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The Corporate Responsibility to respect Human Rights MATTHIAS LEISINGER KUONI TRAVEL SWITZERLAND UTRECHT, JANUARY 2017
PROMOTING POSITIVE BUSINESS ETHICS AND SOCIAL SUSTAINABILITY Fostering positive relations with local communities, leading to a ‘social licence’ to operate Attracting and retaining the best employees – become an employer ‘of choice’
REDUCING AND MANAGING RISKS
Legal and reputational risks: arising from perceived or actual complicity in rights violations Operational risk: including revenue loss due to delays and disruptions; insurance and security Board member liability: providing corporate boards with strong protection against mismanagement claims by shareholders Early adopter: legislative developments at national, EU and international level
COMPETITIVE ADVANTAGE AND OPPORTUNITIES FOR GROWTH
Enhanced company reputation Demonstrate business leadership in sustainability and competitive advantage, shape regulatory developments Meeting investor expectations: inclusion in Socially Responsible Investment (SRI) Indices Ensure long-term attractiveness of tourism destinations
The business case for Human Rights
HUMAN RIGHTS DUE DILIGENCE
HUMAN RIGHTS DUE DILIGENCE
Human Rights are not a new issue in tourism
o Risks to human rights violations in tourism occur in the context
of local tourism development and during tourism operation.
- land rights, right to water, right to food
- working conditions
- (sexual) exploitation of children
- rights of vulnerable groups
- right to participation
o High number of risk-hours in tourism due to the international
nature of tourism and the complex supply chain in tourism.
o Increasing awareness of clients, investors and media
o New attention on business and human rights
Strategic approach: Managing Human Rights Due Diligence (HRDD)
Policy Commitments &
Action plan
Stakeholder Engagement, Partnership &
Dialogue
Training
Risk Assessment
Impact Assessment
Working Group
Grievance Mechanisms
Monitoring & Reporting
HUMAN RIGHTS DUE DILIGENCE
I. Assess main business-related
human rights risks per country/business
segment
II. Conduct Human Rights impact
assessment in high-risk countries/business
segments
III. Develop action plans
IV. Implement and monitor action plans
5 HUMAN RIGHTS DUE DILIGENCE
Assess main business-related human rights risks per destination
Assess main business-related human rights risks per destination
MEDIUM RISK COUNTRIES
(e.g. Myanmar, Turkey, Egypt)
HIGH RISK COUNTRIES
(e.g. India, Thailand) H
uman
Rig
hts
risk
s*
impact & ability to influence
• Business volume (PAX) • Own operations
• Corruption • Human Rights • Labour Rights &
Protection
LOW RISK COUNTRIES
(e.g. USA, Spain, France)
*based on Corruption Index Transparency International, Human & Labour Rights indices maplecroft (summarizing various publicly available resources)
HUMAN RIGHTS DUE DILIGENCE
HUMAN RIGHTS DUE DILIGENCE
Areas of Human Rights impacts
HumanRightsImpacts
SupplyChain
Products&services
Employees
Commu-ni=es
Securityarrange-ments
(Un-)ethicalbusinessconduct
...
The most salient human rights for a business enterprise are those that stand out as being most at risk.
OBJECTIVES Understand human rights risks and impacts (positive and negative) of operations and business relationships Define appropriate mitigating actions to reduce negative and strengthen positive impacts on human rights Foster partnership with key stakeholders, including employees, suppliers, NGOs and other businesses and organisations
METHODOLOGY HRIAs conducted based on the 6 phases of the Kuoni HRIA toolkit developed for the Kenyan pilot (2012) and adapted for the HRIA in India (2013) The methodology includes background research, interviews with internal and external stakeholders, workshops with management and employees and the development of an action plan As part of its human rights due diligence process, Kuoni further implements and tailors the HRIA toolkit to suit the needs of other business segments
HUMAN RIGHTS DUE DILIGENCE
Human Rights Impact Assessments (HRIAs)
I. Set-up II. Preparation III. Country Visit IV. Analysis and Documentation
V. Follow Up VI. Implementation, Review and Scale up
Reports available at: http://www.kuoni.com/corp-responsibility/human-and-labour-rights/due-diligence
Greatest business risk posed by perceived inequity in distribution of economic benefits
HRIA Kenya: Five major issue areas identified
HUMAN RIGHTS DUE DILIGENCE
Greatest business risk posed by labour issues of key service providers
HRIA India: Seven major issue areas identified
HUMAN RIGHTS DUE DILIGENCE
KEY LESSONS LEARNED FROM KENYA AND INDIA External stakeholder involvement increases credibility
Huge asset to have an assessment team combining business engagement and community engagement skills
Clear limits of desk-based research: direct engagement with local stakeholders revealed new issues
Confidentiality and expectation management are crucial especially when talking to workers and community members
Need for local partners/facilitators for community engagement
Abstract human rights language needs to be operationalized
Difficult to discern specific company impacts from broader industry impacts
Need for effective dissemination of results on the ground
Reports available at: http://www.kuoni.com/corp-responsibility/human-and-labour-rights/due-diligence
HUMAN RIGHTS DUE DILIGENCE
Human Rights Impact Assessments (HRIAs)
EXAMPLES FOR PREVENTIVE/MITIGATION ACTIONS DEFINED FOR KENYA & INDIA KENYA • Integrate findings in new Human Resources manual Private Safaris • ILO SCORE project: capacity building workshops to improve working
conditions in hotels • Promote beach operator and hotel cooperation to mitigate tourist harassment • Raise issues at destination level with other players in the industry/government
INDIA • Develop & promote sustainable houseboats in the Backwaters • Establish innovative collaboration with ITC [Indian Hotel Group] to
develop and promote sustainable products • Develop information material to sensitize customers • Improving working conditions of subcontracted staff (e.g. drivers) • Raise issues in local industry associations
HUMAN RIGHTS – HUMAN RIGHTS IMPACT ASSESSMENTS (HRIA)
HUMAN RIGHTS DUE DILIGENCE
Integrating Human Rights in business processes
Human rights training for employees
HUMAN RIGHTS DUE DILIGENCE
Integrate human rights in management system
Assess human rights risks & impacts
Take specific measures based on the HRIAs
► Internal audit/risk management
► Supply chain management
► Human resources
► Assess effectiveness of company-
level grievance mechanisms
► Human rights risk assessment
of destinations/business units
► HRIAs in selected high risk
destination
► Labour issues
► Labour issues at key suppliers
► Child protection
► Distribution of economic benefits
► Women’s rights & empowerment
HUMAN RIGHTS DUE DILIGENCE 14
Integrating Human Rights due diligence
Creating the enabling structure and environment to: ü Supervise and coordinate implementation progress ü Provide strategic oritentation ü Contribute technical expertise
Communication
Procurement
Compliance
Legal
Human Resources
Risk Management
CEO
15 HUMAN RIGHTS DUE DILIGENCE
Key Messages
Respecting human rights means ‘treating people with dignity’ Think about impacts, not only risks Human rights impacts cannot be “off-set” Engage with affected groups and take particular care of the most vulnerable Responsibility to respect applies to all enterprises regardless of size, sector, operational context, ownership and structure to fulfil their own human rights obligations Human rights due diligence is an on-going process that encompasses a company’s own activities and its business relationships It is not a passive responsibility, it demands meaningful engagement with affected parties within and beyond the company
HUMAN RIGHTS DUE DILIGENCE