On corporate responsibility for human rights

This briefing by the Special Advisor to the Secretary General on the Global Compact, examines key issues in the debate on business and human rights. The brief discusses the notions as bearers of rights need corresponding bearers of obligations. It also looks at different generations of human rights, and the the human rights principles of the UN Global Compact as a reference framework. Furthermore it assesses what a company’s sphere of influence is and what is meant by a company’s complicity.

The briefing makes the business case for Human rights and gives a number of good reasons for assuming corporate responsibility in order to support and respect human rights if national law either is not state of the art or is only a “paper tiger” that is not consistently implemented:

• any increased costs that may b e incurred as a result of responsible human rights commitment must be seen as an “insurance premium” against such risks becoming reality
• to be seen as part of the solution rather than as part of the problem provides a company with its social licence to operate and safeguards it from calls for a boycott or from shaming campaigns
• companies with a reputation for integrity tend to have better motivated employees because they look at their company with pride and identify with its objectives; this kind of company is also more attractive to highly qualified talents
• companies whose performance is regarded as exemplary in terms of human rights tend to be preferred by ethical investment funds and ethically sensitive customers
• sustainable responsible corporate performance creates a greater reliability and thus better co-operation opportunities for all potential co-operation partners
• acceptance of responsibility that is credible by virtue of the fact that it is verifiable is the best argument against political demands for additional regulation.