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Business to boost human rights?
InfoSud
Textile factory in Vietnam. Credit: Business-in-Asia.com
20 May 08 - Multinationals which operate in sensitive countries are regularly accused of violating human rights. Is it the case or are they made to take responsibility for the abuses often committed by governments? A debate between business, NGOs and international organisations

Isolda Agazzi/Infosud - Ron Popper, a senior executive with ABB has this to say. "Without human rights, corporate social responsibility is just public relations!" It is a statement that those attending the meeting on the 14th May in Geneva, organised by the Human Rights Tribune, seem to agree with. It is a constructive debate without any spin between NGOs and multinationals, unaccustomed to facing each other under the media spotlight.

"Yes, but corporate responsibility goes beyond human rights. It also covers trade union rights, and protection of the environment" says Anne Kathrin Glatz from the Declaration of Bern. For her the situation is hardly rosy. "In the 1970’s the UN tried to come up with a convention on the multinationals. Over the next 20 years, with the US blocking the North South dialogue, there was a real sense of going backwards. Since the end of the 90’s, there has been a lot of rhetoric, but very little of substance. The UN global pact is still very weak and it only whitewashes the companies that take part. That is to say it gives them a good image".

Facts and not opinions

Jacques Emmanuel Saulnier, representing Areva – that won the Declaration of Bern’s Public Eye award in 2007, the prize for the most irresponsible company of the year, for its uranium extraction activities in north Niger does not agree. "The world is not black or white and a business must deal with the issues of competition and globalisation". He explains that the French nuclear giant always arranges meetings with those concerned to discuss the implications regarding health, job security, nuclear safety, environmental footprint, human resources. " I invite you to come to see what we do in Niger with your own eyes!", he says to his neighbour.

Anne Kathrin Glatz acknowledges that the prize was awarded on the basis of information gathered by the Niger NGO, Aghirin’man and studies from an independent French institute which had confirmed excessive amounts of radioactivity. Salil Tripathi, from International Alert, hits the nail on the head. "Lets say that you accept Areva’s invitation, how are you going to fund your trip to Niger? Are you going to accept their money? It is very complicated to monitor abuse committed by multinationals: even if we had the means of doing it – which is not the case – how to come up with a process for doing it. There is always the issue of conflict of interests".

In spite of the difficulties, the researcher makes the following appeal from the heart. "NGOs must base their statements on facts. They can ask the media to investigate, as all business and governments are not bad. The media must not just take NGO reports, but cross check the information, and read government reports too. They must come u with facts and not just opinions".

After the multinationals, state enterprises

Salil Tripahti points out that the question of complicity is very complex. "Multinationals never directly violate human rights. But there is a tendency to make them responsible for the crimes committed by state security forces. ABB is accused of complicity in the war in Sudan as if it is written down, they respond, unlike the Sudanese government. This does not take away the considerable responsibility of multinationals – just look at the Chinese oil companies in Sudan. But sometimes western companies have no other choice than to be in a given country and if they leave, they would be replaced by the Chinese and the Indians. When the Canadian company Talisman withdrew from Sudan, the human rights situation in the country neither got worse or better.

This expert says that human rights violations by multinationals are well documented, but they only represent 10% of the world’s business. "We never criticise the mistakes of state enterprises or the informal economy. No one speaks about the thousands of people who die in China’s mines"

Translated from French by Claire Doole

A restrictive legal framework or a voluntary code of conduct?

In order to deal with these procedural challenges, the Declaration of Bern is calling for the adoption of an international convention on multinationals. But is this the solution? Few areas are as set down in law as the ban on child labour and yet the practice continues. Another example of this is the recent scandal linked to the sale by Credit Suisse of footballs made by Pakistani children. "But it is because a convention exists and that it is violated that there isa scandal" points out Tripathi.

Malcolm Gifford points out that the principle challenge is to apply already existing standards, above all in the informal and local business sector. Public private partnerships are good ways of moving in the right direction. From Mexico to South Africa to Brazil multinationals are training governments in how to monitor ILO standards. "Government inspectors have learnt a lot from Volkswagen", he says.

So should there be a convention or voluntary codes of conduct? A consensus seems to be emerging on the need for a dual approach, which links legal restrictions and voluntary engagement. Everybody gets something out of this. Because the world is not black and white.

IA, translated by CD

 
1 comment   Comment >
Salil Tripathi
Business to boost human rights?

Thank you, Isolda, for this report, which has attempted to capture a very rich discussion in Geneva last week. I thought I should clarify some of the things I have said: the report indeed gets the thrust of what I have said right, but it might help readers if some of the things I said are spelt out a bit more.

When I asked Bern Declaration if they would accept Areva’s invitation to go to Niger, my aim was not to put the NGO on a spot. I am entirely aware of the need for indepedendent investigations, and the lack of resources, and the keen desire NGOs have, in maintaining their impartiality by not receiving funding from companies. That’s well-said and recognized, but nobody has squared the circle yet: and given the millions of companies and their subsidiaries around the world, and the sheer cost of auditing the activities of each company on an annual basis, the exercise of "independent, verified, monitored reporting" in every instance, is mind-bogglingly expensive, and fair questions can be raised if the cost is justified, or may not be deployed elsewhere for human rights protection instead. I don’t have the answer; but I raised the question in a spirit of debate.

While I said NGOs must base their statements on facts, I also said that companies should be transparent and report facts accurately, and not provide spin instead. Companies, like governments, are neither good, nor bad. Their conduct, in certain instances, may be good or bad.

And finally, on complicity: what I meant was the companies raraly (not never) commit direct abuses of civil and political rights. (Economic, social and cultural rights is a different matter). Companies are often one step removed from abuses committed on their behalf - by state security forces, by suppliers, etc. The point about ABB and Sudan is: a company like ABB will respond and interact with NGOs over its investment in Sudan; the Sudanese government does not. That sometimes influences NGO campaigning and perceptions, where the company becomes the proxy of the state.

And finally, my meaning was that "we’ (NGOs) rarely (not never) "criticise the mistakes of state enterprises or the informal economy. No one speaks about the thousands of people who die in China’s mines." That last point is rhetorical: there has indeed been criticism of conditions of workers in Chinese mines, most notably by the China Labour Rights activists in Hong Kong. But we hear much less of that, then of abuses committed inside facilities owned by western firms. For the sake of NGOs’ own integrity, we should work towards removing biases - and even perceptions of biases.

Business to boost human rights?
20 May 2008
 

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