Business and conflict
Business and human rights: the role of business in weak governance: business proposals for effective ways of addressing dilemma situations in weak governance zones
Best practices for companies operating in weak governance zones
Authors:
; International Organisation of Employers (IOE); International Chamber of Commerce (ICC); Business and Industry Advisory Committee (BIAC)
Publisher:
Business and Human Rights Resource Centre, 2006
This main objective of this paper is to identify effective ways for companies to deal with dilemma situations encountered in weak governance zones. The first part of the paper presents the range of issues associated with weak governance zones and the reality faced by companies that operate or are contemplating operating in them. In the second part, the paper identifies actions that companies can take individually and in collaboration with others in order to respond effectively to dilemma situations.
The paper argues that all company operations in weak government zones must be based upon a commitment to promote and support human rights. It also points out that all companies have the same responsibilities in weak governance zones as they do elsewhere. They are expected to obey the law, even if it is not enforced, and to respect the principles of relevant international instruments where national law is absent.
The paper highlights a number of best practice approaches which are based on the experience of companies operating in weak governance zones. Suggested approaches include:
- determine national legal obligations and structure operations to ensure compliance and if there are gaps the company should assess whether it can fill them with its own policy or good practice
- integrate human rights observance within management systems, including human rights impacts as a key factor in decision making and managing risk
- establish formal review mechanisms to assess impacts and monitor the human rights situation in relation to business operations
- remain politically neutral to avoid risks of accusations of complicit behaviour
- involve suppliers in monitoring respect for human rights within their operations and own supply chain, including training, company building and tailored assistance as appropriate
- report instances of bribe solicitation to the authorities or to international anti-corruption organisations
- engage with local communities and other stakeholder groups affected by a company’s operations in ensuring the respect for human rights.
