How do businesses abuse human rights, and what must be done to prevent such abuses? This report from the International Network for Economic, Social and Cultural Rights Corporate Accountability Working Group draws on case studies from around the world. It concludes that direct or indirect violation of all types of human rights by companies is widespread and occurs across many different political systems and industries. Effective redress and accountability procedures at national, regional and international levels are needed to ensure that businesses, governments and the international community meet their obligations in this area.
The report is based on a survey of 159 cases of reported human rights abuses involving companies across 66 countries. It finds significant gaps in the protection of human rights in relation to business activities. Companies contravene the whole spectrum of human rights, including rights to life, liberty, personal security, food, water, health and information, and rights involving the workplace, housing, indigenous peoples, environmental resources and freedom of expression.
Businesses are not effectively regulated at domestic or international level. Governments are hampered by an international legal system that protects investor rights transnationally but not basic human rights locally. Furthermore:
- Governments are constrained in protecting human rights by the fear of losing business investments to other less scrupulous countries. In effect, the current global economic system penalises governments that uphold human rights.
- Companies use their influence to obstruct justice, restricting the ability of affected individuals and communities to seek redress.
- Companies abuse human rights both directly and also indirectly through their connections with abusive regimes, security forces and suppliers.
Businesses must ensure they do not contribute to or benefit from human rights violations. They must be regulated by governments and also held to account at international level. The international human rights system therefore needs to adapt to the new global environment. Collective action is required to overcome the disincentives for governments to protect human rights that are created in the global economy by competition for investment. The United Nations Human Rights Council and its Members must:
- Establish a broader follow-on mandate on business and human rights that includes the capacity to examine real life instances of business abuse.
- Ensure consultation with affected individuals, communities and indigenous people to guarantee a thorough analysis of the problem and to identify meaningful solutions.
- Initiate an inter-governmental process for the adoption of global standards on business and human rights.
- Intensify efforts to strengthen redress and accountability to guarantee that individuals and communities have the capacity to defend their rights and that those responsible are held to account.
- Enhance the accountability and capacity of governments to fulfil their obligation to protect human rights. The Universal Periodic Review process and UN Special Procedures should be aligned to give increased priority to business and human right issues.
