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Corporate Accountability


United Nations Global Compact on Corporate Accountability

The United Nations Global Compact, launched on July 26 2000, offers an opportunity for UN bodies, corporations, unions and non-governmental organizations with a variety of interests to come together and reinforce ongoing efforts around the world to promote greater corporate accountability. UN Secretary-General Kofi Annan has challenged world business leaders to "embrace and enact" the Global Compact, both in their individual corporate practices and by supporting appropriate public policies. The Global Compact encompasses principles relating to human rights, labor and the environment.

In order for the Global Compact to be an effective tool, however, the UN must ensure transparency and accountability in the operation of this initiative. The standards which the parties have agreed to protect and promote must be clarified and the methods through which they intend to enforce those standards must be openly scrutinized. Companies should be encouraged to do more than ‘support’ the principles and provide the UN with best practice case studies. The UN should take the lead and work with all parties involved to develop methods of verifying these principles are being put into practice and that they are translating into real benefits for local communities. As one of several NGOs involved in the UN Global Compact, we will be watching developments closely.


International Right to Know Campaign

The Lawyers Committee is working with a broad coalition of labor, environmental and human rights groups to build support for an International Right to Know (IRTK) legislative proposal. Modeled on domestic U.S. Right to Know laws, IRTK would require U.S. companies to report on the key environmental, labor and human rights practices of their overseas operations. This information would be reported to U.S. government agencies and then be publicly available. For example, corporations would be required to provide information about the number of workers injured or killed in work-related accidents, workers' exposure to hazardous substances, child labor, forced labor and discrimination in the workplace. Corporations would also be obligated to disclose security arrangements with military, paramilitary or private security forces, as well as human rights complaints brought by local communities.

In all areas, the IRTK would require corporations to report the practices of their subsidiaries, suppliers and contractors - a provision the Lawyers Committee considers central to the effectiveness of the legislation. The Lawyers Committee believes that the greater transparency engendered by the IRTK will empower both consumers and local communities to demand that American corporations act responsibly both abroad and at home.


US-UK Voluntary Principles on Security and Human Rights

Throughout 2000, representatives from the U.S. Department of State and the U.K. Foreign and Commonwealth Office met with oil, mining and energy companies, together with human rights, labor and corporate responsibility groups, to develop a set of Voluntary Principles on Security and Human Rights. These principles are designed to provide practical guidance that will strengthen human rights safeguards in company security arrangements in the extractive sector. They are the basis of a global standard for the extractive sector. The Principles are the first set of guidelines of their sort for this sector. They address three areas of mutual concern to both companies and NGOs:

  • Engagement with private security
  • Engagement with public security
  • Risk assessment supporting security arrangements consistent with human rights
Participants involved in this initiative are: Lawyers Committee for Human Rights, Human Rights Watch, Amnesty International, International Alert, Chevron, Texaco, Freeport McMoran, Conoco, Shell, BP, Rio Tinto, Fund for Peace, Council on Economic Priorities, Business for Social Responsibility, the International Business Leaders Forum and the International Federation of Chemical, Mine and General Workers’ Unions.

United Nations Adopts International Human Rights Norms on Transnational Business

On August 13th, 2003, a Sub-commission of the United Nations Human Rights Commission in Geneva adopted the first set of comprehensive international human rights norms specifically applying to companies. As endorsed by the UN Sub-Commission on the Promotion and Protection of Human Rights, these are “Norms on Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights.” The Lawyers Committee and other nongovernmental organizations participated in drafting these guidelines, which seek to constructively involve relevant business communities, governments, and NGOs in clarifying the human rights obligations of companies.

Although historically, international human rights law has focused on state responsibilities, the UN has recognized that as global businesses expand their scope, there has also developed a need to clarify the role of businesses with regard to human rights. LCHR supports the establishment of these clear international standards that hold companies accountable for protecting and promoting workers rights and other human rights around the world.


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