A/HRC/35/32
protection and promotion of human rights within their company ethos. Those that take such
a position may have a strategic advantage within the marketplace because those measures
may cut production costs. It is therefore imperative that a level playing field be created
within a given industry.
39.
In fact, lessons on the ground also show that restrictive contracts with small and
medium-sized subcontractors may generate adverse human rights practices in certain
circumstances, as larger business enterprises knowingly outsource human rights risks to
these enterprises. That is an issue that larger business enterprises need to take into account
in their own human rights due diligence. 52
40.
The lessons on the ground also suggest that larger business enterprises, including
transnational corporations, need to do much more to support and share lessons of social
responsibility with the small and medium-sized enterprises in their supply chain. This is not
to say that some transnational corporations have not increasingly prioritized training for
smaller enterprises in their supply chain in recent years. Some companies have, for
example, made policy commitments to promote human rights in their supply chains and
provided training and guidance to suppliers.53
C.
Role of States in supporting small and medium-sized enterprises
41.
In the experience of the Working Group, small and medium-sized enterprises expect
guidance from Governments, including with regard to their responsibility to respect human
rights. In that regard, the above-mentioned report of the International Organization of
Employers and ILO confirmed that such enterprises were clear in terms of the support they
expected from Government, which was to provide effective guidance to business
enterprises (76 per cent), draft and enforce clear laws (75 per cent) and deny access to
public support services to firms abusing human rights (49 per cent).
42.
The development of small and medium-sized enterprises is a central part of
government policy, including through the subsidies, grants and training provided. In
economies with significant informal sectors, governments can provide a systematic plan for
lifting such enterprises from the informal to the formal economy. Those policy tools and
others employed to develop and support enterprises provide opportunities for raising
awareness of the concepts in the Guiding Principles and affirm government expectations
that all business enterprises within its jurisdiction meet the responsibility to respect human
rights. Governments can embed the Guiding Principles as a central policy objective of their
programmes relating to enterprises, including as a key part of the training and capacitybuilding activities that government departments offer. The implementation of the corporate
responsibility to respect human rights should also be made a requirement for receiving
government subsidies and grants.
43.
In countries that are in the process of transitioning informal sector activities to the
formal sector, programmes aimed at formalizing the activities of small and medium-sized
enterprises provide an entry points to support government promotion of the implementation
of the Guiding Principles by enabling outreach to a large section of the enterprise
community.
44.
A key consideration for Governments in these contexts is the need to “translate” the
Guiding Principles and the implications of the corporate responsibility to respect human
rights into concepts that are understandable to the local business community and that reflect
local human rights challenges. General guidance for small and medium-sized enterprises,
52
53
12
See M. Anner, J. Bair and J. Blasi, “Toward Joint Liability in Global Supply Chains: Addressing the
Root Causes of Labour Violations in International Subcontracting Networks”, Comparative Labour
Law and Policy Journal (2013) p. 35. See also R. Locke, The Promise and Limits of Private Power:
Promoting Labour Standards in a Global Economy (Cambridge University Press, 2013), p. 126.
See, for example, http://corporate.mcdonalds.com/mcd/sustainability/sourcing/workplaces-humanrights.html; www.coca-colacompany.com/our-company/human-rights-policy; and
www.nestle.com/aboutus/suppliers.
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