responsible business and human rights risk in emerging markets
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Responsible Business and
Human Rights Risk in
Emerging Markets Vicky Bowman, Director, Myanmar Centre for Responsible Business
IDE-JETRO
Tokyo 29 July 2016
www.mcrb.org.mm
myanmar.responsible.business
Current core funders:
• UK Department
for International
Development
• DANIDA (Danish
development aid)
• Norway
• Switzerland
• Netherlands
• Ireland
www.myanmar-responsiblebusiness.org
15 Shan Yeiktha Street,
Sanchaung, Yangon
Tel/Fax: 01 510069
Founders:
Objective: To provide an effective and legitimate
platform for the creation of knowledge, capacity and
dialogue concerning responsible business in
Myanmar, based on local needs and international
standards, that results in more responsible business
practices.
http://www.myanmar-responsiblebusiness.org/pdf/trifold/jp.pdf
What are the human rights risks and challenges that businesses face, particularly in developing economies?
Land Supply chain issues such as weak labour law, poor safety
practices Poor protection of children’s rights Ethnic and Indigenous Peoples Discrimination Conflict, insecurity, role of military Lack of effective regulation and weak institutions Lack of transparency Restrictions on freedom of expression and association Lack of remedy for abuses Corruption Poverty, lack of health and education
Myanmar civil society
and NGOs
International NGOs
Media – local and
international
Shareholders
Governments –
Myanmar, and home
states, particularly US
Lack of jobs
Lack of access to electricity, health and education
Water shortages
Poor infrastructure and roads
Access to Insecure land tenure, loss of land and livelihood
Mistrust of government especially in ethnic states
Lack of information
Lack of access to remedy
Fear of military particularly in post-conflict areas
Intercommunal tension
Japan’s investment/trade in Myanmar
Telecoms
Thilawa (and Dawei?)
Special Economic Zone
Garment
manufacturer/supply chain
Light manufacturing including
beverages
Infrastructure eg power,
hydropower, railway (incl
JICA funded projects)
Financial services
Trading: electronic
equipment, healthcare etc
JV partner in offshore gas
10% MOECO, 90% Shell
3 offshore blocks in Myanmar
Human rights issues Impact on fishing
communities Potential for oil
spill/emergency and other environmental damage
Interaction with boat people
www.global-business-initiative.org/wp-content/uploads/2012/11/Chapter-Five-Joint-Ventures.pdf
Multiple (clashing?) company cultures
Capital intensive, heavy human rights impact projects (e.g. extractives)
Complex business and governance relationships
Minority partners may be held accountable/assumed to have leverage
55% Kirin45% Union of Myanmar Economic Holdings (military)
Human rights and RBC issues:• Water use/communities• Land/squatter communities
around factory• Responsible drinking, safety• Beer girls/promotion• Labour, freedom of
association• Taxation
More beer & human rights……
Choose JVs and JV partners with care
Before forming a JV, use various avenues to convey
human rights expectations to business partners.
Understand the issues - human rights due diligence;
consult external stakeholders
Design JV agreements to consider human rights explicitly:
operating procedures and human rights policies
management positions
reporting arrangements, audit rights
Contractual requirements, exit clauses
Reference to existing company or international
standards – provides leverage
Protect against human rights legacy issues (‘conditions
precedent’; liability)
Managing human rights risk in JVs
• Action Labor Rights (ALR) March 2016 report
• Compares mid-2015conditions in Korean-connected
factories to Myanmar legal requirements.
• Reveals significant non-compliance on the part of many
factories, particularly concerning laws on working hours
and overtime.
• Almost 30% of the factories surveyed failed to abide by
the maximum 16 hours weekly overtime limit.
• Nearly two thirds of workers surveyed (62%) reported
being unable to refuse working excessive hours.
• 30% of workers said they were provided payslips only in
English or Korean, direct breach of Myanmar law which
requires payslip information to be provided in Burmese.
• Only 40% of workers claimed that they have signed
employment contracts; many of these did not have their
own copy.
• 14% of factories surveyed have Workplace Co-
ordinating Committee (a legal requirement).
Labour and
supply chain
Make this an area of competitive advantage
Use the UN Guiding Principles on Business and Human Rights as a guide
Consider other rightsholders in addition to employees
Adopt policy commitment that covers key risk areas for the company
Undertake ‘Enhanced human rights due diligence’ to understand potential impacts of company in specific situations, markets, projects;
Don’t rely on legal documentation
Don’t wave chequebooks or talk about ‘CSR’ – focus on behaviour and engagement
Proactively engage with communities, workers/their representatives, and ‘at risk’ groups e.g. women, minorities, children, NGOs
Accessible, frequent two-way communication (e.g. language, format of meeting)
Establish accessible “one stop shop” for effective resolution of concerns (Operational Grievance Mechanisms)
Be transparent – make information about operations available online and locally
Participate in peer-to-peer forums, and multistakeholder discussions
‘Know and show’
Public “Business Sustainability Update” every
six months which covers:
Health and Safety Incidents
Incidents of child labour (under-18) and follow-
up steps
Other breaches of Supplier Conduct Principles
(SCP)
Telenor’s mitigation and
remedy measures
Policies on child labour
etc
employee and supplier
training (including with
ILO), training for local
community on its child
labour policies.
unannounced site
inspections of
towers/fibre-laying
Community Liaison
Officers in all regions and
divisions to maintain
dialogue with
communities e.g on
safety concerns,
generator noise
Developed an Operational Grievance Mechanism (GM) for Mann oil field
Consistent with UN Guiding Principles on Business and Human Rights
Ability to lodge concerns/complaints directly with a community volunteer in
each village or through GM suggestion boxes
MPRL E&P Field Officer
◦ contacts community member who lodged the complaint,
◦ identifies with them an appropriate response
◦ informs of the time it will take to address the concern
MPRL E&P and MOGE: review, record and measure damage
Outcomes are recorded, tracked and publicly reported on
The advantages of GM:
◦ building effective partnerships between communities
◦ improve brand and reputation
◦ risk mitigation
Support implementation of the corporate responsibility to respect human
rights; help Japanese companies to ‘Know and show’
Embassies should build good civil society and human rights defender
contacts and facilitate initial introductions with companies
Embassies can share information with companies on human rights
risks
Embassies/Tokyo can help showcase good practice by Japanese
companies
Support in-country strengthening of environmental/social policies/legal
frameworks through technical assistance.
Ensure investment and free trade agreements reinforce responsible
business practices
Promote transparency, including of corporate governance
ありがとうございました
Thank you!www.mcrb.org.mm
myanmar.responsible.business
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