights risks and opportunities. A needs analysis of employees at particular business sites or of those who perform specific functions can help identify areas which the training should cover. Case studies can support this training. Key employees throughout the organization should receive function-specific training; for example, training about specific risks in their operations and how to handle them, or training on new procedures and tools. Target groups for training could include: • Procurement employees • Sales and export staff • Human resources • Security staff • All supervisors and managers The company can also take steps to train key suppliers and contractors. Stakeholders and external partners can help with training on specic fi issues such as political, geographical, and cultural risks. Key staff should also participate in external training where independent experts challenge others and give specialist insight into specic fi human rights issues. 5.2 r weive eht D tner esfefpiyte l bsfa lolgainiairneitvaratam There are a range of different types of human rights training available: web-based and paper-based or in person, held either in the workplace or at a special venue outside the business location. A tr ininG 0 0  Getting started Human rights in different types of training – some examples E-learning systems Novartis requires every the level and priority of human rights-related manager and associate to complete a number of engagement with potential suppliers. web-based courses as part of its commitment to the group’s compliance initiative and its commit- Staff induction Every employee at The Body ment to hold all associates to the highest stan- Shop is required to attend a staff induction that dards possible. Ensuring that Novartis employees includes a signic fi ant section on the company’s across 140 countries understand the company’s commitment to ethical trade, community trade, Human Rights Guidelines and the strategy behind campaigning, environmental protection, and animal them represents a huge challenge. Therefore, in welfare. In addition, in connection with the launch 2005 all non-US Novartis associates with e-mail of the campaign to Stop Violence in the Home, all access will complete four out of the following stores will be provided with training materials to 0.0 Xxxxxxxxxxxxxxxxxxxxxxx six courses, each involving human rights as a ensure that all employees understand the issues key element: Insider trading, Conflict of interest, and the importance of the campaign activities. Corporate citizenship, Sales practices, Marketing Xxxxxxxxxxxxxxxxxxxxx. practices, and Financial integrity. Management handbooks and primers The Business and Human Rights Management Specic fi training for business units National Primer produced by Shell in 1998 was one of the Grid has over 8,000 active suppliers. The group’s first of its kind in business. The primer is a key re - procurement teams are experienced in assess- source for human rights training programs within ing suppliers’ environmental, safety, and quality the company and has been augmented by a series performance, but not in assessing other human of real-life management dilemmas for training rights-related performance. During 2005, the purposes. Another good example is the Human Groups’ UK and US procurement team mem- Rights Guidance report developed by Rio Tinto. bers received human rights awareness training and were introduced to a practical tool to help Residential Multi-Business Human Rights prioritize their human rights assessments. The tool Training There is an increasing demand for resi- is being used to assess the human rights risk as- dential training, which allows business managers sociated with each purchased commodity and the from a number of companies to gather in a less influence that the purchaser has with suppliers of formal setting. Some examples are listed in the each commodity. This analysis is used to identify Appendices. 5.3 s , o elcet graze ain nD ete talauv he trang pini ogrram for tagret gouprs The selection of the appropriate training program is based on factors such as cost, location, and the technology involved. It is worthwhile to ask other businesses and business as- sociations which programs they have found the most useful, but remember that no two businesses are alike. It is likely that stakeholders from the local community or NGOs will have much to contribute to any program that is to be organized. It is essential in these circumstances that the business and NGO or community group work together in partnership to clearly den fi e expectations and develop a productive working relationship. A tr ininG  Getting started 6 Measuring Impact and Auditing Human Rights in measuring impact and auditing: key steps for your business 6.1 Set relevant performance indicators for measuring human rights impact across the different functions of your business 6.2 Undertake human rights-based audits 6.3 Analyze the results of audits and use results to inform strategic development of your business 6.1 set relevant performance inDors for measuring tica human rights impct aa cross the Different functions of our y business A company should develop quantifiable performance indicators to monitor and measure elements in its operations that have an impact on human rights. Performance indicators should measure both the direct result of the company’s operations and the efficiency of management processes that influence performance – such as training and the allocation of resources. The indicators should be relevant to the company’s sphere of influence, activities, and industry sector, and should drive continuous improvement. They should relate to the organizational goals of the business and be consistent with the risks and opportunities that the company has identified. Measurements should be made regularly and be communicated to employees and other interested parties. Since a company’s sphere of influence may change over time, performance indicators should be reviewed on a regular basis. Measuring Impact – The Human Rights Compliance Assessment Tool The Danish Institute for Human Rights has devel- Universal Declaration of Human Rights and oped an interactive database for use by business over 80 other major human rights treaties and in any specic fi national market. The web-based International Labour Organization (ILO) conven- tool contains approximately 350 questions for tions. Over 70 businesses were involved in the business and more than 1,000 corresponding development of the tool, and the database is now human rights indicators, developed from the being ren fi ed into some sector-specic fi versions. MEASurinG iMp A A ct nd AuditinG  Measurement of performance – an example As part of its policy to develop a human rights- Tanzania and sub-Saharan parts of Africa. Initial aware approach in its business activities, ABB results show that while the checklist is sufficient developed a checklist for managers based on in some situations and countries, it needs to the Global Reporting Initiative’s (GRI) guidelines include extra questions and be made more coun- on human rights and the Draft Norms. ABB try-specific for more sensitive nations. established the checklist’s criteria by carrying out a gap analysis between the Draft Norms and the A human rights-aware approach benet fi s all stake - GRI guidelines (published in the second BLIHR holders – villagers, local authorities, suppliers, and report – see the Appendices). the companies and organizations involved in Ac- cess to Electricity. For ABB, it also means lowering The risk assessment checklist mirrors human business risk through taking a wider approach on rights categories listed in the Draft Norms – the the potential impact of such projects. rights of workers, occupational health and safety, non-discriminatory treatment, the rights of local Working within the GRI’s internationally ack- communities, transparency and business ethics, nowledged framework may help make the Draft and protection of the environment. Norms easier to accept and implement for a wider circle of transnational corporations. It would Acting on behalf of BLIHR, ABB is testing the provide a comparable reporting system built on checklist within the parameters of its rural electri- auditable performance criteria. fication program – called Access to Electricity – in 6.2 D un ake human rights-base ter D auDits Human rights-based audit programs should be part of a company’s governance procedures. Audits establish whether management systems are working as planned; they focus on the causes of problems and the neces- sary corrective measures. Human rights-based audits by qualie fi d personnel, preferably verie fi d by external human rights experts, should be carried out regularly and made available publicly. Auditing is also a tool for the Board and Executive Committee of a business to ensure that the strategies, policies, procedures, and processes outlined in this Guide have been properly implemented across the company. Human rights-based audits – an example monitoring of the company’s Charter, which is Building relationships with local NGOs based on human rights. By engaging with an As part of its long-standing partnership with established NGO in this way, Carrefour was able to Carrefour, the International Federation for Human ensure the credibility of the monitoring system. Rights (FIDH) set up a system of independent MEASurinG iMp Act A A nd uditinG  Getting started 6.3 yze the resul anal ts of aD u its anD use results to inform strategic Development of your business The use and analysis of human rights in business audits – some examples Auditing Equal Opportunities and Diversity Assessing risk to determine auditing needs Each year, all business areas in Novo Nordisk de- Every approved supplier to The Body Shop must velop action plans for ensuring that equal oppor- sign an agreement committing to meeting The tunities and diversity (EO&D) are fully embedded Body Shop Ethical Trade standards, which are in all relevant business processes spanning the based on the Ethical Trading Initiative’s Base employment cycle (recruitment, working condi- Code. First-tier product suppliers are assessed tions, remuneration, development, promotion and for potential risk based on their responses to termination). EO&D targets are included in the an initial screening questionnaire and take company’s “balanced scorecard,” the perform- into account factors such as their location and ance management mechanism used to drive all relationship with The Body Shop. Each supplier key areas of business performance. These tar- is ranked as high, medium, or low risk. High-risk gets require the action plans to be submitted for suppliers are audited by a not-for-profit audit evaluation by the human resources function, and company or by a third-party agent. A buyer that - as a minimum - 80% of the actions for the from The Body Shop or a representative from a year are achieved. The achievement of the EO&D local non-governmental organization will audit targets is directly linked to staff appraisal and a medium-risk supplier. Low-risk suppliers will individual bonuses in management. Failure to undergo an ethical assessment and is expected meet these targets in any of the business areas to adopt the Body Shop Code of Conduct. is visible within the company, and initiates a dialogue process between the human resources function and the business areas involved. MEASurinG M i p A A ct A nd uditinG  7 Reporting Human rights in reporting: key steps for your business 7.1 Decide which human rights impacts are priorities for you to report on 7.2 Consider who your main target audiences are 7.3 Develop an effective reporting format 7.4 Publish this information on its own or as part of a regular business report 7.5 Submit a link/description to the Global Compact website (Global Compact participants) 7.1 DeciDe which human rights impcts are priorities for y a ou to t onrepor For the reasons mentioned in the Communications section, reporting on human rights is an essential part of a business management system. A report is in its own right a business management tool. Many companies already report on social and environmental performance in addition to their business results, and an increasing number have their reports independently verie fi d. For companies over a certain size in some countries, basic reporting on social and environmental perfor - mance is mandatory. 7.2 D onsic er who your main target aD u iences are Companies often report on human rights issues linked to suppliers and employees, but neglect other areas. Good practice is to report on the company’s full sphere of influence. This means including issues and opportunities linked to customers and communities where the company operates. Transparent reporting of successes, failures, and challenges sets an example for others, builds credibility and trust, and maintains the company’s license to operate. 7.3 Develop an effective reporting format There are several ways to present human rights data in a company report and it is worth reviewing a selection of those listed on www.business-humanrights.org. Ref- erence can also be made to the 3rd Generation of reporting guidelines from the Global Reporting Initiative. These guidelines provide an example of a thorough framework for human rights reporting. One key decision to be made is whether the report should be purely web-based, paper-based, or both. A rights-aware approach also requires careful attention to accessibility, particularly in terms of the languages used and meeting the needs of those with visual impairment or without the required technology to access the report. 7.4 publish this information on its own or as pt of a regular ar business repotr Another key decision is whether your company is moving towards an integrated triple bot- tom line approach to reporting (i.e. financial, environmental, and social) or whether the social issues are better served in their own report or combined with environmental issues in a ‘sustainability report’. Many businesses see human rights as a sub- set of wider social issues; some companies maintain a distinction between labor rights and human rights. However, as more companies move towards a more holistic approach to human rights in business, we can expect that an increasing amount of the ‘social space’ in company reports will be categorized as human rights. E r tinG por  Getting started 7.5 ubmit a link/ s Description to the lobal g ct website acomp (lobal g ct pacompants)ticipar Participants in the Global Compact are expected to communicate, on an annual basis, with their stakeholders about the progress they are making in implementing all ten Compact principles, including the two human rights principles. The communication on progress is expected to include a statement of continuing support by the company’s leadership for the Global Compact, a description of practical actions taken to implement the prin- ciples, and measurement of outcomes using, as far as possible, standard indicators or metrics such as those elaborated in the GRI’s Sustainability Reporting Guidelines. Communications on progress can be part of a broader annual or sustainability report or a stand alone document that is web-based, paper-based or both. A link to or description of the communication on progress is required to be submitted to the Global Compact website. Guidance materials for how to communicate progress are available Communicating progress at: www.unglobalcompact.org/communicatingprogress Human Rights in a Social Responsibility Report – an example Codelco, a successful Chilean mining company, has a Gap Inc.’s 2003 Social Responsibility Report was widely history of reporting on sustainable development issues, praised for its honest appraisal of the challenges facing a including human rights. The company’s most recent Sus- company trying to uphold international human rights and tainability Report was prepared by its Senior Vice-President labor rights standards across global supply chains. Greater of Operational Excellence, Promotion, and Sustainability in transparency has led to newspaper headlines such as “Gap accordance with the latest Global Reporting Initiative (GRI) admits factory abuses,” but this has been more than offset Guidelines. Codelco’s report highlights its work on human by positive responses from employees, customers, investors, rights issues ranging from the company’s compliance with and NGOs. Gap’s 2004 report continues transparent report- a comprehensive occupational health and safety plan to ing against the ILO Core Conventions. In its 2004 report, the its approval of a document of commitments to indigenous company quotes US Supreme Court Justice Louis Brandeis people. In addition, the company took its reporting a step to capture its philosophy about reporting: “a bright light is the further and submitted it to an external independent review- best disinfectant”. The more open and honest a company can er. The aim of the review was to provide assurance of the be about conditions and challenges, the more helpful it can report’s accuracy and its adherence to the GRI Guidelines. be in addressing them. Gap’s report also contains construc- As part of the process, the independent reviewer visited tive criticism and learning from the Public Reporting Working numerous Codelco facilities as well as the head office in Group and stakeholder outreach sessions. Gap also presents Santiago, Chile. its work with the Global Reporting Initiative (GRI) to develop consistent reporting standards that will make it possible to compare performance across companies and over time. The Global Reporting Initiative Over 700 businesses now cite the Global Reporting Initiative matters. At the time of writing, in early 2006, the Global as the framework for their social and environmental report- Reporting Initiative is involved in developing the 3rd genera- ing, with human rights included within their social indicators. tion of reporting guidelines. For more information, see www. The GRI framework is one example of how to report on such globalreporting.org E r tinG por  Introduction Conclusion The rapid development of ‘business and human rights’ as an area of concern and interest over the last de- cade seems likely to continue. As it does, an increasing number of businesses around the world will identify practical ways to integrate human rights into their business practices. However, there is much work to be done to develop and refine the tools and systems needed for businesses to manage human rights effectively. This Guide is very much a ‘first attempt’ at exploring the practical integration of human rights into business management, and it is hoped that businesses might be inspired by its advice and examples to develop their own applications of human rights which, in turn, might be shared more widely. S conclu ion  Appendices 1. International Bill of Human Rights The International Bill of Human Rights consists of: • The Universal Declaration of Human Rights (UDHR), • The International Covenant on Economic, Social and Cultural Rights (ICESCR), and • The International Covenant on Civil and Political Rights (ICCPR) The UDHR and the Covenants can be read in their entirety at www.ohchr.org/english/law. Below you will n fi d the headings of the articles in the Covenants (excluding articles concerned with procedural or organizational matters). International Covenant on Economic, Social and Cultural Rights (ICESCR) Article 1: The right to self-determination for peoples. Article 2: Non-discrimination in relation to all rights Article 6: The right to work, including the right to vocational guidance and training Article 7: The right to a minimum wage and equal pay, to safe and healthy working conditions, and to rest, leisure and holidays with pay Article 8: The right to form trade unions and join a trade union, and the right to strike Article 9: The right to social security, including social insurance Article 10: The right to a family life, to maternity leave and prohibition of exploitative child labor Article 11: The right to adequate food, clothing, housing and fair distribution of food Article 12: The right to the highest attainable standard of physical and mental health Article 13-14: The right to education Article 15: The right to participate in cultural life and the technological development and the right to protection of moral and materiel interests resulting from one’s inventions introductionAE pp ndicES  Appendices International Covenant on Civil and Political Rights (ICCPR) Article 1: The right to self-determination for peoples. Article 2: Non-discrimination in relation to all rights Article 6: The right to life Article 7: Prohibition against torture or cruel, inhumane or degrading treatment or punishment and against medical or scientific experimentation without free consent Article 8: Prohibition against slavery, forced or other compulsory labour Article 9 - 10: The right to freedom and personal safety (arrest and detention) Article 11: Prohibition against imprisonment for non-fulfillment of a contractual obligation Article 12: The right to liberty of movement and freedom to choose residence Article 13: The right to seek asylum Article 14-15: The right to a fair trial and prohibition against retroactive punishment Article 16: The right to recognition as a person before the law Article 17: The right to privacy Article 18: Freedom of thought, conscience and religion Article 19: The right to hold opinions and the right to freedom of information and freedom of expres- sion Article 20: Prohibitions against inciting war and against hate speech Article 21: The right of peaceful assembly Article 22: Freedom of association, including the right to form and join trade unions Article 23-24: The right to form a family and the rights of the child Article 25: The right to take part in public affairs Article 26: Equality before the law Article 27: Minority rights to culture, religious practice and language introduction AE pp ndicES 0  Appendices 2. The Ten Principles of the UN Global Compact The Global Compact’s ten principles are derived from: the Universal Declaration of Human Rights; the Inter- national Labour Organization’s Declaration on Fundamental Principles and Rights at Work; the Rio Declara- tion on Environment and Development; and the United Nations Convention Against Corruption. The Global Compact asks companies to embrace, support and enact, within their sphere of inu fl ence, a set of core principles in the areas of human rights, labour standards, the environment, and anti-corruption: Human Rights 1 Businesses should support and respect the protection of internationally proclaimed human rights, and 2 make sure that they are not complicit in human rights abuses. Labour 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining, 4 the elimination of all forms of forced and compulsory labour, 5 the effective abolition of child labour, and 6 the elimination of discrimination in respect of employment and occupation. Environment 7 Businesses should support a precautionary approach to environmental challenges, 8 undertake initiatives to promote greater environmental responsibility, and 9 encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption 10 Businesses should work against corruption in all its forms, including extortion and bribery. introductionAE pp ndicES 0  3. Resources General Reports/Guides for Business Business and Human Rights: A Compilation of Documents, Edited by Radu Mares, Leiden: 2004 Business and Human Rights: A geography of corporate risk, Amnesty International (UK) and The Prince of Wales Interna- tional Business Leaders Forum, London: 2002. Business and Human Rights, Dilemmas and Solutions, Edited by Rory Sullivan, Insight Investment, London: 2003 Business and Human Rights in a time of change, Christopher Avery, Amnesty International (UK), London: 2000 Business as Partners in Development: Creating wealth for countries, companies and communities, Jane Nelson/The Prince of Wales Business Leaders Forum, in collaboration with The World Bank and The U.N. Development Programme, London: 1996 Business Leaders Initiative on Human Rights: Report 1: Getting Started, BLIHR, London, New York and Stockholm: 2003 Business Leaders Initiative on Human Rights: Report 2: Work in Progress, BLIHR, London, New York and Stockholm: 2004 Embedding Human Rights in Business Practice, The Global Compact and the Office of the United Nations High Commis - sioner for Human Rights, New York and Geneva: 2004. Human Rights: Is it any of your business?, Amnesty International (UK) and The Prince of Wales International Business Leaders Forum, London: 2000. Human Rights: It is your business – the case for corporate engagement, The Prince of Wales International Business Leaders Forum, London: 2005. Raising the Bar: Creating Value with the United Nations Global Compact, Edited by Claude Fussler, Aron Cramer and Sebastian van der Vegt, Greenleaf Publishing Limited: 2004. The Business of Peace, Jane Nelson, International Alert, Council on Economic Priorities and The Prince of Wales Interna- tional Business Leaders Forum, London: 2000. Training Business and Human Rights in Practice Over 100 business managers from many industries have attended this training course since 2002. Now run by TwentyFifty Limited (see www.twentyffi ty.co.uk ) the course comprises of an on-line module, residential workshop and a workplace project. Its aim is to help companies to implement their human rights commitments by developing the capacity of key individuals to manage human rights issues. The course is run twice a year in the UK and by invitation internationally. Human Rights & Business training General training on the ‘why, what and how’ of human rights and business and special training for specific corporations have been developed and performed by the law firm Lawhouse.dk (www.lawhouse.dk). Since 1999 Lawhouse.dk has trained more than a thousand business managers and lawyers and conducted specific training for several members of the UN Global Compact. Tools, programs and training on particular rights such as non-discrimination, the right to health, freedom of information and expression, the right to privacy, and the right to participate in technological development were developed to support individual corporate priorities. introduction AE pp ndicES  4. Organizations Office of the United Nations High Commissioner African Institute for Corporate Citizenship for Human Rights www.aiccafrica.com www.ohchr.org Amnesty International Business Groups Organisation for Economic Co-operation and Development www.amnesty.org.uk/business www.oecd.org Business & Human Rights Resource Centre Social Accountability International (SAI) www.business-humanrights.org www.sa-intl.org Business for Social Responsibility (BSR) The Danish Institute for Human Rights www.bsr.org www.humanrights.dk CAFOD The International Confederation of Free Trade Unions www.cafod.org.uk www.icftu.org Christian Aid The Prince of Wales International Business Leaders Forum www.christian-aid.org.uk www.iblf.org Ethos Institute United Nations Development Programme (UNDP) www.ethos.org.br www.undp.org Friends of the Earth UN Global Compact www.foe.org.uk www.unglobalcompact.org Fund for Peace Human Rights and Business Roundtable Social Venture Network www.fundforpeace.org/programs/hrbrt/hrbrt.php www.svn.org GeSI - Global E-Sustainability Initiative World Business Council for Sustainable Development www.gesi.org www.wbcsd.org Global Reporting Initiative World Health Organization (WHO) www.globalreporting.org www.who.int Human Rights Watch www.hrw.org International Chamber of Commerce (ICC) www.iccwbo.org International Commission of Jurists www.icj.org International Committee of the Red Cross www.icrc.org International Federation for Human Rights www.fidh.org International Financial Corporation www.ifc.org International Labour Organization (ILO ) www.ilo. org introductionAE pp ndicES  The OECD Guidelines for Multinational Enterprises 5. Voluntary Initiatives, Guidelines, Principles and Tools www.oecd.org/ Social Accountability 8000 AccountAbility’s AA1000 Framework and series standards www.sa-intl.org www.accountability.org.uk/aa1000/default.asp Voluntary Principles on Security and Human Rights Amnesty International Human Rights Principles for Companies www.voluntaryprinciples.org/ www.amnesty.org.uk/business/pubs/hrgc.shtml The Caux Round Table Principles for Business www.cauxroundtable.org/index.html 6. Websites of companies mentioned Clean Clothes Campaign: Model code www.cleanclothes.org/codes/ccccode.htm in this report Dow Jones Sustainability Index (DJSI) www.sustainability-index.com/ ABBFG www.abb.com Ethical Trading Initiative BarclaysF www.barclays.com www.ethicaltrade.org/Z/home/index.shtml BPG www.bp.com Electronic Industry Code of Conduct CarrefourG www.carrefour.com www.hp.com/hpinfo/globalcitizenship/environment/pdf/supcode.pdf CemexG www.cemex.com Equator Principles www.equator-principles.com CodelcoG www.codelco.com CopelG www.copel.com Extractive Industries Transparency Initiative – Source book www.eitransparency.org/keydocuments.htm EskomG www.eskom.co.za Fair Labor Association – Code of conduct Gap Inc.FG www.gapinc.com www.fairlabor.org/all/code/index.html Hewlett PackardFG www.hp.com FTSE4Good Li and Fung Trading LimitedG www.lifung.com www.ftse.com/ftse4good/index.jsp MAS Holdings G www.masholdings.com Global e-Sustainable Initiative (GeSI) www.gesi.org MTV Networks EuropeF www.mtvne.com Global Reporting Initiative National GridF www.nationalgrid.com www.globalreporting.org Novartis Foundation for Sustainable DevelopmentFG The Global Sullivan Principles www.novartisfoundation.com www.thesullivanfoundation.org/gsp/default.asp Novo NordiskFG www.novonordisk.com Human Rights Compliance Assessment Tool (HRCA) Rio TintoG www.riotinto.com www.humanrightsbusiness.org/ StatoilFG www.statoil.com ILO’s Declaration on Fundamental Principles and Rights at Work ShellG www.shell.com www.ilo.org/dyn/declaris/DECLARATIONWEB.INDEXPAGE Taj HotelsG www.tajhotels.com ILO’s Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy Tata EnterprisesG www.tata.com www.ilo.org/public/english/employment/multi/overview.htm TelefónicaG www.telefonica.com ISO Standard on CSR The Body Shop InternationalF www.thebodyshop.com ww.iso.org/iso/en/ISOOnline.frontpage ValeoG www.valeo.com Kimberly Process www.kimberleyprocess.com Fdenotes membership of BLIHR Gdenotes membership of the United Nations Global Compact introduction AE pp ES ndic  B p BUSINESS LEADERS INITIATIVE ON HUMAN RIGHTS www.blihr.org www.ohchr.org www.unglobalcompact.org Member companies of the Business Leaders Initiative on Human Rights National Grid plc ABB Ltd Novartis Foundation for Barclays PLC A Guide for Integrating Human Rights Sustainable Development Gap Inc. Novo Nordisk A/S Hewlett-Packard Company Statoil ASA into Business Management The Body Shop International Plc MTV Networks Europe   www.respecteurope.com www.realizingrights.org
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