Blog
By GBI Director Catie Shavin
The transition from 2019 to 2020 marks an inflection point in the business and human rights field.
Events over the past few weeks have revealed a step-change in conversations about the need to strengthen government engagement and implement a smart (or smarter) mix of mandatory and other measures to advance business respect for human rights.
We’re no longer talking about if and why. We’re talking about when and how.
This was apparent during discussions at a number of recent events, including the UN Annual Forum on Business and Human Rights, the Business and Human Rights Conference organised by Finland’s Presidency of the Council of the European Union and the Next Generation Trade event convened by the Institute for Human Rights and Business.
Alongside these events, there have been a number of prominent calls to action. In the past 10 days alone, the Finnish Government has launched an Agenda for Action on Business and Human Rights for the European Union, the Ethics Information Committee appointed by the Norwegian government has released a draft human rights transparency and due diligence law and a group of business and civil society organisations have produced a joint position paper on the EU’s policy and regulatory approach to cocoa. A group of 42 German companies have also publicly joined the chorus call for mandatory due diligence.
Human Rights Day presents an opportunity to reflect on this shift, and on the clear signal being sent by companies, civil society and governments that the time for stronger action has come.
The momentum driving stronger government action will likely increase next year. This is positive. We need governments to be clear about what they expect of business, to implement measures that will help achieve meaningful outcomes and to ‘walk the talk’ in their own business activities.
In anticipation of increased government action, forward-looking companies should ask themselves three questions.
1. Is our human rights due diligence effective?
As efforts to develop a smarter mix of measures progress, there will be increasing focus on what works and what doesn’t. It isn’t enough to have human rights due diligence (HRDD) processes in place, they need to be effective – enabling the company to know about and understand its human rights risks, and to take action to address them.
Evaluating the effectiveness of HRDD can be difficult and will involve effort and cost.
Start by considering the company’s blind spots or any gaps in its human rights programme. Go beyond audits to understand what’s really happening across the value chain. Talk to stakeholders (including human rights defenders) to better understand your strengths and areas for improvement. Ensure grievance processes are in place, accessible and trusted by intended users.
If your company is not yet doing HRDD, now is the time to start. See Getting Started on the GBI Business Practice Portal for practical ideas and insights from other business practitioners on where to start and how.
2. What insights and lessons learned can we share?
Companies that are serious about advancing respect for human rights have valuable learning and experience to share with others.
Sharing practical insights with other business practitioners is important. Companies achieve more, faster, when they work together. That premise drove us to launch the GBI Business Practice Portal last year, and is the foundation of our unique member peer learning programme and our regional engagement. But much more is needed.
It is also crucial that companies with experience managing human rights issues engage with efforts to strengthen government action, including by sharing insights on emerging regulatory requirements.
Governments – like companies – will not always get it right the first time. To develop a smarter mix of measures, governments need to learn by doing. New measures must be tested to understand what works and what doesn’t. Companies have an important role to play to help governments (and other stakeholders) evaluate the effectiveness of new measures, identify any unintended consequences and hone those measures over time.
3. Are we talking the walk?
When engaging on government action and the so-called ‘smart mix’, it is important that companies ensure coherence between their public positions and their internal commitments and action.
Alignment between the talk and the walk demonstrates credibility and seriousness. This is not always easy, even when leadership commitment is strong and the company’s human rights programme is mature. Ensuring coordination between the human rights team and business entities as well as the public affairs, procurement, communications and legal teams is key.
Companies also have an important role to play within industry associations, bringing leadership to discussions with other members and promoting engagement that recognises the need for stronger government action and a smarter mix of measures.
Some industry associations can lag behind individual businesses in their perspectives on the rapidly-emerging business and human rights field. They can (and should) challenge and support members to navigate the changing legal and policy landscape with a focus on what will help scale business practice and achieve meaningful outcomes for affected people.
Looking back and ahead
Soon, many of us will pause for the holiday period and reflect on our achievements in 2019, as well as the opportunities, challenges and new frontiers that lie ahead.
Recent discussions in the business and human rights field have demonstrated the common ground that exists between diverse stakeholders, and what can be achieved when business and civil society find ways to navigate their differences and work together towards a common goal.
It is clear now that building a smarter mix of measures is a common goal. Looking ahead, we will all have a role to play to turn talk into action, and we’ll move faster if we work together.
** See this business briefing for more information about the changing legal landscape.