• Multilateral regulation

Multilateral regulation

This case study identifies some of the critical dilemmas that a large resources and petrochemicals company might face when it considers investing in countries where there may be human rights concerns. The report assesses the practices of Sasol in Mozambique in relation to UN Global Compact (UNGC) Principles and best practices. The report identifies approaches for assessing the potential human rights violation/abuse risks of particular countries and for guiding investment decisions in these countries.

On the basis of a literature review and interviews with some of Sasol’s internal and external stakeholders, the Mozambique case study identifies some of the activities and dilemmas associated with developing and implementing policies and procedures consistent with the UNGC Principles.

The report identifies five elements that are key to Sasol’s structured human rights risk management process:

• providing human rights awareness and training programmes for specifically targeted staff, with the aim of increasing understanding of the nature of international human rights obligations, the risks and opportunities these rights present, and the human rights situation in countries in which the company has, or is planning, investments
• integrating human rights issues more formally in project and country risk assessments
• ensuring further integration of human rights concerns in company policies and procedures, formalising lines of responsibility for human rights, providing for human rights in procurement and supplier audits, and developing appropriate security procedures, including screening and training of security staff
• ensuring appropriate consultation and communication on human rights issues, both internally and externally
• developing an appropriate monitoring and assurance mechanisms, by making use for example of the Human Rights Compliance Assessment (HRCA) tool.
  

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