Perspective (Spotlight Weekly)

Norms on Corporate Responsibilities: A Step Forward in Developing Human Rights Standards

By Bipin Adhikari

Historically, the tradition in international human rights law has been to focus on state responsibilities for the protection of all human rights and freedoms, and not others. As businesses around the world have expanded their power in the world, an increasing number of U.N. bodies and others have now recognized that with greater power should come greater responsibility.

In an important step forward in this regard, the U.N. Sub-Commission for the Promotion and Protection of Human Rights has approved on 13 August 2003 the draft "Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights." For the first time, this document sets out the responsibilities of companies for human rights and labor rights, and provides guidelines for companies operating in conflict zones. The Norms also prohibit bribery and activities that harm consumers, including polluting the environment. They assert that companies should be subject to the kind of enforcement procedures at the UN Commission for Human Rights previously applied only to nation states. With this, the Norms have become the world's most comprehensive and authoritative standard on corporate responsibility.

Apart from these important features, these Norms hold that states have the primary responsibility to promote, secure the fulfilment of, respect, ensure respect of, and protect human rights recognised in international as well as national law, including assuring that transnational corporations and other business enterprises respect human rights. Within their respective spheres of activity and influence, transnational corporations and other business enterprises have the obligation to promote, secure the fulfilment of, respect, ensure respect of, and protect human rights recognized in international as well as national law. They outline the applicable details of the right to equal opportunity and non-discriminatory treatment; right to security of persons; rights of workers; respect for national sovereignty and human rights; obligations with regard to consumer protection; obligations with regard to environmental protection; and general provisions of implementation.

A group of international nongovernmental human rights organizations which welcomed the new Norms emphasized that the Norms, and the accompanying interpretive commentary, "constitute an authoritative interpretation of the Universal Declaration of Human Rights of 1948. The Universal Declaration applies not only to states and individuals, but also to "organs of society", including businesses. In addition to the Universal Declaration and the principal human rights treaties, the U.N. Human Rights Norms and Commentary rely upon and restate the relevant principles from a wide range of labor, environmental, consumer protection, and anti-corruption treaties and other international instruments. As such they provide a useful checklist for companies on how to act consistently with international norms." These norms come to fill an important gap in the protection of human rights worldwide.

The Amnesty International said that it supports the Draft Norms [E/CN.4/Sub.2/2003/12] for a number of reasons. First, it maintained that they provide a useful statement of the scope of human rights obligations on private companies. Secondly, their adoption would contribute to international legal development in this area. They clarify the scope of these obligations and, though themselves not a formal treaty, will help those interested in expanding the scope of legal obligations in this area. Thirdly, the current text is solid and can command wide support. The Norms cover not only classic human rights concerns but also deals also with labour rights, and emerging human rights issues in relation to companies such as environmental harm, consumer issues, and the impact of corruption.

The Amnesty International has also categorically stated that each principle in the text of the Norms is firmly grounded in recognized international standards, a point well substantiated in the accompanying commentary. The process leading to the development of the Norms has been inclusive and the consultation has been broad. "While primarily directed at transnational corporations, the Draft Norms sensibly recognise that other private companies should not be excluded. While we understand that some advocates are concerned about particular aspects of the text, in Amnesty International's view it represents a fair attempt to set out the scope of existing standards in this area. Those concerned with particular details will be assured through reference to the accompanying commentary that the drafters have fully reflected the importance of the many relevant international standards in this area."

The Norms also provides for general provisions of implementation. As an initial step towards implementing these Norms each transnational corporation or other business enterprise is to adopt, disseminate, and implement internal rules of operation in compliance with the Norms. Further, they are to periodically report on and take other measures fully to implement the Norms and to provide at least for the prompt implementation of the protections set forth in the Norms. Similarly, transnational corporations and other businesses enterprises are to be subjected to periodic monitoring and verification by United Nations, other international, and national mechanisms, already in existence or yet to be created, regarding application of the Norms. States are also asked to establish and reinforce the necessary legal and administrative framework for assuring that the Norms and transnational corporations and other business enterprises implement other relevant national and international laws. It also provides for prompt, effective, and adequate reparation to those persons, entities, and communities that have been adversely affected by failures to comply with these Norms through, inter alia, reparations, restitution, compensation, and rehabilitation for any damage done or property taken.

The Norms, as stated above, are not a law or binding set of standards, but can be adopted by governments or companies. Their analysis and commentary could provide the conceptual basis of a binding instrument on corporate responsibility since the Norms are an authoritative interpretation of the responsibilities of corporations under international human rights law. Eventually, the human rights advocates would like to see binding standards for corporations. But this is a good first step.

[Adhikari is a lawyer. He can be reached at human_rights_nepal@yahoo.co.uk]