Human Rights: Now Is the Time

Authors

• Faris Natour

  Former Managing Director, Advisory Services, BSR

As I read the latest report (PDF) from John Ruggie, UN special representative on business and human rights, his chapter on the economic crisis and its relevance to the business and human rights debate immediately caught my eye.

In this report—an update on his mandate’s current effort to operationalize the Protect, Respect, and Remedy Framework proposed last June—Ruggie answers the question whether this is the right economic environment for states and companies to worry about human rights challenges with an emphatic “yes”.

I agree wholeheartedly; now is the time for governments and business to put in place systems that ensure better protection of human rights around the world. Why? Ruggie lists three broad reasons:

1. The global economic crisis affects poor communities disproportionately and puts human rights, especially economic and social rights, at even greater risk.
2. The governance gaps and failures that helped cause the current crisis also play a role in the human rights dilemmas involving business.
3. The Protect, Respect, and Remedy Framework seeks to help address some of these underlying causes.

Yet which specific business case arguments can help managers establish policies and processes for human rights in these difficult times? Two are worth mentioning in this context: First, the economic crisis brought with it a loss of public trust in companies. Proactively managing human rights impacts—and thus demonstrating respect for human rights globally—will likely be necessary for companies to regain that trust and to retain their social license to operate.

Second, the possibility of being complicit in human rights violations presents a material risk to companies. Legal costs associated with fighting allegations of complicity in court can be substantial. Reputational damage can be significant for companies that increasingly depend on the strength of their brand. In tough economic times, putting strong systems in place that minimize these risks is a smart investment.