The UN, Big Business and Human Rights

The presence of multinational companies in developing countries can bring many benefits.

Yet not all multinational companies can be relied upon to be responsible global citizens – and not all developing country governments have the will or the ability to regulate them effectively.

This can lead to negative consequences for poor and vulnerable communities and, in some cases, can lead to human rights violations.

In recognition of this, in 2005 the UN Commission on Human Rights created a new post; that of UN Special Representative on business and human rights. A Harvard Professor, John Ruggie, was appointed with the task of reviewing the impact that companies can have on human rights and to give recommendations for improving the status quo to the Human Rights Council in June 2008.

This post, the report, and subsequent follow up, represent a historic opportunity to ensure that big business works for, and not against, human rights.

SCIAF, CIDSE and our partners have fed into the report and continue to work on this issue. We have compiled a series of case studies from countries as varied as China, Chad, Honduras and Mexico, looking at a range of industries, from mining, to electronics, to toy manufacture.

These case studies all illustrate the negative impact that companies can have on human rights and highlight a range of problems. For example, there is evidence of developing countries signing contracts with multinationals that stop them from introducing legislation necessary to protect their population.

Even when regulations are in place, weak, inefficient judicial systems mean that local communities made worse off by company operations can find it difficult for their case to get a fair hearing.

The recommendations from the report suggested are a mixture of short and long term policies and include;

- the creation of an international advisory centre to help developing countries in negotiations with companies;

- an independent international body (or ombudsperson) which would investigate complaints against companies irrespective of where they are located and where they operate; and

- a universal human rights framework that all companies would have to respect.

For more information read:

CIDSE report Executive Summary

CIDSE’s report to the UN Special Representative on Business and Human Rights – full length version

· UN Special Representative response to CIDSE’s report

· The report of the UN Special Representative on Business and Human Rights

· Our response to the Special Representative’s report