PRINCIPLE ONE

Businesses should support and respect the protection of internationally proclaimed human rights.

Why Human Rights Are Important for Business

Governments have the primary responsibility for human rights. However, individuals and organizations also have important roles to play in supporting and respecting human rights. As part of its commitment to the Global Compact, the business community has a responsibility to uphold human rights both in the workplace and more broadly within its sphere of influence. A growing moral imperative to behave responsibly is allied to the recognition that a good human rights record can support improved business performance.

Understanding “Sphere of Influence”

The scope of the commitment made by companies in the Global Compact to support and respect human rights and to avoid complicity in human rights abuses is limited to the company’s sphere of influence. The extent of a company’s ability to act on its human rights commitment may vary depending on the human rights issues in question, the size of the company, and the proximity between the company and the (potential) victims and (potential) perpetrators of human rights abuses.

However, a company does not have complete control over every business partner, and cannot be responsible for the actions of partners over which it has little influence. The closer a company is to actual or potential victims of human rights abuses, the greater will be its control and the greater will be the expectation on the part of stakeholders that the company is expected to support and respect the human rights of proximate populations.

Similarly, the closeness of a company’s relationship with authorities or others that are abusing human rights may also determine the extent to which a company is expected by its stakeholders to respond to such abuse. 

Compliance with local and international law

As a minimum, business should strive to ensure that its operations are consistent with the legal principles applicable in the country of operation. Lawsuits against multinationals for poor practice outside their country of origin is a growing trend.

Promoting the rule of law

Businesses operating outside their country of origin may have an opportunity to promote and raise standards in countries where support and enforcement of human rights issues is insufficient. Societies where human rights are respected are more stable and provide a better environment for business.

Addressing consumer concerns

Access to global information means that consumers are increasingly aware of where their goods come from and the conditions under which they are made. A proactive approach to human rights can avoid problems and thus reduce the potentially negative impacts of adverse publicity from consumer organizations and interest groups.

Supply chain management

Global sourcing and manufacturing means that companies need to be fully aware of potential human rights issues both upstream and downstream. Promoting good practice in human rights will allow business to select appropriate business partners.

Increasing worker productivity and retention

Workers who are treated with dignity and given fair and just remuneration for their work are more likely to be productive and remain loyal to an employer. New recruits increasingly consider the social and environmental record of companies when making their choice of employer.

Building good community relationships

Companies that operate on a global basis are visible to a large audience world-wide as a result of advances in communications technologies. Addressing human rights issues positively can bring rewards both at site level, within local communities, as well as in the broader global commons in which companies operate. 

Bringing Human Rights Into Company Policy and Culture

In order to identify and manage human rights risks and opportunities, a systematic management approach is needed. Tools and guidance materials are very helpful in this regard.

A key starting point is for individuals within companies to develop an understanding of the issues, for example by making reference to the Universal Declaration of Human Rights in company policies. Companies also need to ensure that they are respecting existing national laws in the countries where they operate. Equally important is that respect for human rights is embedded in the core values and culture of the organization.

The most effective human rights policies have often been developed and implemented following input from and consultation with relevant stakeholder groups.
Some ideas for bringing human rights into company policy are by -

• developing a company policy and strategy to support human rights,
• developing a health and safety management system,
• providing staff training on human rights issues and how they are affected by business,
• providing staff training on internal company policies as they relate to human rights,
• performing human rights impact assessments of business activities and reviewing them regularly,
• set procedures for regular independent monitoring and verification of compliance with its commitment to uphold human rights standards,
• discussing human rights impacts with affected groups,
• working to improve working conditions in consultation with the workers and their representatives,
• make use of various certification programs, and
• ensure that regional or international trade agreements that they actively support do not have negative implications for human rights.

Some examples of how companies can support and respect human rights through their daily activities are:

(a) In the workplace:

• by providing safe and healthy working conditions,
• by guaranteeing freedom of association,
• by ensuring non-discrimination in personnel practices,
• by ensuring that they do not use directly or indirectly forced labour or child labour, and
• by providing access to basic health, education and housing for the workers and their families, if these are not provided elsewhere.

(b) in the community:

• by preventing the forcible displacement of individuals, groups or communities,
• by working to protect the economic livelihood of local communities, and
• by contributing to the public debate. Companies interact with all levels of government in the countries where they operate. They therefore have the right and responsibility to express their views on matters that affect their operations, employees, customers and the communities of which they are a part.

(c) Finally, if companies use security services to protect their operations, they must guarantee that existing international guidelines and standards for the use of force are respected.

For more information about how to implement the Global Compact's human rights principles, including tools and resources, please see our Human rights issues page.

(Last updated on 18 December 2008)