Most big companies failing U.N. human rights test, ranking shows

LONDON, (Thomson Reuters Foundation) - Most big companies operating in sectors at high risk of labour abuses are failing to meet human rights standards set by the United Nations, according to an analysis of 100 major companies published yesterday.

From tackling child labour to ensuring equal treatment for women, U.N. principles require all businesses prove they are committed to human rights and treat workers fairly.

But an analysis of more than 100 major apparel, agricultural and extraction firms by the Corporate Human Rights Benchmark (CHRB), a British charity, found many had little to show for.

Sportswear giant Adidas came top with 87 out of 100 points in the ranking that used public information on practices and policies on issues such as transparency, forced labour and the living wage to rank companies.

It was followed by miners Rio Tinto and BHP Billiton, while two Chinese companies - liquor maker Kweichow Moutai and fast fashion brand Heilan Home - were ranked last.

But almost two-thirds of firms scored less than 30 points, putting the overall average at 27.

“The majority are failing to make the grade,” CHRB director Margaret Wachenfeld said in a statement.

The study comes as big brands face growing pressure from regulators and consumers to ensure their global operations are not tainted by modern-day slavery, with campaigners estimating almost 25 million people worldwide are trapped in forced labour.

More than 40 percent of businesses analysed scored zero on human rights due diligence - the practice of identifying and addressing the risk of abuses.