Fortune 500 show willing on human rights agenda

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Some of the world's largest companies have been praised by John Ruggie, the United Nations special representative on business and human rights, for their progress on tackling human rights issues.

A survey of the Fortune 500 commissioned by Ruggie has suggested that a large proportion now have a human rights policy. The study found that of the 102 companies that responded, nine in ten had explicit human rights principles or management practices.

At the same time, fewer than half of the companies said they had experienced a 'significant human rights issue' - leading Ruggie to suggest that most have adopted their human rights policy 'for reasons other than immediate necessity'. He also claimed the survey shows businesses have human rights programmes that are 'more robust than people give them credit for'.

Ruggie ordered the study as part of his deliberations on UN policy in the field of business and human rights, on which he will report to the UN's Commission on Human Rights next spring.

His largely positive interpretation of the findings may reinforce expectations that he is unlikely to recommend any dramatic changes to the status quo. However, he has said that differences in practice and coverage among companies and countries revealed by the survey 'underscore the need for clearer and commonly accepted human rights standards for firms'.

Ruggie has also noted that the survey failed to cover developing world businesses, with no replies received from the 48 Asian businesses in the Fortune 500 that are outside Japan and Australia and none from the five Latin American businesses. A follow-up study will try to reach these companies.

Overall, the survey showed that North American businesses were slightly less likely than European ones to have adopted human rights policies or practices, even though they were more likely to have run into human rights problems.

Almost all companies with human rights policies included them in their overall corporate code of conduct, but only four in ten respondents said they have a freestanding human rights protocol.

About a quarter did not appear to have drawn on any international human rights instruments when making their policies, but among those that did, International Labour Organization declarations and conventions were most often referenced.

More than 80 per cent of respondents said they had worked with external stakeholders to develop their human rights policies, although US companies were somewhat less likely to do so than European or Australian businesses, and Japanese companies were significantly less likely than any others. Reporting on compliance with company policies is also widespread. Nearly three-quarters had some form of external reporting.

The questionnaire survey was carried out for Ruggie by the International Business Leaders' Forum, Business for Social Responsibility, the International Chamber of Commerce and the International Organization of Employers.