Human rights
The issue
Human Rights has become central to the corporate social responsibility agenda over the last few years. This is partly driven by the debate about whether globalisation is detrimental or beneficial for developing countries. It is also partly driven by concern about whether corporate behaviour is reinforcing or undermining human rights.
A number of campaigns focusing on corporate behaviour, initially in South Africa, and more recently in Burma and elsewhere, has placed the spotlight on particular countries where human rights are seen as most at risk (whilst not detracting from the fact that violations of human rights occur in all countries).
While governments have primary responsibility to promote and protect human rights, corporations and other organs of society also have responsibilities. Companies have direct responsibility for their own operations, for example ensuring that their labour rights policies are implemented globally. However, companies are increasingly being assessed on their wider impact on fundamental human rights in their operations in countries where oppressive regimes, weak governance and conflict hold sway.
Investors have traditionally boycotted certain countries, but increasingly it is argued that countries need investment to improve basic social and economic rights. Increasingly, it is what the company does in a country that is of interest.
Its relevance for charities
Allegations of human rights abuses can potentially damage a company’s reputation and financial returns so all charities may want to be sure that such companies have appropriately managed these risks.
The issue may be of particular interest to charities working in the areas of international development, aid and human rights, as well as religious groups.
Incorporating the issue into investments
Assessing a company’s performance on human rights issues is not always straightforward.
It may be possible to avoid investing in companies that:
- operate in countries with oppressive regimes or specific countries – such as Burma
- operate in such countries but have insufficient human rights policies and systems
- have been the subject of allegations of breaches of human rights principles
- have been the subject of allegations of breaches of international labour standards
It may also be possible to engage with companies on human rights issues, or adopt a best in class approach to the issue – investing in companies with the best record on human rights issues.
Some pooled investment funds employ human rights criteria. The Database of funds and fund managers gives some examples.
