Corporate human rights reporting- why and what's needed?

Corporate human rights reporting- why and what’s needed?

The connection between business and human rights

• Traditionally protection of human rights is government’s responsibility

• John Ruggie appointed in 2008 as UN Special Representative of the Secretary General on Business and Human Rights

• UN Guiding Principles on Business and Human Rights endorsed in 2011

What are the UN Guiding principles about?

• Companies have a responsibility to avoid infringing human rights of individuals and groups

• Not a passive responsibility• Requires positive steps• Sets out ‘ protect,respect, remedy’ framework• Seen as best practice standard for ALL

businesses

Why bother?

• Landscape changing for companies. No longer turn profit and move on

• Greater transparency and accountability• Regulatory requirements• Increased reporting requirements• Improved performance

What does UK Law say?

• New regulation being introduced on human rights reporting in UK in October 2013

• New section 414C of the Companies Act 2006(Strategic Report and Directors’ Report) Regulations 2013

• Explicit requirement that human rights issues be considered and reported on by listed companies

• Companies to use Key performance indicators to report the information

So what, I don’t operate in the UK?

• Proposed EU Directive on non-financial reporting to be introduced. Includes human rights

• Companies to disclose their policies • Companies can refer to the UN Guiding

principles in the development and implementation of their policies

Does the regulation apply to small companies?

• No. Small companies exemption applies• BUT small companies should adhere to the UN

Guiding principles that apply to ALL companies

Which rights should companies understand?

• Companies can potentially impact on all internationally human rights

• They must consider their responsibility to respect all such rights

• For example the Universal Declaration of Human Rights (UDHR)

How should an organisation determine the scope of human rights reporting?

• They need to decide on the range of topics covered in a report

• The topics reported should be significant to reflect significant economic, environmental and social impacts

• It should look at who is affected and in what way by the companies activities and operations

How organization's should address impacts

• Companies affect human rights directly or indirectly.

• They need to ensure that reports address relationships and influence over other parties (organisations, individuals, government or private bodies)

• Reports that ignore these factors will be incomplete

Role of litigation

• Growing number of lawsuits filed have alleged companies complicity in human rights abuses

• Complicity has legal and non-legal dimensions• Key is knowingly providing practical assistance

or encouragement that has a substantial effect on the commission of a crime

Guidance on reporting

1. Determine the scope2. Choose which stakeholders to include in

reporting3. Prioritize rights for inclusion in reporting 4. Address the issue of complicity5. Report on human rights due diligence6. Ensure performance is tracked

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