UN examines human rights responsibilities of transnational corporations

A UN body mandated to take stock of current
initiatives in the area of business and human rights has consulted
with stakeholders on a draft to be concluded by March 2005.

The UN’s Office of the High Commissioner for Human Rights has
been mandated to prepare a report focusing on the responsibilities
of transnational corporations and related business enterprises with
regard to human rights. In particular, the report will list
existing initiatives and standards, the scope and legal status of
those initiatives and other issues. 

Participants at a consultation held on 22 October recommended
five categories of norms with relevance to business and human
rights. The first two categories proposed would cover legally-based
instruments and contractually-based initiatives (which are being
included, for instance, in financing contracts). Voluntary
initiatives could form the next group, including voluntary
procedures and certification schemes. The next category could
comprise mainstream financial transaction-related initiatives, such
as the FTS4Good Index, which influence markets on social issues.
Tools and other initiatives, notably methodologies for undertaking
human rights impact assessments, would form the last
group. 

In terms of human rights initiatives and standards, four
aspects have been highlighted: territorial coverage, reach, company
coverage (eg. depending on the size) and value added (to existing
obligations). 

Verification remains an important outstanding issue for many
stakeholders wishing to improve the accountability of businesses.
Others pointed out that ‘complicity’ needs to be defined. For
instance, if local laws contained loopholes in the protection of
human rights, would a company be complicit if it exploited those
gaps? Another issue raised was the appropriateness of international
measures in cases where a business evades the jurisdiction of a
State. 

An NGO participant suggested a layered approach based on what
business “must do”, “should do” and “could do” to protect and
promote human rights. 

The UN has its own initiative targeting business, the Global
Compact. Out of its ten ‘principles’ two relate to human rights.
One states that companies should support and respect
internationally proclaimed human rights, and the other calls on
businesses to make sure that they are not complicit in human rights
abuses. 

Another UN body, the Sub-Commission for the Promotion and
Protection of Human Rights, adopted a series of recommendations on
business and human rights in August 2003, entitled “Draft Norms on
the Responsibilities of Transnational Corporations and Other
Business Enterprises with Regard to Human Rights”. However, the
UN’s Commission on Human Rights, the main UN authority in the human
rights area, dismissed the Draft Norms saying that it “has not
been requested by the Commission and, as a draft proposal, has no
legal standing.” NGO representatives, however,
have emphasised that the draft should be taken into
account and that it could be seen as a good basis for a common
framework.

The outcome of the consultation will be factored into the final
report due for the next meeting of the Commission on Human Rights
in March 2005. 

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