PRINCIPLE ONE

Businesses should support and respect the protection of internationally proclaimed human rights.

 

Why Human Rights Are Important for Business

The responsibility for human rights does not rest with governments or nation states alone. Human rights issues are important both for individuals and the organisations that they create. As part of its commitment to the Global Compact, the business community has a responsibility to uphold human rights both in the workplace and more broadly within its sphere of influence. A growing moral imperative to behave responsibly is allied to the recognition that a good human rights record can support improved business performance.

 

Reasons for companies to address human rights issues include:

 

Compliance with local and international law

As a minimum, business should strive to ensure that its operations are consistent with the legal principles applicable in the country of operation. The consideration of lawsuits against multinationals for poor practice outside their country of origin is a growing trend.

 

Promoting the rule of law

Businesses operating outside their country of origin may have an opportunity to promote and raise standards in countries where support and enforcement of human rights issues is insufficient. Societies where human rights are respected are more stable and provide a good environment for business.

 

Addressing consumer concerns

Access to global information means that consumers are increasingly aware of where their goods come from and the conditions under which they are made. A proactive approach to human rights can reduce the potentially negative impacts of adverse publicity from consumer organisations and interest groups.

 

Supply chain management

Global sourcing and manufacturing means that companies need to be fully aware of potential human rights issues both upstream and downstream. Promoting best practice in human rights will allow business to select appropriate business partners.

 

Increasing worker productivity and retention

Workers who are treated with dignity and given fair and just rewards for their work are more likely to be productive and remain loyal to an employer. New recruits increasingly consider the social and environmental record of companies when making their choice of employer.

 

Building good community relationships

Companies that operate on a global basis are visible to a large audience world-wide as a result of the advances in communications technologies. Addressing human rights issues positively can bring rewards both at site level, within local communities, as well as in the broader global commons in which companies operate.

 

Bringing Human Rights Into Company Policy and Culture

A key starting point is for individuals within companies to develop an understanding of the issues, for example by making reference to the Universal Declaration of Human Rights. Companies also need to ensure that they are respecting existing national laws in the countries where they operate, and identify how these may vary according to local culture. Equally important is that respect for human rights is embedded in the core values and culture of the organization.

 

The development and implementation of a human rights policy should take into account any appropriate guidelines and, where possible, include input from and consultation with relevant stakeholder groups.

 

Some ideas for bringing human rights into company policy are by -

• developing a company policy and strategy to support human rights,
• developing a health and safety management system,
• providing staff training on human rights issues and how they are affected by business,
• providing staff training on internal company policies as they relate to human rights
• performing human rights impact assessments of business activities and reviewing them regularly,
• discussing human rights impacts with affected groups, and
• working to improve working conditions in consultation with the workers and their representatives.

Finally, there are a number of examples of how companies can guarantee human rights through their daily activities:

(a) In the workplace:

• by providing safe and healthy working conditions,
• by guaranteeing freedom of association,
• by ensuring non-discrimination in personnel practices,
• by ensuring that they do not use directly or indirectly forced labour or child labour, and
• by providing access to basic health, education and housing for the workers and their families, if these are not provided elsewhere.

(b) in the community:

• by preventing the forcible displacement of individuals, groups or communities,
• by working to protect the economic livelihood of local communities, and
• by contributing to the public debate. Companies interact with all levels of government in the countries where they operate. They therefore have the right and responsibility to express their views on matters that affect their operations, employees, customers and the communities of which they are a part.

(c) Finally, if companies use security services to protect their operations, they must guarantee that existing international guidelines and standards for the use of force are respected.

 

Principle Two