Incorporating human rights into the corporate domain: due diligence, impact assessment and integrated risk management

Business and human rights are often thought to be antithetical, but as societal expectations on companies have grown, it has become increasingly important for businesses to understand and act upon their legal and moral obligations to respect human rights. The authors of this paper begin by charting the evolution of the rights paradigm and its incorporation into the corporate sphere of influence. Second, the concept of human rights due diligence is examined, owing to its prominence in John Ruggie’s ‘Protect, Respect and Remedy’ framework. Human Rights Impact Assessments, as an emerging due diligence tool, warrant further attention, theorization and critique. Finally, it is suggested that human rights due diligence could be consolidated within existing corporate risk management systems. Reframing human rights in the context of social and business risks may provide a path forncompanies to understand the need for human rights due diligence by linking rights considerations with business concerns

Human rights, Indigenous peoples and the concept of Free, Prior and Informed Consent

The human right to self-determination is enacted in various international treaties and conventions. In order to facilitate self-determination, it is necessary to provide Indigenous peoples with opportunities to participate in decision-making and project development. The obligation for governments and companies to engage impacted communities is recognized in international law, especially with the principle of ‘Free, Prior and Informed Consent’, which is outlined in the United Nations Declaration on the Rights of Indigenous Peoples and in the International Labour Organization Convention 169. The encounter between human rights, Indigenous peoples and mining and other extractive industries is discussed, especially as it is has played out in Brazil. We recommend that companies should fully endorse and respect these internationally recognized human rights, including self-determination, even where not required by national or local legislation. We also discuss the relationship between Free, Prior and Informed Consent and Impacts and Benefits Agreements