Blog,From experience, I know that company managements, business divisions, risk managers, legal and compliance departments and security specialists will be working overtime to assess the implications of Russia’s war on Ukraine, how to protect people and assets, and ensure compliance with emerging sanctions.
As some companies start to review or suspend their business relationships amid this unfolding tragedy, I would suggest that companies everywhere need to ensure that enhanced human rights due diligence in Russia, Ukraine and Belarus is included in the package of internal considerations and measures currently being undertaken. Unfortunately, human rights specialists are often excluded from such crisis management discussions.
Enhanced due diligence means a company should look beyond sanctions, which provide a key indication of exposed sectors and activities, to assess fully its potential or actual involvement in negative human rights impacts, which could also include the most egregious kinds of risks and crimes. It is vital, as per the United Nations Guiding Principles on Business and Human Rights (UNGPs), to check if business activities, including operations, products or services are causing, contributing to or are directly linked to harms being carried out by Russia.
Perhaps most importantly, now is the time to consider carefully what responsible temporary shut-down or temporary leaving means in both Russia and Ukraine.
It is important to review immediately what companies can and should be doing if risks of negative impacts through business presence, activities and operations become apparent, and to take the appropriate steps guided by not only contractual and legal obligations, but also by the UNGPs.
Markets are open and it is not always possible for a company to follow the movement of manufactured goods, but enhanced due diligence requires that one knows - to the best possible extent – where and how products are being deployed and used. Stakeholders, including investors, business partners, civil society and employees will require a company to know and as importantly to be able to show, as soon as possible, what its involvement or potential impacts may be.
Responsible companies will no doubt have done such enhanced due diligence following the 2014 invasion and annexation of Crimea. Now the situation is far worse, with far greater implications, politically, geographically ... and for the lives and livelihoods of very many human beings.
I hope for a swift end to this war.