A/HRC/44/43
III. Using a business and human rights lens to consider
corruption: key sectors and contexts
11.
In the present section, the Working Group provides an overview of areas where
corruption leads to systematic abuse of human rights in the business context, and where
steps can be taken to address the associated challenges. This highlights that there are sectors
and contexts that merit deeper examination by all stakeholders; there is a need to go beyond
“box ticking” and focus on rights holders when addressing business conduct.
A.
Public procurement and concessions
12.
Public procurement – the purchase by governments and State-owned enterprises of
goods, services and works and the award of government concessions – is susceptible to
corruption, often in the forms of bribery, embezzlement and abuse of functions and pricefixing, cartels and other anti-competitive practices.24 Public procurement, and
corresponding opportunities for corruption, may involve multiple sectors. The risks are
exacerbated by the volume of transactions, the financial interests at stake and “the
complexity of the process, the close interaction between public officials and businesses, and
the multitude of stakeholders”.25 Some businesses will pay bribes to win a contract or
concession, sometimes following demands from government officials. This may result in
States not receiving value for money. In some cases, vital public services key to the
realization of human rights, such as health care, education and housing, are partially or not
delivered. In Organization for Economic Cooperation and Development (OECD) member
countries, 12 per cent of gross domestic product is spent on public procurement.26
According to the World Trade Organization (WTO), on average, government procurement
accounts for 10 to 15 per cent of an economy’s gross domestic product.27 OECD found that
57 per cent of the 427 bribery cases concluded under the Convention on Combating Bribery
of Foreign Public Officials in International Business Transactions involved bribe payments
connected to public contracts awards.28
13.
The State as an economic actor (owner, lender and buyer) has leverage to drive good
practice by exercising and requiring due diligence. In line with article 9 of the United
Nations Convention against Corruption, which requires States to take steps to reform
procurement processes to prevent corruption, many States require companies to make anticorruption commitments when competing for government contracts or concessions. This is
not the same for human rights commitments. The commentary to Guiding Principle 6 of the
Guiding Principles clarifies that the State’s duty to protect human rights extends to public
procurement and that States have a unique opportunity to promote awareness of, and
respect for, human rights by enterprises it conducts transactions with, including through
contractual terms. In doing so, States would ensure that they were contracting with
enterprises committed to corruption-free, responsible business. Despite some emerging
practice, public authorities have not generally operationalized the State’s duty to protect
human rights through procurement.
B.
Land acquisition
14.
Weak land governance, where rights to land and natural resources are not properly
documented, are weakly enforced or are otherwise not effectively recognized,29 coupled
24
25
26
27
28
29
See www.unodc.org/e4j/en/anti-corruption/module-4/key-issues/corruption-in-publicprocurement.html. See also contributions from Poland and Uganda.
See www.oecd.org/gov/ethics/Corruption-Public-Procurement-Brochure.pdf.
See www.oecd.org/gov/public-procurement/.
See www.wto.org/english/tratop_e/gproc_e/gproc_e.htm.
See www.oecd-ilibrary.org/governance/oecd-foreign-bribery-report_9789264226616-en.
See www.fao.org/3/am943e/am943e00.pdf.
5
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