Session One: Latest Trends in Business and Human Rights

1. Session One: Latest Trends in Business and Human Rights John Morrison Iceland, 8 May 2008

2. A brief history of Human Rights A Short History of the Human Rights Movement 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)

3. 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 approaches Early 2000s in particular: UN Global Compact, GRI 2002-2003 UN Norms on Transnational Enterprises 2005 Creation of mandate for UN Special Representative 2006-2008 Three reports of UN Special Representative 2008-2010 New mandate? Institute? Other activities?

4. John Ruggie (2008) ► « Framework » State Duty to Protect Corporate Responsibility to Respect Remedies • 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.

5. Protection ► Respect ► Remedies State Duty to Protect Corporate Responsibility to Respect Remedies • Fostering “corporate cultures” • Sustainability reporting. • Legal liability for companies • Bilateral Investment Treaties and Host Government Agreements • Export Credit Agencies

6. Protection ► Respect ► Remedies Remedies State Duty to Protect Corporate Responsibility to Respect • 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

7. Protection ► Respect ► Remedies State Duty to Protect Corporate Responsibility to 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?

8. 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

9. How do we use sphere of influence? The Media National Governments Communities JV partners Wider Society Core business Direct employees Suppliers Contractors Distributors Consumers NGOs More Less

10. 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

11. 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

12. Avoiding complicity? What does that mean in: • Sudan • China • Iran • Saudi Arabia • Venezuela • India • South Africa • USA • Europe?

13. Compliance, good practice, risk or opportunity? Opportunity Compliance Good Practice Due Diligence Risk Management

14. Compliance, good practice, risk or opportunity? Opportunity • 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 Compliance Good Practice Risk Management

15. Session Two: Business tools and a rights-based/ rights-aware approach John Morrison Iceland, 8 May 2008

16. 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....

17. An introduction to tools HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ESSENTIAL BEYOND ESSENTIAL

18. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING The Global Compact Principles Key: ● The Global Compact Principles (www.unglobalcompact.org)

19. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING The Global Compact Principles Global Reporting Initiative Key: ● The Global Compact Principles (www.unglobalcompact.org) ● Global Reporting Initiative – third generation indicators (www.globalreporting.org)

20. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING The Global Compact Principles Global Reporting Initiative ISO 26000 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)

21. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes The Global Compact Principles Global Reporting Initiative ISO 26000 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)

22. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes SA 8000 The Global Compact Principles Global Reporting Initiative BLIHR Matrix BLIHR Matrix ISO 26000 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)

23. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes The Global Compact Principles Global Reporting Initiative BLIHR Matrix BLIHR Matrix OHCHR/ UN Staff College Training ISO 26000 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)

24. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes The Global Compact Principles Global Reporting Initiative BLIHR Matrix BLIHR Matrix OHCHR/ UN Staff College Training Human Rights Impact Assessment ISO 26000 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)

25. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes The Global Compact Principles Global Reporting Initiative BLIHR Matrix BLIHR Matrix OHCHR/ UN Staff College Training Human Rights Compliance Assessment Human Rights Impact Assessment ISO 26000 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)

26. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes International Alert The Global Compact Principles Global Reporting Initiative OHCHR/ UN Staff College Training Human Rights Compliance Assessment Human Rights Impact Assessment ISO 26000 BLIHR Matrix BLIHR Matrix 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)

27. HUMAN RIGHTS IN A BUSINESS MANAGEMENT SYSTEM STRATEGY POLICY PROCESSES & PROCEDURES COMMUNICATIONS TRAINING MONITORING REPORTING ILO based supply chain codes International Alert The Global Compact Principles Global Reporting Initiative OHCHR/ UN Staff College Training Human Rights Compliance Assessment Human Rights Impact Assessment ISO 26000 BLIHR Matrix BLIHR Matrix Community Human Rights Impact Assessment 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

28. First example of tools overlap/synergies

29. Second example of tools overlap/synergies Human Rights Impact Assessment type tools

30. Applying tools and learning in practice • Three case-studies: • First tier suppliers in Jordan • ABB • Statoil • Discussion:

31. Jordan: The key drivers for international business Reputational risk Operational risk – social licence to operate Legal and Financial risk Pressure from Government Pressure from institutional investors Staff retention and motivation Leadership Productivity – belief in a business case Staying ahead of international regulation Humanitarian or moral reasons Other reasons

32. Jordan: The key drivers for exporters Pressure from Buyers Risk Reputation Pressure from Government Pressure from Workers Leadership Productivity – belief in a business case Staying ahead of regulation Humanitarian or moral reasons Other reasons

33. 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)

34. Where is the line? Acceptable Unacceptable 1. Compulsory Overtime 2. Confiscation of travel document 3. Payment of recruitment fees 4. Denial of right to strike 5. Making deductions from wages 6. Stopping food and meals 7. Paying wages in other ways than JDs 8. Limits to holidays and sick leave 9. Informing police

35. Session Three: The role of GC Nordic Network on Human Rights John Morrison Iceland, 8 May 2008

36. Business Leaders Initiative on Human Rights2003-2009 “ 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