HUMAN RIGHTS: A BUSINESS-CRITICAL ISSUE

In today’s increasingly connected and global economy, businesses are expected to be ethical, responsible and transparent. They can no longer claim they are not aware of their impact on human rights, employees, the value chain or communities. Thai businesses have an opportunity to ensure fair and ethical treatment of people in both their own operations and in the value chain, and indirectly throughout the country.

Human rights are a set of universal, fundamental rights to which all people are entitled. Specifically, they are listed in the Universal Declaration of Human Rights (Thailand was among the first countries to endorse it in 1948) and the International Bill of Human Rights (1976), which is an international law. The United Nations was given the mandate to clarify the roles and responsibilities of states and companies regarding human rights.

In 2011, the UN Guiding Principles on Business and Human Rights (UNGPs) were endorsed by the UN Human Rights Council. The UNGPs are now the definitive global reference for preventing and reducing the risk of adverse impact on human rights from business activities. The UNGPs clearly outline the role and responsibilities of businesses: to commit to upholding human rights, understand their impact, conduct regular due diligence and prevent and remedy human rights issues.

A reporting framework was launched in 2015 to help companies report on their human rights performance in a practical manner. Several global companies (Unilever, H&M, Ericsson, Nestle, ABN Amro and Newmont) have either publicly committed to, or already published reports, using this reporting framework.

The growing expectations of stakeholders and the public for businesses to understand and take action on human rights are echoed by several initiatives supported by investors, governments and civil society. For example, a global group of 82 investors with US$4.8 trillion assets under management has publicly endorsed the UNGPs. More national policies and legislative requirements are being developed relating to business and human rights.

To date, the following countries have a national action plan on business and human rights: Colombia, Denmark, Finland, Lithuania, the Netherlands, Norway, Sweden and Britain. Moreover, specific legislative requirements have been introduced such as California’s Transparency in the Supply Chain Act and Britain’s Modern Slavery Act of 2015, which require businesses to disclose their anti-human trafficking/forced labour/ slavery actions.

In addition, the first global business and human rights benchmarking project has also begun. The Corporate Human Rights Benchmark is an initiative by a group of investors, an NGO, a think tank and an investor research agency aimed at reviewing the top 500 global companies, including Thai companies, from four key sectors: agriculture, information and communications technology, clothing and extractives.

The Dow Jones Sustainability Index has this year added new questions on business and human rights in its assessment. Thai companies participating in the process will now be required to disclose information on their performance in relation to human rights. It is becoming increasingly important for Thai companies to understand their duty to respect human rights and stakeholders’ expectations, especially as there are many concerns linked to the business sector: child labour, occupational health and safety, gender and diversity gaps, corruption and access to water. If not proactively addressed, these issues can present serious risks with severe consequences such as sanctions, fines or lawsuits.

Last December, PwC held its first “Business and Human Rights” masterclass as part of its PwC Sustainability Academy. Leading companies from the mining, power, petroleum and chemical sectors as well as a government entity participated in the one-day interactive class.

Companies in Thailand are already taking action on human rights but perhaps not realising their full significance or failing to communicate their efforts to stakeholders in the most appropriate and effective way.

PwC advises clients relating to business and human rights, from conducting human rights impact assessments, policy development and analysis or on human rights disclosures.

In summary, companies can be proactive and transparent while taking practical steps towards respecting human rights using the UNGPs. A new reality for business now requires corporate accountability and measured performance on human rights.

The sustainability of both businesses and society can only be ensured when human rights are understood, respected, enforced, protected and advanced by all.