A/HRC/8/16
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Companies should consider three sets of factors. The first is the country contexts in which their
business activities take place, to highlight any specific human rights challenges they may pose.
The second is what human rights impacts their own activities may have within that context, for
example, in their capacity as producers, service providers, employers, and neighbours. The third
is whether they might contribute to abuse through the relationships connected to their activities,
such as with business partners, suppliers, State agencies, and other non-State actors. How far or
how deep this process must go will depend on circumstances.
Understand the context
20. A company should be aware of the human rights issues in the places in which it does
business to assess what particular challenges that context may pose for them. Such information is
readily available from reports by workers, NGOs, Governments and international agencies.10 The
analysis should include the country’s national laws and international obligations as they relate to
human rights, and potential gaps between international standards and national law and practice.
Assess the company’s own activities
21. A company should analyze potential and actual impacts arising from its own activities on
groups such as employees, communities, and consumers. It should determine which policies and
practices may harm human rights and adjust those actions to prevent harm from occurring. An
illustrative list of activities with direct impact might include the production process itself; the
products or services the company provides; its labour and employment practices; the provision of
security for personnel and assets; and the company’s lobbying or other political activities.
Analyse the company’s relationships
22. A company should ensure that it is not implicated in third party harm to rights through its
relationships with such parties. This possibility can arise from a company’s business activities,
including the provision or contracting of goods, services, and even non-business activities, such
as lending equipment or vehicles. Therefore, a company needs to understand the track records of
those entities with which it deals in order to assess whether it might contribute to or be
associated with harm caused by entities with which it conducts, or is considering conducting
business or other activities. This analysis of relationships will include looking at instances where
the company might be seen as complicit in abuse caused by others. This is explored further in
Part III below.
10
For guidance on how to assess the local context, see Guide to Human Rights Impact
Assessment and Management, Road-testing Draft, a joint publication of the International Finance
Corporation, the Global Compact, and the International Business Leaders Forum, June 2007,
p. 31, available at: http://www.unglobalcompact.org/docs/news_events/8.1/HRIA_final.pdf.
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