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iVembedding Human rights inBusiness Practice

2About the United Nations Global CompactThe United Nations Global Compact is a call to companies everywhere to voluntarily align their operationsand strategies with ten universally accepted principles in the areas of human rights, labour, environmentand anti-corruption, and to take action in support of UN goals and issues. The UN Global Compact is aleadership platform for the development, implementation, and disclosure of responsible corporate policiesand practices. Launched in 2000, it is largest corporate sustainability initiative in the world, with more than7,500 corporate signatories based in 145 countries, and Local Networks in over 100 countries.More information: www.unglobalcompact.orgEditor’s Note:The views expressed in this publication are the authors’ own and do not necessarily represent the views ofthe Global Compact Office, the Human Rights and Labour Working Group (HRLWG), or the case study peerreviewers. The Global Compact and the HRLWG make no representation concerning, and do not guarantee,the source, originality, accuracy, completeness or reliability of any statement, information, data, finding,interpretation, advice or opinion contained within the publication. This publication is intended strictly as alearning document. The inclusion of case studies on company experiences does not in any way constitutean endorsement of an individual company or its corporate responsibility policies and practices by the GlobalCompact and/or the HRLWG.The illustrations in this publication of the 30 articles of the Universal Declaration of Human Rights are byartist Octavio Roth. 2013 United Nations Global Compact

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2EditorialExecutive EditorUrsula WynhovenGeneral CounselUN Global Compact OfficeSenior Managing EditorMatthew DalyManaging EditorsSaskia AndersShubha ChandraLauren GulaMarie WibeDesignerTannaz Fassihi & Hedie A. JoulaeePeer Reviewers*Albert Kwokwo BarumeHead of the Programme on Indigenous PeoplesInternational Labour Organization (ILO)Gustavo Perez BerlangaCommercial DirectorRestaurantes ToksMonica Bowen-Schrire†Senior Advisor, Strategy & SustainabilityVattenfallVicky BowmanGlobal Practice Leader, External Affairs (Policy)Rio TintoMay ChaperonProject Manager, Sustainable DevelopmentAccorKarl DaumüllerProgram Manager, Global Procurement ServicesHewlett-Packard GmbHBetina del Valle AzugnaCorporate Sustainability ManagerGrupo Sancor SegurosSarah Dolton-ZborowskiAdvisory Services ManagerBSRJonathan Drimmer†Vice President and Assistant General CounselBarrick Gold Corp.Tristan ForsterCEOFSI WorldwideRenata FrolovaHead of Responsible ProcurementA.P. Moller – Maersk GroupGordon GlickHead of Global PartnershipsPlan InternationalJonah GoldsteinProject Manager, Global Workplace RightsSODEXOTom HickeyAssistant General CounselHess CorporationPhillip Hunter†Program SpecialistVeriteMichelle LauProject Manager for the Business Reference Guideon Indigenous Peoples’ RightsUN Global Compact

3Monica LindvallSenior AdvisorSave the Children SwedenSabine Loetscher-EhrlerProject Manager in Corporate ResponsibilityKuoni Travel Holding Ltd.Errol MendesEditor-in-ChiefNational Journal of Constitutional Law, Universityof OttawaEmily MigginsSenior Sustainability ManagerSafewayBranka MinicDirector, Corporate & Government AffairsManpowerGroupRovshan MuradovCountry LeaderYouth Employment Systems Azerbaijan NetworkMonique OxenderGlobal Manager, Supply Chain SustainabilityFord Motor CompanyRon PopperHead of CorporateABBAbi PriceCSR SpecialistHitachiAlessia PrioloHuman Rights SpecialistENIRita Anne Roca†Senior Specialist, Human RightsVestas Wind Systems;Corporate CSR ManagerMaersk Oil‡Ivana SchellangovaSenior Programme ManagerEnd Human Trafficking NowPrashan ThalayasingamCivil Society Advisor in the Humanitarian Context,International ProgrammeSave the Children SwedenDavid VermijsProject AdvisorShift Project Ltd.Mattia VillaCitizenship and Public Affairs CoordinatorMicrosoftLene WendlandAdviser on Business and Human RightsOffice of the United Nations High Commissioner forHuman Rights (OHCHR)* Organizational affiliations listed reflect positions held at thetime of the peer review.† This indicates that the individual reviewed two or more of thecase studies in this volume.‡ Ms. Roca changed positions during the period this volume wasin development, reviewing some case studies while employed atVestas and others after she transitioned to Maersk Oil.

4Table of ContentsIntroduction and Acknowledgments 6Case studies Building Relationships You Can Bank On –ANZ’sApproach to Promoting the Responsibility to RespectHuman Rights in Its Business Relationshipsby Christina Koulias 12Human Rights in the Supply Chain: TheTelenor Group’s Approach to Supply ChainSustainabilityby Bianca Wilson 26Sakhalin Energy: A Partnership forPromotion of Children’s Rights and Safetyby Konstantin Shakko 36Xstrata Coal in South Africa: CorporateSocial Involvement in Tackling HIV/AIDSby Špela Berlec 50Carlson’s Efforts to Combat Traffickingand Exploitation of Childrenby Evelyn Zemke 58FSI Worldwide: Ethical Recruitment toPrevent Trafficking and Exploitationby Ivana Schellongova 66

5ManpowerGroup: A Multi-Faceted Approach toCombating Human Trafficking and Exploitation inthe Staffing and Employment Industryby Ellen Policinski 76Total S.A.: The Journey Towards Implementing aCommitment to Respect Human Rightsby Andrea Shemberg and Caroline Meledo 88Talisman Colombia and Block 8: Engaging withIndigenous Communities in a Conflict-AffectedEnvironmentby Ana Maria Duque, Amy Jarek and Jennifer Poon 102Goldcorp: The Human Rights Assessment at theMarlin Mine in Guatemalaby Megan Quek and Matthew Daly 114Table of human rights addressed 130Table of human rights managementpractices discussed 131Table of human rights standards, toolsand initiatives mentioned (beyond theUN Global Compact) 132

6Introduction and AcknowledgementsUrsula Wynhoven and Matthew Daly1About the Embedding HumanRights in Business PracticeseriesThis series of case studies focuses on thepractical application of the United NationsGlobal Compact’s human rights principles (1and 2) through concrete examples from business. The cases explore the steps businessesare taking to support and respect humanrights in their operations, business relationships and wider sphere of influence. The casestudies feature examples that: (1) demonstrate the relevance of human rights issuesfor businesses across sectors and regions; (2)build the business case for incorporating human rights in business; (3) inspire businessesto improve their performance on humanrights issues; and (4) explain how businesseshave successfully accomplished this already,to facilitate the dissemination of good practices. The Embedding Human Rights in BusinessPractice series is directed to all stakeholders engaged in human rights and business,including: businesses (both multinationalcompanies and small or medium enterprises), investors, governments, Global CompactLocal Networks (GCLNs), academics and otherUN and civil society organizations engagedwith companies on human rights issues.Volumes I-IIIThe first three volumes of Embedding HumanRights in Business Practice investigated a widerange of human rights issues through the activities of many different companies aroundthe globe.2 Volume I: Published in 2004, the firstvolume focused on the practical meaningof the UN Global Compact’s human rightsprinciples for companies, presenting fourcase studies and a policy report from HewlettPackard, BP, BHP Billiton (South Africa), NovoNordisk and Total. The volume also featuresseveral articles on policy issues and resourcesrelated to human rights and business. Volume II: Published in 2007, the secondvolume includes twenty case studies aboutthe efforts of Westpac Australia, ABB, BASF, İpek Kağıt, Nike, Sasol, Shell, Asocolflores,Eskom, MAS, Achilles, Anglogold Ashanti,AREVA, Barloworld, Novartis, Starbucks,Titan Industries, Ketchum, Newmont andVolkswagen to respect and support human rights. The studies were organizedaccording to the management practicesthey incorporated from A Human RightsManagement Framework, a graphical representation of a continuous improvementapproach to integrating human rights inbusiness management.3Volume III: Published in 2009, the thirdvolume features eight case studies thatexamine human rights and business atOMV, Ford, Cadbury, ASN, Endesa, Lexmark, Xstrata, and Engro Chemical. As inthe second volume, these case studies areorganized according to the managementpractices in A Human Rights ManagementFramework.Together, the first three volumes in the seriesinclude more than thirty case examples ofwhat the private sector has done over the lastdecade to support and respect the humanrights enumerated in the Universal Declaration of Human Rights and other acceptedhuman rights instruments. While there arecommon themes and strategies in these studies, the series also depicts the evolution ofapproaches to incorporate human rights intobusiness management practices.Developments in Business andHuman Rights:On 16 June 2011 the Human Rights Council unanimously endorsed the GuidingPrinciples on Business and Human Rights:1. Ursula Wynhoven is General Counsel of the United NationsGlobal Compact Office, where she also manages the office’s HumanRights and Labour issue areas. Matthew Daly is a Consultant onHuman Rights, Supply Chain Sustainability and Government Relations at the UN Global Compact.2. All volumes are available at http://www.unglobalcompact.org/Issues/human rights/Tools and Guidance Materials.html.3. A Human Rights Management Framework is available at http://www.unglobalcompact.org/docs/news events/8.1/HR poster.pdf.

7Implementing the United Nations “Protect,Respect and Remedy” Framework, the firstauthoritative global standard for preventingand addressing the risk of adverse impactson human rights linked to business activity.This guidance is of the utmost importancefor UN Global Compact business participantsas they work to implement Global CompactPrinciples 1 and 2, which call for companiesto support and respect the protection of internationally proclaimed human rights theymay impact either directly or indirectly.4 The Guiding Principles on Business and HumanRights can be accessed through the websiteof the Office of the High Commissioner forHuman Rights in Arabic, Chinese, English,French, Russian, and Spanish.5 The Working Group on the issue of humanrights and transnational corporations andother business enterprises (the UN Working Group on Business and Human Rights),established by the Human Rights Councilto promote the effective and comprehensive dissemination and implementationof the Guiding Principles, has also releasedThe UN Guiding Principles on Business and Human Rights: An Introduction. This documentsummarizes their content and describesthe mandate of the UN Working Group onBusiness and Human Rights.6Another important development withinthe UN Global Compact is the launch ofplatforms that flesh out the social dimensionof corporate sustainability and the conceptof “inclusion” within the Global Compact’soverall mission to contribute to a more sustainable and inclusive global economy. Theseplatforms align with the Guiding Principlesrecommendation that the risk of adverse impacts to human rights should be the focus ofattention rather than merely risks to business.The concepts often overlap, but they are notthe same. The platforms also recognize theenormous positive impacts that business canhave to support and advance human rightsthrough core business activities and workingwith other societal actors.In 2010, the Global Compact and UNWomen (then UNIFEM) launched the Women’sEmpowerment Principles – seven steps thatbusiness can take to empower women andcontribute to gender equality in the workplace, marketplace and community.7 In thisshort space of time, the Women’s Empowerment Principles has grown to be the GlobalCompact’s largest platform with over 600 CEOsigners from all sectors and regions. Women’sempowerment is not only a human rightsissue, it is widely regarded as a key driver ofsustainable development more generally.8Another set of principles, launched in 2012by the Global Compact with UNICEF and Savethe Children, is the Children’s Rights andBusiness Principles in recognition of the actualand potential impacts of business on children’srights and the central place of children insustainable development: “Development thatmeets the needs of the present without compromising the ability of future generations tomeet their own needs". (Brundtland Commission). Children compromise 30 percent of theworld’s population – much more in someareas. The principles seek to engage businessacross the workplace, marketplace and community to respect and support the rights ofthis major segment of the population.9In 2012 and 2013, work began on guidance for business on respect and support forindigenous peoples rights and the rights ofpeoples with disabilities.4. For a note co-published by the UN Global Compact and the Officeof the UN High Commissioner for Human Rights on the complementary relationship between the Guiding Principles and UN GlobalCompact commitments, see: http://www.unglobalcompact.org/docs/issues doc/human rights/Resources/GPs GC%20note.pdf5. Office of the High Commissioner for Human Rights. “Publicationsand Resources: Reference Materials.” s/ReferenceMaterial.aspx.6. UN Working Group on Business and Human Rights. “The UNGuiding Principles on Business and Human Rights: An Introduction.” http://www.unglobalcompact.org/docs/issues doc/humanrights/Resources/IntroToGPs.pdf.7. See weprinciples.org for more information, including on how tojoin this movement by signing the CEO Statement of Support.8. See, for example, Booz & Co, Empowering the Third Billion:Women and the World of Work in 2012, at: d billion.9. See www.childrenandbusiness.org for more information.

8Volume IV:The fourth volume of Embedding Human Rightsin Business Practice includes ten case studiesdetailing the experiences of companies in adiverse array of sectors operating in all corners of the world. It is the first volume of theseries to appear after the introduction of theGuiding Principles. The following companieshave practices that are examined in thisvolume: (1) Australia and New Zealand BankingGroup Limited (ANZ), which has incorporated the responsibility to respect humanrights in business practices at all levelsincluding corporate strategy, governance,and even lending criteria; (2) Telenor Group, a Norwegian mobiletelecommunications company which hasimplemented a system that requires suppliers to comply with standards in humanrights, labour, health and safety, the environment, and business practices, but whichalso provides training and assistance tothose that fall short to help improve theirperformance; (3) Sakhalin Energy Investment CompanyLtd., an energy supply company specializing in the development of oil and gas offof Sakhalin Island in Russia, which haspartnered with regional authorities andnon-profit organizations to launch a programme to educate children about safety inemergencies. (4) Xstrata Coal, Australian Xstrata Group’scoal production company with 30 operating coal mines in Australia, South Africaand Colombia, which has implementedpartnership programmes with the SouthAfrican government and civil society todevelop programmes to combat HIV/AIDSin South Africa. (5) Carlson, a US-based hotel and restaurantoperator with more than 1,300 hotels and900 restaurants in operation and development in 150 countries and territories, whichhas implemented strategies to combat human trafficking and exploitation of childrenin the travel and tourism industry; (6) FSI Worldwide Limited, a workforce solutions specialist based in the United ArabEmirates but operating globally across multiple industries, which has based its policieson the commitment to combat humantrafficking and forced labour, respectingthe human rights of employment seekers and employees during the recruitment andemployment process.(7) ManpowerGroup, a US-based staffingand workforce solutions provider operatingoffices in 80 countries and territories, whichhas committed to combating human trafficking and forced labor and promoting apolicy of zero tolerance for human trafficking among employers around the world.(8) Total S.A., a French oil and gas companyoperating in 130 countries globally, whichhas been working to embed a humanrights approach in its operational policiesand processes amongst more than 100,000employees.(9) Talisman Colombia Oil and Gas Ltd. (asubsidiary of Canadian oil and gas company Talisman Energy Inc.), which workedto engage with indigenous communitiesin a complex, conflict-affected environment during a joint exploration project inColombia.(10) Goldcorp, a Canadian mining company with operations and developmentprojects throughout the Americas, whichcommissioned a human rights assessmentof their Marlin Mine in Guatemala at thebehest of company shareholders.Recurring ThemesA number of recurring themes emerge fromthese ten case studies, many of which havealso been observed in the three previousvolumes of Embedding Human Rights inBusiness Practice.The Importance of StakeholderEngagement in Respecting andSupporting Human RightsIt is clear that listening to those whose human rights are or may be adversely affectedby a company’s operations is a key strategyfor companies. Not consulting and establishing dialogue with these stakeholders at anyearly stage can mean that actual or potentialhuman rights issues are missed and thusnot addressed, and small issues may festerinto big problems. The absence of ongoingcommunication channels and appropriategrievance mechanisms that allow stakeholders to safely, securely and effectively sharetheir concerns can exacerbate these impactsas they continue without redress.There is increasingly a compelling busi-

9ness case for stakeholder engagement andproactive prevention of impacts by companies as part of a risk mitigation strategy.Resentment and tensions stemming fromgrievances in local communities can lead toconflict that not only undermines humanrights further, but also hinders the effectiveoperation of the business.10 One can observethis in the case studies on Goldcorp andTalisman in this volume.The case studies on Goldcorp and Talisman also examine some of the specificchallenges for business of engagement withindigenous populations. The United NationsDeclaration on the Rights of IndigenousPeoples (“UNDRIP”)11 and the InternationalLabour Organization’s Convention No. 169on Indigenous and Tribal Peoples12 set outState obligations in this realm and addressparticipation in economic development by,and informed consent from, indigenouspeoples. These also have implications formany business operations and relationships.Indigenous peoples’ rights are often not wellunderstood and thus may be at greater riskof adverse impacts from business operationsand/or relationships. To help raise awarenessand understanding by business of indigenouspeoples rights and how to respect and support those rights, the UN Global Compact iscurrently developing a Business ReferenceGuide on the UN Declaration on the Rights ofIndigenous Peoples with input from indigenous peoples, businesses, academics, andother stakeholders.13The Need for New Thinking on Howto Respect Human Rights in ValueChainsGlobal Compact Principle 2 calls on businesses to ensure that they are not complicitin human rights abuses. Complicity basically means contributing to human rightsabuse that another company, government,individual or group is causing. However,it can also include human rights abusescaused by another that the business’ operations, products or services are linked to bya business relationship. Avoiding complicity is part o

Human Rights in the Supply Chain: The Telenor Group’s Approach to Supply Chain Sustainability by Bianca Wilson 26 Sakhalin Energy: A Partnership for Promotion of Children’s Rights and Safety by Konstantin Shakko 36 Xstrata Coal in South Africa: Corporate Social Involvement in Tackling HIV/AIDS by Špela Berlec 50

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