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Title: Any of our business? Human rights and the UK private sector

Subtitle: First Report of Session 2009–10

Author(s): UK Parliament Joint Committee on Human Rights

Publisher: 2009, House of Commons London: The Stationery Office Limited

Businesses must have regard to human rights in several different contexts. In the UK, businesses which perform a public function have duties under the Human Rights Act. The regulation of UK firms may be intended to ensure that the UK complies with its international human rights obligations. The operations of UK firms overseas may have an impact on human rights, for example the rights of indigenous people. Difficult issues arise if there are weaker governance mechanisms for protecting human rights overseas, or if firms take different approaches to the protection of certain human rights in the UK and elsewhere.

This report considers this complex range of issues, starting from the position that the UK should play a leadership role to ensure that all firms respect human rights wherever they operate. The main focus of the international debate is on the work of the UN Secretary General’s Special Representative on human rights and transnational corporations and other business entities, Professor Ruggie. The report welcomes his work, which is carefully building a global consensus on how businesses can respect and promote human rights.

Table of Contents

Summary 3

1 Introduction 5

Our inquiry 7
Visit to the United States 9
Structure of this Report 9

2 Any of our business? 11

Why do human rights matter to UK business? 11
UK Government and UK business overseas 13
Do human rights matter for small businesses? 16
What about the recession? 17

3 The human rights impacts of UK business 19

Positive impacts 19
Negative impacts 20
Activities in the UK 21
UK business overseas 22

4 The international debate 27

The OECD Guidelines 27
Reform of the OECD Guidelines 30
The Work of the UN Special Representative 30
Limitations of the protect, respect and remedy framework 33
Waiting for 2011? 34
An international agreement on business and human rights? 34

5 Respect: the responsibility of business 36

What does the responsibility to respect human rights mean? 36
What does “respect” mean for UK business? 37
Limits of the responsibility to respect? 39
Respect for human rights and corporate social responsibility 39
Voluntary arrangements and multilateral international initiatives 40

6 Protect: the duties of the UK 42

The application of the HRA 1998 to the private sector 42
Offence of forced labour in the UK 47
Labour and Union Rights 48

7 A UK strategy on business and human rights? 52

The UK Government approach 52
The need for a UK strategy on business and human rights 59
What would a UK strategy look like? 60
Extraterritoriality 61
International standards and legal certainty 63
Competitiveness and the playing field argument 63

8 Specific areas for improvement? 65

Clearer standards in guidance and support 65
Public procurement 67
Public investments 69
Export Credit Guarantees 70
Company law and reporting standards 74
Investment, listing rules and socially responsible investors 76
Conflict, business and human rights 78

9 The role for UK National Human Rights Institutions 83

10 Remedy: the right to a remedy 86

The problem 86
Extraterritorial jurisdiction: the Alien Torts Claims Act Model 88
A UK Commission for Business, Human Rights and the Environment 89

11 Conclusion 92

Conclusions and recommendations 93

Annex 1: Business and Human Rights Mini-Conference Participants 110

Annex 2: US Visit Programme 111

Annex 3: International initiatives 113

Formal Minutes 120

Witnesses 121

List of written evidence 122

List of unprinted evidence 124

List of Reports from the Committee during the current Parliament 125

Online Source(s)

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English	PDF document	Any of our business? Human rights and the UK private sector

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