corporate accountability in asean. presented by ashley pritchard of fns-myanmar

7/27/2019 Corporate Accountability in ASEAN. Presented by Ashley Pritchard of FNS-Myanmar

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CorporateAccountability

in ASEAN

Ms. Ashley Pritchard11 October 2013


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Defining CorporateAccountability and CSR

CorporateSocial

Responsibility: Belief:

Corporationshaveresponsibilities

beyondgenerating profitfor theirshareholders

Voluntary &Unregulated

CorporateAccountability:

Confrontational& Enforceable

Corporatebehavior

influenced bypressure exertedby social andgovernmentalactors


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ICERD

ICCPR

ICESCR

CEDAW

CAT

CRC

CMW

CPD

ICCPED

Brunei

DarussalamCambodia

Indonesia

Laos

MalaysiaMyanmar

Philippines

Singapore

Thailand

Vietnam

Disparities in ASEAN HumanRights Instruments


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Some industries are not suitable tobe located in Thailand. That is why

they decided to set up there in Dawei.

- Former Thai Prime Minister Abhisit Vejjajivaon Dawei Deep Seaport project


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Right to an Effective Remedy

Economic and Social Rights

Civil and Political Rights

Right to Security of the Person

Human Rights Violations fromExtractive Industries in ASEAN


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Environmental harm causes furtherHuman Rights violations

Access to natural resources are central to livelihoods ofmajority of rural population in ASEAN

Extractive Industries pollute water, cause deforestation,animal , fish and human depletion, leading to more serious

human rights violations


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Resource Curse in ASEAN?

Resource Curse: Paradox that countries and regionswith an abundance of natural resources, tend to haveless economic growth and worse development

outcomes than countries with fewer natural resources


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Gems

Oil and Gas

Timber

Hydro and Energy

Mining

Rubber and Palm

Where MachinesMade to ExtractEverything Come

From

Extracting in

ASEAN


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2012 Exports: Laos


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2012 Exports: Indonesia


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2012 Exports: Brunei Darussalam


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2012 Exports: Myanmar


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Timeline of Domestic Reform

2012

March 2012: Passed LaborOrganization Law. Signed

agreement with ILO onEradication of Forced Labor

March 2013: Myanmarpasses new foreign direct

investment law.

March 2012: EnactedFarmland Law andVacant, Fallow and

Virgin Lands

Management Law.

November 2012: Passedthe Foreign InvestmentLaw

July 2012:Announcement of plans

to later adopt EITI

May 2013: Myanmar

receives worst rankingin world for RevenueWatch Institute (RWI)

2013


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International Developments

2012

April 2012: EU suspendsmost sanctions, keeping arms

embargo

April 2013: EU

permanently lifts trade,economic and individualsanctions on Myanmar in

response to politicalreforms

July 2012: U.S. easessanctions allowing

U.S. companies toinvest and provide

financial services.

May 2013: U.S. released

Burma ResponsibleInvestment ReportingRequirements and issuedJoint Statement on Good

Governance and

Transparency in theEnergy Sector

November 2012: U.S.allows import of any

product of Myanmar except jadeite + rubies

June 2013: ILO lifted all

remaining restrictionson Myanmar

2013


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But is it REALLY Reform?

1. Who are these laws actually protecting?2. Recent and ongoing Business and Human Rights

Cases: Shwe gas pipeline Dawei Special Economic Zone Myitsone Dam Monywa Copper Mine

3. May 2013 Revenue Watch Initiative Report


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Why CSR Is Not Enough

TVIRD, a Canadian mining company, states on itswebsite that the company is committed toexploration and mining practices that promotetransparency, responsible stewardship of theenvironment, and the inalienable rights to life,

dignity, and sustainable development in its hostcommunities.

Siam Commercial Banks CSR Policy states that it will

abide by environmental laws and regulations,implement effective safety and environmentalmanagement measures to prevent negative impacts onlocal communities, and promote employees awarenessof and concern for the environment.

C A b l


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Corporate AccountabilitySuccess Stories

ANY CHART THATSHOWSPROGRESSION FROM

CORPORATERESPONSIBILITY TOACCOUNTABILITY?!?!

Advocacy against Nestl'sformula milk for infantsestablished the WHOs

global infant formulamarketing standards

In 2003, the WHOenacted a global tobacco

treaty known as the

FCTC

I i l I i l V l


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International OrganizationalMechanisms

ILO

UN

Special Rapporteur

InternationalOrganizationalMechanisms:

ILO, UN and SR

InternationalOrganizational

Mechanisms

International VoluntaryMechanisms

InternationalStandards and Norms

United Nations International Labour

Organisation Special Rapporteur

Ruggie Framework Declarations

Global Compact OECD Guidelines ISO 26000 Forest Stewardship Council Extractives Industry

Transparency Initiative (EITI) Hydropower Sustainability

Assessment Protocol (HSAP)

Civil Society

Watchdog Reporting Mechanisms Corporate Hall of Shame Public Protests, News

Articles, Gatherings andPeaceful Sit-ins

TOOLS


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Myanmar, For Your Consideration

1. Ratify Existing International Law and Treaties

2. Acknowledge the states existing duty to protect andpromote human rights and adopt a human-rights basedapproach within State jurisdiction

3. Ensure a reporting and remedy system to seek justice

for violations4. Ensure clear communication and advocacy of human

rights law

5. Ensure that BIT, FTA and other forms of investment

policy are drafted to reinforce - not underminenational laws and policies on Human Rights protection

6. Move away from CSR towards CAby:1. Establishing an extractive industries accountability mechanism

2. Mandate FPIC on extractive or environmentally disruptiveprojects


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For Business in Myanmar1. Before entering Myanmarbusinesses should have inplace well-articulated safeguards

2. Respect human rights at all times, including when theState fails to uphold its human rights obligations, and actto reinforce good governance rather than undermine it

3. Commit to Corporate Accountability through a publiclyavailable policy

4. Ensure access to independent grievance and redressmechanisms

5. Respond to inquiries of CA and abuse

6. Train and motivate staff on Human Rights

7. Commit to consultative processes, participatorydevelopment planning and stakeholder engagement

(Move beyond FPIC)


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Best Business Practices1. Understand the

country andinvestment context

2. Engage credibility andtransparency

3. Manage risks andimpacts responsibly

4. Support nationaldevelopment

5. In instances whereabuse is reported,properly investigate,offering redressmechanisms and workto improve


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Conclusion

Growing momentum to promote investment in Myanmarmust be matched by commitments from states to fulfill their

international legal obligations and from corporations tomeet their responsibility to respect human rights.

John Ruggie and Mary Robinson


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Ms. Ashley Pritchard

[email protected]

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