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the process, but where several thousand armed forces members have gone through
company-supported human rights training.53 Thus, even though their participants admit
that substantial improvements are required, these initiatives have a significant operational
impact.
60.
A second measure of effectiveness is whether they serve as examples for others. Indeed,
the relative ease with which they can be established, in contrast with treaty-based instruments,
together with their perceived potential, have directly inspired parallel efforts in related fields,
including rules regarding private security forces and also for businesses beyond the extractive
sector.54
61.
One final feature of recent innovations in soft law arrangements - both the
intergovernmental and multi-stakeholder variety - should be noted. As they strengthen their
accountability mechanisms, they also begin to blur the lines between the strictly voluntary and
mandatory spheres for participants. Once in, exiting can be costly. No company has to accept
IFC financing or loans from Equator banks but if they do, certain performance criteria are
required for continued funding. Countries are free to join the EITI or not, but if they do then
extractive companies are required to issue public reports of their payments to Governments.
Suspension or expulsion from Kimberley has a direct economic impact on countries and
companies. Voluntary Principles language - and in some cases the actual text - has been
incorporated into legal agreements between Governments and companies. And once the
Voluntary Principles adopt participation criteria, non-compliance similarly could lead to
expulsion.
62.
In sum, the standard-setting role of soft law remains as important as ever to crystallize
emerging norms in the international community. The increased focus on accountability in some
intergovernmental arrangements, coupled with the innovations in soft law mechanisms that
involve corporations directly in regulatory rulemaking and implementation, suggests increased
State and corporate acknowledgment of evolving social expectations and a recognition of the
need to exercise shared responsibility.
53
Indications are that Colombia will become the first host country to join the Voluntary
Principles. The Government has established a National Committee for the Voluntary Principles,
including companies. The Government and companies have incorporated Voluntary Principles
language into their agreements for public security forces protecting company operations. Both
parties have established reporting systems for alleged abuses. And some companies use
Voluntary Principles-related criteria in annual performance reviews of managers.
54
Drawing on the Voluntary Principles precedent, the Swiss Government and the International
Committee of the Red Cross are leading an effort to elaborate recommendations and best
practices for States with regard to private military and security forces. The pilot phase of the
Colombia guidelines, based on the Voluntary Principles text, has just been launched, aiming to
extend the model to such non-extractive sectors as food and beverages.
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