April 2009, Global Compact Network, United Nations (2008)
In 2008, the UN Human Rights Council produced a conceptual and policy framework to guide the business and human rights agenda. The framework rests on differentiated but complementary responsibilities, and comprises three core principles:
- the State duty to protect against human rights abuses by third parties, including business
- the corporate responsibility to respect human rights
- the need for more effective access to remedies for victims of any human rights abuses that occur
The framework provides all parties concerned with corporate-related human rights issues with a common baseline from which to develop greater coherence and guidance. This report complements the UN’s efforts by explaining the content of the main internationally recognised rights that are the subjects of the corporate responsibility to respect. It provides a guide to each of the rights contained in the UN treaties, including:
- the International Covenant on Civil and Political Rights (1966) - encompasses rights to enjoy physical and spiritual freedom, fair treatment, and to participate meaningfully in the political process
- the International Covenant on Economic, Social and Cultural Rights (1966) - comprises employment rights, such as: the right to a fair wage, the right to safe and healthy working conditions, and the right to form and join trade unions; and social rights such as: the right to education, the right to an adequate standard of health, and adequate standard of living, as well as the right to participate in cultural life and freedom from discrimination in relation to the enjoyment of the Covenant’s rights
The report suggests that good human rights practice:
- enhances reputation, resulting in improved staff morale, leading to higher motivation, productivity, and the ability to attract and retain the best employees
- strengthens the licence to operate, giving improved access to new markets, consumers and investors
- creates more stable operating environments
- promotes better community relations
Conversely, companies implicated in human rights scandals often see their reputations and brand images suffer, resulting in the loss of share value, and face increased security and insurance costs, as well as expensive lawsuits. The report aims to contribute to specific human rights due diligence processes, and give company managers a fuller understanding of what their stakeholders expect of them, both in terms of strategic policy and implementation at the local level.
