a guide for business how to develop a human rights policy · • to respond to relevant stakeholder...

A Guide for Business

How to develop a Human rights Policy

AcknowledgementsAuthor: Lucy Amis Research assistance: Anita Househam Design: Tannaz Fassihi Printing: ISBN:

© united nations Global Compact office and office of the united nations High Commissioner for Human rights, 2011The Global Compact Office and the Office of the United Nations High Commissioner for Hu-man Rights (OHCHR) make no representation concerning, and do not guarantee, the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice or opinion contained within the publication.

This publication is intended strictly as a learning document. The company examples used represent a possible good practice approach on the particular identified topic. The inclusion of any particular example does not in any way constitute an endorsement by the United Nations Global Compact and/or OHCHR of the company concerned or its corporate responsibility performance overall.

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.

united nations Global Compact TThe United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption (www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html).

By doing so, business, as a primary agent driving globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. The United Nations Global Compact has two objectives:

1. Mainstream the ten principles in business activities around the world; 2. Catalyse actions in support of broader United Nations goals, including the Millennium Development Goals (MDGs). www.unglobalcompact.org

The office of the united nations High Commissioner for Human rightsThe Office of the United Nations High Commissioner for Human Rights (OHCHR) is a key branch of the United Nations human rights structure. The High Commissioner is respon-sible to the United Nations Secretary-General for encouraging the international community and States to uphold universal human rights standards. OHCHR seeks to work with an ever wider range of actors, including the private sector, to promote respect for and commitment to human rights as widely as possible. OHCHR serves as secretariat for the United Nations intergovernmental body on human rights, the Human Rights Council. OHCHR has supported the human rights component of the United Nations Global Compact since it was launched in 2000.

www.ohchr.org

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Guide in summary

Why respect human rights?• Allcompanieshavearesponsibilitytorespecthumanrights,whichmeanstoavoidinfring-ingonthehumanrightsofothers.

• Togaincommercialbenefitsassociatedwithgoodhumanrightspractice,e.g.,attractinginvestment,procurement,top-qualityrecruitsandsecuringthesociallicencetooperate.

• Toliveuptothecompany’scommitmenttotheUnitedNationsGlobalCompact(ifitisaparticipant).

Why develop a human rights policy?• Toprovideabasisforembeddingtheresponsibilitytorespecthumanrightsthroughallbusinessfunctions.

• Torespondtorelevantstakeholderexpectations.• Toidentifypolicygapsandinitiateaprocessthatalertsthecompanytonewareasofhumanrightsrisk.

• Toelaborateonthecompany’scommitmenttosupporthumanrights.• Tobuildincreasedtrustwithexternalstakeholdersandtostarttounderstandandaddresstheirconcerns.

• Tofosterthedevelopmentofin-houselearning,managementcapacityandleadershiponhumanrightsissues.

• Todemonstrateinternationalgoodbusinesspractice.

Getting started - the process behind the policy• Developingahumanrightspolicycanbeadynamic,thoughnotalwaysapredictableprocess.Donotexpectperfectionatfirst.Manyfirmsupdatetheirpoliciesastheygainexperience.

• Assignseniormanagementresponsibilitytodrivetheprocess.• Involveallbusinessoperationsinpolicydevelopment,implementationandreviews.• Mapexistingcompanypoliciestoidentifyhumanrightscoverageandgaps.• Involvecross-functionalpersonnel(humanresources,legal,procurement,security,etc.)intheprocesstobuildunderstanding,know-howandasenseofcommonpurpose.

• Consultinternalandexternalstakeholderstoidentifyandrespondtotheirexpectations.

What are the key ingredients of a human rights policy? Allpolicies–whetherstand-aloneorintegrated–shouldataminimumcomprise:• Anexplicitcommitmenttorespectallhumanrightswhichreferstointernationalhumanrightsstandards,includingtheUniversalDeclarationofHumanRights.

• Provisionsonlabour/workplacerights.• Provisionsonnon-labourrights.Thesewillreflecthumanrightsprioritiesandarelikelytobeparticulartothecompany’sindustry/areasofoperation.

Next steps - Path to implementation• Assessingthecompany’shumanrightsimpactsandriskareas,includingcountryanalyses,newoperationassessmentsandstakeholderconsultation.

• Integratinghumanrightsthroughoutthecompany,lookingattraining,communication,managementsystems,etc.

• Trackingandcommunicatingonperformance,includingbyidentifyingprogressmeasure-mentindicators.

• Providingfororcooperatinginremedyinganadversehumanrightssituationthatacompanyhascausedorcontributedtothroughlegitimateprocesses.

• Establishingorparticipatingineffectiveoperational-levelgrievancemechanismsforindividualsandcommunitiesthatmaybeadverselyaffectedbythecompany’sactivities.

4AGuideforBusinessHowtoDevelopaHumanRightsPolicy

1. Overview - what is a human rights policy?

Ahumanrightspolicycantakemanyformsandhasnouniformdefinition.Ataminimum,itisapublicstatementadoptedbythecompany’shighestgoverningauthoritycommittingthecompanytorespectinternationalhumanrightsstandardsandtodosobyhavingpoliciesandprocessesinplacetoidentify,preventormitigatehumanrightsrisks,andremediateanyad-verseimpactithascausedorcontributedto.Itshouldexplicitlyusethewords“humanrights”.Manyhumanrightspoliciesalsoelaborateonthecompany’scommitmenttosupporthumanrights.1Humanrightspoliciescanbefoundwithincompanystatementsofbusinessprinciples,codesofconductorothervalues-relatedliterature,ortaketheformofstand-alonestatementsoncompanywebsitesorinotherpubliccorporateresponsibilitydocumentation.2

Adoptingahumanrightspolicyisaprecursortoacompany’shumanrightsduediligencetowardsmeetingitsresponsibilitytorespecthumanrights.Itsendsaclearsignaltointernalandexternalstakeholdersthatthecompanyisstrivingtoembedhumanrightsintoitsopera-tionalpoliciesandproceduresandtounderstandthehumanrightsimpactsofthebusiness,bothpositiveandnegative.Italsosignalsacommitmenttotakerespectforhumanrightssuf-ficientlyseriouslytoallocatemanagementtimeandresourcestodevelopingandimplementingapolicy,includingbyconsultingexternally.

A Guide for Business: How to Develop a Human Rights Policy seekstooutlinewhycompaniesshouldrespecthumanrights,theprincipalreasonsforadoptingahumanrightspolicy,itskeyingredientsandthebest-practiceprocesstodevelopone.

1.GlobalCompactPrincipleOneaskscompaniestorespectandsupporthumanrights.2.Forexample,CNOOCincludedastatementonhowitviewshumanrightsissuesinitsoverseasoperationsinits2009CorporateSocialResponsibilityreport,availablefromwww.cnoocltd.com/file/GetAttachment.pdf(accessed15April2011).

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2. Why respect human rights?s

uM

MA

rY • All companies have a responsibility to respect human rights, which

means to avoid infringing on the human rights of others.• To gain commercial benefits associated with good human rights

practice, e.g., attracting investment, procurement, top-quality recruits and securing the social licence to operate

• To live up to the company’s commitment to the United Nations Global Compact (if it is a participant).

Values: a universal responsibility Companieshavearesponsibilitytorespectinternationalhumanrightsstandards,whichmeansnottoinfringeonpeople’srightsandtoaddressadversehumanrightsimpactsthattheycauseorcontributeto.3

Thisuniversalresponsibilityisarticulatedinthe“Protect,RespectandRemedy”framework,welcomedbytheUnitedNationsHumanRightsCouncilin2008.In2011,GuidingPrinciplesaddressedtobothGovernmentsandbusinessonhowtoimplementtheframework,includingtheresponsibilityofbusinesstorespecthumanrights,wereendorsedbytheHumanRightsCouncil.TheendorsementestablishedtheGuidingPrinciplesastheauthoritativeglobalrefer-encepointforbusinessandhumanrights.Theframework,whichhaswidespreadsupportfrombusinessandcivilsociety,impliesthatcompaniesmusthaveahumanrightspolicytoembedhumanrightswithintheiroperationalpoliciesandprocedures.ReportoftheSpecialRepresen-tativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises,JohnRuggie,“GuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations‘Protect,RespectandRemedy’Framework”(A/HRC/17/31)ThisresponsibilitytorespecthumanrightsisincorporatedinPrincipleOneoftheUnitedNationsGlobalCompact.

Commercial Manyfirmsbelievethatshowingrespectforhumanrightsgivesthemacompetitiveadvantageovercompetitorsthatoverlookthearea.Exercisinghumanrightsduediligencecanhelpcom-paniesattractinvestment.Investmentthatfavoursgoodenvironmental,socialandcorporategovernanceisexpanding5andbeingmainstreamed,withassetmanagerslikeBlackRock,AXAInvestmentManager,CalvertandHSBCallnowofferingfundswithsuchcriteria,somecover-inghumanrights.IndicesliketheFTSE4GoodandDowJonesSustainabilityIndexhavestricthumanrightsentrycriteria.6AndsomenationalStatepensionfundsandmajorpublicsectorfundsalsoscreenonlabourandhumanrights,e.g.,theUnitedStatesteachers’andresearchers’pensionfundTIAA-CREF(US$314billion)andtheNorwegianGovernmentPensionFund(US$380billion).

3.AccordingtotheReportoftheSpecialRepresentativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises,JohnRuggie,“Protect,respectandremedy:aframeworkforbusinessandhumanrights”,doingnoharm“isnotmerelyapassiveresponsibilityforfirmsbutmayentailpositivesteps–forexample,aworkplaceanti-discriminationpolicymightrequirethecompanytoadoptspecificrecruitmentandtrainingprogrammes”(A/HRC/8/5).4.SeeA/HRC/17/31.5.Over500institutionalinvestorshavealsosigneduptotheUnitedNations-backedPrinciplesforResponsibleInvestmentandtogetherac-countformorethanUS$20trillionworthofassetsundermanagementin36countries.6.FTSE4Goodinsistsoncompaniesinhigh-risksectorshavingahumanrightspolicy.

6AGuideforBusinessHowtoDevelopaHuman

Goodhumanrightspracticecanhelpattractnewbusiness,includingpublicsectorprocure-ment.Forexample,suppliersoftheGovernmentoftheNetherlandsareexpectedtocomplywithspecifichumanrightscriteria.7Anecdotalevidencesuggeststhatagrowingnumberofsmallercompaniesinthevalueorsupplychainsofglobalfirmsarethemselvesdevelopinganexplicithumanrightspositioninordertoattractbusiness,becausetheyknowthatsomemulti-nationalsdemandsuchstandardsoftheirsuppliersandbusinesspartners.8Inrecruitment,too,surveysshowthatcorporateethicsisanincreasinglyimportantarea;manyapplicantsnowaskhiringmanagershowcompanyvalues,includingonhumanrights,aretranslatedintoday-to-dayactivities.9Securingandmaintainingasociallicencetooperateisanotherincentive.Sup-portforhumanrightscanalsobeasourceofinnovationfortheintroductionofnewproductlinesoradjustmenttoexistingones.

LegalTheresponsibilitytorespecthumanrightsisnotalegaldutyimposedoncompaniesbytreaty,butitisnotalaw-freezoneeither.Theprovisionsofmanyinternationalhumanrightstreatiesareembeddedindomesticlaw(e.g.,safety,health,anti-discrimination),andmanyGovern-mentshaveadoptedtheRomeStatuteoftheInternationalCriminalCourt,which–depend-ingontheprovisionsoftheirowncriminalcode–maymeanthattheyareempoweredtoprosecutecompaniesforcertaininternationalhumanrightsviolations.Inaddition,becausetheresponsibilitytorespecthumanrightshasbecomeaninternationalstandardofconductendorsednotonlybytheUnitedNationsbutalsobybusinessassociations,NGOsandGovern-ments,failuretoliveuptothatstandardandinfringinghumanrightscanleadtocallsforlegalliability,oratleastallegationsthatmightbeconsideredbynon-judicialgrievancemechanisms,suchasbyanationalcontactpointoftheOrganizationforEconomicCo-operationandDevel-opment(OECD).10

7Seewww.senternovem.nl/sustainableprocurement/criteria_development/index.asp(accessed15April2011).8.GE,forexample,expectsitssupplierstorespecthumanandlabourrights,andworkstoimplementandauditthepracticesinitssupplychain.“WhileourexperienceisthatmostsuppliersseektomeetGE’sexpectations,weterminatedapproximately160suppliersin2006forpoorperformanceinthisprogramme.”Seewww.ge.com/files_citizenship/pdf/GE_2007_citizen_07rep.pdf(accessed15April2011).9.AglobalsurveybyNewYork-basedconsultingfirmDBMfoundthat82percentofhumanresourcesandcareerexpertscitecorporateleadershipethicstobeimportanttojobseekerstoday.“Globally,corporationsarebeingheldtothehigheststandardsbycurrentandfutureemployees.”Seehttp://findarticles.com/p/articles/mi_m3495/is_11_47/ai_94161915/?tag=content;col1(accessed15April2011).10.SeeJohnF.ShermanandAmyLehr,“Humanrightsduediligence:Isittoorisky?”,AWorkingPaperoftheCorporateSocialResponsibilityInstitute,No.55(Cambridge,Massachusetts,HarvardUniversity,February2010).Availablefromwww.hks.harvard.edu/m-rcbg/CSRI/pub_main.html.

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3. Why develop a human rights policy?s

uM

MA

rY • To provide a basis for embedding the responsibility to respect

through all business functions.• To respond to relevant stakeholder expectations.• To identify policy gaps and initiate a process that alerts the

company to new areas of human rights risk. • To elaborate on the company’s commitment to support human

rights. • To build increased trust with external stakeholders and to start

to understand and address their concerns.• To foster the development of in-house learning, management

capacity and leadership on human rights issues.• To demonstrate international good business practice.

To provide a basis for embedding the responsibility to respect through all business functionsInordertoensurethatthecompany’sresponsibilitytorespecthumanrightsisembeddedthroughallbusinessfunctions,itshouldexpressitscommitmenttodosobydevelopingahumanrightspolicy.Suchapolicyisthefirststepinshowingthatthecompanyunderstandsitsuniversalresponsibilitytorespecthumanrights.Itprovidesthebasisforpubliclyaffirmingcompanyvaluesandembeddingtheresponsibilityintocompanyoperationsandthewayitdoesbusiness.

To respond to stakeholder expectationsAsindicatedabove,thereisanemerginginternationalconsensusaboutwhatstepscompaniesshouldtaketodemonstratetheircommitmenttorespectinghumanrights,mostnotablyrep-resentedbythe“Protect,RespectandRemedy”frameworkandtheGuidingPrinciples.HavingahumanrightspolicyisexplicitlyrequiredbytheframeworkandtheGuidingPrinciples,11andincreasinglyexpectedbyrelevantstakeholders,includinginvestors,businesspartnersandGovernments.

To identify policy gaps and alert the company to new areas of riskAcompanycanbothcauseandcontributetoadversehumanrightsimpactsthroughitsownactivities.Itsexistingpoliciesmaynotaddressbothdimensions.

Acompanymaynotrealizeitspotentialtoimpactparticularhumanrightswithoutfirstidentifyingwhathumanrightsmeantothebusiness.Developingapolicycanbethecatalyst.Moreandmorefirmsworldwidereportthatdevelopingandimplementingahumanrightspolicyhashelpedthemseehumanrightsrisksandbecomebetterequippedtodealwithhumanrightsissuesthatarise.

Existingpoliciesmaybenefitfromahumanrightsapproach.Forexample,environmentalpoliciescanfocussolelyontechnicalsolutionstoperceivedtechnicalproblemsandmissthepotentialimpactoncommunitiesandpeople’srights.Ahumanrightsapproachcanalsostrengthenthealignmentofexistingcompanypoliciesbydemonstratingtheiralignmentwithuniversalvalues.

11.The“Guidingprinciplesonbusinessandhumanrights:implementingtheUnitedNations‘protect,respectandremedy’framework”containclearrecommendationsontheparametersofacompany’shumanrightspolicycommitment(A/HRC/17/31,guidingprinciple16).


12.LaurenGulaandYeJin,“Cadburyandhumanrights:findingthebestapproach”,inEmbeddingHumanRightsinBusinessPracticesIII(UnitedNationsGlobalCompact,2009).13.See,fordetails,www.unglobalcompact.org/issues/human_rights/CEO_Statement.html(accessed15April2011).

To build trust with stakeholders and address their concernsAdoptingahumanrightspolicyimpliesacommitmentbythecompanytoahumanrightsapproach,throughengagingwithstakeholders,havingappropriatetransparency,andahumanrightsfocus.Suchanapproachisrarelyrequiredbyexistingpolicies.Policiesthatfocusonlyontheimpactonthecompanymaybeinconsistentwithahumanrightsapproach,andmissrisks.

Makingpeoplepartoftheprocessbyengagingwithstakeholderscanhelpcompaniesbuildtrust,increasinglyimportantsincethe2008financialcollapse.Ahumanrightspolicyshowsacommitmenttobeingaresponsiblecorporatecitizenandprovidesinterestedstakeholderswithanaccessiblemeansofgaugingcompanyperformance.Manycompaniesalsofindthatexternalstakeholdersbecomemorewillingtoengageconstructivelywiththemwhentheyhaveahumanrightspolicyandhumanrightsapproachinplace,andwillusuallytalkwiththecompanybeforeconsideringadversarialaction,e.g.,aboycottorlitigation.

To trigger in-house human rights learning, management capacity and leadership Theveryprocessofdevelopingahumanrightspolicycanhavepositivemanagerialspin-offs.Manyfirmssaythatdevelopingthepolicyhelped:

• Raiseawarenessandunderstandingofthecompany’shumanrightsimpactacrossdepartments;

• Buildleadershipcommitmentaroundhumanrightssothattherewaspoliticalsupportinsidethecompanyforresourcestobeassignedtopolicyimplementation;and

• Generatein-housemanagerialcapacity,insightsforfutureprioritiesandenthusiasmaroundthetopic.

Ahumanrightspolicyalsoprovidesmanagerswithapublicstatementtoframeresponsestohumanrightsquestions.

Cadbury reported that “the inspirational language used throughout the document helped motivate employees and stakeholders to show their support for the new vision.”12

To demonstrate good business practiceItisanemerginggoodinternationalbusinesspracticetohaveahumanrightspolicyorposi-tionstatement.Over50percentofFTSE100Indexlistedcompanieshavesuchapolicy.ByMarch2011,theBusiness&HumanRightsResourceCentrehadidentifiedsome270companiesworldwidewithanexplicithumanrightspolicyposition.Itsfindings,whichrecordonlypub-liclyavailablepoliciesthatexplicitlyusethetermhumanrights,reflectagrowingtrendamongbusinessesfromallcontinentsmakingapubliccommitmenttorespectandsupporthumanrights.Thistrendisalsoevidentinthepledgesignedbymorethan250globalCEOstomarkthesixtiethanniversaryoftheUniversalDeclarationofHumanRightsinDecember2008.13

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no More reAsons noT To HAve A PoliCYCompanies are seeing that by having a human rights policy they can start to better identify risks and opportunities, and start to build in-house management capacity and demonstrate to stakeholders a sincere commitment to respect and support human rights. A BSR/GlobeScan poll of business leaders from 15 countries in late 2009 found that: “Climate change and human rights are the most significant priorities for business’ sustainability efforts in the year ahead.”14 Yet the number of firms with explicit human rights policies still represents only a fraction of the more than 7000 companies in over 130 countries that, as signatories to the United Nations Global Compact, have pledged to adhere to general principles on human rights and labour standards, or of the wider business community beyond.

Why have relatively few firms globally backed up their pledges on human rights with a policy or other due diligence measures? Historical obstacles can partly explain it. Back in 2007, human rights remained, in the words of the Special Representative of the Sec-retary-General on business and human rights, “mysterious for business” and companies did not fully know what was expected of them. Workplace issues aside, “human rights… were seen as the exclusive domain of States and no universally agreed framework” existed on the expectations of business.

However, an agreed international business and human rights framework now exists – the United Nations “Protect, Respect, Remedy” framework and the Guiding Principles on business and human rights for its implementation – applying to companies as well as States. In addition, there is a growing body of management guidance tools that help demystify human rights for business and map practical action. The business and human rights discourse has also become global and accessible to companies of all sizes and sectors; daily updates on the Business and Human Rights Resource Centre’s website15 now appear in many languages, based on research from every continent. In short, there are fewer and fewer reasons not to develop a human rights policy.

14. Details of the BSR/Globescan State of Sustainable Business Poll survey can be found at: www.globescan.com/news_archives/bsr09 (accessed 15 April 2011). 15. www.business-humanrights.org.

KEy rEadINGS: • A Guide to Integrating Human Rights into Business Management, ©BusinessLeadersInitiativeonHumanRights,theUNGlobalCompactandtheOfficeoftheUNHighCommissionerforHumanRights,SecondEdition2010.

• Human Rights - It is Your Business: A Business Case for Corporate Engagement,©InternationalBusinessLeadersForum,2005.

• Protect, Respect and Remedy: A Framework for Business and Human Rights,UNSpecialRepresentativeonBusinessandHumanRights,UNDocumentA/HRC/8/57April2008.

• A Human Rights Management Framework (Poster), ©BusinessLeadersInitiativeonHumanRights,InternationalBusinessLeadersForum,theUNGlobalCompactandtheOfficeoftheUNHighCommissionerforHumanRights,2010.

• How to Do Business With Respect for Human Rights: A Guidance Tool for Companies, © 2010, Global Compact Network Netherlands, Business & Human Rights Initiative.

• UNGlobalCompactGuidance:http://www.unglobalcompact.org/Issues/human_rights/Tools_and_Guidance_Materials.html


4. Getting started s

uM

MA

rY • Developing a human rights policy can be a dynamic, though not al-

ways a predictable process. Do not expect perfection at first. Many firms update their policies as they gain experience.

• Assign senior management the responsibility to drive the process. • Involve all business operations in policy development, implementa-

tion and reviews. • Map existing company policies to identify human rights coverage

and gaps.• Involve cross-functional personnel (human resources, legal,

procurement, security, etc.) in the process to build understanding, know-how and a sense of common purpose.

• Consult internal and relevant external stakeholders to identify and respond to their expectations.

Thedevelopmentofahumanrightspolicycanbeadynamicprocess.Itmaystartwiththereleaseofashortstatementofintent–sometimesonlyafewparagraphs–thatisrevisedandbecomesmoresophisticatedasthecompanygetstogripswiththeissues.Whenfirstdevelop-ingahumanrightspolicy,managersshouldnotfeelunderpressuretoachieveperfection.Manybestpracticeexamplestodaytookshapeoverseveralyearsandhaveundergonereview.

barCLayS developed its first human rights policy in 2004 under the sponsorship of the Group Vice-Chairman. [It] was signed off by the company’s Group brand and reputation Committee.16 The policy was revised in 2006 and again in 2008. “Policies and practices are updated to take account of new issues raised and growing awareness and familiarity within the business of the human rights impacts of our decisions. Policies are refreshed to keep them alive and topical and ensure they are communicated regularly.”17

Cadbury published its first Human Rights and Ethical Trade Policy in 2000, but to ensure “all of its corporate policies were aligned with its existing human rights related policies, as well as increasing global expectations and a maturing understanding of how business can contribute positively to the realization of human rights”18 in 2008 it released an overarching human rights policy document – Cadbury’s Approach to Human rights.

Eachofthestepsinthissectionisimportant,butthepreciseordercanvary.Somecompaniesreportthattheydidnotinitiallyhaveseniormanagementbuy-inandthattheimpetusforapolicycamefrombelow,withthemappinganalysisandstakeholderfeedbackbeinginstru-mentalinwinningseniormanagementsupportandhavingresourcesassignedforpolicyimplementation.

Nosinglesequencewillsuiteverycompany.Thetimingofthepolicy’sreleaseislargelyamatterofchoice.Somecompanieswillreleaseaninitialshortstatementtoraisein-house

16.TheCommitteewascomprisedofseniormanagementfromthedifferentBarclaysbusinessesandcentralfunctions.17.PhilippaBirtwell,HeadofPublicPolicyResearch,Barclays.18.GulaandJin,“Cadburyandhumanrights:findingthebestapproach”.

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awarenessorinresponsetostakeholderpressure,evenbeforetheotherstepsarecomplete;theymaythenfollowuptheinitialstatementwithalongerpolicydocument.Othersreleasetheirhumanrightspolicystatementonlywhentheyarereadytointegrateitintotheirmanage-mentsystems.

Therecanbeoverlapbetweenthestepsneededtodraftapolicy,toassessthecompany’shumanrightsimpactandtointegratethembothinthecompany’smanagementsystems.Evenduringthefirstphaseofdevelopingapolicy,somefirmshavefoundithelpfultodosomebasicmappingofthecompany’skeyhumanrightsrisksandlikelypriorities;thiswillneedtobetakentoanotherlevelduringthephaseofassessingimpacts.Similarly,thestakeholderconsultationneededtoinformahumanrightspolicywillbespecifictothattask;stakeholderconsultationforanimpactassessmentwillbeofadifferentmagnitude.

Key Steps

Assign Senior Management Responsibility

Consult with stakeholders on the human rights policy

Put in place a cross-functional team

Communicate the policy internally and externally and stipulate expectations

Conduct a preliminary gap analysis/policy mapping

Reflect human rights policy in operational policies and procedures

assign senior management responsibility. Thedecisiontodraftapolicyisoftenmadebythechiefexecutiveorbyoneormoreseniorexecutives.Whoeverinstigatestheproject,amemberofseniormanagementwilltypicallyneedtobeappointedtoleadtheprocess,signoffonthefinalpolicyandassignresourcesneededforitsimplementation.

Involve all business operations. Manyfirmsputinplaceacross-functionalteam,committeeortaskforcetohelpsteerthepolicythroughthecompany.Whetherdrivenbyateamornot,thecompanyneedstocapturein-houseknowledgefromacrossvariousbusinessunitsandfunctions,considervaryinglegaljurisdictions,draftthepolicyandlatercommunicateitinter-nallyandoverseetrainingandreportingneeds.Inmanycases,ateamorcommitteewillretainresponsibilityforthepolicyandanyrevisionsinthemediumtolongterm.

Makingbasicpolicydecisionswithintheoverlappingframeworksofacompany’sexistingstandardsandcommercialmanagementsystems,whilebearinginmindvaryingstakeholderexpectations,canbedemanding.Thereisastrongcasetokeeptheprocesslargelyin-houseratherthanoutsourcingit,toensurethatanylessonslearnedstaywithinthecompanyandhelpbuildcapacityovertime.

Conduct a basic policy gap analysis/mapping exercise todeterminewhichoftheinternation-allyrecognizedhumanrightsarealreadycoveredbythecompany’sexistingpoliciesandiden-tifyanyrelevantonesthataremissing.Thiswillhelpcompaniesidentifyanypriorityissues.

Mostcompaniesfindthatlongstandingcorporatepoliciesandcodesofconductalreadyaddresshumanrightsbutthattheydonotusehumanrightslanguage,e.g.,policiesondiversity,non-discrimination,bullyingorharassment,healthandsafety,minimum-ageprovisionorworkinghours.


Draftingahumanrightspolicywillnotnecessarilyhighlightentirelynewissuesforthebusi-ness,butcanhelpexpressandlinktogetherexistingpositionsinadifferentway,orshinealightonissuesthatmightotherwisegetoverlooked.

TheGuidingPrinciplesstatethatcompanieshavearesponsibilitytorespectallhumanrights,notjustaselectfew,andahumanrightspolicyneedstoreflectthisfact.Operationally,whilefirmsneedtobealerttoallpotentialhumanrightsrisks,“inpractice,somerightswillbemorerelevantthanothersinparticularindustriesandcircumstancesandwillbethefocusofheight-enedcompanyattention.However,situationsmaychange,sobroaderperiodicassessmentsarenecessarytoensurethatnosignificantissueisoverlooked.”19Inaddition,companiesalsoneedtotakeintoaccounttheimportantprincipleofinternationalhumanrightslawthathu-manrightsareinterdependentandindivisible,andthattheycannotchoosetoignorenegativeimpactsonsomehumanrights,whilerespectingothers.

rESOurCE TIP: When developing a policy, tools like Human Rights Translated: A Business Reference Guide can help managers become familiar with the full spectrum of human rights and identify which may have to be priori-tized given the company’s unique geographical footprint, relationships, industry and operating context.

Consult with internal and external stakeholders.Inadditiontoensuringthatthepolicyisinformedbyrelevantinternaland/orexternalexpertise,thecompanyshouldidentifykeystakeholders.Thisistohelpensurethatthepolicyisfitforpurposeandaddressesexpecta-tionsandconcernsofpotentiallyaffectedgroupsandotherrelevantstakeholders.Forexample,workersandtheirrepresentativeorganizationsareimportantstakeholdersforlabour-relatedhumanrights;andengagementwiththemisgenerallyreferredtoas“socialdialogue”.Relevantstakeholderscanalsoincludeindustrypeersthathavealreadyadoptedapolicy,thosebehindsector-basedmulti-stakeholderinitiativeswhohaveexperienceofadvisingcompaniesinasimilarpositionandbusinessassociations.Companiesshouldalsoconsiderinvolvingsociallyresponsibleinvestors,clients,civilsocietyexperts,consumers,campaigngroups,academicsandcommunitygroups.Involvingpotentialcriticsintheprocesswillgivearealitycheck.Somefirmsshareanearlydraftofthepolicywithstakeholderstoelicitfeedback.Someofthestake-holdersthatprovideinputintothepolicywillbecomeusefulalliesduringlaterduediligencephases.

Communicate the policy internally and externally and stipulate expectations.Nopolicycanbeeffectiveunlessitiscommunicatedtoallrelevantstakeholders.Thepolicyshouldbepubliclyavailable.Itneedstobedisseminatedtoallemployeestoraiseawarenessandcoupledwithnecessarytrainingforrelevantpersonnel.Itshouldalsobecommunicatedactivelytootherparties,inparticularbusinesspartnersandaffectedstakeholders.Thepolicyshouldsimultaneouslymakeclearwhatexpectationsthecompanyhasofitsemployees,businessunits,suppliers,subcontractors,franchisees,vendors,businesspartnersandotherrelevantpartiesdirectlylinkedtoitsoperations,productsorservices.

Reflect the human rights policy in operational policies and procedures. Companiesshouldcarefullyconsiderhowotherpoliciesandpracticestheyhaveinplacerelatetotheexpressedcommitmenttorespecthumanrights.Lackofcoherenceisacommonrisk;areaswherediscrepanciesmayariseincludeprocurementandlobbying.Ifthehumanrightspolicyisnoteffectivelydisseminated,reflectedinotherpoliciesandprocedures,andembeddedinmanage-mentacrossallfunctions,neglectcanquicklybecomerealityevenwithallthebestintentionsinplace.Thisissuealsorelatestothebroaderquestionofhowtoimplementthecompany’scommitmenttohumanrights,whichisaddressedinthefinalsectionofthisGuide.

19.“Businessandhumanrights:furtherstepstowardtheoperationalizationofthe‘protect,respectandremedy’framework–ReportoftheSpecialRepresentativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises,JohnRuggie”(A/HRC/14/27).

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KEy rEadINGS• A Guide to Integrating Human Rights into Business Management,BLIHR,UnitedNationsGlobalCompactandOHCHR,2nded.,2010.

• Human Rights Translated: A Business Reference Guide,CastanCentre,InternationalBusinessLead-ersForum,UnitedNationsGlobalCompactandOHCHR,2008.

• How to Do Business with Respect for Human Rights: A Guidance Tool for Companies, GlobalCompactNetworkNetherlands,Business&HumanRightsInitiative,2010.

• “Cadburyandhumanrights:findingthebestapproach”,byLaurenGulaandYeJininEmbedding Human Rights in Business Practices III,UnitedNationsGlobalCompact,2009.

• Protect,RespectandRemedy:aFrameworkforBusinessandHumanRights–ReportoftheSpecialRepresentativeoftheSecretary-Generalontheissueofhumanrightsandtransna-tionalcorporationsandotherbusinessenterprises,JohnRuggie(A/HRC/8/5).

• Businessandhumanrights:Towardsoperationalizingthe“protect,respectandremedy”framework–ReportoftheSpecialRepresentativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises(A/HRC/11/13).

• BusinessandHumanRights:Furtherstepstowardtheoperationalizationofthe‘protect,respectandremedy’framework–ReportoftheSpecialRepresentativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises(A/HRC/14/27)

• SocialDialogueatEnterpriseLevel:SuccessfulExperiences,ILO,Geneva,2004.Availablefromwww.ilo.org/public/libdoc/ilo/2005/105B09_252_engl.pdf(accessed15April2011)

• UnitedNationsGlobalCompactGuidance:www.unglobalcompact.org/Issues/human_rights/Tools_and_Guidance_Materials.html(accessed15April2011)


5. What are the key ingredients of a good human rights policy?

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Y All policies – whether stand-alone or integrated – should at a minimum comprise:• An explicit commitment to respect all human rights which refers

to international human rights standards, including the Universal Declaration of Human Rights.

• Provisions on labour/workplace rights. • Provisions on non-labour rights. These will reflect human rights

priorities and are likely to be particular to the company’s industry/areas of operations.

Fewhumanrightspoliciesarethesame.Intheabsenceofregulatoryguidelines,manyfirmssimplydowhatfitsbestwithinthecompany’sexistingpolicycommitmentsandinternalpro-cesses.Commonconventionshoweverdoexist,manyofwhichwereidentifiedbytheSpecialRepresentativeonbusinessandhumanrightsandhisteamduringthefirstmandate(2005-08),20andmanygoodpracticepolicyexamplescanbefoundinthepolicybankavailableviatheBusi-ness&HumanRightsResourceCentre’swebsite(www.business-humanrights.org).

a stand-alone versus an integrated human rights policy?Humanrightspoliciesgenerallyfallintotwocategories:stand-alonestatementsandpoliciesthatareintegratedwithinthecompany’swiderstandardsliterature,e.g.,employeecodesofconduct;ethicalsourcingstandards;environment,healthandsafetyguidelines;andsocial/communityinvestmentcommitments.Recently,thereappearstobeagradualtrendtowardstheintegratedmodel(particularlyamongcompaniesthathaverevisedtheirpolicyapproachatleastonce),buttherearereasonableargumentsinfavourofeitherstrategyandmanagerswillneedtodetermineforthemselveswhichisbettersuitedtotheircompany.

“An advantage cited for free-standing procedures is that the relevant issues get the attention and profes-sionalization they deserve. But a disadvantage may be that it is not connected to the rest of the company. In contrast, folding human rights due diligence into ongoing processes may put human rights on par with other key issues when managers evaluate potential projects, but the unique attributes of human rights may thereby get diminished.” Special Representative, April 200921

Stand-aloneorfree-standingpolicieshaveanadvantageinexternalcommunication,makingiteasierforinterestedstakeholderstoaccessinformationtheyrequire.Stand-alonestatementsarecommonlyemployedbycompaniesthataredevelopingahumanrightspolicyforthefirsttimeandallowthecompanytosetoutitsintentionswhileitgoesaboutbuildingtherequisitein-houseknowledgeandcapacitytoassessandmanageitshumanrightsimpacts.

Forcompanieswithwell-establishedcodesofconductonemploymentorethicalsourcingguidelines,etc.,theintegratedapproachmaybeeasiertodeliverandavoidamultiplicityofstandardsthatcouldgenerateinternalconfusion.Integratedpoliciescansuggestthathumanrightsconsiderationsaremoredeeplyengrainedwithinthecompany’soverallthinking,whichcanappealtoexternalstakeholders.Neitherapproachisrightnorwrong.

20.See“Businessrecognitionofhumanrights:Globalpatterns,regionalandsectoralvariations”,addendumtotheReportoftheSpecialRep-resentativeoftheSecretary-Generalontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises(A/HRC/4/35/Add.4).21.A/HRC/11/13.

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Acompromiseoption,whichdrawsonbothmodels,istoproduceareadilyaccessiblepublichumanrightsstatementthatcross-referencesestablishedcodesandpolicies,highlightingwherethehumanrights-relatedelementscanbefoundwithinexistingmanagementstan-dards.Thisallowsforeffectivecommunicationandcansitwellwithcurrentsystems.Itmay,however,requirenewpolicyelementstobedrawnuptoaddresshumanrightsissuesthathadpreviouslygoneunaddressed.

LaNGuaGE TIP: to gain buy-in within the company it is important to use practical, clear and concise language to explain the context and issues. Since much human rights language was originally designed for States, it can initially seem alien to business readers, so a company may need to make a few adaptations; stakeholder consultation can help ensure that both in-house and external stakeholders are comfortable with theendproduct.Somefirmsfindthattheinspirationallanguageassociatedwithhumanrightscanactuallybe helpful in generating internal support.

Human rightsrefertobasicstandardsoftreatmenttowhichallpeopleareentitled.Itisabroadconcept,witheconomic,social,cultural,politicalandcivildimensions.ForFord,thismeansensuringthatourproducts,nomatterwheretheyaremade,aremanufacturedunderconditionsthatdemonstraterespectforthepeoplewhomakethem.Italsomeansrespectingtherightsofpeoplelivinginthecommunitiesaroundourfacilities,andthoseofoursuppliers,whomaybeaffectedbytheseoperations.Ford Motor Company

STEP 1: a commitment to respect international human rights standards Ahumanrightspolicywillneedtoincludeastatementofcommitmenttorespectinternationalhumanrightsstandardsthatmakesexplicituseofthewordshumanrights.Somestakeholdersviewpoliciesthatfailtousethewordshumanrightslessfavourably.22Agoodhumanrightspolicyshouldataminimumreferto:

• TheUniversalDeclarationofHumanRights;• TheInternationalCovenantonCivilandPoliticalRights;• TheInternationalCovenantonEconomic,SocialandCulturalRights;and• TheInternationalLabourOrganization’s(ILO)DeclarationonFundamentalPrinciplesandRightsatWork.23

[TheUniversalDeclarationofHumanRightsandthetwoCovenantsarecommonlyreferredtocollectivelyastheInternationalBillofHumanRights.]

Basichumanrightsarealsofurtherarticulatedinotherinternationalhumanrightsinstru-ments,whichelaborateontherightsofindividualsbelongingtoparticularlyvulnerablegroups.24

PrOCESS TIP: In some countries the language of human rights is considered sensitive. Where managers encounterthistheymayfindithelpfultoexplaintocolleaguesthatall192GovernmentsoftheUnited NationshaveendorsedtheUnitedNationsGlobalCompactanditstenprinciples,includingitshumanrightsand labour principles.25

reference to other relevant standards and voluntary initiativesSomecompaniesadditionallyrefertootherrelevantstandardsandvoluntaryinitiatives,manyofwhichhaveprinciplesorcodesthataddressauniquesetofhumanrightschallenges,

22.TheBusiness&HumanRightsResourceCentre’swebsitelinksonlyto“statementsbycompaniesthatexplicitlyrefertohumanrights”initspolicybank,seewww.business-humanrights.org/Documents/Policies.23.ILOconsidersitseightcoreconventionstobe“fundamental”andtheyformthebasisoftheILO1998DeclarationofFundamentalPrin-ciplesandRightsatWork.TheseeightconventionsunderpinthefourUnitedNationsGlobalCompactLabourPrinciples,seeA/HRC/14/27andwww.unglobalcompact.org/labour.24.http://www2.ohchr.org/english/law/index.htm#core(accessed15April2011).25.SeeGeneralAssemblyresolution64/223(para.14).


forinstance:

• TheUnitedNationsGlobalCompact;• OECDGuidelinesforMultinationalEnterprises;• ILOTripartiteDeclarationofPrinciplesconcerningMultinationalEnterprisesandSocialPolicy;26

• TheEthicalTradingInitiative;• TheFairLabourAssociation;• TheGlobalNetworkInitiative;• TheKimberleyProcess;• TheVoluntaryPrinciplesonSecurityandHumanRights(ExtractiveSector).

ExamPLES Of COrPOraTE POLICy STaTEmENTS:General statements of human rights commitmentABB is committed to developing an organizational culture which implements a policy of support for internation-ally recognized human rights and seeks to avoid complicity in human rights abuses. We support the principles containedwithintheUniversalDeclarationofHumanRights,theOECDGuidelinesforMultinationalEnterprisesandtheILOCoreConventionsonLabourStandards.abb

Respectandprotectthefundamentalhumanrights,asstatedintheUniversalDeclaration[of]HumanRightsoftheUN,aswellasthedignityoftheindividualsworkinginitsoperations.Codelco

[TheMitsubishiCorporation]embracesandcomplieswithinternationalconventionsonhumanrights.TheseconventionsincludetheUniversalDeclarationofHumanRights,FundamentalILOConventionsandVoluntaryPrinciples on Security and Human Rights. mitsubishi

[….]Werespectinternationalhumanrightsprinciplesaimedatpromotingandprotectinghumanrights,includingtheUnitedNationsDeclarationofHumanRightsandtheInternationalLabo[u]rOrganization’sDeclarationonFundamentalPrinciplesandRightsatWork,andweactivelyparticipateintheUnitedNationsGlobal Compact. The Coca-Cola Company

Commitments to support human rights Somecompaniesalsoelaborateonthecompany’scommitmenttosupporthumanrights,i.e.,tomakeapositivecontributiontohumanrights.Thisisencouraged.Note,however,thattheresponsibilitytorespectisabaselineexpectation,andacompanycannotcompensateforhu-manrightsharmbyperforminggooddeedselsewhere.27Sosuchcommitmentsshouldcomple-ment,andnotpurporttosubstitutefor,provisionsimplementingthecompany’sresponsibilitytorespectinternationalhumanrights.

ExamPLES Of COrPOraTE POLICy STaTEmENTS:Wedoencouragethecreationofeducation,trainingorapprenticeshipprogram[me]stiedtoformaleduca-tion of young people. alcoa

We encourage our employees to fully utilize their potential by offering ample training and education opportu-nities. bayer

an overview of the steps taken to develop the policyOftenaccompanyingthehumanrightspolicyorpositionstatementisanoutlinebythecompanyofthepolicy’sscopeandthestepsithastakentodevelopthepolicy/positionstatement.Overviewsofthiskinddonotusuallygointomuchdetailbutsimplysummarizesomeoftheprocessesthecompanyhasundertakentodevelopthepolicy,forexample,ifitappointedacross-functionalteam,ifanypolicymappingexercisewascarriedoutorhowitconsultedstakeholders.

26.Availablefromwww.ilo.org/empent/Whatwedo/Publications/lang--en/docName--WCMS_094386/index.htm(accessed15April2011).27.“Clearly,companiesmayundertakeadditionalcommitmentsvoluntarilyorasamatterofphilanthropy.[…]Theseareworthyendeavoursthatmaycontributetotheenjoymentofhumanrights.Butwhatitisdesirableforcompaniestodoshouldnotbeconfusedwithwhatisrequired[…],namelytorespecthumanrightsthroughoutitsoperationsandrelationships”(A/HRC/11/13).

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ExamPLES Of COrPOraTE POLICy STaTEmENTS: Senior management leadership and cross-functional task forcesTheimportanceascribedtohumanrightsbyEni…isalsodemonstratedbythefactthattheCEO… has adhered to the initiative promoted by the High Commissioner for Human Rights as well as by the GlobalCompactdocumentdraftedatthetimeofthesixtiethanniversaryoftheUniversalDeclarationof Human Rights. Eni

[Yahoo!]haslaunchedaBusiness&HumanRightsProgram[me].Thisprogram[me]bringstogetheracoreteam of professionals across the company, including Public Policy, Law Enforcement, Ethics & Compliance, InternationalLegal,PublicAffairs,Privacy,Paranoids[sic],IT,Yahoo!ForGood,andtheOperationsteams,among others, to integrate human rights decision-making into all of our business operations. yahoo!

Human rights mapping exercisesThis commitment follows an expert third-party review of our business to understand the extent to which ANZ policies and practices are meeting the requirements of these standards, with a particular focus on human rights. The review assessed ANZ’s performance against guidelines set out in global human rights instru-ments[…].ItfoundthatANZcompliedwith,andinmanycasesexceeds,mostcriteriainAustraliaandNewZealand[…].Thereviewalsofoundmoreworkwasrequiredtounderstandandmitigatehumanrightsrisksin our supply chain, our lending decisions in our institutional business and our operations and partnerships inAsia,PacificandIndia.[…]. aNZ bank

Stakeholder consultationWe listen to the views of our stakeholders. For customers, shareholders, employees and suppliers we have formalwaysofdoingthis[including]specificmechanisms[…]toencourageopenfeedback.Wehaveengagedouremployees[…]throughourrepresentationcommittees,knownasBusinessInvolvementGroupsandcar-riedoutananonymoussurveytogaugetheirviews.[…]Duringthelastyear,wecarriedoutdetailedresearchwithourcustomers.[…]WealsohadregulardiscussionswithGovernment,regulators,communitypartners,tradeassociationsaswellasenvironmental,humanrightsandanimalwelfaregroups[…].CSR[corporatesocialresponsibility]isconstantlyevolvingasexpectationschangeandnewissuesemerge.ThismeansthatwhilstourapproachtoCSRisunderpinnedbyacoresetofvalues,italsohastobeadaptableandflexible.marks & Spencer

Other issues related to scope that the policy may addressExamPLES Of COrPOraTE POLICy STaTEmENTS: Setting boundaries and human rights prioritiesOneofthemostsignificantandmultifacetedchallengesfacingAngloGoldAshantiisthatofartisanalandsmall-scalemining(ASM).Itisamaterialissueatthecompany’soperationsinGhana,Guinea,[theUnitedRepublicof]TanzaniaandtoalesserextentMaliaswellastheexplorationsitesinColombiaandthe DemocraticRepublicof[the]Congo.angloGold ashanti

A particular challenge for any business of our size and scale is drawing the boundaries of responsibility. We do not believe that it is appropriate for AstraZeneca to promote proactively individual rights and freedomsmorewidelyinsocietythandescribedabove,butwebelievethatwecan,anddo,influenceothersthroughleadingbyexample.[…]The‘RighttoHealth’debateinsomequartersallocatesaccountabilitiestoboth Governments and pharmaceutical companies. We believe that in this context, it is Governments who are accountableforprovidingarobusthealth-careinfrastructurefortheirpopulations[…].AstraZenecanever-thelessrecognizesthatwehaveaparttoplay[…].astraZeneca

We believe our main responsibilities lie in a number of critical areas: employee rights, the right to access financeforvulnerableanddisadvantagedmembersofthecommunityandtheriskofhumanrightsviolationswithin our supply chain. The Westpac Group

Legal jurisdiction issuesWe are committed to comply with effective law. This also applies if, in some countries, the resources or the This Statement draws together the policies, principles and standards to be adopted by all parts of the Barclays’ Group.... Where local legislation imposes more rigorous requirements, Group operations in those


countries must ensure that they comply with such requirements while having regard to the content of this Statement. barclays

We are committed to comply with effective law. This also applies if, in some countries, the resources or the political will to implement and enforce applicable law are lacking...•Asaresponsibleemployer,weintheBASFGroupstrictlyupholdtheILOcorelabo[u]rstandardsaslong

as this is not explicitly prohibited by applicable law.•Iftheimplementationofinternationalconventionsisrestrictedbynationallaw,wedevelopinnovative

approaches to adhere in our actions to the principles underlying the internationally recognized standards. For example, we have developed suitable solutions for a dialogue in locations where the employees’ right to elect employee representatives is restricted. In these cases we discuss with employee representatives topics ofcommoninterestattheregionallevel[…].baSf

applying the policy: [W]erecogni[z]ethatachievingthesestandardspresentsuniquechallengesindifferentpartsoftheworld.Goingforward together with our suppliers, our intention is to drive towards the adoption of these, or comparable standards by our suppliers for their own operations, and those of their suppliers in turn. diageo

WithOurDirectBusinessPartners:IncorporatingappropriateprinciplesofTheSpirit&TheLetterintocon-tracts with suppliers, business partners and distributors. Monitoring adherence by key suppliers in emerging marketstoenvironmental,healthandsafetystandards,prohibitionsagainstforcedandchildlabo[u]r,andlocalwage and hour laws. Evaluating human rights issues involving our direct business partners—particularly in emerging markets—and considering practical responses within the relevant context. Advancing application of theILODeclarationthroughengagementandcollaboration.GE

[…]WeseektoestablishrelationshipswithentitiesthatsharethesameprinciplesandvaluesasVale.Wealsopromote human rights awareness and respect along our value chain, including the adoption of legal contractual clauses. In the event of disrespect to human rights, duly proven by government authorities and mechanisms provided by legislation, we notify the supplier/partner or the customer so they may adopt corrective measures and, in cases in which such measures are not taken, we then are entitled to rescind the respective commercial relationship. Vale

STEP 2: Provisions on human rights for workersHumanrightspolicies/positionstatementsincludeprovisionsonemploymentorworkplacerights.Forbiggercompaniestheseissuesmayalreadybecoveredunderexistingemployeecodesofconduct;thepolicy-mappingexercisereferredtointhe“GettingStarted”sectionaboveshouldhelpidentifyanygaps.

Thelevelofdetailacompanygoesintowillvary.Someofferashortsentenceonkeylabourrightsissuesthatoutlinetheircommitment.Othersreferstakeholderstocompanyliterature,suchascodesofconduct,whereadditionaldetailistobefound.Somecompaniespubliclydisclosemorethanothers.

Moredetailedprovisionsmaybeneededforsomerightsifthefirmoperatesincountrieswhereaparticularrightisknowntobeatspecialrisk,oriftheindustryfacesauniquerightschal-lenge.Forexample,retailfirmswithoperationswherechildlabourisprevalentmayhavemoredetailedchildlabourprovisionsthanfirmsforwhomtheriskofchildlabourislow.

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Keyhumanrights-relatedareasregularlycoveredinhumanrightspolicydocumentationinclude:

• Non-discrimination• Equality• Childlabour/minimumageworkers/worstformsofchildlabour• Forced/bonded/compulsorylabour• Freedomofassociation/collectivebargaining• Healthandsafety• Workingconditions-includingworkinghours• Fairwages/compensation• Noharshordegradingtreatment/harassment• Accessibilityforpersonswithdisabilities• Maternityprotection• Righttostrike

rESOurCE TIP:TheILOTripartiteDeclarationofPrinciplesconcerningMultinationalEnterprisesandSo-cial Policy provides guidance to companies on human rights at work and is a valuable resource for companies developingahumanrightspolicy.ILOhasdevelopedaresourceplatformspecificallyforbusiness:www.ilo.org/[email protected].

ExamPLES Of COrPOraTE POLICy STaTEmENTS: Non-discriminationTheFortuneGlobal500surveyandreportonbusinessrecognitionofhumanrights28intoover300companiesconductedbytheUnitedNationsSpecialRepresentativeduringhisfirstmandatebothfoundthatover90percentofcompaniesalreadyhadpoliciesaddressingdiscrimination.

We respect each individual’s human rights and will not discriminate on the basis of race, colour, religion, creed, sex, age, social status, family origin, physical or mental disability or sexual orientation, nor will we commit other violations of human rights. Such discrimination will not be tolerated. We will be resolute in upholding human rights in everything we do and will not tolerate such discrimination in others. Ignorance and inaction do not constitute excuses for discrimination. fujitsu

We provide equality of opportunity and treatment for the purposes of eliminating discrimination based on race, colour, gender, sexual orientation, gender identity, religion, political opinion, nationality, social origin and status, indigenous status, disability, age or other status of individuals unrelated to the individual’s ability to perform work. National Grid

Child labour AsperChileanlawandconventionsratifiedbyChile,childrenunder18arenotallowedtoworkinoperationsor jobs requiring excessive force, nor in activities that may be hazardous to their health or safety. Those under 21yearsrequirepre-employmentmedicalexaminationstoworkinundergroundmines.[…]CodelcoadherestotheprinciplesestablishedintheConventionontheRightsoftheChildoftheUnitedNations,andinConven-tion138oftheILO.Codelco

Childlabourisnotused.Thereisnorecruitmentofchildlabour.Ifanyincidenceofchildlabourisidentifiedin the supplier’s industry and region, the supplier shall initiate, or participate in, a programme to transfer any children involved in child labour into quality education until they are no longer children. No one under eighteen years old is employed at night or in hazardous work or conditions. InthisCode,“child”meansanyoneunderfifteenyearsofage,unlessnationalorlocallawstipulatesahighermandatory school leaving or minimum working age, in which case the higher age shall apply; and “child la-bour”meansanyworkbyachildoryoungperson,unlessitisconsideredacceptableundertheILOMinimumAgeConvention1973(C138).Pentland Group plc

28.A/HRC/4/35/Add.4.


forced/bonded labourFreelychosenemployment:Ensurenoforced,bondedorinvoluntaryprisonlabo[u]risusedintheproductionof HP products or services. Ensure that the overall terms of employment are voluntary. HP

Business partners must not use forced labour, whether in the form of prison labour, indentured labour, bond-ed labour or otherwise. No employee may be compelled to work through force or intimidation of any form, or as a means of political coercion or as punishment for holding or expressing political views. adidas

freedom of association/collective bargainingThe Company respects our employees’ right to join, form or not to join a labour union without fear of reprisal, intimidation or harassment. Where employees are represented by a legally recognized union, we are committed to establishing a constructive dialogue with their freely chosen representatives. The Company is committed to bargaining in good faith with such representatives. Coca-Cola Company

We are committed to an open and constructive dialogue with our employees and, if applicable, with their rep-resentatives.Ouremployeesarefreetojoinorganizationsoftheirchoicethatrepresentthemconsistentwithlocal organizing laws. These organizations may if recognized as the appropriate agent engage in collective bargaining according to the applicable legal regulations. Employees who act as representatives are neither disadvantaged nor favoured in any way. In locations where employees have decided not to appoint represen-tatives, we promote direct and open communication between employees and management. adidas

Allworkersshallhavetherighttoformandjointradeunions.(ILOConvention87)WhereUNIaffiliatesrepresent the workers employed in companies owned by Telefónica – and its subsidiaries – the company shall recogni[z]etherightofunionstorepresentsaidworkersin:

(a)Collectivebargaining.(ILOConvention98)Ontheirpartunionswillagreetonegotiateingoodfaith,areawareofthenecessitytofindthebestpracticeswhichguaranteethedevelopmentofthecompaniesandtheir viability, which eventually is the best guarantee of the employment of the workers.

(b) Any procedures settlement of disputes.(c) Negotiations and consultations in all matters affecting jobs and training.(d) Where no trade union exists, the company shall adopt a neutral view and shall not prevent workers

fromorgani[z]ing.Itshallalsorespecttherightoftradeunionstoorgani[z]eemployees. uNI-Telefónica Code of conduct

Health and safetyBalfour Beatty regards high standards of safety and health as a cornerstone of a successful business. You have a clear duty to take every reasonable precaution to maintain a safe and healthy working environment in order to avoid the possibility of injuring yourself or putting at risk those with whom you work and members of the public. Strict adherence to the Group’s Health & Safety Policy is expected of every employee.balfour beatty

We believe that all injuries and occupational illnesses, as well as safety and environmental incidents are preventable,andourgoalforallofthemiszero.Wewillpromoteoff-the-jobsafetyforouremployees.Ourcommitment is set forth in the DuPont Safety, Health, and Environmental Commitment.duPont

Working conditions, including hoursWe will treat all employees fairly and honestly regardless of where they work. All staff will have a written contract of employment, with agreed terms and conditions, including notice periods on both sides. All staff are entitled to reasonable rest breaks, access to toilets, rest facilities and portable water at their place of work, and holiday leave in accordance with the legislation of the country where they work. All employees are provided with appropriate job skills training. Tesco

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BasedontheEthicalTradingInitiativeBaseCode[…]workinghourscomplywithnationallawsandbench-mark industry standards, whichever affords greater protection; in any event, workers are not on a regular basisrequiredtoworkinexcessof48hoursperweekandareprovidedwithatleastonedayoffforevery7-dayperiodonaverage.Overtimeisvoluntary,doesnotexceed12hoursperweek,isnot[to]bedemandedon a regular basis and is always being compensated at a premium rate. monsoon accessorize

fair wages/compensationTogiveworkersremunerationwhichsatisfiestheirbasicneedsandthoseofthemembersoftheirfamilywhoare directly dependent on them. Carrefour

Wewillonlydobusinesswithvendorswhopayemployees,asafloor,atleasttheminimumwagerequiredbylocal law or the prevailing industry wage - when available, whichever is higher, and who provide all legally mandatedbenefits.Employeesshallbecompensatedforovertimehoursattherateestablishedbylawinthecountry of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate. Phillips-Van Heusen

No harsh or inhuman treatment/HarassmentThe IKEA supplier shall not engage in or support the use of corporal punishment, threats of violence or other forms of mental or physical coercion. The IKEA supplier shall not make use of public warning and punish-mentsystems.[…]TheIKEAsuppliershallnotengage,supportorallowanyformofharassmentorabuseintheworkplace.[…]Harassmentcanbeanyoffensiveact,commentordisplaythathumiliates,insultsorcausesembarrassment,oranyactofintimidationorthreat[…].IKEa

Employees of a Tata company shall be treated with dignity and in accordance with the Tata policy of main-taining a work environment free of all forms of harassment, whether physical, verbal or psychological. Tata Group

[TheCompanyis]…opposedtoviolentbehavio[u]r,sexualharassmentorpowerharassment.CNOOC Ltd

KEy rEadINGS• TheILOTripartiteDeclarationofPrinciplesconcerningMultinationalEnterprisesandSocialPolicy

• TheLabourPrinciplesoftheUnitedNationsGlobalCompact:AGuideforBusiness,ILO-UnitedNationsGlobalCompact,2008(reprint2010)

• RulesoftheGame.AbriefintroductiontoInternationalLabourStandards,ILO,DepartmentofInternationalLabourStandards,Geneva,2009(rev.ed.)

• ILOHelpdeskforBusinessoninternationallabourstandards(www.ilo.org/business)• GuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations“Pro-tect,RespectandRemedy”Framework(A/HRC/17/31)

STEP 3: Provisions on non-labour related rights issuesEachcompanywillneedtodetermineforitselfwhichgivenhumanrightsmayneedtobeprioritized–whetherbecausetheyposeuniquechallengestothecompany’sindustryanditsrelationshipsorbecausethecompanydoesbusinessinoneormorehigh-risklocations–andwhetherthesemeritaspecificpolicyprovision.Atthesametime,itisimportanttonotethateveniftheparticularoperatingconditionsofacompanymeanthatsomerightsareatgreaterrisksthanothers,theresponsibilitytorespectappliestoallinternationallyrecognizedhumanrights.Thus,whilenotallhumanrightsissuesmaymeritspecificpolicyprovisionsatagivenpointintime,thepolicyshouldneverthelessstressthecompany’scommitmenttorespectallhumanrights.Toraiseawarenessinternallythathumanrightsrisksmaychangeassituationsevolve,thepolicyshouldalsostipulatethatitwillbesubjecttoreviewifproveninadequatethroughthecompany’songoinghumanrightsduediligenceprocess.


Companiesdonotalwaysusehumanrightslanguagetodescribepolicyprovisionsthataddressnon-labourrightsissues,forexamplecompanysecurityarrangementsmayimpactontherightstolifeandsecurityofpersons,butwillnormallybelistedbythecompanyasapolicyonsecu-rityarrangements,ratherthanapolicyontherighttolife.rESOurCE TIP: The publication Human Rights Translated: A Business Reference Guide is also a recommended resource.

ExamPLES Of COrPOraTE POLICy STaTEmENTS: SecurityIt is the policy of Cerrejón to maintain its relationship with Private Security Companies and the legally constituted State Security Forces, within the highest standards or practices and with the greatest transparency possible,thusdevelopingcorporatebehaviourinaccordancewiththeVoluntaryPrinciples;forthisreasonittrainsthemandkeepsthemabreastofmattersofHumanRights[...].Cerrejón

We only allow armed security when required by law or when considered that there is no other way to manage securityrisks.Allarmedguardsmustmeetourstandards,basedonUNguidelinesandconventionsontheuseofforceandtheVoluntaryPrinciplesonSecurityandHumanRights.Armedguardsmustfirsttrytoresolvea security incident without using force. If this fails then they should only use the minimum force needed and offer help to anyone – including offenders – injured as a result. Shell

Indigenous People’s/Traditional/Land rights[We]haveregardtotheprinciplesofILOConventionNo.169onIndigenousandTribalPeoples,wherever our operations may impact the human rights of indigenous peoples. bG Group

TheCompanyrecogni[z]esandrespectstheimportanceofindigenouspeoples’culture,heritageandtradi-tionalrightsandsupportstheidentification,recording,managementandprotectionofindigenousculturalheritage sites. BHP Billiton

Clinical trialsWe put safeguards in place to ensure that the human rights of people taking part in our clinical research are protected. This includes the informed consent process and procedures to protect patient privacy. We are especially careful to protect the rights of any children involved in our clinical trials. GSK

Engaging with Government Officials/Advocacy Yahoo!hasbeenandwillcontinueworkingtosecurethereleaseofcertainpoliticaldissidentsthrough ongoingdiscussionswithhigh-ranking[UnitedStates]andChineseofficials,congressionalleaders,humanrights groups, and the State Department. yahoo!

We reserve the right to express to Governments our position concerning our operations, employees and shareholders and our belief in the importance of respecting human rights. Total

migrant workers

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Migrant workers shall have exactly the same entitlements as local employees. Any commissions and other fees in connection with employment of migrant workers must be covered by the employer. The employer must not requiretheemployeetosubmithis/heridentificationdocuments.Depositsarenotallowed.Workersemployedthrough an agent or contractor are the responsibility of H&M’s supplier and other business partners, and are thus covered by this Code. H&M

Sexual exploitation of childrenMarriottcondemnsallformsofexploitationofchildren.TheCompanydoesnotrecruitchildlabo[u]r,andsupportstheeliminationofexploitativechildlabo[u]r.Marriottalsosupportslawsdulyenactedtopreventand punish the crime of sexual exploitation of children. Marriott will work to raise awareness concerning such exploitation, and will cooperate with law enforcement authorities to address any such instances of exploitation of which the Company becomes aware. Marriotthasalonghistoryofsupportingprogram[me]sandpartnershipsthathelpat-riskyoungpeopleandtheirfamiliesprepareforandfindmeaningfulemployment[and]program[me]sthathelpchildrenbreakoutof the cycle of poverty that makes them and their families vulnerable. marriott

KEy rEadINGS• GuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations“Protect,RespectandRemedy”Framework(A/HRC/17/31)

• Business&HumanRightsResourceCentrewebsite:www.business-humanrights.org/Documents/Policies


Developingahumanrightspolicyisonlythefirststepforacompanytoknowandshowthatitrespectshumanrights.Embeddingitthroughouttherelevantprocessesandproceduresofthecompanyisnecessarytoensureitseffectiveimplementation.

Aproperlyembeddedhumanrightspolicywillguidethehumanrightsduediligenceprocessthatisnecessaryforacompanytoknowandshowthatitrespectshumanrights.Ahumanrightsduediligenceprocesscomprisesthefollowingelements:

(a)Anassessmentofthecompany’shumanrightsimpacts;(b)Integrationoftheassessment’sfindingsacrossrelevantinternalfunctionsandprocesses

inordertoensurethatactualorpotentialadversehumanrightsimpactsareeffectivelypreventedandmitigated;

(c)Trackingtheeffectivenessoftheresponsetoactualorpotentialadversehumanrightsimpacts;

(d)Beingpreparedtocommunicatehowhumanrightsimpactsareaddressed;and(e)Providingfororcooperatingintheremediationofnegativehumanrightsimpacts

thecompanyhascausedorcontributedto.

Duediligencestepssuchasthesewillusuallyalsoyieldinformationabouttheopportunitiesacompanymayhavetosupporthumanrights.

Theseandtheothermanagementactionsbusinesscantaketorespectandsupporthumanrightsarereflectedintheposter:AHumanRightsManagementFramework.ThekeyreadingsboxesinthisGuideflagotherpublicationsthatcanhelp.

Thekeyistoensurethatthehumanrightspolicybecomesmorethanjustapieceofpaperthatnoonelooksat.Havingapolicyanddoingnothingtoimplementitcanpotentiallybeworsethanhavingnopolicyatall.Failingtoact,oractinginadequately,incontradictionwithapolicy,canopenacompanytocriticismfromawidevarietyofsources,notjusthumanrightsNGOsbutalsothosewholookattheintegrityofitscorporategovernance.Implementationisthereforecritical.

Key points to consider when moving towards implementation of the human rights policyassessing impacts• Undertakingahumanrightsbaselinestudyforthebusiness,includingcountry-riskanalyses.• Undertakingahumanrightsimpactassessmentatthepre-feasibilitystageofanymajorprojectwiththepotentialtonegativelyimpacthumanrights,fornewoperations,andonanongoingbasis,ashumanrightsrisksmaychangeovertime.Someoperatingcontexts,suchasconflict-affectedareas,willrequireadditionalattention.Aspartoftheirhumanrightsap-proach,companiesneedtoconsultpotentiallyaffectedgroupsandotherstakeholdersinameaningfulway.

Integrating human rights throughout the company• Integratingandactingonthefindingsoftheimpactassessment.• Engaginginongoingstakeholderconsultationtobuildrelationshipsacrossthecompanyandwithexternalgroups.

• Reviewingcompanytrainingtoincludehumanrightscriteriaasappropriateandidentifyingtargetgroupsthatmayneedadditionallearningsupport.

• Embeddinghumanrightsintomanagementsystems,includingresponsibilitiesinjobdescriptionsandperformanceappraisals.

• Integratinghumanrightsintothecompany’sinternalandexternalcommunications,e.g.,

6. Next Steps - Path to Implementation

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IntranetorWeb2.0systems,toensurerelevantstakeholdersunderstandthepolicyandbusinessimplicationsofnotadheringtoitorfailingtoactonimpactassessmentfindings.

Tracking performance• Identifyingindicatorsformeasuringhumanrightsperformance,developingandimplement-ingsystemsforacquiringqualitativeandquantitativedata,drawingonbothinternalandexternalfeedback,includingfromaffectedstakeholders,andreviewingthefindingstoin-formfuturestrategy.

Communicating on how impacts are addressed• Communicatingoncommitments,targetsandperformance(throughtheGlobalCompactCommunicationonProgressforUnitedNationsGlobalCompactparticipants).Thecommuni-cationshouldbeofaformandfrequencythatreflecttheenterprise’shumanrightsimpactsandthatareaccessibletoitsintendedaudiences.

• Thecommunicationshouldprovideinformationthatissufficienttoevaluatetheadequacyofanenterprise’sresponsetotheparticularhumanrightsimpact.

remediation• Ifacompanyfindsthatithascausedorcontributedtonegativehumanrightsimpacts,itisexpectedthatitengagesactivelyinremediation.

• Thecompanyshouldprovidefororcooperateintheremediationofsuchimpactsthroughlegitimatemechanisms.

• Establishingorparticipatinginoperational-levelgrievancemechanismscanbeaneffectivemeansofprovidingaccesstoremedyforindividualsandcommunitiesthatmaybeadverselyimpactedbythecompany’sactivitiesifthesemechanismsmeetcertaincriteria.29

KEy rEadINGS• GuidingPrinciplesonBusinessandHumanrights:ImplementingtheUnitedNations“Protect,RespectandRemedy”Framework(A/HRC/17/31).

• A Guide to Integrating Human Rights into Business Management,BLIHR,UnitedNationsGlobalCompactandOHCHR,2nded.,2010.

• A Human Rights Management Framework (Poster), BLIHR,InternationalBusinessLeadersForum,UnitedNationsGlobalCompactandOHCHR,2010.

• Human Rights Compliance Assessment, DanishInstituteforHumanRights(online).• Guide to Human Rights Impact Assessment and Management, InternationalBusinessLeadersForum,InternationalFinanceCorporationandUnitedNationsGlobalCompact,http://guidetohria.org/guide.

• Human Rights and Business Dilemmas Forum:http://human-rights.unglobalcompact.org.• UnitedNationsGlobalCompactGuidance:www.unglobalcompact.org/Issues/human_rights/Tools_and_Guidance_Materials.html.

29.SeeA/HRC/17/31,guidingprinciples29-31.


HuMAn riGHTs PoliCies for sMAll And MediuM-sized enTerPrises

The universal baseline expectation that companies should respect human rights applies to all companies regardless of size. Many of the legal pressures and some, though not all, of the commercial drivers for respecting human rights apply equally to big and small companies. For companies to show respect for human rights requires due diligence, of which a human rights policy is only the first step. How companies go about this in practice will depend considerably on the resources available, as well as the level of the company’s risk of negatively impacting human rights.

It is not unusual for multinational companies to have formal policies and procedures to ensure that non-financial issues like human rights are properly addressed company-wide, including across functions and business units, whereas such policies are rare or non-existent among small to medium-sized enterprises (SMEs). Human rights, how-ever, are a new consideration even for many large companies and in the absence of a uniform definition or regulation governing human rights policies, SMEs and multinationals alike can draw upon examples in this Guide to help develop a policy or position statement that is best suited to their own circumstances.

SMEs are reminded that many larger firms’ human rights policies often started as statements a few paragraphs long; this may be the best model. In developing a human rights policy specific to their needs and situation, SMEs could check that their human rights policy/position statement shows that they have:

•Givenoverallresponsibilityforthepolicytoaseniorfigureinthecompany;•Takenstepstounderstandthehumanrightsissuesthatmightberelevant

(human rights focus);•Involvedcolleaguesfromalldepartmentsorteams;and•Talkedwithandlistenedtotheirstakeholders,possiblyincludingthosethatmaybe

affected by company activities.

And that the human rights policy or statement at a minimum has a sentence that is:

•Anexplicitcommitmentbythecompanytorespectinghumanrightsthatreferstointernational human rights standards (including the Universal Declaration of Human Rights).

HuMAN RIGHTS

Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;andmakesurethattheyarenotcomplicitinhumanrightsabuses.

LabOur

Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining;theeliminationofallformsofforcedandcompulsorylabour;theeffectiveabolitionofchildlabour;andtheeliminationofdiscriminationinrespectofemploymentandoccupation.

ENVIrONmENT

Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;undertakeinitiativestopromotegreaterenvironmentalresponsibility;andencouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.

aNTI-COrruPTION

Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery.

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TheTenPrinciplesoftheUnitedNationsGlobalCompact

Published by the UN Global Compact OfficeContact: [email protected] 2011