Download - 110713 nk business and human rights
Business and the Advocacy of Human Rights
Panel 2:
Human rights and how business responds to it
in Indonesia
Seminar hosted by
Indonesia Business Links
Noke Kiroyan
Jakarta, July 13, 2011
2
Current Mainstream Definition of CSR
The commitment of businesses to behave ethically
and to contribute to sustainable economic
development by working with all relevant stakeholders
to improve their lives in ways that are good for business, the sustainable development agenda,
and society at large.
(The World Bank Group, 2008)
• Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that Contributes to sustainable development,
health and the welfare of society; Takes into account the expectations of
stakeholders; Is in compliance with applicable law and
consistent with international norms of behavior; and
Is integrated throughout the organization and practiced in its relationships.
Social Responsibility in ISO 26000
3(Adapted from “ISO 26000: Guidance on social responsibility ,” November 2010 )
Annex: Examples of voluntary initiatives and tools for social responsibility
Sustainable development
Recognizing social responsibility
Stakeholder identification and engagement
Organizational governance
Related actions and expectations
Human rights
Labor practices
The Environ-
ment
Fair operating practices
Consumer issues
Community involvement/development
Practices for integrating social
responsibility throughout an organization
The relationship of an organization’s
characteristics to SR
Understanding the social responsibility of the organization
Reviewing and improving an organization’s actions and
practices related to SR
Enhancing credibility
regarding SR
Voluntary initiatives for social
responsibility
Communication on social
responsibility
Scope Clause 1Guidance to all types of organization regardless of their size or location
Definition Clause 2Terms, abbreviations and abbrev. Terms
UnderstandingSocial Clause 3ResponsibilityHistory, Characterist-ics, Relationship between SR and Sustnble. Developmnt..
Principles of Social Clause 4Responsibility• Accountability• Transparency• Ethical Behavior• Respect for
stakeholder interests• Respect for rule of
law• Respect for inter-
national norms of behavior
• Respect for human rights
Two fundamental practices of social responsibility
Social resp. core subjects
Integrating social responsibility throughout an organization
Clause 5
Clause 6
Clause 7
Schematic overview of ISO 26000
(Adapted from “ISO 26000: Guidance on social responsibility.” November 2010 )
Bibliography: Authoritative sources and additional guidance
4
5
The UN Global Compact
Labor Standards
3. Freedom of association and recognition of collective bargaining
4. Elimination of forced and compulsory labor
5. Abolition of child labor
6. Elimination of discrimination in employment and occupation
(United Nations, 1999/2000)
Environment
7. Support a pre-cautionary approach to environment
8. Promote greater environmental responsibility
9. Encourage environmentally friendly technologies
Anti Corruption
10.Work against
all forms of
corruption,
including
extortion and
bribery
Human Rights
1. Support and respect protection of human rights
2. Avoid being complicit in human rights abuses
6
The Business Case for Human Rights - Commercial
• Enhanced corporate reputation and brand image
• More secure license to operate
• Improved employee recruitment, retention, motivation
• Diminished employee unrest, increased productivity
• Improved stakeholder relations
• Reduced risk of consumer protest, boycotts, adverse publicity
• Reduced security risks and associated costs – reduced material losses, lower insurance premiums, reduced security forces
• More sustainable relationships with business partners, sub-contractors, suppliers
• Improved risk assessment and management
• Improved investment climate
• Strengthened shareholder confidence
• Competitive advantage over other companies not yet adopting human rights policies
(“Human Rights – is it any of your business?,” - Peter Frankental & Frances House, Amnesty International & The Prince of Wales Business Leaders Forum, 2000)
7
The Business Case for Human Rights - Social
• Strengthening the rule of law through application of international human rights standards
• Strengthening capacity of civil society organizations through dialog and partnership
• Encouraging other domestic and transnational companies in the sector/region to follow example of responsible business practice and corporate leadership
• Increased trust between community groups and company through consultation and partnership activities
• Opportunity for fair representation of different community groups’ views and concerns can strengthen social cohesion
• Decline in social unrest, conflict, violent sabotage
• More stable employment opportunities
• Greater potential for sustainable socio-economic development
(“Human Rights – is it any of your business?,” - Peter Frankental & Frances House, Amnesty International & The Prince of Wales Business Leaders Forum, 2000)
Voluntary policies and actions beyond legal compliance
Mandatory compliance with the laws
Voluntary policies and actions beyond legal compliance
STRATEGY AND COMPETITION
ETHICAL CONDUCT OF BUSINESS
Human rights Initiatives
Anti-corruptioninitiatives
EnvironmentalPolicies
EmploymentPolicies
CommunityDevelopment
TransparencyPolicies
8
COMPANYLAWS
LAWS AND REGULATIONSENVIRON-MENTAL
LAWS
HUMANRIGHTS LAWS
ANTI-CORRUPT-ION LAWS
LABOR LAWS
STOCK-MARKETRULES
Voluntary Policies and Initiatives beyond legal compliance
CSR: Beyond Compliance
9
Non-discriminatory employment practice
Provide safe working environment
Clear guidelines against abusive
behavior
Possible Application of Human Rights
10
Kelian Equatorial Mining
Case Study 1: Mining Company (KEM)
Complaint lodged with National Commission on Human Rights in 1997 set in motion negotiations over a 4-year period ending with an agreement signed by community and company representatives.
11
Case Study 1: “Sweatshops” in Indonesia
“Exploring labour conditions in Indonesia, Harrison and Scorse (2004)conclude that codes of labour conduct, together with anti-sweatshop campaigns, were responsible for increasing wages in export-oriented factories during the 1990s, and moreover, that this was achieved without lessening employment opportunities.”
(“Corporate Responsibility – a Critical Introduction,” - Michael Blowfield & Allan Murray, Oxford University Press, 2008)
THANK YOU
PT KOMUNIKASI KINERJAMenara Karya, 10th Floor Suite
HJl. HR Rasuna Said Blok X-5 Kav.
1-2Jakarta 12950 – INDONESIA
T: +6221 5794 4694F: +6221 5794 4696