strategic alliance on businesses and human rights

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An Outcome Report Supported by : JINDAL STAINLESS LIMITED

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An Outcome Report

Supported by :

JINDAL STAINLESS LIMITED

GlobalHunt Foundation (GHF) is primarily a CSR research and consulting organization, it has been established as a section 25 not for profit company registered under the Indian Companies Act, 1956. As a signatory to the United Nations Global Compact (UNGC), GHF serves as a knowledge catalyst and engages its vast corporate clientele with diverse multi-stakeholders to enhance their Corporate Sustainable Responsibility (CSR), GHF provides key services on research, reporting programme designing, advisory, training and due diligence for its pan India clients comprising of leading corporate, civil society organizations, government institutions and academia.

This publication has been prepared by the GlobalHunt Foundation comprising a team of researchers and consultants.The publication showcases the outcome of the proceedings of the recently concluded meeting. The meeting was conducted in partnership with leading corporates and entails the sharing and learning of their best case practices for knowledge dissemination purposes only, GlobalHunt Foundation does not endorse any individual/ company/or companies mentioned in the report. The material in this publication may be quoted and referenced with proper attribution.

About GlobalHunt Foundation (GHF)

Email: [email protected]

Website: www.globalhuntfoundation.org

Disclaimer:

Program Supported by :

Jindal Stainless Limited

Copyright@2015

GlobalHunt FoundationE-45/6, Okhla Phase-II,New Delhi – 110020Board: +91 11 4654 7700Direct: +91 11 4626 7806Mobile: +91 81 3092 3939

Table of

Executive Summary

Welcome Address

Session I

4

6-7

8-9 Outcomes of India CEO Forum on Business & Human Rights 2012 – 2014

Session II10-11 Business of Human Rights in the Disability Sector

Session III12-13

14-15

Participants Perspectives 16-17

Conclusion 18

Annexure - I 19

Annexure - II 20-22

An International Perspective of Human Rights in the Business

Session IVCurrent Scenario on Land Acquisition - Business & HR Perspective

Executive Summary

DirectorGlobalHunt Foundation

Sunil Goel

Businesses work in a complex value chain despite having strong commitments and adherence to human rights; intricate supply chain, community interests and consumer awareness have made businesses vulnerable to human rights violations. Their economic performance is duly measured by their adherence to social rights of the local community, environment and workforce. Hence, in the current scenario it has become imperative for companies to understand the human rights issues that surrounds their operations and to develop effective mechanisms to combat the same.

One of the primary concerns which a company has to address within its operation space is to recognize human rights issues both at an external and at an internal level and how these issues can be embedded within its operations. In today’s world a company is not expected to understand the human rights concerns of its surrounding environment but it needs to map the concern of the suppliers, manufacturers, labour, community and consumers placed within its supply chain framework. With the involvement of diverse internal and external stakeholders it is imperative for companies especially working in a globalised scenario to direct their attention towards enhancing their understanding on developing an ethical human rights value chain and how issues pertaining to human rights violations needs to be addressed with a sustainable outlook in mind.

One of the elemental initiation to bring the Human Rights Agenda at the forefront is to leverage cross learnings, sharing of perspectives, good practices, policies and dialogues among diverse stakeholders and especially among corporate leaders. The learnings from the companies who have managed to successfully create a positive impact in the realm of human rights are significant for others aiming to replicate and implement human rights issues within their own respective spheres. There is a need to bring together stakeholders, experts, researchers, senior business leaders, civil society organizations, UN agencies on one neutral platform, so that a universal dialogue on human rights issues within global and national contexts is established.

This is extremely essential and it is in this regard that the Strategic Alliance on Business and Human Rights was initiated by Jindal Stainless Limited through a curtain raiser meeting held on 27th March, 2015 Friday at JSL corporate office, New Delhi. The Alliance witnessed the participation of key leaders from corproates, civil society organizations and academic institution such as Jindal SAW, Coca Cola India, Lemon Tree Hotels, GMR, Wave Infratech, Hero MotoCorp, Paharpur Business Centre, GAIL, LexisNexis, Udyama and University of Toronto. The prime objective of the Alliance was to commence a meaningful dialogue among participating organization in respect of how they perceive human rights within their operation, what are the practices absorbed and most important what are the policy and programs mechanisms introduced to mitigate violations.

I would like to extend my gratitude to Big Rajiv Williams, CSR Head, Jindal Stainless Limited for supporting the Strategic Alliance meeting, Mr. Luke Wilde, Director twentyfifty UK and Mr. Rishi Sher Singh, Director India, twentyfifty UK for providing their intellectual expertise on the subject. Also a special thanks to all the participants for supporting the initiative and for providing their valuable viewpoints and sharing their experiences on the issue. I look forward for companies and organizations to further enhance the alliance through convening regular meetings and to take lead towards knowledge dissemination in the realm of human rights.

4

Welcome AddressBrig Rajiv WilliamsHead CSRJindal Stainless Limited

6

Brig. Rajiv Williams initiated his deliberation by introducing the participants to the overall objectives of the meeting. The curtain raiser meeting was strategically structured to intelligibly generate awareness on human rights concatenated with business operations and the principles guiding business actions. The perspectives of the participants will enable the collation and sharing of wide business cases by the corporates with respect to human rights.

The agenda of the meeting was outlined with an aim to enlighten the participants with key learnings, knowledge sharing and open discussions on the recent issues pertaining to risk, impact assessment and due diligence processes. The agenda of human rights around the globe has emerged as a very crucial issue bearing social, cultural, political and economical connotations. Moreover, with the final framing of the Post 2015 Sustainability Agenda and the simultaneous implementation of the CSR Clause 135 of the New Companies Act, Human Rights issues have been placed with utmost significance.

Therefore, embedding human rights within a company’s policy is a challenge as with compliance, preventive measures for mitigating risks and remediation towards violations are required. In order to assist companies in building these measures the UN Guiding Principles of “Protect, Respect and Remedy Framework” were formulated. The UN Human Rights Council endorsed the "Guiding Principles on Business and Human Rights: Implementing the United Nations 'Protect, Respect and Remedy' Framework" on 16 June 2011, proposed by UN Special Representative of the Secretary-General.

These Guiding Principles apply to all States and to all business enterprises, regardless of their size, sector, location, ownership and structure. In the Indian context, the emergence of Schedule VII of The New Companies Act, 2013 has incorporated areas that are relevant to any human rights issue. With the legitimization of issues concerning labour, land, women empowerment, child rights, disability, supply chain, indigenous rights, sanitation there has been a direct call for action from diverse stakeholders in the society.

He further stated that land is a very potential tool of communication between companies and community. An R&R policy of a company is required to seek a dialogue between the diverse stakeholders who will bear an affect or in turn will be affected by its implementation and thus effective dialogue is essential to strive a balanced relationship. Therefore, a two way channel of communication with respect to address the human rights issues should be generated wherein companies would be required to know – what, why and how to address.

While concluding his remarks, he stated that the alliance will mark the initiation of a peer learning Human Rights Group which will convene to discuss and develop internal as well external system of commitments, policies, operations and due diligence framework. The purpose is two folds firstly, to ensure cross learning on the discourse of human rights and secondly, to encourage companies to collaborate on possible areas under the human rights framework.

7

Outcomes of India CEO Forum onBusiness & Human Rights 2012-2014

SESSION ONE

Human & Workplace Director, Global Workplace RightsCoca Cola India

Shubha Sekhar

8

Ms Shuba Sekhar set the tone for the strategic meeting where she convened the session by aligning the traces of the current meeting with the significant India CEO Forum on Business & Human Rights 2012 – 2014. The India CEO Forum on Business and Human Rights was an initiative to advance the human rights agenda within business operations by engaging key leaders from leading companies. The purpose was to create a core committee of CEOs committed to advance human rights principles within business contexts in India and thereby to strengthen the relationship between corporations and the most vulnerable and marginalized communities.

The committed leaders of the respective companies were brought together to create, work and establish their own set of good practices in India and these human rights norms would be in sync with the international human rights practices. The overall objective of the consortium was to encourage leaders on the fact that by establishing respective human rights policies, practices within their company’s framework they will guide others to collaborate and take the agenda forward.

While elaborating on the objectives of the forum, she stated that safe environment for businesses with regards to human rights will be achieved only through open discussions about challenges faced and experiences gained. She further asserted that leadership capabilities and support of peer learning effectively enables mapping the complexities of human rights and business. The CEO Forum on Business and Human Rights, therefore was convened to encourage the consortium of companies to emerge with key solutions and effectively proceeded to address these challenges being faced at the highest levels by the companies.

The two year flagship programme of India CEO Forum on Business and Human Rights was further advanced in 2014 through a follow up dialogue focused on Supply Chain and MSME Sector which was conducted in partnership with British High Commission. The continuity of the series is now being further enhanced in 2015 in form of “The Strategic Alliance on Business and Human Rights”. The alliance has been very rightly convened as there is a requisite to push forward the human rights agenda in lieu with the recent legislation of Section 135 CSR clause, but more so to guide companies to move beyond the purview of legal compliance. The existence of already established international frameworks on human rights in form of UN Guiding Principles on Human Rights act as effective and guiding tools for businesses to develop standards and to ensure that they are complicit towards the protection of human rights.

While concluding her significant deliberation on the overall overview on the business and human rights issues, Ms. Sekhar also explained some of the key initiatives undertaken by Coca Cola which showcases the company’s commitment to the human rights principles. The program titled “Aim for Progress” since 2010, is one of the flagship programs involving 30 leading FMCG companies and 7 sugar manufacturing companies and has been working towards ensuring responsible supply chain both at the sourcing and manufacturing level. Also, in 2014 eight leading FMCG companies came together on one common platform to discuss the vision of compliance, supply chain audits, that indicate issues concerning discrimination and forced labour. In her concluding remarks, she asserted that it is only when companies will internalize human rights principles within their internal operations and procedures only then they will be able to achieve zero percent tolerance towards any form of violations.

9

Business of Human Rightsin the Disability Sector

SESSION TWO

Sr. General Manager Group Corporate Communications, Jindal SAW LtdDirector, Svayam-An Initiative of SJ Charitable Trust

Ms Abha Negi

10

In her session, Ms Abha Negi drew the attention of the participants to the issue of disability as one of the most significant yet overlook areas within the human rights debate. She stated that over 600 million people, have one or another form of disability and two thirds of them live in developing countries. There exists a wide gap between accessibility, social inclusion and comprehensive research analysis in the disability sector as the number of people affected with disability in real terms is much more huge than being presented in any published reports and statistics by revelant authorities.

To address these issues Jindal Saw through its CSR initiative Svayam conducted diverse audits across pan India with respect to public spaces, infrastructures, services such as transport, toilets, public sites such as monuments, banks and educational institutes. The outcome of their initial audit made the organziation observe that a wide gap exists in providing ease of access on public spaces and utilities to the differently abled and ageing population.

Hence, to address the equality of access and opportunity as one of the prime human rights concerns, Svayam initiated innovative programmes, to facilitate accessibility in infrastructure and in mobility by creating barrier free structures, improvising existing ramps, cleaned and made key public spaces accessible such as office, tourist destinations, hospitality industry, world heritage sites and so on. The overall objective of the program is to bring empowerment to people with disabilities while working with diverse stakeholders to achieve dignity for people with reduced mobility.

She stated that since the number of differently abled is extremely high and will continue to increase in the developing countries, therefore companies as key stakeholders need to integrate the differently abled within the operational spheres, so as to provide them with economic independence and alleviate them from poverty. Through, the ARUNIM initiative, the differently abled are provided with educational support but one of the key highlights of the initiative is that they are also provided with key entrepreneurial and skill enhancement training so as to integrate them into the mainstream workforce at the macro level, in the overall economic growth.

The company is involved in developing and building competencies as per the industrial and entrepreneurial skills requirement. ARUNIM in partnership with 270 NGOs across the country is reaching out to the section of differently abled and through skill developing partners is transiting the specially abled from rehab stage to enterprise stage. By linking them to the job market through a job portal ARUNIM has been successful in mapping the untapped human resource. She concluded by stating that disability is a human right issue that has often ignored at management level within companies despite having work policies for them.

Therefore, it is imperative that the issue becomes one of the key areas where from management, managerial personnel and lastly workforce are sensitized so as to ensure user - friendly infrastructure, economic support and a positive environment. Moreover, advocacy formulation at national and international forums, knowledge partnerships, policies, standards and guidelines with multi-lateral agencies should bring the issues of both the ageing and differenlty abled populations of the country at the forefront and develop innovative sustainable mechanisms for their overall integration with the mainstream population.

11

An International Perspective ofHuman Rights in the Business

SESSION THREE

Chief Executivetwentyfifty UK

Luke WildeDirectortwentyfifty UK

Rishi Sher Singh

12

Presenting the international perceptive on human rights Mr. Luke Wilde, stated that there exists instances of human rights abuse by companies occur across all sectors. It becomes important to assess adverse human rights impacts through company’s own activities but also enables wide comprehension of business relationships of the company. He showcased the contemporary global case studies on human rights violations with the recent incidents of Rana Plaza, land corruption by Khon Kaen Sugar etc and stated that Human Rights is a global issue which, when violated creates an impact in the entire chain of stakeholders.

Therefore, it becomes difficult to map whose responsibility is human rights, whether it is of the state, government, company or the multi-national sourcing system. He asserted that the role of companies was imperative because they were the sources of these violations. Therefore companies as state actor needs to realize, that as responsible citizens, they are required not only to respect but also act with due diligence to mitigate human rights violations. Companies in order to effectively mitigate and manage human rights issues should move from “naming to shaming” towards “knowing and sharing” where an entire system of due diligence beginning from commitment, ongoing assessments, integration of assessment results within management structures, ongoing monitoring & reporting and grievance redressal procedures needs to be established and internalized within operations.

He concluded by stating that companies today should perceive human rights from the stakeholders perspective to right holders perspective. Any form of non compliance of human rights adversely impacts the overall image, reputation, management, operational, legal, and compensation mismanagement.

Forwarding Luke’s viewpoint, in the Indian context, Mr Rishi Sher Singh, presented his own experience regarding the Human Rights Impact Assessment (HRIA) in form of a case study of a pharmaceutical MNC company which through its manufacturing unit in Goa, Bangalore and Mumbai works in a complex value chain. In December 2014, the HRIA of the company was conducted in order to identify the gap between policy and the implementation, build internal capacity of stakeholders and highlight the sustainability initiatives.

An integrated approach of HRIA was adopted including human rights “cause contribute and link approach”, stakeholder consultation and a network of collaborative communication. Through the findings of the HRIA, Mr. Singh concluded that companies need to resolve their apprehensions for stakeholder engagement and engage itself with diverse forms of trainings at all levels.

It is expected that stakeholder engagements will generate an environment of pro active external communication and will incorporate responsible marketing to ensure effective human rights management. He asserted that companies need to assess and manage both internal and external human rights issues and violations through effective stakeholder engagements, dialogues, training and most importantly knowledge sharing as these tools of communication can assist companies to map business influence beyond their sphere of influence in respect of human rights and how issues pertaining to human rights can be mitigated.

Towards the end, he drew out the following observations based on the finding of the assessments. He stated that companies should move beyond reputation protection; by a thorough HR due diligence process and shift from auditing to capacity building.

13

SESSION FOUR

Business & HR PerspectiveCurrent Scenario on Land Acquisition-

Manager Corporate SustainabilityGlobalHunt Foundation

Radhika Ralhan

14

With a cross comparative analysis on the diverse cases of human rights violations in the global and within the Indian contexts, Ms Radhika Ralhan commenced her session and accentuated the fact that we all are living at present in risk societies. Human Rights issues have become far more complex with the current global, political and economic developments, some of the issues are universal and some issues are particular placed in specific contexts. While it is the duty of the state to respect, protect and fulfill the rights of its citizens through proper legislation and upholding the rule of law. As business bear a sense of responsibility to act with due diligence without infringing the rights of others. She emphasized on the fact that issues pertaining to governmentality where business community tends to care about human rights compliances because the state in some cases is unable and in some, unwilling to protect the human rights of the people. Showing concern towards human rights enables companies to anticipate and mitigate the human rights risks and build its reputation among the stake holders and society at large which in turn leads to favorable results for the company in the long run. Therefore, this aspect of social sustainability dimensions needs to be aligned with the overall business operations of a particular company.

The nexus between business, state and society is vividly reflected when we observe issues of land acquisition which is indeed a people centric issue under the wider realm of human rights. As a sociologist with an objective understanding, she addressed the participants that business as a legitimate non state actor encompasses positive and negative connotations with respect to land rights, residing indigenous population and their resettlement and rehabilitation. Land is a complex subject and involves the rights and claims of diverse state and non state actors, moreover, there has been a genuine mistrust between the business and society which has percolated into the land acquisition debate too. Before commencing on the issue of land acquisition, it is significant to analyze the practices of acquiring land by businesses worldwide, she illustrated key case studies from diverse countries bearing similar regional contextual nature as found in the peripheries of India. Through the case studies the diverse practices and methods adopted by businesses to acquire land were observed and where community emerged as one of the prime stakeholder with a right to voice in the entire process.

While placing the example of one of the most contested land acquisition cases in India, she stated that in India the focus should be on the processes conducted pre and post land acquisition. It is often observed that the misuse of legal clauses, regulatory mechanisms, timely and adequate compensation has paved way to the rise in conflict in the aspiration of the business and community. Thus, enhancing the already established mistrust between business and society, also the dereliction of one business in a particular area also affects the other businesses sharing a positive intent. She stressed on the importance of concrete research and analysis on the existing resettlement and rehabilitation policies and implementation in the already acquired areas.

She showcased the diverse interventions of the respective companies on the above areas and restated the fact that comapanies need to view society as an equal stakeholder in the development process. They need to come up with cross cutting innovative technologies, sustainable solutions and create an environment of trust where through a democrative and effective channel of communication with clear intent and commitment of social good will address and map the aspirations of all stakeholders.

15

Head, CSR Wave Infratech

Manjir Ghosh

PerspectivesParticipants

Vice President Sustainability InitiativesThe Lemon Tree Hotel

Aradhana Lal

COOPaharpur Business Centre

Shruti Guleri

Being in the hospitalit� and ser�ice sector, the company has adopted an inclusive approach by providing job oppor��nities to the differently abled under the prog�am “Oppor��nit� Disable Indians” (ODI). One of the major challenge faced by us was to realig� and reframe the company’s policies and as per the limitations of the people with disabilities.

Human Rights in the Indian contex� requires more collaborations. More and more understanding as to what is human rights in relation to business and how companies can effectively utilize human rights as a potential tool for both social and economic g�owth needs to be impar�ed. Cross sharing among companies can ensure inclusion of policies and mechanisms to manage human rights conflicts within operations.

Having operation in sugar, paper manufact�ring, breweries and distilling, real estate and liquor dist�ibution the company has recog�ized that human rights issues associated with each sector are complex and diversified. Hence a common approach encompassing all the issues have been for�ulated and implemented within the work sphere.

Head CSR FICCI

Dr. K K Upadhyay

Human right issue among companies is diverse and this cannot be managed in isolation. Hence a dialog�e engagement bet�een companies inter�al as well ex�er�al stakeholders is initial. In this respect companies needs to build effective tools of communication, established and created by par�icipation of all stakeholders related and affected by the issue. The tool will assist in channelizing the issues in a systematic order.

16

Head CSR for Delhi International Airport Pvt. LtdGMR

T.S. Unnikrishnan

Team LeaderUdyama

Pradip Mohopatra

Sr. Manager HRMHero Motocorp

Dr. Sujita Khemka

Human Rights violations during disasters is one of the key areas that still requires attention. Resettlement of the displaced in ter�s of livelihood, skill development, sanitation, water and biodiversit� management at coastal areas is some of the key areas where lot of effor�s needs be directed.

For the organization communit� initiatives are of prime impor�ance. Aster land acquisition, the major concer� that the company tackles is skill development and livelihood oppor��nities for the displaced. The company’s CSR policy incor�orates human rights as one of the cr�cial areas of inter�entions.

Human rights issues at production site and supply chain are ver� cr�cial to the company. Through several g�een and social initiatives the organization has been able to keep a cont�ol of human rights issues both at production and supply chain level.

Ex. Executive DirectorGAIL

L.R. Gupta

The questions of what,why and how are imperative for any human right issue. The global as well as national exemplar� cases can prove an oppor��nit� for companies to effectively manage human rights violations. Before initiating any HR related policy or prog�am a company needs to first develop substantial knowledge on the subject through inter�al as well ex�er�al peer lear�ings.

17

While concluding the meeting Brig. Rajiv Williams, Head CSR, Jindal Stainless Limited stated that companies as responsible citizens of the state and society needs to utilize the profit generated for the benefits of the community. By adopting sustainable approach a company can effectively institutionalize human rights within its external and internal operations. Through policy commitment, due diligence procedures, effective redressal mechanism public dissemination and reporting of the due diligence outcomes are few but crucial steps which a company needs to adopt for aligning human rights with business.

Business and Human Rights at present in the Indian context requires more of dialogue initiation and knowledge sharing. As the understanding of the issue is surrounded by several overlaying issues terms and concepts. Therefore, Business and Human Rights, at present, should focus on case practices and emphasis on the overall transition of a company through applying effective HR policy. By sharing of experiences and peer learnings a company build a strong roadmap for effective human rights system.

Conclusion

18

LIST OF PARTICIPANTSAnnexure- I

S. No. Concerned Person

Abha Negi1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Aradhana Lal

Brig. Rajiv Williams

Dr. Sujita Khemka

Manish Kumar

L.R. Gupta

Mehak Kaushik

Manjir Ghosh

* The list is presented in alphabetically order.

Research Associate

Head-CSR

V.P - Sustainability

Head CSR

Sr Manager HRM

Commissioning Editor (Legal and Regulatory)

Ex. Executive Director

Jindal Stainless Limited

Hero MotoCorp

Dragana Bodružić PhD Candidate University of Toronto

Luke Wilde Chief Executive twentyfifty UK

GAIL

Dr. K K Upadhyay Head CSR FICCI

GlobalHunt Foundation

Pradeep Mohopatra Team Leader Udyama

Radhika Ralhan Manager Corporate Sustainability GlobalHunt Foundation

Rishi Sher Singh Director twentyfifty UK

Shruti Guleri COO  Paharpur Business Centre

Subhash Chandra VashishthPrincipal Consultant- Sustainability & Liaison Jindal SAW

T.S. Unnikrishnan Head CSR for Delhi International Airport Pvt. Ltd GMR

Veena Sharma Corporate Social Responsibility Jindal Stainless Limited

Shubha Sekhar Human & Workplace Rights Director Global Workplace Rights Coca-Cola Company

Wave Infratech

LexisNexis India

The Lemon Tree Hotel

Sr. General Manager Group Corporate Communications Jindal SAW

Designation Company

19

On June17th 2011, the United Nations took an unprecedented step to endorse the Guiding Principles for Business and Human Rights developed by the former UN Special Representative on Business and Human Rights (Professor John Ruggie). The Indian Government has been a strong supporter of the Business and Human Rights agenda–hosting Professor Ruggie’s Asia Consultation in February 2009 and recently sponsoring a UN Resolution progress the international agenda. A new UN Working Group has now been formed to focus on implementation of the Guiding Principles.Internationally, the Guiding Principles have already been incorporated into important responsible business efforts such as the OECD Guidelines for Multinational Enterprises, the European Commission CSR strategy and IS0 26000 (the most universally approved CSR standard alongside the Global Compact). Just before the UN Guiding Principles were endorsed, 29 institutional investors with US 2.7 trillion under management supported the principles and are now developing an Investors’ guide for Business and Human Rights.From the Indian perspective, we are also seeing serious developments. The Ministry of Corporate Affairs has recently launched National Voluntary Guidelines for Responsible Business, in which Principle 5(of 9) guides businesses to “respect and promote human rights” and makes explicit reference to the work of Prof. Ruggie and the UN “Protect, Respect, Remedy” Framework.

Annexure- II

CEO BRIEFING ON BUSINESS AND HUMAN RIGHTSFIVE KEY MESSAGES

ONE Expectations from policy makers, civil society and investors regarding corporate

impact on human rights are rapidly converging

Many major corporate now see the clear, long term business case for respecting human rights and knowing and showing how they do so. This is often an accumulation of a range of factors including:

Pressure from Government-National governments can play a key role in encouraging businesses to act on human rights. An increasing number of countries around the world have launched national initiatives on corporate responsibility to encourage excellence among their own industries and through this encourage responsible outward and inward investment. Companies not respecting human rights can have a negative effect upon both home and host country reputation and can undermine their ability to trade freely.

Operational Risk–Social License to Operate-It is hard for any business to operate against the will of a local population. While the permission of a national government is needed to trade, local authority permission or community approval is also necessary even if not a legal requirement. A social license to operate is not a written document, but without it a company may face anything from demonstrations outside its gates to a material loss in trade.

Legal and Financial Risk- Although human rights law and its relationship to business is still evolving, it is increasingly used in both criminal cases (against companies as well as individual employees) and civil cases (such as compensation claims from workers or customers).The risk of being found guilty of not respecting human rights or being complicit in an abuse perpetrated by others is now a reality in many parts of the world.

TWO Business and human rights is a core business issue with costs for getting it

wrong, and benefits for getting it right

20

Human rights are the basic rights of each human being, independent of race, sex, religion, political opinion, social status, or any other characteristics. Through internal human rights conventions, governments commit to respect, protect, promote and fulfil the human rights of their citizens. The Universal Declaration of Human Rights is the foundational document for understanding human rights and is provided as an annex to this document. Businesses should also be aware of the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights the core conventions of the Internati onal Labour Organization (ILO). In addition, a specific body of law applies in situations of armed conflicts international humanitarian law.

Examples of internationally agreed human rights that companies can impact can be understood in two categories as follows:

Labour Rights such as Freedom of association, Right to equal pay for equal work, Right to organize and participate in collective bargaining, Right to non-discrimination, Right to just and favorable remuneration, Abolition of slavery and forced labour, Right to a safe work environment, Right to rest and leisure, Right to work and Right to family life.

Non-labour rights such as Right to life, liberty and security of the person, Right of peaceful assembly; Right to an adequate standard of living (including food, clothing, and housing); Right to physical and mental health; Access to medical services; Equal recognition and protection under the law; Freedomof thought, conscience and religion; Right to education; Right to hold opinions, freedom of informaon and expression; Right to participate in cultural life; Freedom of movement and Right to privacy.

Governments have a duty to Respect, Protect, Promote and Fulfil Human Rights. These terms are used in connection with state obligations in accordance with the human rights instruments they have committed to. As an overview, promote is about ensuring awareness of the right; respect means to not violate a right; protect means to ensure that others (e.g. companies, individuals, etc.)do not violate a right; and fulfil means to actually implement the right, for example by providing healthcare facilities to fulfil the right to health. From this, it is clear that States have a Duty to Protect against human rights violations by business and may engage in promotional awareness raising activities also.

THRE

E

Human rights can be understood as an attempt by citizens and leaders around the world to codify our notions of dignity, respect and equality

FOUR Businesses are not solely responsible for the human rights impacts of

Economic activity–government and civil society are key actors too

Pressure from Investor- Many institutional investors now actively screen for allegations of human rights abuses by a company they are considering for investment. This is also the case for the major public lending institutions, stock exchanges and major private banks.

Meeting Expectations of Buyers or Customers-Few companies can prosper whilst knowingly abusing human rights. Customers expect companies to respect human rights and avoid involvement in any such abuses. Increasingly, such stakeholders expect not just minimum compliance but evidence of positive behaviour.

Staff Retention and Motivation- The best companies attract and keep the best employees, and good employees contribute to success. A relationship built on respect for human dignity is likely to be more sustainable and productive for both employer and employee. Leadership-Ethical leadership is a key element of sustainable success in business. A corporate governance frame work which takes account of human rights sets the tone for business behaviour, contributes to the success of the company and helps meet stakeholder expectations.

21

There is now a recognized corporate responsibility to respect human rights which applies to business actors. Governments unanimously affirmed the existence of this responsibility at the United Nations in 2008 and the UN Human Rights Council unanimously endorsed the UN SRSG Professor John Ruggie’s Guiding Principles in 2011. The responsibility to respect essentially means not to infringe upon the rights of others and to address adverse impacts when they occur. Companies can take steps to meet their responsibility to respect human rights by carrying out human rights due diligence. Additionally, companies should have in place a statement or policy articulating the company’s commitment to respect human rights.

No company sets out to abuse human rights. No CEO, director, manager, employee, supplier, business partner wants to have a negative effect on the lives of people their enterprise depends on. And most companies are probably correct to presume that they do respect human rights. The paradigm shift underlying efforts by world class business and embedded in the UN Guiding Principles is to the importance of knowing and showing (not just claiming and assuming) that the company respects human rights in its own operations and value-chain.

Therefore, businesses should approach the human rights impacts of their operations, products and services in the same way they manage other areas of the business–systemically, on an on-going basis, engaging the correct internal and external expertise, tracking effectiveness and accounting for their actions to relevant parties. The United Nations Guiding Principles endorse this policy, process and procedural approach by business to respecting human rights and articulate that.

In order to meet their responsibility to respect human rights, business enterprises should have in place policies and processes appropriate to their size and circumstances, including:

(a) A policy commitment to meet their responsibility to respect human rights;(b) A human rights due diligence process to identify, prevent, mitigate and account for how they address their impacts on human rights;(c) Processes to enable the remediation of any adverse human rights impacts they cause or to which they contribute.

FIVE Businesses are simply expected to "know and show" through due diligence how

they manage their human rights impacts

22

Brig. Rajiv Williams

EXPERT INITIATORS

PROGRAM CO-ORDINATION

Head - CSRJindal Stainless Limited

Luke WildeChief Executivetwenty�fty UK

Rishi Sher SinghDirectortwenty�fty UK

Veena SharmaCorporate Social ResponsibilityJindal Stainless Limited

Mehak KaushikResearch AssociateGlobalHunt Foundation

PUBLICATION SUPPORT

PHOTO CREDIT

Radhika RalhanManager Corporate SustainabilityGlobalHunt Foundation

Mehak KaushikResearch AssociateGlobalHunt Foundation

Edited by

Compiled by

Firoz AlamGraphics DesignerGlobalHunt Foundation

GlobalHunt Foundation 2015

Designed by

Published by : GlobalHunt Foundation O�ceContact : [email protected]

twentyfifty is a management consultancy based in the UK, Germany and Switzerland that works with leading multinational companies to implement their commitments to social sustainability and human rights in the core business and along the value chain. For more than ten years they have supported clients across a wide spread of industries including oil, gas and mining, IT and telecommunications, food and drink, tourism, pharmaceuticals and the financial sector. twentyfifty combines in-depth human rights knowledge, organizational development and change facilitation expertise with experience in engaging stakeholders in finding solutions to business problems.

GlobalHunt Foundation (GHF) is primarily a CSR research and consulting organization, it has been established as a section 25 not for profit company registered under the Indian Companies Act, 1956. As a signatory to the United Nations Global Compact (UNGC), GHF serves as a knowledge catalyst and engages its vast corporate clientele with diverse multi-stakeholders to enhance their Corporate Sustainable Responsibility (CSR), GHF provides key services on research, reporting programme designing, advisory, training and due diligence for its pan India clients comprising of leading corporate, civil society organizations, government institutions and academia.

About twentyfifty

About GlobalHunt Foundation (GHF)

Website : www.twentyfifty.co.uk

Website : www.globalhuntfoundation.org

Supported by :

Jindal Stainless Limited