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Why doing the ‘rights’ thing is good for business
By Catherine Branson, President of the Australian Human Rights Commission
Publication: Ethical Investor magazine (Oct/Nov 2009)
Despite the global financial crisis, growing numbers of Australian companies are recognising that doing business in a way that demonstrates respect for human rights makes good business sense.
These companies are finding that, far from being an extravagant add-on, such an approach can help them to manage business risks and create new opportunities.
Here at the Australian Human Rights Commission, we have been working with business on human rights issues throughout our 22-year history. We have developed best practice guidelines, worked on policy issues which have involved the corporate sector, and on a very practical level, we’ve conciliated complaints made by individuals against companies under discrimination legislation.
Our experience tells us that due diligence is the first step a company must take to embed human rights into core business practices. While the due diligence process will vary for each company, there are some things which should be included as a minimum.
First, companies should assess the impacts of their operations on the human rights of all people affected by the company’s activities, including workers, business partners, suppliers, contractors, trade unions, local communities and customers.
Secondly, companies should adopt, implement and integrate policies of respecting human rights throughout their operations and supply chain. For example, companies involved in land use should have a policy in place to ensure that consultations are undertaken with the Indigenous community to secure its free, prior and informed consent for any proposed land use. This will mitigate the potential for future conflicts including costly litigation.
Businesses should also ensure compliance with all local laws and adopt internationally accepted codes of practice relevant to the human rights impacts of their business and supply chain.
All of this will come to naught, however, if there is no credible and transparent system of monitoring and reporting. It is critical that companies keep track of how their policies are being implemented and what impacts they are having.
And finally, as we at the Commission know well, a partnership approach is invaluable in promoting a human rights culture. Companies should look to developing partnerships with other companies, NGOs, community groups, unions, Indigenous and other local communities and governments to ensure respect for those human rights impacted by the company’s business operations and to ensure appropriate systems are in place to address grievances.
Companies that embed respect for human rights into their business practices soon learn that this can help them better manage business risks by, for example, highlighting human and environmental risks before technical or investment decisions are made.
They also learn that paying attention to human rights can protect against reputational damage and reduce costs associated with labour disputes, security issues and stakeholder damage control.
On the flip side, embedding human rights into business practices can increase staff loyalty, improve recruitment possibilities and foster a more productive workforce. Additionally, as governments outsource the provision of services, they may increasingly insist that their contractors have a demonstrable commitment to human rights. Recently 12 Australian companies, including Kay's Bag Stores, Morgan's Supa IGA and Rivers (Australia), were ‘named and shamed’ in the media for refusing to disclose to the Equal Opportunity for Women in the Workplace Agency details about their treatment of women in the workplace and have been banned from applying for government contracts
We at the Australian Human Rights Commission know that human rights issues are a real and present concern for Australians in their workplaces and their communities.
Australian companies are increasingly coming to the same understanding and realising that doing the ‘rights’ thing is good for business.
