Business and Human Rights Bulletin
Introduction
The Business and Human Rights agenda has taken a step forward this year as the UN Special Representative Report points to a future where business is recognised at international level as having a responsibility to respect human rights.
McGrigors Rights, the international human rights consultancy of law firm McGrigors LLP, takes this opportunity to update you on the UN report and the role of Human Rights Impact Assessments in business management.
United Nations Special Representative Report
In 2005, Kofi Annan appointed Professor John Ruggie as Special Representative on Business and Human Rights and governments agreed a mandate asking Ruggie to clarify the direct and indirect responsibilities of business with regard to international human rights standards. The final report of the current mandate was released during April 2008 and will be discussed by Governments at the UN during June.
The report sets out both the central duty of states to protect human rights (and therefore ensuring business complies with relevant laws) but also the direct responsibility of business to respect human rights in all their operations.
Professor Ruggie sets out a due diligence definition for companies and specifically asks them to:
- adopt human rights policies;
- undertake human rights impact assessments;
- integrate human rights into business management systems; and
- track performance through monitoring and reporting.
Thousands of businesses around the world (not least the 4,000 who have signed the United Nations Global Compact) will need to decide how they follow this schematic of due diligence on human rights. As yet there is no agreed standard on human rights impact assessments, and there will be increasing demand on those who have lead the way in developing a sound methodology that works.
Human Rights Impact Assessments-
Why your business needs one
A growing number of businesses are conducting Human Rights Impact Assessments (HRIA) to help safeguard both their legal and social license to operate in different parts of the world. The responsibilities of business with regard to human rights are being clarified by the United Nations at present and are becoming much clearer than in any time since the Universal Declaration on Human Rights came into existence in 1948.
The thinking around Impact Assessments has emerged from the oil and mining sectors, but now has also been tested with the telecommunications, finance and utility sectors. It lends itself to project-based and infrastructure development, but can also be important precursor of market development, new technology usage, supply chain management or capital resource allocation.
The United Nations Special Representative on Business and Human Rights, Professor John Ruggie, has stated "No single measure would yield more immediate results in the human rights performance of firms than conducting such assessments where appropriate."
HRIA at a minimum lessen many forms of risk (legal, political and reputational) and allegations of indirect complicity in the abuse of human rights by others. Such an exercise further provides a solid basis for better relationships with communities, NGOs, Governments, trade unions, investors and other stakeholders through which sustainable growth can be achieved. It has been found that by taking a proactive approach to managing human rights in this way there is potential for transforming business risk into opportunity.
Why McGrigors?
McGrigors Rights is a pioneer in the field of Human Rights Impact Assessments with a number of high- profile clients. The team has unparalleled experience of conducting these assessments and meeting the needs of different business sectors and across a number of European, African and Asian countries.
We take a rights-aware approach in conducting HRIA, taking into account the full spectrum of rights with an emphasis on stakeholder engagement to build a shared understanding of respective roles and responsibilities. The HRIA process takes the following key steps:
- Baseline study of business operations;
- Country profile and analysis;
- Identification of rights-holders and impact across a company's spheres of influence through customised checklists;
- Identification of rights-aware actions;
- Integration into risk management systems; and
- Continued engagement with internal and external stakeholders.
For further information about our service lines including Human Rights Impact Assessments, management and employee training, country analysis reports, facilitation of stakeholder engagement and security training please see: www.mcgrigors.com/practice/human_rights/index.html.
McGrigors Rights is also pleased to be hosting a series of "Talking Point" events from June - October 2008 to further discuss the business and human rights agenda and Human Rights Impact Assessments as a management tool. Please see www.mcgrigors.com/invite/27-06-08.html for further details.
Who to contact at McGrigors
If you would like to discuss this briefing further, please contact one of our team below.
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Kavita Chetty Solicitor McGrigors Rights Tel: +44 (0)20 7054 2706 or +44 (0)141 567 9534 kavita.chetty@mcgrigors.com |
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