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Adverse human rights impacts occur when an action takes away or reduces the ability of a person to enjoy their human rights. For instance, a company that pollutes the water source of a community impacts on the rights to health, water and potentially life of people in that community. Respecting human rights therefore means not to cause harm to the human rights of individuals when an enterprise does business and adequately deal with situations in which harm has been done.
There is no single definition of these terms. The UN Global Compact uses them to refer to a number of contexts including countries, areas and regions: where political and social instability prevails that makes a future outbreak of violence more likely; in which there are serious concerns about human rights abuses although violent conflict is not currently present; that are currently experiencing violent conflict, including civil wars, armed insurrections, inter-state wars and other types of organised violence; that are in transition from violent conflict to peace. Based on: UN Global Compact Office / UN Principles for Responsible Investment, 2010, Guidance on Responsible Business in Conflict-Affected and High-Risk Areas.
Conflict sensitive business refers to business practices in which a company:
(1) understands the conflict environment in which it operates;
(2) is aware of potential positive and negative impacts the company might have on the conflict environment; and(3) implements policies to avoid causing or further exacerbating conflict and wherever possible takes steps to positively contributing to peace and stability. Based on: Andreas Graf & Andrea Iff, Conflict Sensitive Business, Review of Instruments and Guidelines, 2013.
How well a company manages its risk and impacts on people with a view to preventing, mitigating and remediating adverse impacts. This can be measured by considering its policies and processes but also practices and responses to actual incidents – such as is being done by the Corporate Human Rights Benchmark.
Respecting human rights is the baseline expectation for business of all sizes, from all sectors and under any circumstances with regard to human rights. This responsibility goes beyond compliance with national laws. Respecting human rights means responsibility for a company’s impacts on human rights. The corporate responsibility to respect human rights means that business should avoid infringing on the rights of others. Moreover, they should address any adverse impacts on human rights with which they are involved. This requires a mind-set change for many companies as they need to start considering risk to the human rights of people instead of solely looking at risk to the business.
Respecting human rights is not a passive responsibility. It requires having policies and processes in place that help to identify, prevent, mitigate and remediate adverse human rights impacts. This responsibility applies not only to human rights impacts arising from the company’s own activities but also to impacts linked to its operations, products or services by its business relationships with states, customers, other companies in its supply chain etc. Furthermore, the responsibility applies to all human rights because every company can potentially impact on the whole spectrum of human rights.
Dual-use application refers to products or services that can be applied as intended by the manufacturer but also used for serious human rights violations. For example, a drug can be used to heal people but also for torture e.g. in certain state prisons. An excavating machine can be used to build houses but also to demolish a settlement to make way for a rail line.
In February 2017, the Dutch Parliament adopted a draft legislation that requires companies, working in the Netherlands or supplying goods and services to Dutch consumers, to examine and to provide a public statement on whether child labour is occurring in their own operations or in their supply chains. If child labour is found along the operations, corporations need to develop a plan of action to combat child labour.
The eight criteria for how grievance mechanisms should be designed in order to ensure their effectiveness are: legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue. Details on the criteria are provided in UN Guiding Principle 31.
Passed in early 2017, the EU regulation on conflict minerals sets out due diligence obligations for companies that import minerals (tin, tantalum and tungsten, their ores, and gold) from conflict-affected and high-risk areas into the European Union. Under the regulation, large processors of these minerals must report on how they implement due diligence requirements starting from the source of minerals, i.e. from the mining over the smelting and refining stage until their export into the EU.
Passed in late 2014, the EU directive on non-financial reporting (Directive 2014/95/EU), requires large public-interest companies with more than 500 employees to include non-financial statements in their annual reports from 2018 onwards. In these statements, companies must report on the policies they implement in relation to environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and bribery as well as diversity on company boards (in terms of age, gender, educational and professional background).
In March 2017, the French government passed a law which establishes legal obligations for corporations with regards to human rights and environmental due diligence along their global operations. The ‘duty of vigilance law’ applies to companies registered in France that either have more than 5,000 employees in France, or more than 10,000 direct or indirect employees globally (working for the company and in its direct or indirect subsidiaries). To meet the requirements under the law, companies must develop and enact annual vigilance plans that detail how they detect risks and prevent serious violations with respect to human rights and the environment, which may result from company, subsidiary, supplier and subcontractor activities.
In December 2016, the German federal government adopted the German National Action Plan for Business and Human Rights (NAP). The NAP implements the UN Guiding Principles on Business and Human Rights and sets out the government’s expectations towards German companies’ responsibility to respect human rights as well as the elements of corporate human rights due diligence.
A grievance mechanism in the context of business and human rights is a formal, judicial or non-judicial complaint process that can be used by individuals, workers, communities and other rightsholders that are being, or feel to be, negatively affected by certain business activities and operations. It can be hosted by companies themselves, NGOs, multi-stakeholder or governmental organisations.
This refers to countries where the particular company faces a high risk of having adverse impacts on human rights. Country profiles by well-known NGOs, state authorities as well as dialogue with the local management and business partners will help companies in identifying these countries.
Menschenrechte sind grundlegende Rechte und Freiheiten, die allen Menschen ohne Ausnahme zustehen. Jeder Mensch hat ohne Unterschied Anspruch auf die Wahrnehmung der Menschenrechte. Die Internationale Menschenrechtscharta (Universal Declaration of Human Rights und die zwei wichtigsten Pakte zu ihrer Umsetzung) sowie die International Labour Organization (ILO) core conventions definieren den zentralen Kern der international anerkannten Menschenrechte. Die Menschenrechte spezifischer Gruppen sind in gesonderten Übereinkommen verankert.
The 30+ human rights are wide-ranging and cover various aspects of life. Examples of human rights are:
Human rights are not fixed to a specific set of rights. As social norms evolve over time into universally recognized rights, new human rights emerge, such as e.g. the right to access clean water.
Human rights due diligence processes refer to the ongoing management processes a company has in place to meet its responsibility to respect human rights. They depend on the size, sector, operating context and the specific human rights risk profile of the company. These processes allow the company to track its risks of having an adverse impact on human rights and to identify the actions needed to prevent and mitigate them.
A human rights impact occurs when an action affects the ability of an individual or group to enjoy his/her or their human rights. Actual human rights impacts have already occurred or are occurring. Potential human rights impacts – also called human rights risks - may occur but have not yet done so.
Companies can potentially impact on all human rights. Examples of companies’ impacts on human rights include:
The UN Guiding Principles on Business and Human Rights describe the assessment of human rights risks and impacts as a core element of corporate human rights due diligence. The Danish Institute for Human Rights defines human rights impact assessments as “a process for identifying, understanding, assessing and addressing the adverse effects of a business project or activities on the human rights enjoyment of impacted rightsholders such as workers and community members.” Engagement with rightsholders and other stakeholders are essential in human rights impact assessments.
Potential human rights impacts - impacts that may occur but have not yet done so.
The UN Guiding Principles on Business and Human Rights describe the assessment of human rights risks and impacts as a core element of corporate human rights due diligence. A human rights risk analysis commonly assesses the risks for adverse impacts of a company on rightsholders – through its operations, products and services and business relationships including the supply chain. Whereas human rights impact assessments are distinguished by rightsholder engagement (see above), risk assessments most often draw on publicly available resources on human rights risks and internally available expertise.
A company’s human rights risk encompasses any risks that its own operations or business relationships lead to adverse impacts on the human rights of people. To provide you with an example, your company is likely to have a high risk exposure if it is operating in, sourcing from, selling to or dealing with business partners in higher risk countries or even conflict affected regions, if it provides products or services with known potential for product misuse, if the production of its products requires a lot of manual labour along complex supply chains, if it does employ migrant laborers or contractors in markets known to be prone to worker abuse.
The International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work commits ILO member states to the principles and rights included in the 8 ILO Core Conventions. They focus on four categories: freedom of association and right to collective bargaining, elimination of forced or compulsory labour, abolition of child labour and elimination of discrimination in respect of employment and occupation.
The UN Universal Declaration of Human Rights (UDHR) dates back to 1948 and is the most widely accepted statement of what human rights are. It has been codified through the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESR). Together they form the International Bill of Human Rights.
UN Guiding Principle 18 stipulates that the process of identifying human rights impacts should involve “meaningful consultation with potentially affected groups or other stakeholders”. The associated commentary explains that: “To enable business enterprises to assess their human rights impacts accurately, they should seek to understand the concerns of potentially affected stakeholders by consulting them directly in a manner that takes into account language and other potential barriers to effective engagement. In situations where such consultation is not possible, business enterprises should consider reasonable alternatives such as consulting credible, independent expert resources, including human rights defenders and others from civil society.”
Mitigation refers to actions taken to reduce the extent of an impact that has already occurred. The residual impact then requires remediation. With regards to potential impacts it refers to actions taken to reduce the likelihood that a certain negative impact occurs.
The OECD Guidelines for Multinational Enterprises represent one of the world’s most important instruments to foster responsible business conduct in a global context. For corporations, the guidelines provide standards for how to carry out international investment projects as well as for the cooperation with foreign suppliers. They provide non-binding principles and standards describing what is expected of companies in their global activities in dealing e.g. with corruption or in protecting the rights of trade unions, the environment or the interests of consumers.
A potentially affected rightsholder is an individual whose human rights may be affected by a company’s operations, products or services. For specific impacts e.g. pollution of drinking water by, for example, chemical waste may apply to specific communities or groups.
Using a product in a way that is unintended by the product manufacturer which results in dangers for users / others.
Remediation refers to the act or process of correcting a fault or deficiency. In this context it refers to the actions undertaken to make good or compensate for an adverse human rights impact. It may take different forms like apologies, restitution, rehabilitation, financial or non-financial compensation, sanctions, injunctions or guarantees of non-repetition.
A potentially affected rightsholder is an individual whose human rights may be affected by a company’s operations, products or services.
A company’s salient human rights issues are those human rights that stand out because they are at risk of the most severe negative impact through the company’s activities or business relationships. For example, one of the most salient risks for a pharmaceutical company will be involvement with the right to health. For an information technology company, it will be the right to privacy and freedom of expression. A food company might want to highlight labour rights in its supply chain as well as impacts related to water and land use the health of its consumers. For further information, watch this Video by the UNGP Reporting Framework.
Social and environmental impact assessments (SEIA) are used by public and corporate actors to review the social and environmental effects of infrastructure and investment projects or developmental interventions.
The 17 Sustainable Development Goals (SDGs) adopted in September 2015 by the United Nations define global sustainable development priorities and aspirations for 2030. The SDGs address all three dimensions of sustainability - social, environmental, economic – and seek to mobilise not only governments but business and civil society alike. For further information, take a look at the SDG Compass – A Guide for Business Action on the SDGs.
Adopted in late 2015, the UK Modern Slavery Act requests that commercial organisations in any sector with a global annual turnover of £36m or more who do business in the UK publish an annual Slavery and Human Trafficking Statement. In the statement companies should disclose the steps they are taking to address and prevent modern slavery in their business and supply chain. An organisation must also disclose, if it has taken no such measures so far.
The Global Compact of the United Nations is a strategic policy initiative for companies seeking to reconcile their strategies and business activities with ten principles in the areas of human rights, labour standards, environmental protection and the fight against corruption. As a learning and dialogue platform, the German Global Compact Network conducts webinars, workshops, coaching activities and trainings to promote these ten principles as well as corporate contributions to the Sustainable Development Goals.
The UN Guiding Principles on Business and Human Rights (UNGPs) were unanimously endorsed by the UN Human Rights Council in 2011. They include an overview of the due diligence activities expected of businesses to fulfil the corporate responsibility to respect human rights and the societal expectations towards corporations to not negatively impact on human rights through their operations. Internationally recognized Human Rights thus serve as the baseline for both states and corporations to manage their risk to adversely impact on human rights and to account for their due diligence policies vis-á-vis civil society actors. The UN Guiding Principles have already influenced the debate on sustainability and policy-making at EU and national levels: individual governments have drafted National Action Plans (NAPs) to implement the UN Guiding Principles see also German National Action Plan on Business and Human Rights. In addition, many companies have committed or have already begun to implement the UN Guiding Principles in practice.
In July 2010, the US government enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under Section 1502, the Dodd-Frank Act establishes that all corporations which have reporting duties under the US Securities Exchange Act must disclose whether they exploit or trade so called conflict minerals (coltan, cassiterite, gold, wolframite, or their derivatives) originating in the Democratic Republic of the Congo or neighbouring countries. The Act aims to curb sources of finance for armed groups engaged in the ongoing conflict in the eastern Democratic Republic of the Congo and neighbouring countries (Angola, Burundi, Republic of the Congo, Rwanda, Zambia, Sudan, Tanzania, Uganda, Central African Republic).
Established in 2000, the Voluntary Principles on Security and Human Rights are a set of principles designed to guide companies in the extractive sector in maintaining the safety and security of their operations within an operating fr.amework that encourages respect for human rights
One fine body…