Business & Human Rights Forum

Small Businesses and Human Rights

A presentation by Grace Peacock

Contribution of Small Businesses to Northern Ireland (2015) FSB/Ulster Business School

Small BusinessesSmall Businesses make up largest contribution of GVA, Turnover and Employment in Northern Ireland.

•Over 118,000 SMEs in Northern Ireland, making up 99% of private sector.•Over 19,500 (89%) of 22,000 jobs projected to be created between 2014 and 2018, will be in SMEs.•SMEs employ more people than public sector and larger companies combined.

Our Corporate Objectives1. To be recognised as the most influential

and trusted business organisation2. To value diversity and inclusion in

everything we do3. To be fully representative of the whole

UK smaller business community4. To provide the most valued package of

business benefits and services5. To provide the most effective network

for smaller businesses across the UK

Small Businesses and Human RightsIn order to identify, prevent, mitigate and account

for how they address their adverse human rights impacts, business enterprises should carry out human rights

due diligence. The process should include assessing

actual and potential human rights impacts, integrating and

acting upon the findings, tracking responses, and communicating how impacts are addressed.” 

Principle 17, UN Guiding Principles on Business and Human Rights

Regulations

Regulations

which regulations

apply?

Where do I get advice?

How do I comply?

RegulationFSB recommendations:

•Publicity of new regulations and standards in plain English, who it applies to? what needs to be done? and when?•Regular reviews of regulatory system – is any outdated, can there be a streamlining?•Single Business Regulation Hub for all regulators.•Business impact assessment conducted by all regulators on each regulation that is introduced.

Small Businesses and Human Rights‘Doing’ Human Rights would be the primary

objective of most SMEs.

However, communication is necessary.

Communicating human rights work improves public

relations, inspires other businesses and also provides

an opportunity for critical feedback

Small Businesses and Human Rights1. Often more responsible than larger companies but due to

budget, staffing and time constraints have not been able to evidence their Human Rights contributions in the same way.

2. Often, what larger companies recognise and record as Human Rights measures, small businesses see as being simply good practice.

3. Lack of legal expertise on staff and reluctance to increase paperwork.

4. Recognise that Human Rights compliance is vital for reputation amongst customers.

Over two thirds of small businesses in Northern Ireland pay the living wage or above.

Small businesses happy to comply and most tend to before compulsory. Argument is that in such cases,

SMEs should be given freedom to implement independently and without additional paperwork.

Recent figures show increase in business confidence aligned with increased staff pay in small businesses in Northern Ireland demonstrating how staff are valued.

Employment – Victims of Trafficking/ExploitationWorking with Home Office, PSNI, Border Agency and DoJ to educate small business owners on

differences between migrant workers and trafficked workers, for instance, is the employee’s

Passport or documents held by someone else?

Fits into overall work on organised crime, including membership of Organised Crime Task

Force (OCTF)

Procurement

Businesses competing for public contracts may be required to demonstrate their compliance

with specific legal duties in relation to

equality and human rights

Need to ensure measures are presented in a way easily

understood, easy to communicate and minimum paperwork.

ProcurementSMEs disadvantaged by barriers within procurement process leaving them at a disadvantage in competing for contracts

Some of issues highlighted:

High costs of tendering processLate and disguised payment

Unfair qualifying criteriaRestrictive experience requirements

Third party accreditation requirements

Climate Change“...Climate change has become a serious threat to even the most basic fundamental human rights…It has even become a threat to the very existence of

some peoples…” Ayeen Karunungan, human rights advocate, openDemocracy (UK)

Impacts of Climate Change on Business and Society:

•Damage facilities and properties, including businesses and homes ( i.e. Recent flooding)•Disrupt supply and distribution chains – local farmers who supply to supermarket chains•Threaten power supplies•Jeopardise global food and water resources•Economic devastation due to uncertainty to the marketplace – increasing cost of doing business which is passed on to the customer.

Climate Change

Climate Justice

FSB research revealed that 90% of small businesses, throughout the UK, want to be more energy efficient.

FSB sits on ARENA Network (BITCNI) which works with organisations to help them understand,

measure and reduce their impacts – benefiting their business and our environment

Business & Human Rights Forum

•Represent the Voice of Small Business•Encourage members to communicate their Human Rights activity/case studies/participation•Signpost members to Human Rights Guides and information •Share good practice •Enable collaborative or innovative work•Feed in research on SMEs

FOR MORE INFORMATION

http://www.fsb.org.uk

http://www.fsb.org.uk/ni

grace.peacock@fsb.org.uk