Business and human rights dilemmas and solutions

how do business address human rights inclusivity and environmental issues and human rights business ethics
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Dr.AshleyBurciaga,France,Researcher
Published Date:05-07-2017
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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