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Investing in Social Equity

The concept that businesses must operate in a manner that respects human rights stems from the Universal Declaration of Human Rights (1948). The preamble of the UDHR proclaims that, "...every individual and every organ of society [emphasis added], keeping this Declaration constantly in mind, shall strive...to promote respect for these rights and freedoms and...to secure their universal and effective recognition and observance."

Businesses are in a key position to influence the enjoyment of human rights through investment, employment creation and the stimulation of economic growth. But the activities of business have also threatened human rights in some situations and many companies have been complicit in human rights violations worldwide.[1]

There are currently over 200 existing business initiatives and standards regarding human rights. [2]

What is "Complicity"?

The UN OHCHR[3] states that:

"A company is 'complicit' in human rights abuses if it authorizes, tolerates, or knowingly ignores human rights abuses committed by an entity associated with it, or if the company knowingly provides practical assistance or encouragement that has a substantial effect on the perpetration of human rights abuse."

Responsiblities of Business

The UN Global Compact has identified responsibilities of business with two principles:

Principle One: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle Two: Businesses should ensure that they are not complicit in human rights abuses.

The UN Global Compact puts forth that businesses should respect all human rights and maintain non-complicity in the violation of all human rights.[4] However, they do not have an obligation to support all human rights. According to the UN Office of the High Commissioner on Human Rights (OHCHR),[4] some of the human rights that businesses should support are:

Civil & Political Rights: right to life/liberty/security of persons, freedom from torture, right to privacy, freedom of expression/opinion/association, right to information
Women, children, indigenous populations
Non-discrimination

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ENDNOTES

[1] Report of the United Nations High Commissioner on Human Rights on the responsibilities of transnational corporations and related business enterprises with regard to human rights, Commission on Human Rights, 61st Session, Item 16 of the provisional agenda, E/CN.4/2005/91, 15 February 2005. Available at: http://daccess-ods.un.org/access.nsf/Get?Open&DS=E/CN.4/2005/91&Lang=E

[2] Report of the United Nations High Commissioner on Human Rights on the responsibilities of transnational corporations and related business enterprises with regard to human rights, Commission on Human Rights, 61st Session, Item 16 of the provisional agenda, E/CN.4/2005/91, 15 February 2005. Available at: http://daccess-ods.un.org/access.nsf/Get?Open&DS=E/CN.4/2005/91&Lang=E

[3] "The Global Compact and Human Rights: Understanding Sphere of Influence and Complicity: OHCHR Briefing Paper," in UN Global Compact/OHCHR. Available at: http://www.unglobalcompact.org/Issues/human_rights/gc_and_human_rights.pdf

[4] Responsibilities identified in the UN Global Compact.

[5] Report of the United Nations High Commissioner on Human Rights on the responsibilities of transnational corporations and related business enterprises with regard to human rights, Commission on Human Rights, 61st Session, Item 16 of the provisional agenda, E/CN.4/2005/91, 15 February 2005. Available at: http://daccess-ods.un.org/access.nsf/Get?Open&DS=E/CN.4/2005/91&Lang=E

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