More: Business Applauds U.S. Action Plan on Responsible Business Conduct

In 2011, after extensive consultation with the private sector and civil society, members of the United Nations Human Rights Council endorsed the landmark UN Guiding Principles on Business and Human Rights.

Prepared under the stewardship of Prof. John Ruggie of Harvard’s Kennedy School, who served as a UN special representative on the issue, the Guiding Principles established a framework under which states are obligated to protect human rights in their territories, while businesses, both foreign and domestic, are responsible for respecting these rights throughout their operations. The principles also propose a framework for greater access to human rights victims to effective remedy.

Three years on, how are global companies implementing the responsibility to respect human rights in their activities? This was the focus of USCIB’s latest annual forum on business and human rights, held September 18 at the Center for Civil and Human Rights in Atlanta. Organized with the International Organization of Employers (IOE) and the US. Chamber of Commerce, with support from The Coca-Cola Company, the day-long forum drew well over 100 company executives, including Coca-Cola bottlers from around the world, along with select public-sector and NGO representatives.

“This event underscored the strong commitment and ingenuity that leading American and global businesses bring to addressing the human rights impacts of their operations,” said Ariel Meyerstein, USCIB’s vice president for labor affairs and corporate responsibility. “We heard example after example of companies putting their values into practice, on the ground and throughout their operations, to uphold human rights. We also learned about the many challenges they are facing in implementing the UN Guiding Principles throughout their sometimes complex global supply chains.”

The forum included a frank and open discussion on the importance of addressing challenges related to integrating respect for human rights in business. It provided a unique opportunity for participants to engage with business leaders and other experts in this emerging field. “We are confident that participants left with a better understanding of how to integrate human rights as part of their overall corporate responsibility to respect human rights,” said Ed Potter, Coca-Cola’s director of global workplace rights.

“Companies are increasingly aware of the growing stake they have in creating better societies,” said Brent Wilton, the IOE’s secretary general. “The strong participation in this forum has also demonstrated their firm commitment to do so.”

Speakers at the event included former U.S. Labor Secretary Alexis Herman, who currently sits on the board of the Coca-Cola Company, IOE Secretary General Brent Wilton and Ed Potter, director of global workplace rights at Coca-Cola and chair of USCIB’s Labor and Employment Policy Committee. Company presentations came from representatives of ABB, ExxonMobil, GE, Hewlett-Packard, Hess Corp., Disney, Nestle and Shell.

Business Applauds U.S Action Plan on Responsible Business Conduct

The UN Guiding Principles on Business and Human Rights established a framework under which governments are obligated to protect human rights, and corporations have responsibilities to respect them. As part of implementing the Guiding Principles, the UN’s Office of the High Commissioner for Human Rights has strongly encouraged all states to develop a National Action Plan (NAP) on responsible business conduct. Such action plans would make it easier for global businesses to comply with the Guiding Principles throughout their operations.
Last week President Obama announced that the U.S. would develop a NAP, joining the other five countries that have already developed NAPs: the UK, the Netherlands, Italy, Denmark and Spain. The White House recently released a Fact Sheet outlining the Obama administration’s global anticorruption agenda, which includes the creation of a National Action Plan:

“The U.S. Government works closely with U.S. businesses to ensure that private actors maintain their international brand as transparent and accountable partners. The United States will develop a National Action Plan to promote and incentivize responsible business conduct, including with respect to transparency and anticorruption, consistent with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines on Multinational Enterprises.”

USCIB is an essential stakeholder as the United States begins designing its National Action Plan in a process that will be open and consultative.

“Obama’s announcement not only reinforces the United States’ position as a global leader on human rights, but also demonstrates its firm commitment to the UN Guiding Principles as the best way to achieve progress on this issue,” said Ariel Meyerstein, USCIB’s vice president for labor affairs and corporate responsibility.

Meyerstein noted further that the U.S. government is far ahead of most in terms of its encouragement of responsible business conduct among U.S. businesses, so the National Action Plan will likely be an exercise in greater harmonization of existing policies across government agencies. “Hopefully other countries will follow the U.S.’s example, which will only make it easier for U.S. companies to act responsibly, particularly in foreign markets,” he said.

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

More than 75 million youth are unemployed worldwide. Long-term youth unemployment increases the risk of social exclusion well into adulthood and poses broader threats to national productivity, growth and development.

Addressing a B20 Roundtable in Melbourne, Australia on September 9, Daniel Funes de Rioja, president of the International Organization of Employers, called for key actions governments can take to bring about the right conditions for job creation. As a participant in the B20 Human Capital Taskforce, he underscored two areas he particularly wanted to see addressed: structural reform to enhance labor market flexibility and better alignment between prospective employees’ education and the needs of business.

Funes de Rioja also reminded the audience of the part played by the business community in youth workforce development with the launch of the Global Apprenticeships Network (GAN), a coalition of companies that offers apprenticeships to young workers and shares youth employment best practices with other companies and labor administrations.

“Government reforms in both areas are needed in order to open up opportunities for newcomers to enter the labor market, to allow companies to adapt in line with demand, and restore their confidence to hire,” he said. “To date, we have seen progress in terms of implementation of measures to align skills training with labor market needs.” But he added, “focusing on the supply side alone will not bring about a labor market that meets the needs of employers and workers in the 21^st century.”

In June 2013, the B20 and L20 reached consensus on the need for a global apprenticeships network to combat long-term youth unemployment. “Global business, through the Business and Industry Advisory Committee to the OECD and the IOE, has since moved forward with launch of the GAN,” said Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance. “It’s time for countries to meet business half-way to further incentivize and support apprenticeship programs throughout the G20.”

Funes de Rioja concluded by reiterating the position of the B20 Human Capital Taskforce: “Businesses face structural challenges to increasing employment. Dismantling the regulatory barriers that restrict diverse forms of employment is in the interest of businesses and job seekers alike and we hope the G20 governments will not waver from their commitment in this regard.”

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

As Secretary of State John Kerry recently noted in a speech prior to meetings between the United States and the Association of Southeast Asian Nations (ASEAN), Myanmar has made significant strides toward reform in recent years that have created opportunities for foreign investment.

USCIB has stepped up its advocacy for business in Myanmar, particularly on issues related to investment and responsible business practices. Here are some updates of our work in a country that awaits significant investment opportunities if political reforms continue.

International Labor Organization Action

In July, USCIB convened a high-level meeting in Washington, D.C. with the International Labor Organization, several U.S. government agencies (State Department, Department of Labor and U.S. Trade Representative) and representatives from U.S. civil society and unions to address responsible investment in Myanmar. USCIB and its affiliate network, the International Organization of Employers, also have excellent contacts on the ground through the long serving ILO Myanmar representative, Steve Marshall. Until the recent opening in Myanmar, Marshall was the only UN official posted there. He has extensive contacts with the regime and deep knowledge of the unique dynamics businesses face on the ground.

At the end of July, the Myanmar Parliament passed into law ILO Convention No. 182 on the Worst Forms of Child Labor, which the country ratified this past December. The law will ban child labor and calls for the immediate elimination of the worst forms of child labor, including slavery, trafficking, the use of child soldiers in armed conflict and child prostitution. The Labor Minister announced recently that implementation of the convention will start in December 2014.

“Much of the progress in Myanmar on labor issues is the result of sustained pressure since 1999 by the ILO, with the support of employers, to get the government to amend its law and practice, which ultimately resulted in expanded ILO technical assistance on forced labor and freedom of association, including a substantial ILO presence on the ground in Myanmar,” said Ariel Meyerstein, USCIB’s vice president of labor affairs, corporate responsibility and governance. The ILO is currently advising on the reform of many of Myanmar’s labor laws, an essential aspect of revamping its economy that will enable increased foreign investment there by U.S. companies.

U.S. Company Best Practices Bearing Fruit

Building upon these exiting reform efforts and the momentum from the July high-level meeting in Washington, U.S. Trade Representative Michael Forman visited Myanmar in late August to conclude an agreement with the Republic of Myanmar to begin a consultative process intended to lead to a new Initiative to Promote Fundamental Labor Rights and Practices in Myanmar by the time of the ASEAN Leaders meeting in November, 2014. According to USTR’s press release, other interested governments, as well as businesses and labor stakeholders, will be invited to take part in the development and implementation of the Initiative, whose main goals will be to develop a multi-year strategy for labor law reform and capacity building, to implement fundamental labor rights and decent working conditions on the ground, and to foster strong relations between businesses, workers, and the government of Myanmar.

There is also some evidence that local companies are absorbing the responsible business practices of U.S. companies – albeit slowly. The Myanmar Center for Responsible Business published the results of its transparency survey, which documented the transparency practices of Myanmar companies. The study found that nine of the largest Myanmar companies publish a significant amount of information about their policies, standards and practices on responsible business conduct, but that 25 of the 60 large companies are not at all transparent and have no websites. A number of other companies publish only a little information, generally relating to anti-corruption or organizational transparency. Companies scored fewest points in the areas of human rights, including land acquisition, a major concern to the Myanmar population.

As reforms continue on the ground in Myanmar, USCIB is supporting further investment opportunities for U.S. and other foreign companies as well as the application of more responsible business practices at all levels.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee