Human rights: The foundation of sustainable business
In December 2018, the world celebrated the 70th anniversary of the Universal Declaration of Human Rights (UDHR). Two of the Ten Principles of the UN Global Compact are derived directly from the Universal Declaration. The United Nations Global Compact is advocating for businesses to stand up for human rights, promoting uptake of the UN Guiding Principles on Business and Human Rights.
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OVERVIEW
The Universal Declaration of Human Rights (UDHR) has particular relevance to the business community. Two of the Ten Principles of the UN Global Compact are derived directly from the Universal Declaration, calling on business to support and respect the protection of internationally proclaimed human rights (Principle 1) and make sure that they are not complicit in human rights abuses (Principle 2).
This report focuses on the United Nations Global Compact (UN Global Compact) challenging the business community to help create a sustainable world. The UN Global Compact wants businesses to adopt a principles-based approach that places human rights at the centre of their strategy. In 2018, the UN Global Compact Local Networks have been advocating for business leaders to stand up for human rights, promoting uptake of the UN Guiding Principles on Business and Human Rights. This report highlights how the UN Global Compact is working with business participants and other partners to advance human rights, this includes company examples, key resources and relevant activities on the global and local levels. The UN Global Compact aims to inspire others to move from commitment to action. This report gives examples of countries already making a difference through awareness-raising, capacity building, recognising leadership, policy dialogue, and multi-stakeholder partnerships. Part one of the report focuses on implementing the UN Guiding Principles by referring to companies that are already implementing this framework, companies include Total, Microsoft, Unilever, BASF SE, and Pepsico.
Total and Microsoft have been assessing actual and potential human rights impacts. Since 2011, Total has been working with the Danish Institute for Human Rights (DIHR) to assess how the group’s policies, procedures and practices impact human rights. Microsoft has developed human rights-based principles for the development and use of responsible AI, and it continues to conduct human rights due diligence on AI, including on the usages of facial recognition.
Unilever is communicating how human rights impacts are addressed. Aiming to enhance the company’s transparency and accountability, they produced a detailed, stand-alone report using the UN Guiding Principles Reporting Framework.
BASF SE is establishing grievance mechanisms. BASF has Community Advisory Panels (CAPs) at their larger production sites that provide communities with the opportunity for direct involvement, while allowing BASF to better address local expectations.
Pepsico are prioritising the most severe impacts. The approach focuses on identifying human rights at risk of the most severe negative impact due to the company’s activities and business relationships.
Part two focuses on empowering communities and workers – social dialogue, inclusion and job creation. Companies that are already making an impact include, Baker McKenzie, Kokusai Kogyo, Carrefour, Bank of Industry, BLC Bank, Ends International Company Limited, and Natura Cosmeticos.
Baker McKenzie supports its lesbian, gay, bisexual, transgender and intersex (LGBTI) employee community.
Kokusai Kogyo is providing job opportunities for persons with disabilities.
Carrefour and UNI Global Union announced a renewed global agreement to promote social dialogue, diversity and workers’ rights.
Bank of Industry seeks to not only tackle the problem of youth unemployment in Nigeria, but also empower young people.
BLC Bank is empowering women through financial inclusion, they committed to the Women’s Empowerment Principles (WEPs) in 2011, alongside a commitment to the Ten Principles of the UN Global Compact.
The UN Global Compact explains that it is time to translate the frameworks they have — including the Ten Principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights — into concrete action, and to consider human rights not as an afterthought or charitable contribution, but as the foundation for how successful businesses operate. There is not a stand-alone “human rights” goal among the 17 Sustainable Development Goals, because human rights are foundational to all of the Goals.
KEY INSIGHTS
- Over 9,500 businesses participate in the UN Global Compact, ranging from small and medium sized enterprises to some of the worlds biggest multinational corporations.
- In 2018, approximately 27% of companies reported performing risk assessments directly linked to human rights, with only 17% conducting impact assessment linked to human rights — both clear entry points for strengthening business engagement in this area.
- The Global Compact Network Spain is supporting small and medium-sized enterprises (SMEs) in their efforts to implement the UN Guiding Principles on Business and Human Rights.
- To support companies of all sizes in their endeavor to respect human rights, the Global Compact Network Germany is making companies fit for the national action plan on business and human rights. They offer a number of capacity building trainings.
- A “Standard of Ethics” checklist of the most common tools and most important values to be implemented including advanced guidance and case studies — was created by the Global Compact Network Poland in collaboration with over 100 companies and institutions as a starting point for ethical and responsible business.
- The National Steering Committee in Kenya is currently spearheading the development of the country’s National Action Plan on Business and Human Rights — the first of its kind in Africa. As a member of the Committee, Global Compact Network Kenya is playing a central role in setting policy direction for effective implementation of the UN Guiding Principles.
- Global Compact Network Turkey organised a “Human Rights in Business CEO Roundtable” in cooperation with the UN System in Turkey. The aim of the roundtable was to apply a principles-based approach to the Global Goals and to discuss the role of human rights in achieving the Goals in the context of the Turkish business environment.
- Global Compact Network Indonesia conducted ten quarterly multi-stakeholder dialogues to introduce and promote the implementation of the UN Guiding Principles in Indonesia. The project is organized in partnership with OXFAM and the International NGO Forum on Indonesian Development (INFID).
- Since 2015, the Global Compact Network Brazil has been supporting refugee women in Brazil to find employment through a joint initiative in partnership with the Office of the United Nations High Commissioner for Human Rights and UN Women.
- Looking ahead, special consideration needs to be given to the interlinkages between the challenges we face. Environmental and political crises are inherently social crises. There are many examples of where the private sector is already taking inspiring action on climate change, but achieving a just climate transition also requires respect for the rights of people. Actively integrating these types of interconnected considerations into corporate decision-making and strategy will be foundational to the long-term health of this planet, which is ultimately good for both society and business.
RELATED CHARTS
RELATED QUOTES
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“Every day that we don’t set the bar higher for human rights is a failure to millions of people. If we want scale for impact, especially in the area of human rights, we need to have the courage to have transparency and reporting.”
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“Sustainability is about impact on people and by people. Business respect for human rights can drive positive change not just within a company’s operations but in the wider community.”
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“I see human rights as a cross-cutting issue across all the Global Goals. We all — businesses, Governments, civil society and individuals — need to work to improve human rights, globally, in order to have a chance of achieving the Goals.”
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“Unless you address gender equality, you aren’t even going to begin to start changing any form of basic human rights in the countries we work in.”
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“Poverty is total. It destroys families and societies alike. It disturbs stability and peace. We want to disrupt the value chains that perpetuate poverty and inequality and instability. We want to stop them from moving from one generation to the next.”
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“Our company specific and industry-wide efforts are critical in advancing and inspiring action for the Global Goals through a principles based approach that acknowledges and safeguards the rights of the marginalized. Promoting gender equality will ultimately create an enabling environment for both business and society to thrive.”
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“Leaving no one behind means prioritizing human beings’ dignity and placing the progress of the most marginalized communities first. We need to recognize that the dignity of the individual is fundamental to identify, support and empower marginalized and vulnerable groups worldwide.”
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“At Chalhoub, we are placing the Sustainable Development Goals at the heart of our Group strategy. Human Rights are intrinsically linked to all the SDGs, they are fundamental to conduct a sustainable business and key to respect people and our society.”
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