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Lecture 5
Ambiguity
Despite the fact that business obligations towards human rights are so frequently the subject of news coverage, popular debate and of consumer and NGO campaigns, they still lack definition. We are still left with two basic questions that lie at the heart of the dispute between businesses and the Human Rights group: What defines businesses human rights obligations? How far do these extend?
Distinction
One immediate distinction which limits the scope of business responsibility is the distinction between immediate responsibility and collective responsibility . Immediate responsibility is the responsibility which stems from the activities of a particular business, such as a factory using child labour. The concept of collective responsibility arises from the participation of businesses, as a collectivity, in an inequitable global economic system which engenders severe disadvantages for many groups and societies.
T y p e s o f c o m p a n y a c t i v i t y
Concerns the rights of individuals using Concerns the rights of individuals employed essential goods and services which by the company, or seeking employment are provided by the company, such as with the company company educational, housing, and medical facilities
Concerns the rights of individuals residing in societies (inc. societies defined by political, cultural or geographic boundaries) which are affected by company activities
TYPES OF COMPANY ACTIVITY Potential violations identified for company departments Concerns the rights of individuals residing on
Concerns the rights of individuals using or coming into contact with company products, and individuals or groups affected by company marketing campaigns
Concerns the rights of individuals involved in the research, development, and testing phases of company products, both as test subjects and as possessors of knowledge
In Relation to Workers
usinesses should promote, protect and secure their rights. Health and safety regulations are a good example of the application of this concept of fuller duties in relation to employees.
In Regards to Products
Businesses have a duty to ensure that their products are not used in the violation of human rights. This comprises responsibility to take reasonable measures to prevent both the intentional misuse, and the unintentional wrongful use of the product. For instance- Declare Level of Pesticide
Implications
It is clear that the responsibilities identified previously derive not from the power of businesses per se, but rather from the requirement that businesses ensure that the generally more far-reaching effects of their operations do not negatively affect their own functioning.
Indirect entails a violation, which the company contributes to, but does not directly initiate or perpetrate, by enabling an abusive practice to be established or continued. For example, companies will sometimes buy from suppliers or producers that violate human rights in their operations. Or, a company might undertake a joint venture with an oppressive government. In such cases, the company still has some responsibility to take action to ameliorate the harm, but the action should be proportionate to the nature of the link between the company and the violations.
In the modern world, the decisions taken by a business can have major implications for lives and communities geographically and culturally remote, so businesses do have to be discerning in identifying their indirect connection to violations.
Case 1
For example, in the early 1990s several international oil companies undertook a joint venture with the Burmese government and the state oil company, Myanma Oil and Gas Enterprise (MOGE). MOGE assumed responsibility for providing labour and security for the construction of a gas pipeline for the project. Allegations later emerged that forced labour and child labour were used to construct the pipeline, and that other violations, including torture, and forced relocation, occurred in MOGEs operations to clear the area and provide security.
Although the main Western partner, Unocal, did not directly carry out these purported violations itself, because of its involvement in the project, its liability for acting in concert with the Burmese government and MOGE in breaching universally recognised human rights standards is now under consideration in the United States District Court of California
Business and Human Rights Why are Human Rights important to Business ?
Compliance with both National and International Laws Human rights principles are contained in national and international law. Ensuring that business operations are consistent with these legal principles helps companies avoid legal challenges to their global activities. Satisfying Consumer Concerns: Increased media attention to business role in protecting human rights has led to increased consumer awareness of the treatment of workers producing goods for the global marketplace and demands for social accountability.
Building Community Goodwill : A multinationals presence can be viewed locally as positive or negative. Avoiding human rights violations helps in maintaining positive community relations. Enhancing Risk Management : The denial of basic human rights often can lead to social or political dispruption. This in turn can cause labour strife, delays in production or movement of finished products etc. Keeping Markets Open : Companies can help to ensure that sanctions do not limit their ability to conduct business globally by promoting greater respect for human rights
Increasing Worker Productivity and Retention Maintaining the faith of employees and shareholders
BAYER has withdrawn these chemicals in its home country Germany, but continues to market them in India.