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Beyond Social License

Beyond Social License. The Legal Implications of the Guiding Principles. Overview: the path beyond. Summary of the Guiding Principles on Business and Human Rights Legal implications of the Principles Beyond “ Social License ” to “ Just License ” Practical steps to mitigate legal risk.

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Beyond Social License

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  1. Beyond Social License The Legal Implications of the Guiding Principles

  2. Overview: the path beyond • Summary of the Guiding Principles on Business and Human Rights • Legal implications of the Principles • Beyond “Social License” to “Just License” • Practical steps to mitigate legal risk

  3. Background to the Principles • Why needed? • Two dimensions of human rights: (1) legal definition; (2) institution. • Historically, institution was the state. Responsibility based on control over territory. • Principles provide comprehensive and coherent basis to apply responsibility to business.

  4. Understanding the Principles • Three core (legal) concepts: • Scope • All human rights; legal definitions. • Causation • Cause or contribute to; directly linked to. • Proportionality • Response expected turns on context.

  5. Practical implications • Three core concepts ensure Principles are: • Broad • All internationally recognized human rights—no subset. • Practical • Narrow focus based on causation. • Prioritize by impact. • Respond based on operating context.

  6. Principles as source of legal risks • Principles’objective and comprehensive framework creates new type of human rights risk for business: legal risk. • Bilateral Investment Treaty • Financing agreements • Home state litigation

  7. Beyond Social License to Just License • Social license still essential but insufficient. Need to protect against governments, lenders, domestic courts. • Need justified social license to mitigate both dimensions of human rights risk. • Principles underpin legal risk but also provide framework for legal risk mitigation.

  8. New risk, new risk mitigation

  9. Acquiring Just License in practice • Progressive and principled narrowing: justified and practical

  10. Implications of the Principles • Create fundamentally different risk—objective and significant legal risk. • Opportunity for business to mitigate risk proactively and coherently. • Legal concepts provide framework for engagement and practical due diligence and response.

  11. Human rights are serious business. Respond efficiently. Yousuf Aftab Principal yousuf.aftab@enodorights.com +1.917.688.9570

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