Human rights: How to Respect and Uphold Human Rights in Your Business Operations

1. What are human rights and why are they important for businesses?

Human rights are the basic rights and freedoms that belong to every person in the world, regardless of their nationality, race, gender, religion, or any other status. They are based on the principles of dignity, equality, and respect, and they are protected by international laws and treaties. Human rights are important for businesses because they have a direct impact on their operations, reputation, and sustainability. Businesses that respect and uphold human rights can benefit from improved employee engagement, customer loyalty, stakeholder trust, and social license to operate. On the other hand, businesses that violate or ignore human rights can face legal risks, reputational damage, operational disruptions, and loss of market access. Therefore, it is essential for businesses to understand their human rights responsibilities and take proactive steps to prevent and address any adverse impacts on human rights.

Some of the ways that businesses can respect and uphold human rights in their operations are:

1. Conducting human rights due diligence: This is a process of identifying, assessing, preventing, mitigating, and accounting for the actual and potential human rights impacts of a business activity, project, or relationship. It involves engaging with relevant stakeholders, such as workers, communities, customers, suppliers, and civil society, to understand their perspectives and concerns, and to address any grievances or complaints. It also requires monitoring and reporting on the effectiveness of the measures taken to prevent and mitigate human rights risks. For example, a mining company can conduct human rights due diligence to ensure that its operations do not cause or contribute to environmental degradation, forced labor, land rights violations, or violence in the areas where it operates.

2. Implementing human rights policies and standards: This is a way of communicating the commitment and expectations of a business to respect and uphold human rights, and to provide guidance and direction for its employees, managers, and business partners. It involves developing and adopting human rights policies and standards that are aligned with the international human rights framework, such as the Universal Declaration of Human Rights, the International Bill of Human Rights, and the UN guiding Principles on business and Human Rights. It also involves integrating human rights into the core values, strategies, and operations of the business, and ensuring that they are reflected in the decision-making, governance, and oversight processes. For example, a clothing company can implement human rights policies and standards to ensure that its products are made in safe and fair working conditions, that its suppliers respect labor rights and environmental standards, and that its customers are informed and empowered to make ethical choices.

3. promoting human rights awareness and education: This is a way of raising the awareness and understanding of human rights among the employees, managers, and business partners of a business, and of fostering a culture of respect and responsibility for human rights. It involves providing human rights training and education programs that cover the relevant human rights issues, risks, and opportunities for the business, and that equip the participants with the knowledge, skills, and tools to respect and uphold human rights in their roles and functions. It also involves engaging in dialogue and collaboration with other businesses, governments, civil society, and human rights experts, to share best practices, learn from challenges, and support collective action for human rights. For example, a technology company can promote human rights awareness and education by providing human rights training and education programs for its employees, managers, and business partners, and by participating in multi-stakeholder initiatives and platforms that address human rights issues related to privacy, data protection, freedom of expression, and digital inclusion.

2. A framework for corporate responsibility to respect human rights

The UN Guiding Principles on business and Human rights (UNGPs) are a set of 31 principles that provide a global standard for preventing and addressing the risk of adverse impacts on human rights linked to business activity. They were endorsed by the UN Human Rights Council in 2011 and have since been widely recognized as the authoritative framework for corporate responsibility to respect human rights. The UNGPs are based on three pillars: the state duty to protect human rights, the corporate responsibility to respect human rights, and the need for access to effective remedy for victims of business-related human rights abuse. In this section, we will explore each of these pillars in more detail and provide some practical guidance on how businesses can implement them in their operations.

- The state duty to protect human rights: This pillar recognizes that states have the primary obligation to protect human rights within their territory and jurisdiction, including from the actions of third parties such as businesses. States should enact and enforce laws and policies that require businesses to respect human rights, provide guidance and incentives for businesses to do so, and ensure that victims of business-related human rights abuse have access to effective judicial and non-judicial remedies. Some examples of state actions to fulfill this duty are:

1. Adopting a national action plan on business and human rights that sets out the state's expectations and measures for businesses to respect human rights.

2. Regulating the extraterritorial activities of businesses domiciled in their jurisdiction, especially in conflict-affected or high-risk areas, to prevent and address human rights impacts.

3. Providing effective oversight and enforcement mechanisms for businesses to comply with human rights standards, such as labor inspections, environmental audits, and anti-corruption agencies.

4. Supporting the development of grievance mechanisms and mediation services for resolving disputes between businesses and affected stakeholders, such as workers, communities, and consumers.

- The corporate responsibility to respect human rights: This pillar establishes that businesses have a responsibility to respect human rights throughout their operations, regardless of where they operate or the size, sector, or ownership of the business. Businesses should avoid causing or contributing to adverse human rights impacts through their own activities, and address such impacts when they occur. They should also seek to prevent or mitigate adverse human rights impacts that are directly linked to their operations, products, or services by their business relationships, such as suppliers, contractors, or customers. To meet this responsibility, businesses should:

1. Conduct human rights due diligence to identify, assess, prevent, mitigate, and account for how they address their human rights impacts. This involves engaging with relevant stakeholders, such as affected groups, human rights experts, and civil society organizations, to understand the potential and actual human rights risks and impacts of their activities and business relationships.

2. Implement policies and procedures that embed respect for human rights into their culture, values, and decision-making processes. This includes establishing a human rights policy that expresses the business's commitment to respect human rights, providing training and awareness-raising for staff and business partners, and allocating adequate resources and responsibilities for human rights performance.

3. Communicate how they address their human rights impacts to their stakeholders, such as shareholders, customers, regulators, and the public. This includes reporting on their human rights policies, due diligence processes, and outcomes, as well as responding to requests for information or complaints from affected parties.

4. Provide or cooperate in the provision of remedy for any adverse human rights impacts that they cause or contribute to, or that are directly linked to their operations, products, or services by their business relationships. This includes establishing or participating in effective grievance mechanisms that enable the identification and resolution of human rights issues, as well as respecting the role of legitimate trade unions and other worker representatives in addressing labor-related human rights impacts.

- The need for access to effective remedy: This pillar emphasizes that states and businesses should ensure that victims of business-related human rights abuse have access to effective remedy, both judicial and non-judicial. Remedy can take various forms, such as apologies, restitution, rehabilitation, compensation, injunctions, sanctions, or guarantees of non-repetition. Effective remedy should be legitimate, accessible, predictable, equitable, transparent, rights-compatible, and based on dialogue and engagement. Some examples of remedy mechanisms are:

1. Judicial mechanisms, such as courts, tribunals, or arbitration, that can adjudicate and enforce human rights claims against businesses, and provide appropriate remedies for victims. Judicial mechanisms should be independent, impartial, competent, and fair, and respect the principles of due process and equality before the law.

2. Non-judicial mechanisms, such as ombudspersons, national human rights institutions, multi-stakeholder initiatives, or industry associations, that can investigate and address human rights complaints against businesses, and facilitate dialogue and mediation between parties. Non-judicial mechanisms should be credible, accessible, transparent, and effective, and respect the rights and interests of all parties involved.

3. Operational-level grievance mechanisms, such as complaint boxes, hotlines, or online platforms, that can receive and resolve human rights grievances from individuals or groups affected by the business's operations, products, or services. Operational-level grievance mechanisms should be designed and implemented in consultation with the affected stakeholders, and provide a safe, timely, and respectful process for raising and addressing human rights issues.

3. A process to identify, prevent, mitigate and account for human rights impacts of business activities

Human rights due diligence is a key concept in the field of business and human rights. It refers to the process by which businesses assess and address the potential and actual human rights impacts of their activities, both in their own operations and in their value chains. Human rights due diligence is not a one-time exercise, but a continuous and proactive process that involves four main steps:

1. Identifying the human rights risks and impacts that the business may cause or contribute to, or that may be directly linked to its operations, products or services. This step requires engaging with relevant stakeholders, such as workers, customers, suppliers, communities, civil society and human rights experts, to understand their perspectives and concerns. For example, a mining company may identify the risks of forced labor, environmental degradation, land rights violations and health hazards in its operations and supply chain.

2. Preventing and mitigating the human rights risks and impacts that have been identified, by taking appropriate measures to avoid, reduce or remedy them. This step requires integrating the findings of the human rights assessment into the business decision-making and management systems, and allocating sufficient resources and responsibilities for the implementation of the measures. For example, a clothing brand may prevent and mitigate the risks of child labor, unsafe working conditions and low wages in its supply chain by adopting a code of conduct, conducting regular audits, providing training and capacity building, and collaborating with other stakeholders to improve the situation.

3. Accounting for the human rights risks and impacts that the business has caused or contributed to, or that are directly linked to its operations, products or services. This step requires communicating and reporting on how the business has addressed the human rights issues, both internally and externally, and providing access to effective remedy for those who have been adversely affected. For example, a technology company may account for the human rights impacts of its products and services by disclosing its policies and practices, engaging with users and regulators, and providing mechanisms for complaints and redress.

4. Reviewing and improving the human rights due diligence process, by monitoring and evaluating the effectiveness of the measures taken, and learning from the feedback and outcomes. This step requires collecting and analyzing relevant data and indicators, seeking input from stakeholders, and identifying and implementing opportunities for improvement. For example, a food company may review and improve its human rights due diligence process by measuring and reporting on its progress, conducting stakeholder surveys, and adopting best practices and innovations.

Human rights due diligence is not only a moral and legal obligation for businesses, but also a strategic and operational advantage. By respecting and upholding human rights, businesses can enhance their reputation, trust and legitimacy, reduce their legal and reputational risks, improve their operational efficiency and productivity, and create value for their stakeholders and society. Human rights due diligence is therefore an essential component of responsible and sustainable business conduct.

4. A mechanism to provide effective access to remedy for victims of human rights violations by businesses

Remediation is a key element of the United Nations Guiding Principles on Business and Human Rights (UNGPs), which provide a global framework for addressing the impact of business activities on human rights. Remediation refers to the process of providing effective access to remedy for victims of human rights violations by businesses, either through judicial or non-judicial mechanisms. Remediation is not only a moral duty, but also a legal obligation for states and a responsibility for businesses. In this section, we will explore why remediation is important, what are the challenges and opportunities for remediation, and how businesses can implement remediation in their operations.

Some of the reasons why remediation is important are:

- Remediation can restore the dignity and rights of the victims, and prevent further harm or recurrence of the violations.

- Remediation can enhance the reputation and trust of the businesses, and reduce the risk of legal actions, sanctions, or boycotts.

- Remediation can contribute to the promotion and protection of human rights, and the achievement of the Sustainable Development goals (SDGs).

Some of the challenges and opportunities for remediation are:

- Remediation can be complex and costly, especially when the violations involve multiple actors, jurisdictions, or sectors.

- Remediation can be inaccessible or ineffective, due to the lack of awareness, resources, or capacity of the victims, the businesses, or the mechanisms.

- Remediation can be innovative and collaborative, by using new technologies, standards, or partnerships to improve the accessibility, effectiveness, or efficiency of the mechanisms.

Some of the ways businesses can implement remediation are:

1. Conduct human rights due diligence to identify, prevent, mitigate, and account for the human rights impacts of their activities, and to provide or cooperate in the remediation of any adverse impacts they cause or contribute to.

2. Establish or participate in effective grievance mechanisms that are legitimate, accessible, predictable, equitable, transparent, rights-compatible, and based on dialogue and engagement, to enable the early identification and resolution of grievances before they escalate.

3. Engage with the state-based judicial or non-judicial mechanisms, such as courts, tribunals, ombudspersons, or national human rights institutions, to ensure that the victims have access to appropriate and effective remedies, and to respect the decisions and outcomes of the mechanisms.

4. Collaborate with other stakeholders, such as civil society, trade unions, or international organizations, to support the development and implementation of remediation mechanisms, and to share good practices and lessons learned.

An example of a successful remediation case is the one involving the Rana Plaza collapse in Bangladesh in 2013, which killed more than 1,100 workers and injured thousands more. The Rana Plaza Arrangement was a multi-stakeholder initiative that provided compensation, medical care, and rehabilitation to the victims and their families, through a voluntary fund supported by the brands, retailers, and governments. The Arrangement was based on the principles of the UNGPs and the International Labour Organization (ILO) conventions, and was overseen by an independent coordinator and a steering committee. The Arrangement was widely praised as a model of remediation that was timely, adequate, and fair.

5. A practice to communicate publicly and transparently about human rights performance and challenges

Reporting and disclosure is a key aspect of human rights due diligence, as it allows businesses to demonstrate their commitment to respect and uphold human rights in their operations. By reporting on their human rights performance and challenges, businesses can enhance their accountability, credibility, and reputation among their stakeholders, such as investors, customers, employees, suppliers, regulators, and civil society. Reporting and disclosure can also help businesses identify and address potential human rights risks and impacts, as well as track and communicate their progress and achievements.

There are different approaches and standards for reporting and disclosing human rights information, depending on the nature, size, and sector of the business, as well as the expectations and needs of the stakeholders. Some of the common elements of human rights reporting and disclosure are:

1. Materiality: This refers to the process of identifying and prioritizing the most significant human rights issues that are relevant to the business and its stakeholders. Materiality helps businesses focus their reporting and disclosure on the topics that matter the most, and avoid irrelevant or excessive information. Materiality can be determined by conducting a human rights impact assessment, engaging with stakeholders, and consulting relevant frameworks and guidelines, such as the UN Guiding Principles on Business and Human Rights, the global Reporting initiative (GRI) Standards, and the UN Global Compact.

2. Transparency: This refers to the principle of providing clear, accurate, and timely information about the business's human rights performance and challenges, as well as the actions taken to address them. Transparency helps businesses build trust and confidence among their stakeholders, and demonstrate their respect for human rights. Transparency can be achieved by following the reporting and disclosure standards and best practices, such as the UN Guiding Principles Reporting Framework, the GRI Standards, and the UN Global Compact Communication on Progress. Transparency also requires businesses to disclose any gaps, limitations, or challenges in their human rights reporting and disclosure, and explain how they plan to overcome them.

3. Stakeholder engagement: This refers to the process of involving and consulting the stakeholders who are affected by or interested in the business's human rights performance and challenges, such as investors, customers, employees, suppliers, regulators, and civil society. Stakeholder engagement helps businesses understand and respond to the expectations and needs of their stakeholders, and improve their human rights reporting and disclosure. Stakeholder engagement can be done by conducting surveys, interviews, focus groups, workshops, or online platforms, and by providing feedback mechanisms and grievance mechanisms for the stakeholders to raise their concerns or complaints.

4. Verification and assurance: This refers to the process of checking and validating the quality, accuracy, and reliability of the human rights information reported and disclosed by the business, as well as the methods and processes used to collect and analyze the information. Verification and assurance helps businesses enhance their credibility and accountability, and reduce the risks of errors, omissions, or misrepresentations. Verification and assurance can be done by using internal or external auditors, independent experts, or third-party organizations, such as the Assurance Services International (ASI), the AccountAbility AA1000 Assurance Standard, or the International Standard on Assurance Engagements (ISAE) 3000.

Some examples of businesses that have reported and disclosed their human rights performance and challenges are:

- Microsoft: Microsoft publishes an annual corporate Social responsibility (CSR) report that covers its human rights policies, practices, and performance, as well as its alignment with the UN Guiding Principles on Business and Human Rights, the GRI Standards, and the UN Global Compact. Microsoft also discloses its human rights impact assessments, stakeholder engagement activities, and human rights-related initiatives and partnerships, such as the Responsible AI initiative, the Digital Peace campaign, and the Tech for Good program.

- Nestlé: Nestlé publishes an annual Creating Shared Value (CSV) report that covers its human rights policies, practices, and performance, as well as its alignment with the UN Guiding Principles on Business and Human Rights, the GRI Standards, and the UN Global Compact. Nestlé also discloses its human rights due diligence process, human rights salient issues, and human rights-related initiatives and partnerships, such as the Nestlé Cocoa Plan, the Nestlé Human Rights Training Program, and the Alliance for Water Stewardship.

- H&M: H&M publishes an annual Sustainability Performance Report that covers its human rights policies, practices, and performance, as well as its alignment with the UN Guiding Principles on Business and Human Rights, the GRI Standards, and the UN Global Compact. H&M also discloses its human rights impact assessments, stakeholder engagement activities, and human rights-related initiatives and partnerships, such as the fair Living wage Strategy, the Global Framework Agreement, and the Fashion Pact.

6. A commitment to embed human rights values and principles into the business culture and strategy

Human rights leadership is not only about complying with the legal and ethical standards of human rights, but also about actively promoting and advancing them in every aspect of the business. It is about creating a culture and a strategy that are aligned with the universal values and principles of human rights, such as dignity, equality, justice, and participation. Human rights leadership is essential for any business that wants to be responsible, sustainable, and competitive in the global market. It can also bring many benefits, such as enhancing the reputation, trust, and loyalty of the stakeholders, improving the performance and innovation of the employees, and reducing the risks and costs of human rights violations.

To achieve human rights leadership, a business needs to commit to embed human rights values and principles into its culture and strategy. This can be done by following some key steps, such as:

1. Conducting a human rights due diligence. This is a process of identifying, assessing, preventing, mitigating, and accounting for the actual and potential human rights impacts of the business activities, products, services, and relationships. It involves consulting with the relevant stakeholders, such as the workers, customers, suppliers, communities, and civil society organizations, and taking their views and concerns into account. It also requires monitoring and evaluating the effectiveness of the measures taken to address the human rights impacts, and communicating the results and progress to the stakeholders and the public.

2. Adopting a human rights policy. This is a statement of the business's commitment to respect and uphold human rights in its operations and value chain. It should be based on the international human rights standards and frameworks, such as the Universal Declaration of Human Rights, the International Bill of Human Rights, and the UN Guiding Principles on Business and Human Rights. It should also be aligned with the business's vision, mission, and values, and reflect its specific context and challenges. The human rights policy should be approved by the top management, communicated to all the employees and business partners, and integrated into the business's policies, procedures, and practices.

3. Establishing a human rights governance structure. This is a system of roles, responsibilities, and mechanisms that ensure the effective implementation, oversight, and accountability of the human rights policy and due diligence. It should involve the participation and collaboration of different levels and functions of the business, such as the board, the senior management, the human resources, the legal, the compliance, the risk, and the sustainability departments. It should also provide clear and accessible channels for reporting, feedback, and grievance redressal for the internal and external stakeholders who may be affected by or interested in the business's human rights performance.

4. Building a human rights culture. This is a culture that fosters the awareness, understanding, and respect of human rights among the employees and business partners, and encourages them to act in accordance with the human rights values and principles. It can be cultivated by providing regular and relevant training, education, and guidance on human rights issues and standards, and by creating a safe and supportive environment for dialogue, learning, and improvement. It can also be reinforced by recognizing and rewarding the good human rights practices and behaviors, and by addressing and correcting the poor or harmful ones.

5. Engaging with the human rights stakeholders. This is a process of establishing and maintaining constructive and transparent relationships with the stakeholders who have an interest or influence on the business's human rights impacts, or who may be affected by them. It involves listening to and understanding their perspectives, expectations, and needs, and responding to them in a timely and respectful manner. It also involves collaborating with them to find solutions and opportunities for enhancing the positive and reducing the negative human rights impacts of the business, and to contribute to the broader human rights agenda and goals.

Some examples of businesses that have demonstrated human rights leadership are:

- Microsoft. The technology giant has adopted a comprehensive human rights policy and due diligence process, and has established a dedicated human rights team and a human rights advisory board. It has also developed and implemented various initiatives and tools to address the human rights challenges and opportunities in its sector, such as the Digital Peace Campaign, the Responsible AI Framework, the Defending Democracy Program, and the AI for Humanitarian Action.

- Unilever. The consumer goods company has integrated human rights into its core business strategy and operations, and has committed to respect and advance the human rights of its workers, suppliers, consumers, and communities. It has also launched and supported several programs and partnerships to tackle the human rights issues and risks in its industry, such as the Sustainable Living Plan, the Responsible Sourcing Policy, the Enhancing Livelihoods Fund, and the Global Coalition for Animal Welfare.

- Patagonia. The outdoor clothing and gear company has made human rights one of its core values and principles, and has embedded them into its culture and practices. It has also taken a strong stance and action on human rights issues and causes that are relevant to its business and stakeholders, such as the Fair Trade Certified program, the Regenerative Organic Certification, the 1% for the Planet initiative, and the Protect Our Winters campaign.

7. A mindset to explore new ways of advancing human rights through business solutions and partnerships

Human rights innovation is not just about creating new products or services that can help protect and promote human rights. It is also about adopting a mindset that challenges the status quo and seeks new ways of advancing human rights through business solutions and partnerships. Human rights innovation can be seen as a process of identifying, developing, testing, and scaling up new or improved approaches to address human rights issues in different contexts and sectors. Human rights innovation can also be seen as an outcome of applying such approaches to achieve positive human rights impacts for individuals and communities.

Some of the benefits of human rights innovation for businesses include:

1. Enhancing their reputation and credibility as responsible and ethical actors that contribute to social good and sustainable development.

2. Reducing their risks and costs associated with human rights violations, such as legal liabilities, reputational damage, operational disruptions, and loss of trust from stakeholders.

3. Increasing their opportunities and competitive advantage by creating new markets, reaching new customers, improving customer loyalty, and attracting and retaining talent.

4. fostering a culture of innovation and learning within the organization that encourages creativity, collaboration, and problem-solving.

Some of the challenges of human rights innovation for businesses include:

1. finding the right balance between innovation and compliance, ensuring that new or improved solutions do not compromise or undermine existing human rights standards and obligations.

2. Engaging with diverse and often marginalized stakeholders, such as affected communities, civil society organizations, human rights defenders, and experts, to ensure that their needs, perspectives, and feedback are taken into account and respected throughout the innovation process.

3. Measuring and evaluating the human rights impacts of their innovations, both positive and negative, using appropriate indicators, methods, and tools, and reporting on them transparently and accountably.

4. Scaling up and replicating their innovations, while adapting them to different contexts and situations, and ensuring their sustainability and effectiveness over time.

Some of the examples of human rights innovation by businesses include:

- Microsoft's AI for Humanitarian Action: This initiative leverages artificial intelligence (AI) to support humanitarian and disaster response efforts, such as predicting and preventing famines, protecting children, refugees, and displaced people, and promoting respect for human rights and human dignity.

- Unilever's Enhancing Livelihoods Fund: This fund supports innovative projects that aim to improve the livelihoods of smallholder farmers, women, and young people in Unilever's supply chain, such as providing access to finance, training, technology, and markets, and addressing social and environmental issues.

- Nike's Circular Design Guide: This guide provides principles and strategies for designing products that minimize waste and environmental impact, and maximize reuse and recycling, such as using renewable and recycled materials, designing for durability and repair, and enabling product take-back and recovery.