USCIB Reports Outcomes of UN Treaty on Business and Human Rights (BHR) Negotiations

Ewa Staworzynska and Lavanga Wijekoon (Littler Mendelson).

Ewa Staworzynska, Director, Corporate Responsibility and Labor Affairs at USCIB, and Lavanga Wijekoon, Shareholder, Littler Mendelson, were two of only four business representatives negotiating the legally binding Treaty on Business and Human Rights (BHR) Negotiations in Geneva from April 7-10.

Staworzynska reports that political pressures are increasing on Responsible Business Conduct (RBC) responsibilities for companies, and that there are serious risks to global business in the draft UN Treaty, which contains criminal liability and piercing of the corporate veil. Any efforts to improve human rights should instead focus on the root causes of these challenges. A draft treaty, if ever passed, would disincentivize investments in developing countries, which are most needed for work opportunities and economic growth.

Staworzynska reiterated that the UN Guiding Principles on Business and Human Rights are the most important global framework on BHR and RBC, and a legally binding treaty would cause fragmentation with this existing framework.