Pages

Monday, June 6, 2011

Global Initiatives and Corporate Responsibility



While there are many international codes and standards relevant to human rights and social responsibility available, presented below is a sampling of some of the various documents that are generally found:

OECD Guidelines to Multinational Enterprises:

According to the OECD website, the guidelines for multinational enterprises around the world are, “recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation.”[i] Billed as the, “most comprehensive instrument in existence today for corporate responsibility multilaterally agreed by governments,”[ii] the OECD’s guidelines are represented in all regions of the world and account for 85% of foreign direct investment.[iii]

ISO 26000

The stated aim of ISO 26000 is “to be a first step in helping all types of organization in both the public and private sectors to… achieve the benefits of operating in a socially responsible manner.”[iv] The International Organization for Standardization (ISO) 26000 offers a framework for socially responsible behavior. However, there are no requirements and, therefore, in contrast to ISO management system standards, is not certifiable. ISO 26000 addresses “seven core subjects of social responsibility defined in the standard, including: scope, terms and definitions, understanding social responsibility, principles of social responsibility, recognizing social responsibility and engaging stakeholders, guidance on social responsibility core subjects, and guidance on integrating, social responsibility throughout an organization.[v]

The Universal Declaration of Human Rights

Adopted by the United Nations in 1948, the Universal Declaration of Human Rights acknowledges “whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world”[vi] Representing the first global expression of rights to which all human beings are inherently entitled, The Universal Declaration of Human Rights consists of 30 articles. The first and arguably most notable article reads, “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.”[vii]

The Voluntary Principles on Security and Human Rights

Formed in 2000, the Voluntary Principles on Security and Human Rights was created “in response to the concerns of governments, extractive companies, and civil society over difficult operating environments that created challenges to both security and human rights.” [viii] Applicable stakeholders involved with the formation of the Voluntary Principles include: U.S. Department of State; the United Kingdom Foreign and Commonwealth Office; oil, mining, and energy companies; and human rights, labor, and corporate responsibility NGOs and provide “practical guidance that will strengthen human rights safeguards in company security arrangements in the extractive sector.”[ix] Today, participants in the Voluntary Principles include “5 governments (Canada, Netherlands, Norway, U.K., and U.S.); 18 oil, gas, and mining companies; and 8 international NGOs.”[x]

The Norms on the Responsibility of Transnational Corporations

Approved in 2003 by a UN sub-committee, the Norms on the Responsibilities of Transnational Corporations was considered, at the time, to be the “most recent comprehensive and concise global document dealing with companies’ human rights obligations and responsibilities.”[xi] While this new approval by the UN did not introduce any new obligations for transnational corporations, it did “reaffirm and reinforce the declarations that have been made so far with regard to human rights responsibilities of business enterprises (e. g. the OECD-guidelines on multinational enterprises and the UN Global Compact Initiative, etc.) and concentrate the core guidelines and standards in this new concise document.”[xii] The Norms like many other documents on global human rights is no binding and is, at best, asset of guidelines or recommendations.

Identify and discuss the Global Compact's Principles

Launched in 2000, the global compact principles is an initiative by the UN to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation publically.[xiii] Offering ten principles in the areas of human rights, labor, the environment and anti-corruption, the compact is the world's largest corporate citizenship initiative. While voluntary, this program has over 8,000 signatories based in more than 135 countries.[xiv] With regard to human rights, the compact states that “businesses should support and respect the protection of internationally proclaimed human rights and make sure that they are not complicit in human rights abuses.”[xv] For labor the compact states that “businesses should uphold the freedom of association; recognize the right to collective bargaining; eliminate all terms of forced and compulsory labor; abolish child labor; eliminate discrimination in respect of employment and occupation.”[xvi] Similarly, where businesses relate to the environment, “businesses should support a precautionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies.”[xvii] Finally, the compact notes that, with regard to anti-corruption, “businesses should work against corruption in all its forms including extortion and bribery.”[xviii] While it is not clear all the impacts that the UN global compact has had since its ratification in New York in 2000, Mark Tran is a firm believer that CSR and the compact is helping grow and improve the least developed countries. According to a recent article in the English news agency the Guardian, The Istanbul conference on LDCs in May of 2011 heard individuals “making the case for social responsibility in companies in LDCs, through the Global Compact Local Network.”[xix] For example, a textile and manufacturing company in India “made a commitment not to use child labor and has a written anti-corruption policy. The company also reuses effluent water from toilets used by 8,000 workers, which, combined with a rainwater harvesting system, saves 135 million litres of underground water each year.”[xx] Another company in India “shifted to energy-efficient light bulbs it cut electricity use by 80%; it also offers free medical care to poorer workers.”[xxi] This trend extends beyond India, “one of Uganda's biggest employers, has struck a partnership with its growers, providing a matching fund for roads, schools and other infrastructure. Another company in Uganda is using “local farmers to supply sorghum, which has reduced barley imports, benefiting 100,000 farmers.”[xxii]

What is the role of companies in protecting the right to security of their employees?

According to Business-Humanrights.org The Voluntary Principles on Security and Human Rights (VPs) are a set of “non-binding principles created to assist extractive companies to balance security concerns with human rights.”[xxiii] Launched in 2000, participants in the VP include 7 states, 9 NGOs, 17 companies and 3 organizations with observer status (as of May 2010).[xxiv] Developed in response to reports of human rights abuses allegedly committed by security providers contracted by the extractive industry, the principles in the VPs apply to interactions with both public and private security forces. The UN global compact frames the dilemma of human rights and security using this question, “How does a company ensure respect for the human rights of local communities when circumstances dictate that they must rely on the protection of public security forces with a history of committing human rights violations?”[xxv] The UN website goes on to say thatcompanies will often prefer to rely on public security providers for protection, for reasons of costs and accountability. This will only be the case, however, where such providers are characterized by high levels of professionalism, legitimate government control, legal oversight and respect for human rights. Ironically, this will generally be in areas where no such protection is required.”[xxvi] Conversely, “where public security provision is imperative (for example in areas of weak governance, conflict and post-conflict conditions), companies are more likely to enter into relationships with security forces with questionable human rights records. In some operational environments, enlisting a public security provider might be an attractive choice to protect company personnel and assets.”[xxvii] To help resolve this issue for transnational corporations, the UN global compact has developed suggestions for responsible business. The seven suggestions are: 1. Adhere to the Voluntary Principles on Security and Human Rights, 2. Develop multilateral security agreements, 3. Use influence to promote respect for human rights, 4. Consider use of private armed security providers, 5. Support human rights training, 6. Establish grievance mechanisms, 7. Promote community liaison committees.




[i] http://www.oecd.org/department/0,2688,en_2649_34889_1_1_1_1_1,00.html [ii http://www.oecd.org/document/28/0,3746,en_2649_34889_2397532_1_1_1_1,00.html[iii http://www.oecd.org/document/28/0,3746,en_2649_34889_2397532_1_1_1_1,00.html [iv]http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/social_responsibility/sr_discovering_iso26000.htm[v]http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/social_responsibility/sr_discovering_iso26000.htm#std-6 [vi] http://www.un.org/en/documents/udhr/index.shtml [vii] http://www.un.org/en/documents/udhr/index.shtml [viii] http://www.state.gov/g/drl/lbr/vp/ [ix] http://www.state.gov/g/drl/lbr/vp/ [x] http://www.state.gov/g/drl/lbr/vp/ www.voluntaryprinciples.org.[xi] http://docs.google.com/viewer?a=v&q=cache:mU9X1SU8QYoJ:www.fes-globalization.org/geneva/documents/UN_Norms/25March04_UN-Norms_Background.pdf+Norms+on+the+Responsibilities+of+Transnational+Corporations&hl=en&gl=us&pid=bl&srcid=ADGEESgWmHF_1S8WA0lAfSJdHuK-2vjP-B3_R0-S1BC2SECUzmxu06xTme06GHqIrK4F9psgV4BsoN8BqicF8jXyhzf0gtpNV6eEzoUR6Ws55cAMt0c1Ny2vCE0GTyA8iU6kF9C89B2q&sig=AHIEtbQSjVeIdJpoIEWuJzw7wBcVPdLVyA[xii] Ibid.[xiii] http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html[xiv] http://www.guardian.co.uk/global-development/poverty-matters/2011/may/13/least-developed-countries-un-global-compact[xv] Ibid.[xvi] Ibid.[xvii] Ibid.[xviii] Ibid.[xix] http://www.guardian.co.uk/global-development/poverty-matters/2011/may/13/least-developed-countries-un-global-compact[xx] Ibid.[xxi] Ibid.[xxii] Ibid.[xxiii] http://www.business-humanrights.org/ConflictPeacePortal/Specialinitiatives/VoluntaryPrinciples[xxiv] Ibid.[xxv] http://human-rights.unglobalcompact.org/dilemmas/security-forces-and-human-rights/[xxvi] Ibid.[xxvii] Ibid.

No comments: