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  • Social Impact

Advances in respect for human rights by companies in Brazil

  • Posted in 29/07/2020

Human rights have become an increasingly prominent topic for corporate responsibility professionals in Brazil, and we see a real need and enthusiasm for discussions that go beyond the “why” and focus on the “how.” Recent events such as COVID-19 have heightened the challenges companies face in Brazil – adding urgency to professionals’ efforts to promote respect for human rights within their organizations.

Managing immediate human rights challenges linked to COVID-19 – and supporting their companies to prepare for the transformations that will emerge from the pandemic – is an obvious priority for many professionals who participated in these discussions.

The Global Business and Human Rights Initiative (GBI) and the World Business Council for Sustainable Development (WBCSD) recently organized a series of online workshops in collaboration with CEBDS to support companies in Brazil with the business and human rights challenges they face.

More than 130 people from 45 companies registered for the workshop. Each training session brought together business professionals for a practical discussion on ways to manage human rights risks in their companies’ operations and value chains.

Four priorities were highlighted:

  1. Strengthen practical knowledge of key standards

Practitioners in Brazil are aware of the growing influence of the UN Guiding Principles on Business and Human Rights (UNGPs) on stakeholder expectations – particularly among business partners, investors and civil society organizations – and we hear strong interest in increasing trust in working with these standards.

As we approach the end of the first decade of the UNGPs, we must continue to invest in familiarity with these principles and the practical knowledge to implement them at the local level. To do this effectively, companies need to be able to navigate the relationship between international standards, such as the UNGPs, and relevant national standards and regulatory regimes.

  1. Development of internal training and capacity building initiatives

Raising awareness of companies’ human rights responsibilities – and what this means in practice – is a high priority for many professionals in Brazil. For a variety of reasons, it is not always easy to talk to colleagues about human rights – but, if approached effectively, these discussions can be instrumental in changing mindsets and creating commitment to effectively managing human rights issues. There is no one right way to approach this, but professionals have noted the benefits of translating technical human rights terms into everyday business language and using practical, everyday examples to make human rights concepts tangible and relevant.

Different types of employees will need different levels of knowledge. Most, if not all, will require basic familiarity with company policies and commitments. Some will require more in-depth knowledge tailored to their roles – what a procurement professional needs to know will be quite different from one working in law, communications or community engagement. Building practical knowledge among company lawyers has emerged as a particularly high priority for many business professionals in Brazil, given their influence within the company and the mandatory requirements that arise for reporting and due diligence around the world.

  1. Effective engagement with indigenous and traditional communities

Brazil is home to many indigenous and quilombola communities. Developing effective and rights-respecting approaches to engaging with these communities is a priority for many companies in Brazil – particularly those operating in the extractive, industrial and agricultural sectors.

It is essential that companies engaging with indigenous and traditional communities in Brazil are familiar with relevant national legal standards and frameworks and are able to meet the expectations set out in regional and international human and labor rights (including the UNGPs and ILO Convention 169, which still lacks specific regulation in Brazil).

Experienced professionals in this area emphasized the importance of adequately consulting potentially affected communities, even where Brazilian law does not require it. Meaningful consultation with indigenous and traditional communities is essential to ensure that the company has a strong social license to operate and that the rights of communities are respected.

  1. Managing Human Rights Risks in Supply Chains

Most, if not all, companies around the world that are taking serious action to address human rights risks consider issues related to the management of their supply chains to be a priority. Practitioners based in Brazil have identified challenges related to modern slavery and labor rights more broadly as priority issues.

The Brazilian government’s comprehensive definition of modern slavery and its Dirty List, first published in 2004 and which prohibits ministries and banks from buying from or lending to companies on the list, have brought a stronger focus to these issues among companies operating in Brazil.

COVID-19 has increased the challenges faced by Brazilian practitioners in managing human rights risks in their supply chains. Practitioners noted the need to support suppliers to protect workers, particularly in areas where health services are inadequate. They also emphasized the importance of finding ways to manage human rights issues at a time when business partners face severe resource constraints – and when their ability to travel and conduct due diligence on the ground is restricted.

Looking to the future

Our discussions with professionals in Brazil reinforced the need for companies to think and work globally and locally.

In addition to highlighting the vulnerabilities of global supply chains, COVID-19 has demonstrated the need for companies to invest in developing human rights knowledge and expertise wherever they operate, not just at the corporate level. In times like these where travel is restricted, it is local expertise, networks and actions that companies rely on.

Businesses – in Brazil and abroad – also need to look at the broader transformations that will emerge from the convergence of COVID-19, the climate crisis and increasing stakeholder expectations that companies operate responsibly and with respect for human rights.

The GBI and WBCSD will continue to support business professionals in Brazil and other priority regions to improve their human rights practices – and we will continue to share what we learn, and with the professionals we work with.

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