The Human Rights Compliance Assessment

This presentation describes the concept,

features and application of the Human

Rights Compliance Assessment, a

comprehensive tool that allows businesses

to measure their performance on

international human rights principles.

About this Presentation

Access the HRCA at

HumanRightsBusiness.org

1. The need for a human rights tool

2. What is the HRCA?

3. HRCA content and features

4. How to use the HRCA

5. The HRCA in practice

6. Accessing the HRCA

Agenda

1. The Need for a Human Rights Tool

Why is it important to systematically assess your company’s human rights risks and performance?

The Need for a Human Rights Tool

1. Improve Human Rights

Performance

Human rights assessments help companies prevent and mitigate abuses, and avoid complicity in human rights violations committed by third parties

The Need for a Human Rights Tool

Reduce reputational risk

1. Improve Human Rights

Performance

The Need for a Human Rights Tool

Legal liability

Companies are increasingly exposed to home, host and extraterritorial legislation concerning their social impacts

1. Improve Human Rights

Performance

Reduce reputational risk

The Need for a Human Rights Tool

Operational risk

Human rights violations can lead to blockades, work stoppages, sabotage and other actions that could affect output.

1. Improve Human Rights

Performance

Legal liability

Reduce reputational risk

The Need for a Human Rights Tool

2. Corporate Commitments

Human rights assessments help companies implement their values

The Need for a Human Rights Tool

2. Corporate Commitments

External commitments

The Need for a Human Rights Tool

2. Corporate Commitments

Internal commitments

Code of conduct

Business principles

More than 250 multinational companies have publicly committed to upholding human rights principles in their operations

The Need for a Human Rights Tool

3. Investor Requirements

60% of worldwide project finance includes social criteria

Socially responsible investment makes up 11% of U.S.

investment flows

Reputational Risk and

Non-Technical Risk

4. Unclear Responsibilities in

Challenging Locations

The Need for a Human Rights Tool

Human rights assessments help companies set standards and performance benchmarks when operating in high-risk environments

Reputational Risk and

Non-Technical Risk

4. Unclear Responsibilities in

Challenging Locations

The Need for a Human Rights Tool

Legal conflicts

International standards may be absent or contradicted in domestic law

Reputational Risk and

Non-Technical Risk

4. Unclear Responsibilities in

Challenging Locations

The Need for a Human Rights Tool

Complicity in violations

Companies may assist in or benefit from host state rights abuses

The Human Rights Compliance Assessment is an online checklist tool that allows companies to comprehensively measure their compliance with international human rights principles.

2. What is the HRCA?

Benchmark and improve human rights

performance

Monitor and report progress

Define legal responsibilities and development

opportunities

Build internal awareness and capacity

What is the HRCA?

HRCA objective

HRCA Objective:

Benchmark and improve human rights

performance

Monitor and report performance

Define legal responsibilities and development

opportunities

Build internal awareness and capacity

What is the HRCA?

Monitor and report performance

How does the HRCA make human

rights standards operational?

What is the HRCA?

How does the HRCA make human

rights standards operational?

What is the HRCA?

80 international

human rights

instruments

Universal Declaration of Human Rights,

International Covenant on Civil and

Political Rights, International Covenant

on Economic, Social and Cultural

Rights, International Labour

Organization Core Conventions, etc.

Translate

into

Company

Policy

Company

Procedures

Company

Performance

What is the HRCA?

Example:

Right to Religious Freedom

Human Rights Instruments

The right is recognized in:

Universal Declaration of Human Rights (1948)

International Covenant on Civil and Political Rights (1966)

Declaration on the Elimination of All Forms of Intolerance and of

Discrimination Based on Religion or Belief (1981)

Convention on the Elimination of All Forms of Racial Discrimination (1965)

International Labour Organization:

Discrimination (Employment and Occupation) Convention, 1958

What is the HRCA?

Example:

Right to Religious Freedom

What does this rights principle mean for companies?

What is the HRCA?

Example:

Right to Religious Freedom

Company Policy

The company publicly commits to:

Recognize religious expression

Prohibit religious harassment

What is the HRCA?

Example:

Right to Religious Freedom

Company Procedures

Systems, directives and guidelines ensure that:

Workers are allowed to take religious holidays

Workers are allowed to express religion at the workplace

If abuses occur, workers can file grievances confidentially

and anonymously

What is the HRCA?

Example:

Right to Religious Freedom

Company Performance

Company monitoring and audits:

Track incidents of harassment

Follow up on grievances

What is the HRCA?

80 international

human rights

instruments

Translate

into

Company

Policy

Company

Procedures

Company

Performance

3. HRCA Content and Features

The HRCA Tool

Traffic light system

Legal liability

Summary report and follow-up Action Plan

Checklist Tool

Quantitative performance scoring

The HRCA Tool

All internationally recognized human rights

200 questions and more than 1,000 company

policy, procedure and performance indicators

Comprehensive Coverage

The HRCA Tool

Questions target company function areas

Comprehensive Coverage

Employment Practices Forced labour Child labour and young workers Non-discrimination

Freedom of association Working conditions Workplace health and safety

Community Impact Acquisition of land Environmental impact Provision of housing, water,

sanitation, electricity, education and healthcare Operations in remote areas

Supplier, Customer and Government Relations Supply chain and recruitment agency management Advertising and labeling

Complicity in violations by third parties Bribery and corruption

The HRCA Tool

2002-2005: Consultation process

Consultation and Testing

70 companies, 50 human rights organizations,

35 international rights experts

Piloted with Shell International

Content and interface fully updated in 2010

Getting started

4. How to Use the HRCA

Using the HRCA

1. Log On

Using the HRCA

2. Choose sector and countries of operation

Using the HRCA

3. View checklist

Using the HRCA

4. Answer questions and indicators

Using the HRCA

5. Review summary report

5. The HRCA in Practice

How companies use the HRCA

Meet human rights commitments

Develop internal policies and systems

Compare to external human rights frameworks

The HRCA in Practice

Customise to company

Tailor human rights checklists to company operations,

locations and function areas

The HRCA in Practice

‘We have been working with DIHR since 2007 to develop a tool our

subsidiaries and units can use to make sure that their practices are

in fact aligned with the Total Code of Conduct and the principles set

forth in the Universal Declaration of Human Rights and the ILO’s

fundamental conventions.’

— Total Oil Environment and Society Report 2009

Customise to sector

Pharmaceutical Financial

Tailor human rights checklists to risks associated with

certain industries and activities

Right to health

Access to medicines

Valuation criteria

Project finance

Stakeholder engagement

The HRCA in Practice

Site Visits

DIHR applies checklists by interviewing country managers

and local function-area heads

The HRCA in Practice

‘The methodology makes it possible, by means of self assessments

guided by independent experts from the Danish Institute for Human

Rights, to identify behaviour and decisions that can have an impact on

human rights in all types of business and operational areas.’ — Eni.com

Self-Application

The company conducts its own site visits and interviews,

with DIHR assisting in initial scoping and final data analysis

The HRCA in Practice

Novartis Indonesia tested a draft version of the HRCA tool for pharmaceutical

companies […] Testing the tool particularly improves the methodology and the

integration into existing management systems of pharmaceutical companies

— Novartis Communication on Progress, 2009

Supply Chain

‘In 2007, Groupe SEB decided to assess the

practices of all its sites of more than 10

employees regarding respect for human rights,

with the HRCA’

— GroupeSEB.com

The company applies the HRCA in

its suppliers and business partners

The HRCA in Practice

The HRCA in Practice

Identifying Due Diligence

Companies use the HRCA to identify due diligence steps

toward preventing and mitigating human rights abuses,

particularly in challenging contexts

Internal Awareness-Raising

The operational nature of the tool allows managers and

employees to tie specific tasks to broader objectives,

increasing uptake and retention

Additional Checks

HRCA Quick Check

Free, condensed version of HRCA

Additional Checks

Developed in cooperation with

development finance institutions, SMEs

Measures company performance against

all 10 Global Compact Principles

Additional Checks

China Check

Checklists tailored to Chinese law

and practice

Developed in cooperation with

Chinese businesses, government

officials and NGOs

Additional Checks

6. Accessing The HRCA

Accessing the HRCA

Subscription

Free versions

Accessing the HRCA

Subscription

Free versions