April 2002, Lucy Amis, Peter Brew, Caroline Ersmarker / International Business Leaders Forum (IBLF)
This paper summarises these expectations and, in the context of greater public and media scrutiny of the impact of business on society, describes evolving good practice on how the corporate response can be managed effectively and efficiently. The debate on boundaries of corporate responsibility continues to evolve and in a time of increasing global competitive pressure it is particularly timely to revisit the business case for companies to take the issue of human rights seriously.
By acting on human rights, companies can:
- Safeguard reputation and brand image.
- Gain competitive advantage.
- Improve recruitment, retention and staff loyalty.
- Foster greater productivity.
- Secure and maintain a licence to operate.
- Reduce cost burdens.
- Ensure active stakeholder engagement.
- Meet investor expectations.
Companies for whom this is a relatively new area may also find it instructive to look at the “Framework for Action” (page 10-11) which provides guidance on how to manage business and human rights dilemmas.
Across diverse industry sectors, leading companies are now putting mechanisms in place to address their human rights impacts by striving to:
- Improve workplace conditions
- End racial, religious and gender discrimination
- Eliminate the worst forms of child labour
- Avoid forced or compulsory labour
- Guarantee freedom of association
- Increase access and availability to essential products and services for those living in poverty
- Ensure responsible marketing and product testing
- Build human rights criteria into security arrangements
- Minimise population displacement for heavy footprint projects
- Engage with stakeholders and governments to promote human rights.
Momentum for corporate action has built rapidly over the last five years. Since the launch of the UN Global Compact in 2000, over two thousand companies have endorsed its Principles, including those on human rights and labour standards. A range of rights-related standards geared towards business has also gained currency. These include the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, which focuses on labour rights, and the OECD Guidelines for Multinational Enterprises. Meanwhile, a process to develop a series of norms on the human rights responsibilities of business has given rise to the appointment by the UN Secretary-General of a Special Representative on the subject of business and human rights.
