A company's actions can positively or negatively impact the ability of individuals to enjoy their human rights, both in its own operations and in surrounding communities, along the value chain or in society as a whole. The process of due diligence, or due diligence, consists of mapping possible impacts and adopting control measures to address risks and prevent, mitigate and, if applicable, repair any human rights violations caused – directly or indirectly – by companies’ operations.
The topic is one of the priorities of the Social Impact Thematic Chamber (CTSocial) of the Brazilian Business Council for Sustainable Development (CEBDS), which held a workshop on business and human rights last Wednesday, 19/09, to discuss with associated companies the value and key elements of the process of due diligence. The workshop was sponsored by Alcoa.
CTSocial coordinator Henrique Luz highlighted that a company’s responsibilities include protecting, respecting and remediating. “This protection of human rights involves the operations of companies and their commercial partnerships with public and private entities in their value chain.”
The issue of human rights in companies is understood as risk and opportunity management for business. According to Fernanda Britto, manager of Environmental Resources Management (ERM), the topic is aligned with issues already addressed in companies, but with different terminology, such as environmental impact management. “The difference is that human rights require that we also look at the impacted party’s perspective, not just the operations. The exercise of looking at the scenario and the other is the difference from our traditional management of socio-environmental impact and risks.”
Due diligence as a factor in socio-environmental management
Regarding due diligence, Fernanda explained that it is a fundamental tool, as it helps improve management and optimizes community relations efforts, directly reflecting on the reputation of companies. “The human rights lens serves to improve socio-environmental management and identify additional risks and issues. Tools based on human rights provide a multifaceted analysis of the context in which the company operates,” she argued.
Fernanda also presented a case study highlighting the advantages of due diligence in the operation. For her, the process brings greater transparency to operations, in addition to providing more targeted and robust recommendations on how to address human rights issues. The increased confidence for the market and stakeholders external ones are another advantage of the process.
The Latin America advisor for the Global Business Initiative on Human Rights (GBI), Simone Rocha, highlighted that the first step is to develop a human rights policy within companies. “This process is often overlooked, but it should be at the forefront of companies’ actions. The emphasis on the policy fundamentally represents the anchoring, how that issue will be handled within the company. A good policy takes time to be validated, as it needs to undergo an internal consultation and be approved by the board of directors in order to be accepted by international certifiers.”
Another point highlighted by Simone is the exchange between the monitoring and listening sectors of a company. “If the entire monitoring system that was implemented in the due diligence process does not communicate with the entry points (#ouvidoria, for example) of society in the companies, the monitoring will be ineffective”.
ILO 169
Convention No. 169 of the International Labour Organization (ILO) concerning Indigenous and Tribal Peoples was adopted in Geneva in 1989. In Brazil, it came into force in 2004, following a presidential decree. The Convention recognizes the aspirations of indigenous and tribal peoples to take control of their own institutions and ways of life and their economic development, and to maintain and strengthen their identities, languages and religions within the framework of the States where they live.
The document also advocates the recognition and protection of the social, cultural, religious and spiritual values and practices of the peoples mentioned and due consideration should be given to the nature of the problems presented to them, both collectively and individually.
Lawyer Paula Nunes, from Conectas’ Development and Socio-Environmental Rights Program, explained that Convention 169 deals with traditional communities, that is, people who live in a way that has a relationship with the land and the place where they live, which is not just housing. Paula also explained that, in article 6, the document advocates consultation with traditional communities whenever legislative or administrative measures are planned that could directly affect them. “The convention requires consultation and consent. But the question is, does consultation in itself imply consent? If companies do not understand consultation as an analysis of consent, it means that this process is just a checklist for the enterprise. How can we act so that it is not just a checklist?”
For her, the listening process directly affects the legacy for society. “Each population has its own specificities. Companies that operate in these places need to meet these specificities, even to leave a legacy for the communities. Each of these peoples has their own leaders and forms of organization. The key is to think about how to go beyond what the law requires to officially enforce ILO Convention 169.”
What are human rights?
Human rights are basic rights inherent to all human beings, regardless of gender, race, sexual orientation, gender identity, nationality, social class, religion, physical characteristics or any other condition. They include the right to life and liberty, freedom of opinion and expression, the right to work and education, the right to well-being, among many others. Read more.
CEO Guide to Human Rights
In June, CEBDS launched the CEO's Guide to Human Rights, an initiative of the World Business Council for Sustainable Development (WBCSD) involving 35 large companies, present in 17 countries and responsible for generating 2.8 million jobs, in addition to moving extensive supply chains in various sectors of the industry. The Portuguese version, which was endorsed by 11 other Brazilian companies, also presents national case studies.
