Business & Human Rights – Assessing the implementation of the “Protect, Respect and

Access to Remedy” Framework

By Dante Pesce, Member of the UN Working Group

on Business and Human Rights

First Annual Global Employers Summit, October 6-7, 2015

UN Framework on Business and Human RightsHow can governance gaps and corporate human rights abuses be addressed?

2005 Special Representative appointed to ‘identify and clarify’ existing standards and practices with regard to business and human rights

2008 UN Protect, Respect and Remedy Framework

2011 UN Guiding Principles on Business and Human Rights articulating the corporate responsibility to respect human rights and human rights due diligence

2011 – 2017 UN Working Group on Business and Human Rights

1972 1973 1987 1992 1997 2002 2012…

1972 1973 1987 1992 1997 2002 2012…

OCDE Directrices para Empresas Multinacionales (1976)

UN Global Compact (1999)

ISO26000(2010)

ISO14000(1996)

Johannesburg Summit

Rio Summit

Libro Silent Spring 1962

Libro Silent Spring 1962

ILO declaration (1977))

1997 2002 20121997 2002 2012

Evolution of Corporate Sustainability

UNGP are not in a vacuum

UN Guiding Principles

Include all internationally recognized human rights Apply to all States and to all business enterprises Do not create new international law obligations Are to be implemented “with particular attention to … individuals …

at heightened risk of becoming vulnerable or marginalized, and with due regard to the different risks that may be faced by women and men”

Unanimously endorsed by the UN Human Rights Council in 2011

UN Guiding Principles

UN Working Group on Business and Human Rights

Our ambition

“Speed up and scale up”

“Tracking progress and ensuring coherence”

Convergence around the UN Guiding Principles

• United Nations • European Union• Organisation for Economic

Cooperation and Development• International Finance Corporation• World Bank• Industry Associations (back latter)• Many others.....

Sustainable Development Goals 2015-2030

UNGP convergence with international standards

GobernanzaDerechos Humanos

Prácticas Laborales

AmbientePrácticas Justas de

Operación

Asuntos de Consumidores

Participación Activa y

Desarrollo de la Comunidad

x x x

x x x x

x x x x x

x x x x x x x

x x x x x x x

x x x x x x x

x x x x x x x

ILO MNE declaration

UN Guiding Principles

UN Global Compact

OCDE guidelines for MNE

ISO26000 for Social Responsiibility

G4

NATIONAL ACTION PLANS (NAPs)

Definition of NAP An evolving policy strategy to protect against adverse human rights impacts by

business enterprises The Process of NAPs

Coordinated and coherent government leadership Multi-stakeholder and transparent consultation A process of continuous monitoring of implementation

The Content of NAPs Compatible with the UNGPs Context specific based on baseline assessment Smart mix of mandatory and voluntary measures

Working Group portal: http://www.ohchr.org/EN/Issues/Business/Pages/NationalActionPlans.aspx

States that have produced a national action plan:

UK - launched September 2013 The Netherlands - launched December 2013 Italy - launched March 2014 Denmark - launched April 2014 Spain - launched in the summer of 2014

(*subject to approval by the Spanish Council of Ministers) Finland - launched October 2014 Lithuania - launched February 2015 Sweden - launched August 2015

States that are in the process of developing a national action plan or have committed to doing one:

Argentina, Azerbaijan, Belgium, Chile, Colombia, Germany, Guatemala, Greece, Ireland, Jordan, Malaysia, Mauritius, Mexico, Mozambique, Myanmar, Norway, Portugal, Slovenia, Switzerland, USA

States in which either the NHRI or civil society have begun steps in the development of a national action plan:

Ghana, Kazakhstan, Nigeria, Republic of Korea, South Africa, Tanzania, The Philippines

Why are the Guiding Principles useful for business?

Concrete: Prescribe specific actions for companies to manage their human rights impacts

Define expectations: Require companies to refrain from harming human rights; development initiatives are not an offset

Facilitate dialogue: Companies can begin discussions with governments, workers and communities on the basis of shared values and expectations

Manage risks: Ignoring human rights involves costs to companies (e.g. reputational, financial, legal, operational)

Human rights due diligence

Policy commitment to human rights

Assessing impacts

Tracking & monitoring

Integration & acting upon

findings

Communicating and reporting

STAKEHOLDER ENGAGEMENT

&ACCESS TO

REMEDY

Process of continuous improvement

Why are the Guiding Principles useful for business?

Key expectation

“Do no harm”

Business Associations & Initiatives Support for UN Guiding Principles

Examples of companies that engage on the Guiding Principles through business initiatives

Sustainability Yearbook 2015

IOE: What does the “Corporate Responsibility to Respect” mean for business?

• The responsibility to respect is a standard of expected conduct recognized by virtually every voluntary and soft-law initiative.

• It means avoiding infringing the rights of others and successfully addressing adverse impacts of business activities if and when such impacts occur.

• Its scope is determined by a business’s actual and potential impact, both of its own activities and those of its relationships, e.g. with other business partners, such as suppliers, as well as governments and customers.

• It is a baseline responsibility and applies to all internationally recognized human rights.

The IOE advises companies to do the following:

• Assess the risk of actual or potential impacts of business operations on all existing human rights instruments. A useful tool for this assessment is the UNHCHR publication Human Rights Translated: A Business Reference Guide.

• Keep it simple: companies will learn a lot by taking one or two rights through a due diligence process. This will create replicable processes for additional rights assessments.

• Prioritize the rights that could be impacted, bearing in mind that there is risk of non-respect both directly and indirectly through business relationships, for example within the supply chain.

• Spend time identifying appropriate interlocutors within stakeholder groups and explore, through dialogue, how the company’s activities may impact them now and in the future and how negative impacts can be avoided.

• Clearly set out, and communicate, the company’s responsibilities, expectations and commitments both internally and externally. A useful tool for this is the interpretive guide released in November 2011 by UNHCHR.

The IOE advises companies to do the following:

• Give visibility to the company’s activities in this regard – demonstrate engagement.

• Allocate financial and human resources to due diligence, stakeholder dialogue and follow-up processes.

• Realize that the corporate responsibility to respect is ongoing – this requires periodic review mechanisms.

• Consider creating a complaints handling procedure, rather than waiting until allegations of nonrespect occur despite best efforts. Such as system should ensure that all allegations are properly received, considered, addressed and rectified before escalating into a major issue, or even crisis, which will be more difficult to manage and potentially cause costly reputational damage.

• Consult with national employers’ organizations as a key partner. Many provide forums for the exchange of information and good practice.

Opportunities

Dedicated portal on the Working Group’s activities: http://business-humanrights.org/en/working-group/latest-news-on-unwg

Information about the Forum on Business and Human Rights: www.ohchr.org/2015forumbhr

Business and Human Rights Resource Centre: http://business-humanrights.org/