The first annual UN Forum on Business and Human Rights is due to take place on 4-5 December 2012 in Geneva.
Organised by the UN Working Group on business & human rights, the forum aims to discuss trends and challenges in the implementation of the UN Guiding Principles on Business and Human Rights, agreed last year, and to encourage cooperation on issues related to particular sectors, operational environments or groups.
Ahead of this meeting, UNA-UK - which is an observer member of the UK Network of the UN Global Compact - has commissioned a 'think piece' on changing corporate culture.
Written by Caroline Kayleigh Roberts, a UNA-UK Young Professional (pictured above), the piece provides an overview of the developing relationship between business and human rights, and argues that companies must move beyond 'declaratory' corporate social responsibility towards policies that affect day-to-day operations and decision-making.
Changing Corporate Culture
The last decade has seen a considerable increase in interest in the relationship between business and human rights. Human rights concerns - often falling into the category of Corporate Social Responsibility (CSR) - span not only economic, but also social and environmental aspects of corporate activity. Whilst the importance of integrating human rights into operations and business strategies has been appreciated for some time, international society is increasingly regarding the ‘protection of human rights as a condition of the corporate licence to operate’.[1] Indeed, increased attention is directed towards the articulation and monitoring of not only negative, but also positive responsibilities of all companies to promote human rights and sustainable development. The important role of businesses in development, particularly in lifting people out of poverty, has been flagged up as a key topic for the new panel that has been formed to consider what could replace the Millennium Development Goals (MDGs) after 2015.[2]
The legal relationship between business and human rights, however, is cloudy. Whilst companies are not required by law to either promote or to respect human rights directly, they are strongly encouraged to do so. As ‘organs of society’ they have been given responsibilities and obligations by the Universal Declaration of Human Rights (UDHR) and by later international standards and initiatives. Principles 1 and 2 of the UN Global Compact (2000), for instance, explicitly state that businesses should ‘support and protect internationally proclaimed human rights’ and also ‘avoid complicity in human rights abuses.’ [3]Further duties are detailed in the Voluntary Principles on Security and Human Rights (2000) and the Guidelines for Multinational Enterprises (2011) and the European Union Communication on Corporate Social Responsibility (2011). Most importantly, perhaps, the UN Guiding Principles on Business and Human Rights (2011) have reaffirmed the ‘protect, respect, remedy’ framework, developed by the Special Rapporteur John Ruggie, and placed direct responsibility on every company, including emerging economy companies, to fulfil their human rights obligations.[4] The fact that the Guiding Principles were agreed by consensus signifies the level of agreement on the international stage concerning the relevance of human rights to business. This indicates that the question facing us now is no longer why human rights concerns should be incorporated into the corporate world but how.[5]
At an expert meeting last year, members of various international institutions concurred that the Office of the High Commissioner of Human Rights (OHCHR) has a vital role to play in working with human rights mechanisms and other actors to provide technical advice and support to businesses to ensure the initiatives mentioned above lead to tangible changes.[6] Recognising the type of action that needs to be taken is an important step forward. In order for real progress to be made in this area, it is necessary to go beyond merely disseminating concepts and ideas at a macro level and tackle the practical issues facing the various actors in the business environment on the ground. It is essential for individuals working at all levels in a company to have an awareness of corporate human rights issues which arise when businesses operate here in the UK and overseas.
Firstly, employers, managers and stakeholders in multinational enterprises (MNEs) and small and medium enterprises (SMEs) need to be aware of both the internal and external impact of corporate policies and practices - especially given the global reach of businesses - so they can avoid causing or complying with human rights violations and become better equipped to undertake the Human Rights Impact Assessments (HRIAs) which are increasingly required. Take the rights of workers for instance. Despite the prominence of and concerns about labour rights, ‘extreme exploitation in the supply chain [...] remains a serious problem’.[7] Just recently, it was discovered that the labourers in a UK gangmaster company - which provided teams of migrant workers to large chicken farms in a chain supplying fast food outlets and supermarkets - were trafficked and beaten.[8] When matters like this arise, the complexity and importance of human rights knowledge becomes clear. However, there are also opportunities for less obvious and smaller scale infringements of rights within companies themselves. For example, whilst most companies already have clear policies relating to equal opportunity and non-discrimination in respect of employment and occupation, according to the Institute for Human Rights and Business, one of the top 10 most pressing issues for businesses in 2012 is the recognition of the importance of women’s rights.[9]
What is more, it is not hard to build the business case for good human rights practice. Yes, businesses have an important part to play in the realisation of human rights but it is not just about ‘doing the right thing’; evidence suggests it can actually have commercial benefits, for example, attracting investment and top quality recruits and securing a social licence to operate.[10] Most importantly, perhaps, human rights awareness can help companies to answer hard questions about their practise and protect companies against reputational and also legal risks (think of Shell or Nike) which are essential to avoid in this financial climate.
Secondly, it is tremendously beneficial for employees to have a have a firm grasp of human rights. It is advantageous to employers that key actors in their business to appreciate the relevance of human rights to commercial operations and integrate it into decisionmaking. In addition, by expanding human rights knowledge across the board, valuable in house support can be established for compliance with international standards. This is an important enabler of change; it is not only necessary to have leadership from the top but also support from the bottom. It is interesting that many applicants are now quizzing recruiting managers about company values and the ways in which international human rights standards are translated into daily activities.[11] This is a significant area to build on; a strong argument can be made for increasing human rights awareness among business students so they are better prepared to implement policies and manage workplace expectations. The Principles for Responsible Management Education (PRME) initiative is already doing this well; PRME uses the values and principles in the Global Compact to ‘develop the capabilities of students to be future generators of sustainable value for business and society at large.’[12] In fact, the Secretariat is currently gauging interest in a PRME Business and Human Rights Working Group.[13]
In addition to this, it is of tremendous benefit to employees to understand their own rights so they can enrich their work life experience and avoid infringing the rights of their colleagues. The right to freedom of thought, conscience and religion is currently a particularly hot, and contentious topic. Recently, a number of cases concerning the exercise of freedom of religion in employment have been taken to the European Court of Human Rights (ECtHR) [See Ladele, Eweida, Chaplin and McFarlane]. Whilst these are extreme cases, findings from the new Equality and Human Rights Commission (EHRC) project, Religion or Belief, Equality and Human Rights in England and Wales, suggests that discrimination, albeit on a smaller scale, remains common.[14] However, it is important to convey that attentiveness to human rights is not just about preventing infringements. In terms of the right to freedom of thought, conscience and religion, employees can gain considerable benefits. For instance, in some cases employees are able to request spaces for worship in the workplace, or time off to observe religious festivals.
It is of central importance to recognise that it is only by working at each level with the various actors in a company that human rights can be truly embedded into the corporate world. It is not enough for the businesses to be comfortable with human rights language and engage in PR to create the impression of a more socially engaged private sector. In the words of John Ruggie, ‘[t]he age of declaratory CSR is over.'[15] What is required now is a real change in thinking that affects day to day decision making and company conduct. Whilst it is appreciated that changing corporate culture is difficult the promotion of ‘...a positive attitude to rights could be a much more effective way of attaining proper standards than the big stick of criminal or civil liability...'[16] Successful business enterprises are organised, to a large extent, for constant change and innovation; perhaps the current focus on human rights can be accepted as one of those changes.[17]
Caroline Kayleigh Roberts is currently studying for an LL.M in International Human Rights and Humanitarian Law and works as a Magistrate on the Telford and South Shropshire Bench.
She is also a member of UNA Shropshire Branch and is currently the leadership team's nominee for the position of Branch Chair at the forthcoming AGM.
[1] Sir Geoffrey Chandler in Leisinger, K (2004) ’Business and Human Rights’ in Learning to Talk: Corporate Citizenship and the Development of the UN Global Compact, .McIntosh, Waddock and Kell eds. (2004) Sheffield pp.72- 100
[2] On 31st October 2012, Cameron hosted the first meeting of the UN High Level Panel in London. See Hutchinson, A (2012) ‘Could the MDGs take inclusive business to scale?’ The Guardian, (29 Oct) available at http://www.guardian.co.uk/sustainable-business/blog/millenium-development-goals-panel-business [accessed Oct 2012]
[3] United Nations, Global Compact, The 10 Principles available at http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html [accessed Oct 2012]
[4] See United Nations General Assembly (20 March 2011) ‘Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises’ A/HRC/17/31
[5] It will be Interesting to hear the outcome of the forthcoming UN Forum on Business and Human Rights in Geneva (4-5 December). It is hoped this will function as a global ‘stock take’ of efforts to implement the Principles and set the agenda for priority actions in the future.
[6] Institute for Human Rights and Business/ Office for the High Commissioner of Human Rights/Freidrich Ebert Stiftung (2011) Expert meeting on ‘What Next for Business and Human Rights at the UN?’ (4-5 July 2011, Geneva) available at http://www.ihrb.org/pdf/Expert_Meeting_What_Next_for_Business_and_Human_Rights_at_the_UN.pdf [accessed Nov 2012 ]
[7] The UK Department for Business, Innovation and Skills (BIS) is proposing a requirement for quoted companies to begin reporting on human rights issues in addition to the current requirements to report on environmental, employee, social and community matters. See BIS (Oct 2012) ‘The Future of Narrative Reporting: A new structure for Narrative Reporting in the UK’ available at http://www.bis.gov.uk/assets/biscore/business-law/docs/f/12-979-future-of-narrative-reporting-new-structure.pdf [accessed Nov 2012]
[8] Ibid.
[9] Institute for Human Rights and Business (2012) ‘Top 10 Business and Human Rights issues for 2012’ available at http://www.ihrb.org/top10/business_human_rights_issues/2012.html [accessed Nov 2012]
[10] Office of the High Commissioner of Human Rights (OHCHR) (2011) ‘A Guide for Business: How to Develop a Human Rights Policy’ pp.1-28, p.3 available at http://www.ohchr.org/Documents/Publications/DevelopHumanRightsPolicy_en.pdf [accessed Oct 2012]
[11] Ibid. p. 6
[12] Principles for Responsible Management Education (2012) ‘The 6 Principles’ available at http://www.unprme.org/the-6-principles/index.php [ccessed Oct 2012]
[13] To register interest please contact: PRMESecretariat@unprme.org.
[14] Donald, A et al (2012) Equality and Human Rights Commission, ‘Religion and Belief, Equality and Human rights in England and Wales, Research Report 84 available at http://www.equalityhumanrights.com/uploaded_files/research/rr84_final_opt.pdf [accessed Oct 2012]
[15] Ruggie, J (June 2010) at the UNGC Leaders Summit in Institute for Human Rights and Business (Oct 2012) ‘The UN Global Compact and Human Rights: ‘Developing a vision for 2020’ pp.1-29 available at http://www.ihrb.org/pdf/UNGC_and_Human_Rights_A4_FINAL.pdf [accessed Nov 2012 ]
[16] Baroness Hale (2004) in ‘What can the Human Rights Act do for my Mental Health? Paul Sieghart Memorial Lecture 2004, available at www.bihr.org.uk/sites/default/files/transcipt_hale.doc [accessed Oct 2012]
[17] Leisinger, K (2004) p. 82
