The international conference "Business and Human Rights"started at Mykolas Romeris University (MRU) on September 14, where the most important news in this field and in the European Union law at the international level will be discussed, as well as the experience of the countries, the challenges and the advantages of business integrating the human rights aspects into its operations.
We talk about the relationship between business and the implementation of human rights and the relevance of this topic in today's world with one of the world's leading experts in the field of business and human rights, prof. Robert McCorquodale, a member of the United Nations Working Group on Business and Human Rights, who will be taking part in the international conference at MRU.
In the context of approaching international conference on Business and Human Rights at Mykolas Romeris University, we have an opportunity to talk to one of the world's leading experts in this field, Mr. Robert McCorquodale, a member of the United Nations Working Group on Business and Human Rights, about the relationship between business and the implementation of human rights and the relevance of this topic in today's world.
Business and human rights is a rapidly evolving field that is receiving increasing attention. However, a common misconception persists that business and human rights is nothing more than corporate social responsibility. What distinguishes these two concepts?
The main differences between corporate social responsibility (CSR) and business and human rights (BHR) are, firstly, that BHR are based on recognised international human rights law with its years of legal interpretations, while CSR is usually based on a company's choice on which social issues to focus. Secondly, BHR is increasingly regulated, through legislation, industry expectations and practices, while CSR is largely unregulated and voluntary. Third important aspect is that BHR is an ongoing requirement while CSR can often be one-off. Fourthly, BHR focusses on the human rights impacts of those adversely affected by business activities, while CSR is normally based on a business' own self-interests or possible benefits (e.g. sales); and BHR is human rights focussed while CSR is usually philanthropic-based.
How has the understanding of business and human rights evolved over the years, and what are some key milestones in its development?
BHR has evolved from a time when human rights were considered solely a matter for government's responsibility to a stage were States and many businesses accept that businesses have human rights responsibilities. A key milestone was the United Nations Guiding Principles on Business and Human Rights 2011. That document has now been applied across a range of different international and national documents, from the OECD Guidelines on Multinational Enterprises to the International Labour Organisations Declaration on Multinational Enterprises and the Equator Principles. It is referred to in some national legislation, such as the Norwegian Transparency Act, and by some businesses in their human rights policies, such as by Unilever (Human rights in our operations | Unilever). The EU's draft Corporate Sustainability Due Diligence Directive (CSDDD) expressly uses UNGPs terminology in places.
The field of business and human rights has primarily revolved around non-binding instruments such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Corporations. However, there are clear indications of a shift towards a focus on legally binding documents. How can businesses better prepare for this shift?
These two documents to which you refer are not legally binding on business but they do express the international legal obligations of States. They are also authoritative standards for business, which are leading to more legally binding laws, such as the EU CSDDD. Businesses can prepare for this shift by conducting human rights due diligence (see Human Rights Due Diligence & Impact Assessment - Business & Human Rights Resource Centre (business-humanrights.org)) as soon as possible. They should also map their value chain so that they are aware of risks to rightsholders in it.
Lithuania was the second country in the world to adopt a National Action Plan on Business and Human Rights, following the United Kingdom. However, in most cases, this document in Lithuania did not receive much attention from the business community. Given that the UK has already updated its plan three times, could you explain why it is essential to maintain this document's relevance and why it should matter to businesses?
The Working Group on Business and Human Rights has explained the importance of National Actions Plans on Business and Human Rights: Microsoft Word - NAP consultation doc - FINAL (ohchr.org). Updating them regularly ensures that they reflect the current legal and governance in a State and the international guidance, including on access to remedies, as well as the changing expectations by rightsholders and civil society.
Looking ahead, what emerging trends or developments do you foresee in the field of business and human rights, and how might they impact corporate practices and public policy?
The main emerging trend is through the increasing passing of national and regional laws in this area, making mandatory a company's responsibility to undertake human rights due diligence. At the same time, there are an increasing number of cases where courts have found companies potentially or actually liable for their own actions or those of their subsidiaries which have adverse human rights impacts. Investors are also increasingly using Environmental Social and Governance requirements in their financial decision-making, which can include human rights factors.
How can universities and educational institutions contribute to raising awareness and educating future business leaders about the significance of human rights in business?
Universities and educational institutions should begin teaching about human rights in business schools and law schools.
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Join us for the key note presentation by Mr. Robert McCorquodale and other distinguished speakers at international conference on Business and Human Rights on 14 September 2023. During the conference, the most important developments internationally and in European Union law in this field will be discussed, and the different countries’ experience, challenges and advantages for businesses in integrating human rights aspects in their activities will be exchanged. More information about the conference here.
Interview with Mr. R. McCorquodale prepared by Arnas Liauksminas, MRU Law School.