Responsible Business and

Human Rights Risk in

Emerging Markets Vicky Bowman, Director, Myanmar Centre for Responsible Business

IDE-JETRO

Tokyo 29 July 2016

www.mcrb.org.mm

myanmar.responsible.business

Current core funders:

• UK Department

for International

Development

• DANIDA (Danish

development aid)

• Norway

• Switzerland

• Netherlands

• Ireland

www.myanmar-responsiblebusiness.org

15 Shan Yeiktha Street,

Sanchaung, Yangon

Tel/Fax: 01 510069

Founders:

Objective: To provide an effective and legitimate

platform for the creation of knowledge, capacity and

dialogue concerning responsible business in

Myanmar, based on local needs and international

standards, that results in more responsible business

practices.

http://www.myanmar-responsiblebusiness.org/pdf/trifold/jp.pdf

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myanmar.responsible.business

What are the human rights risks and challenges that businesses face, particularly in developing economies?

Land Supply chain issues such as weak labour law, poor safety

practices Poor protection of children’s rights Ethnic and Indigenous Peoples Discrimination Conflict, insecurity, role of military Lack of effective regulation and weak institutions Lack of transparency Restrictions on freedom of expression and association Lack of remedy for abuses Corruption Poverty, lack of health and education

Myanmar civil society

and NGOs

International NGOs

Media – local and

international

Shareholders

Governments –

Myanmar, and home

states, particularly US

Lack of jobs

Lack of access to electricity, health and education

Water shortages

Poor infrastructure and roads

Access to Insecure land tenure, loss of land and livelihood

Mistrust of government especially in ethnic states

Lack of information

Lack of access to remedy

Fear of military particularly in post-conflict areas

Intercommunal tension

Japan’s investment/trade in Myanmar

Telecoms

Thilawa (and Dawei?)

Special Economic Zone

Garment

manufacturer/supply chain

Light manufacturing including

beverages

Infrastructure eg power,

hydropower, railway (incl

JICA funded projects)

Financial services

Trading: electronic

equipment, healthcare etc

JV partner in offshore gas

10% MOECO, 90% Shell

3 offshore blocks in Myanmar

Human rights issues Impact on fishing

communities Potential for oil

spill/emergency and other environmental damage

Interaction with boat people

www.global-business-initiative.org/wp-content/uploads/2012/11/Chapter-Five-Joint-Ventures.pdf

Multiple (clashing?) company cultures

Capital intensive, heavy human rights impact projects (e.g. extractives)

Complex business and governance relationships

Minority partners may be held accountable/assumed to have leverage

55% Kirin45% Union of Myanmar Economic Holdings (military)

Human rights and RBC issues:• Water use/communities• Land/squatter communities

around factory• Responsible drinking, safety• Beer girls/promotion• Labour, freedom of

association• Taxation

More beer & human rights……

Choose JVs and JV partners with care

Before forming a JV, use various avenues to convey

human rights expectations to business partners.

Understand the issues - human rights due diligence;

consult external stakeholders

Design JV agreements to consider human rights explicitly:

operating procedures and human rights policies

management positions

reporting arrangements, audit rights

Contractual requirements, exit clauses

Reference to existing company or international

standards – provides leverage

Protect against human rights legacy issues (‘conditions

precedent’; liability)

Managing human rights risk in JVs

• Action Labor Rights (ALR) March 2016 report

• Compares mid-2015conditions in Korean-connected

factories to Myanmar legal requirements.

• Reveals significant non-compliance on the part of many

factories, particularly concerning laws on working hours

and overtime.

• Almost 30% of the factories surveyed failed to abide by

the maximum 16 hours weekly overtime limit.

• Nearly two thirds of workers surveyed (62%) reported

being unable to refuse working excessive hours.

• 30% of workers said they were provided payslips only in

English or Korean, direct breach of Myanmar law which

requires payslip information to be provided in Burmese.

• Only 40% of workers claimed that they have signed

employment contracts; many of these did not have their

own copy.

• 14% of factories surveyed have Workplace Co-

ordinating Committee (a legal requirement).

Labour and

supply chain

Make this an area of competitive advantage

Use the UN Guiding Principles on Business and Human Rights as a guide

Consider other rightsholders in addition to employees

Adopt policy commitment that covers key risk areas for the company

Undertake ‘Enhanced human rights due diligence’ to understand potential impacts of company in specific situations, markets, projects;

Don’t rely on legal documentation

Don’t wave chequebooks or talk about ‘CSR’ – focus on behaviour and engagement

Proactively engage with communities, workers/their representatives, and ‘at risk’ groups e.g. women, minorities, children, NGOs

Accessible, frequent two-way communication (e.g. language, format of meeting)

Establish accessible “one stop shop” for effective resolution of concerns (Operational Grievance Mechanisms)

Be transparent – make information about operations available online and locally

Participate in peer-to-peer forums, and multistakeholder discussions

‘Know and show’

Public “Business Sustainability Update” every

six months which covers:

Health and Safety Incidents

Incidents of child labour (under-18) and follow-

up steps

Other breaches of Supplier Conduct Principles

(SCP)

Telenor’s mitigation and

remedy measures

Policies on child labour

etc

employee and supplier

training (including with

ILO), training for local

community on its child

labour policies.

unannounced site

inspections of

towers/fibre-laying

Community Liaison

Officers in all regions and

divisions to maintain

dialogue with

communities e.g on

safety concerns,

generator noise

Developed an Operational Grievance Mechanism (GM) for Mann oil field

Consistent with UN Guiding Principles on Business and Human Rights

Ability to lodge concerns/complaints directly with a community volunteer in

each village or through GM suggestion boxes

MPRL E&P Field Officer

◦ contacts community member who lodged the complaint,

◦ identifies with them an appropriate response

◦ informs of the time it will take to address the concern

MPRL E&P and MOGE: review, record and measure damage

Outcomes are recorded, tracked and publicly reported on

The advantages of GM:

◦ building effective partnerships between communities

◦ improve brand and reputation

◦ risk mitigation

Support implementation of the corporate responsibility to respect human

rights; help Japanese companies to ‘Know and show’

Embassies should build good civil society and human rights defender

contacts and facilitate initial introductions with companies

Embassies can share information with companies on human rights

risks

Embassies/Tokyo can help showcase good practice by Japanese

companies

Support in-country strengthening of environmental/social policies/legal

frameworks through technical assistance.

Ensure investment and free trade agreements reinforce responsible

business practices

Promote transparency, including of corporate governance

ありがとうございました

Thank you!www.mcrb.org.mm

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