The boundary between the responsibilities of companies and those of governments is anything but clear. There is particular confusion about the role companies operating in a country should play when governments cannot or do not fulfil their human rights obligations.
John Ruggie, the United Nations special representative on human rights and transnational companies, stated the problem clearly: “Where governments lack capacity or abdicate their duties, the corporate sphere of influence looms large by default, not due to any principled underpinning.”
We participated in Ruggie’s consultation process during 2007 and support the UN initiative he is leading to determine the boundaries of responsibility. We welcome his final report published in April 2008, for helping to provide clarity and practical guidance.
Since 2000, we have been using this diagram to help us define our role under the United Nations Universal Declaration of Human Rights.
1. Employees: direct responsibility for issues like labour rights, working conditions and freedom from discrimination.
2. Suppliers and contractors: significant influence through setting standards, screening and training for security staff, local hiring and respectful treatment of third-country nationals.
3. Communities: help at a local level with issues like standards used when relocating people, respecting cultural identity, encouraging access to education and avoiding negative health impacts from our facilities.
4. National governments: support host governments’ efforts to improve their human rights performance including through our contribution to economic development.
5. International efforts: help by supporting voluntary initiatives like the Global Compact, the Voluntary Principles on Security and Human Rights and the International Labour Organization declarations.
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