Luncheon Talk 18 Feb 2008

1. 1
February 18th
Bangkok
Business & Human Rights:
A new development in
Business Management
Presentation to the Bangkok
Net Impact Chapter
Agenda
1. Business and Human
Rights: a recent trend
2. Any of your business?
3. Action Framework
4. Business policy and
management of Human
Rights: Benefits
5. Discussion and next
steps
Involvement of Business into Human
Rights: a recent trend
Involvement of Business into Human
Rights: a recent trend
What are we talking about?
Shift from compliance with national laws to
commitment to international Human Rights
Standards
Code of Conduct/Ethics referring to Human Rights
Involvement of Business into Human
Rights: a recent trend
• UN initiatives
– UN Global Compact – Launched 2000 – 3,900 businesses
engaged
• 10 voluntary principles for businesses, based on the Universal
Declaration of Human Rights the ILO's Declaration on Fundamental
Principles and Rights at Work
• Respect and promote the internationally proclaimed Human Rights
• Make sure they are not complicit in human rights abuses
– UN Special Representative on Businesses and Human Rights:
John Ruggie – Started 2005, final report due in June 2008
Involvement of Business into Human
Rights: a recent trend
• Companies’ recognition of labour rights
87%
75%
66%
60%
36%
30%
24%
80%
67%
50%
29%
Right to non-discrimination
Right to a safe work environment
Freedom of association, right to collective
bargaining
Abolition of forced and child labour
Right to minimum wage, including decent
living
Right to rest and leisure, including holidays
with pay
Right to family life, including maternity
leave
World
Asia
Survey for John Ruggie mandate, released 2007
Analysis of 300 companies’ documentation

2. 2
Involvement of Business into Human
Rights: a recent trend
• Companies’ recognition of non-labour rights
Survey for John Ruggie mandate, released 2007
Analysis of 300 companies’ documentation
19%
16%
13%
9%
Right to privacy
Right to life, Liberty, and Security of
the person
Freedom from torture and cruel,
inhumane, or degrading treatment
Right to development
World
Involvement of Business into Human
Rights: a recent trend
• Companies’ commitments to international
instruments
Survey for John Ruggie mandate, released Sept. 2006
Questionnaire to Fortune 500 companies’, 102 respondents
91%
85%
71%
68%
57%
41%
Companies with an explicit set of principles/management
practices regarding human rights
Companies carrying out human rights assessments for
particular projects (routinely/occasionaly)
ILO Declaration or Conventions
Universal Declaration of Human Rights
Global Compact
OECD Guidelines
World
Business involvement in Human Rights:
Which human rights?
• Labour rights widely recognised
• ILO conventions 29, 105, 87, 98, 100, 111, 138, 182
• Economic, Social and Cultural rights: rising
• Right to water
• Right to health
• Right to development
• Culural rights
• Migrant/indigenous rights
• Political and civil rights: still behind
• In addition, companies can not breach
international humanitarian law
Human Rights:
Any of your business?
Human Rights: A business risk
of companies which responded to J. Ruggie
Fortune 500 survey say they have already
experienced a significant Human Rights issue
46%
Survey for John Ruggie mandate, released Sept. 2006
Questionnaire to Fortune 500 companies’, 102 respondents
Human Rights: A business risk
• Reputational risk Bangkok Post, Feb. 17, 2008
Bang Saphan
Sahaviriya Group
Steel project

3. 3
Human Rights: A business risk
• Reputational risk
– FFI (Garment factory, India) /
G Star Brand (Europe)
• December 1st, 2007: international arrest warrant against activists
following a complaint from FFI.
• International NGO campaign - G Star severs its business relationships
from FFI
• January 31st: FFI withdraws the complain – G-Star resumes
relationships
Human Rights: A business risk
Klity case
Colbat-60 case
• Judicial risk
Human Rights: A business risk
• Judicial risk
– France, 2005: Total signs agreement with Burmese workers
concerning Yadana field in Burma
• 5,2 millions Euros Fund for Burma
• Plaintifs indemnisation
– US/China, November 2007: Yahoo! signs a financial
agreement with Chinese activits families + creates a fund
Human Rights: A business risk
• Financial risk
– Norwegian Government Fund exclusions for human rights abuses,
corruption or environmental damage
09.11.2007
Vedanta Resources Plc.
Sterlite Industries Ltd.
Madras Aluminium Company Ltd.
11.04.2007
DRD Gold Limited
06.12.2006
Poongsan Corporation
06.06.2006
Wal-Mart Stores Inc/Wal-Mart de Mexico SA de CV
Freeport McMoRan Copper & Gold Inc
05.01.2006
BAE Systems Plc.
Boeing Co.
Finmeccanica Sp.A.
Honeywell International Inc
Northrop Grumman Corp.
05.01.2006 (cont’d)
United Technologies Corp.
Safran SA
31.08.2005
Alliant Techsystems Inc.
EADS Co (European Aeronautic Defence and Space
Company)
EADS Finance BV
General Dynamics Corporation
L3 Communications Holdings Inc.
Lockheed Martin Corp.
Raytheon Co.
Thales SA.
06.06.2005
Kerr-McGee Corporation (reversed 2006)
22.03.2002
Singapore Technologies Engineering
Human Rights Policy and Management
System: Action framework
Human Rights Policy and Management
System: Action framework
Know your impacts and
stakeholders
- Assess impacts
- Identify current practices and initiatives
- Identify risks: which activities, groups
affected, countries
- Consult stakeholders
- Benchmarking, industry good practices
Measuring impact, auditing
- Take corrective actions
Report
- Transparent and accessible
- To talk with stakeholders
Design a policy
- Commitments to International Human
Rights standards
- Write one or several documents
- Code of Ethics/Conduct, Code of
Suppliers, Investment Principles
Implement management
systems
- What?
- When?
- Who?
- Inform and train the staff
Communicate
- Inform stakeholders of the policy
and the management system
- Acknowledge problems
Adapted from « Human Rights: A Frame for Action »
By BLIHR, UN Global Compact, UN Human Rights
Start small
Learn
Step by step
Listen
Be transparent

4. 4
Human Rights Policy and Management
System: Action framework
– Need help? Support, tools and expertise
• International organisations
– UN Global Compact - 2008, 60th Anniversary of the Universal
Declaration of Human Rights
– Resources :
http://www.unglobalcompact.org/Issues/human_rights/UDHR_60th.html
http://www.unglobalcompact.org/Issues/human_rights/index.html
• Business organisations, tools
– BLIHR www.blihr.org
– IBLF http://www.iblf.org/
– Business and Human Rights Assessment Danish Institute -
http://www.humanrightsbusiness.org/pdf_files/Quick%20Check%20Eng
lish%20.pdf
• Information
– www.business-humanrights.org (website + free newsletter)
Human Rights Policy and Management
System: Action framework
The Global Compact in Thailand
The Global Compact was launched in Thailand during
the ILO's Regional Employers' meeting held in
Bangkok from 27-28 November 2001 with support
from other core UN agencies
Contacts
Employers Confederation of Thailand
Siriwan Romchatthong
(contact point)
ecot@ecot.org.th
Maneethip Chat-Uthai
maneethip@ecot.org.th
United Nations Development Programme
Sirisupa Kulthanan
sirisupa.kulthanan@undp.org
GC Office Country Coordinator
Source
http://www.unglobalcompact.org/networksaroundthewo
rld/country_contact/thailand.html
Benefits of Human
Rights Policy and
Management system • International recognised Human Rights standards for
companies contribute to a better governance in a
globalised world
– « There is no magic in marketplace. Markets function efficiently and
sustainably only when certain institutional parameters are in place:
protection of property rights, the enforceability of contracts, competition, and
the smooth flow of information …But a prerequisite is often overlooked:
curtailing individual and social harms imposed by markets »
John Ruggie, Special Rapporteur, UN
Benefits of Human Rights Policy and
Management system
Social peace Fair competition
• Added value for Thai companies
Benefits of Human Rights Policy and
Management system
1st rice exporter
worldwide
2nd chicken
exporter worldwide
13.8 million foreign
tourists in 2006
• Access to markets
3,000ETI
Tesco
NABSCI
Metro
390With FIDH
Carrefour
16,000
Wal-Mart
ILO standardsSocial
auditing
(2006)
Code of
suppliers
Benefits of Human Rights Policy and
Management system

5. 5
Benefits of Human Rights Policy and
Management system
• Access to markets
– Preparedness of Thai businesses to ISO 26000
• Social guidelines for companies
• To be launched in 2010
Benefits of Human Rights Policy and
Management system
• Investors confidence
– Nam Theun II, Laos
• $1,45 Billion
• Commercial lenders: Bangkok Bank,
Bank of Ayudhya, Kasikorn Bank, Krung
Thai Bank, Siam City Bank, Siam
Commercial Bank, Thai Military Bank…
• Highly criticised by NGOs
• Extensive social programme to support
poverty reduction and development in
Laos
Benefits of Human Rights Policy and
Management system
• Efficiency and long-term sustainability
Human Resources
management
Wonderland Products
Stakeholders relationships,
sustainable sourcing
Advance Agro
Education
Thai society demand
Thai Business Coalition
against HIV/AIDS
Over 4,000 businesses
Supporting rural development
PDA projects funded
by the private sector
28
Discussion and
Next Steps
Let’s get started
Contact details
Joëlle Brohier
• Co-founder & Editor, www.RSE-et-PED.info
– French-language website about CSR, aiming at enhancing the
contribution of thé private sector to the Millennium Development
Goals through information
• Tel 02 260 5159
• Mobile 08 604 74 658
• Joelle.brohier@rse-et-ped.info