Pioneering firms explore human rights framework

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A dozen international companies, including Barclays, Gap, Novartis and Statoil, have committed themselves to develop a ‘common framework’ on business and human rights.

The companies, all members of the Business Leaders’ Initiative on Human Rights (BLIHR), will begin to develop the voluntary framework as an alternative to the United Nations’ norms on the responsibilities of transnational corporations, which were published in draft form three years ago but have been shelved because some businesses believed they are too draconian (EP7, issue 5, p7).

BLIHR members have attempted to apply the norms on a trial basis in their own operations. Now a report from the organization on the results has concluded that although the norms are of ‘practical use’ when international law is applied to business, they do not give clear advice on implementing human rights safeguards. The companies hope that their new framework will provide that advice.

‘The draft norms were not written in a way which allows businesses to implement them fully into their business operations,’ says BLIHR’s third annual report, which adds that they also failed to offer businesses clear guidance in cases where governments are unwilling to meet human rights obligations.

In June BLIHR published a guide on integrating human rights into business management. The 45-page report covers seven management topics: strategy; policy, processes and procedures; communications; training; measuring impact and auditing; reporting, and awareness raising.

The companies plan to use these as the basis for the framework, which will feature ‘practical accountability mechanisms’ for businesses managing human rights risks.

There will also be guidance for government agencies on holding rogue businesses to account. BLIHR dismisses a proposal made in an early draft of the norms that UN bodies monitor companies on the grounds that at present it is ‘unworkable’. However, the group does suggest that there may be a role for the International Criminal Court to play in indicting business leaders for the worst human rights abuses.

BLIHR will also consider how best to integrate human rights into corporate risk assessment procedures, how to improve the way companies monitor and report on human rights, and the creation of human rights training standards for use within businesses.

BLIHR is working with the specialist consultancies Respect Europe and TwentyFifty to finalize the framework, which should be complete by 2009. Once it is in place, every BLIHR member company is expected to apply it. The group hopes that eventually it will become the basis for best practice throughout the private sector.

BLIHR’s formal membership expanded in June when Canadian minerals company Alcan and French energy company Areva joined. Other members are ABB, Body Shop, Hewlett-Packard, MTV, National Grid and Novo Nordisk.