session one: latest trends in business and human rights john morrison iceland, 8 may 2008

Session One: Latest Trends in Business and Human

Rights

John MorrisonIceland, 8 May 2008

Early history 1215 1689 1776 1789 1792

mid to late 1800s early 1900s 1919

1939-1945 1948 1949 1951 1961 1978 1979 1989(reproduced here thanks to WBCSD)

A Short History of the Human Rights Movement

A brief history of Human Rights

A more recent history of business and human rights

1990s Supply chain (apparel) and extractive sector – growth of codes

Late 1990s Birth of multi-stakeholder approachesEarly 2000s in particular: UN Global Compact, GRI2002-2003 UN Norms on Transnational Enterprises2005 Creation of mandate for UN Special

Representative2006-2008 Three reports of UN Special

Representative2008-2010 New mandate? Institute? Other

activities?

State Duty to Protect

• Three part framework of Protect, Respect and Remedy • The umbrella under which this whole analysis sits is that

as a result of globalisation there are now “governance gaps” which have grown up and need to be addressed.

• The framework is the proposition made to address them.

John Ruggie (2008) ► « Framework »

Corporate Responsibility

to RespectRemedies

State Duty to Protect

Corporate Responsibility

to RespectRemedies

• Fostering “corporate cultures”• Sustainability reporting. • Legal liability for companies• Bilateral Investment Treaties and Host

Government Agreements• Export Credit Agencies

Protection ► Respect ► Remedies

Corporate Responsibility

to Respect

State Dutyto Protect

Remedies

• All human rights are relevant to business• Due diligence standard

- Scope, Impacts, Relationships• Actions

- Policies, Impact Assessments, Integration into management, Tracking performance

• Sphere of Influence and Complicity

Protection ► Respect ► Remedies

RemediesState Dutyto Protect

Corporate Responsibility

to Respect

Protection ► Respect ► Remedies

• Strengthening judicial capacity • National Human Rights Institutions • National Contact Points of the OECD • Non-judicial grievance mechanisms and rights-based principles• Multi-stakeholder or industry • Global ombudsman function?

Implications for the 1st Global Compact Principle

“ Businesses should support and respect the protection of internationally proclaimed human rights”

– businesses have direct responsibility to ‘respect’ human rights

– all rights are potentially relevant to any business

- ‘due diligence’ is the central concept for applying the 1st Principle

- support for integration into management system

Core business Direct employees

JV partners

Contractors

Distributors

Suppliers

National Governments

Communities

Consumers

The Media

WiderSociety

NGOs

More Less

How do we use sphere of influence?

Implications for the 2nd Global Compact Principle

“ Businesses should make sure they are not complicit in human rights abuses ”

- “Direct”, “Beneficial” and “Silent Complicity”?

∙ There is a legal bedrock (mainly direct and sometimes beneficial complicity) built on international criminal law – e.g. genocide, torture and degrading treatment, Geneva conventions, trafficking, forced labour;

∙ Some governments incorporating Rome Statute to include non-state actors;

∙ Look to local law developments (Tort Law etc.);∙ Moral senses of complicity will remain much greater

What is not my responsibility is still my problem

• “ Even if something is outside my direct sphere of influence, many will still have expectations of me. What is not my responsibility can still be my problem”

∙ - Sir Mark Moody Stuart, Chairman, Anglo American

Avoiding complicity?

What does that mean in:- Sudan- China- Iran- Saudi Arabia- Venezuela- India- South Africa- USA- Europe?

Compliance, good practice, risk or opportunity?

Opportunity

Risk Management

Compliance Good PracticeDue Diligence

Compliance, good practice, risk or opportunity?

Opportunity

Risk Management

Compliance Good Practice

Where would you place the following business dilemmas?- Shell in Nigeria- BP in Colombia- Yahoo/Google/Microsoft in China- Danish newspapers in Europe (cartoons)- Olympic sponsors and China- Water and utility/beverage companies- GE and ultrasound in India- Telecommunications in Sudan- Undocumented labour in Europe

Session Two: Business tools and a

rights-based/ rights-aware approach

John MorrisonIceland, 8 May 2008

Human rights tools – where are we now?

• UN Global Compact• Communication on Progress on Principles 1 or 2 • Communication on Progress on Principles 3,4,5 or 6• Human rights case-studies (for UNGC or anyone

else) • Reporting on human rights (GRI or other)• A shared supply chain code and/or approach

(industry, country or multi-stakeholder)• Human rights in impact assessments• ISO 26,000 process (human rights component)• Other....

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

ESSENTIAL

BEYOND ESSENTIAL

An introduction to tools

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Global Reporting Initiative

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Global Reporting Initiative

ISO 26000

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, E● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, E● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)

BLIHR

Matrix

BLIHR

Matrix

SA 8000

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

OHCHR/ UN Staff College Training

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, E● UN Office of High Commissioner on Human Rights/UN Staff College on-line training● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)

BLIHR

Matrix

BLIHR

Matrix

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Human Rights Impact Assessment

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

OHCHR/ UN Staff College Training

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, E● IFC/IBLF/UNGC A Guide to Human Rights Impact Assessment (www.iblf.org)● UN Office of High Commissioner on Human Rights/UN Staff College on-line training● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)

BLIHR

Matrix

BLIHR

Matrix

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Human Rights Compliance Assessment

Human Rights Impact Assessment

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

OHCHR/ UN Staff College Training

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, EI● Danish Institute of Human Rights Compliance Assessment (www.humanrights.dk)● IFC/IBLF/UNGC A Guide to Human Rights Impact Assessment (www.iblf.org)● UN Office of High Commissioner on Human Rights/UN Staff College on-line training● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)

BLIHR

Matrix

BLIHR

Matrix

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Human Rights Compliance Assessment

Human Rights Impact Assessment

International Alert

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

OHCHR/ UN Staff College Training

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, EITI)● International Alert – Conflict-Sensitive Business Practice (www.international-alert.org)● Danish Institute of Human Rights Compliance Assessment (www.humanrights.dk)● IFC/IBLF/UNGC A Guide to Human Rights Impact Assessment (www.iblf.org)● UN Office of High Commissioner on Human Rights/UN Staff College on-line training● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)

BLIHR

Matrix

BLIHR

Matrix

STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING

Human Rights Compliance Assessment

Human Rights Impact Assessment

International Alert

Global Reporting Initiative

ISO 26000

ILO based supply chain codes

OHCHR/ UN Staff College Training

The Global Compact Principles

HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM

Key: ● The Global Compact Principles (www.unglobalcompact.org)● ILO Based Supply Chain Codes (e.g. FLA, ETI, EITI)● International Alert – Conflict-Sensitive Business Practice (www.international-alert.org)● Danish Institute of Human Rights Compliance Assessment (www.humanrights.dk)● IFC/IBLF/UNGC A Guide to Human Rights Impact Assessment (www.iblf.org)● UN Office of High Commissioner on Human Rights/UN Staff College on-line training● International Standards Organisation – Standard on Social Responsibility (www.iso.org)● Global Reporting Initiative – third generation indicators (www.globalreporting.org)● Human Rights Matrix (BLIHR) (www.blihr.org)● Rights and Democracy Community Human Rights Impact Assessment

BLIHR

Matrix

BLIHR

MatrixCommunity Human Rights Impact Assessment

First example of tools overlap/synergies

Name of tool Description

Conflict Sensitive Business Practice (IA) To ensure that the business practices of companies operating in conflict zones do not contribute to conflict or cause human rights abuses and contribute to social and economic development.

Human Rights Impact Assessment (IBLF/IFC/UNGC)

To provide companies with a process for assessing potential human rights impacts and making appropriate management decisions

Human Rights Compliance Assessment (DIHR)

A diagnostic self-assessment tool to help companies detect risks of human rights violations caused by the effects of company operations on employees, local residents and other stakeholders.

Community Human Rights Impact Assessment (R&D)

To develop a process through which affected communities can understand the impact of foreign investment in human rights terms.

Human Rights Matrix (revised)

(BLIHR)

A tool for companies to map policies and practice against the content of the Universal Declaration and to prioritize against what is essential, expected and desirable.

Human Rights Impact Assessment type tools

Second example of tools overlap/synergies

Applying tools and learning in practice

Three case-studies:

• First tier suppliers in Jordan• ABB• Statoil

Discussion:

Jordan: The key drivers for international business

Reputational riskOperational risk – social licence to operateLegal and Financial riskPressure from GovernmentPressure from institutional investorsStaff retention and motivationLeadershipProductivity – belief in a business caseStaying ahead of international regulationHumanitarian or moral reasonsOther reasons

Jordan: The key drivers for exporters

Pressure from BuyersRiskReputationPressure from GovernmentPressure from WorkersLeadershipProductivity – belief in a business caseStaying ahead of regulationHumanitarian or moral reasonsOther reasons

Forced labour – an issue of international criminal law

"...all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.“

(ILO Convention 29)

Where is the line?

Acceptable Unacceptable

1. Compulsory Overtime2. Confiscation of travel document3. Payment of recruitment fees4. Denial of right to strike5. Making deductions from wages6. Stopping food and meals7. Paying wages in other ways than JDs8. Limits to holidays and sick leave9. Informing police

Session Three: The role of GC Nordic Network

on Human Rights

John MorrisonIceland, 8 May 2008

Business Leaders Initiative on Human Rights

2003-2009“ Making human rights a reality in business practice and inspiring other businesses to do likewise.”- Tools for Business Management- Minimum standards- Accountability Mechanisms- Good governance in sensitive countries- Human rights in Emerging Economies- Mainstreaming in business associations