A/HRC/14/29
indigenous peoples without contributing to the wealth and development of the country as a
whole. She also stressed that while the Constitution of the Philippines recognizes the rights
of indigenous peoples and FPIC is required under national law, the Indigenous Peoples
Rights Act, those norms are neither respected nor enforced. While human rights due
diligence is a good concept, it is her experience that it is not being applied in the context of
mining activities in areas with indigenous peoples. She recommended that companies,
exercising their due diligence, should take more time to consult with and understand
indigenous peoples and their customs, written and unwritten; respect their ancestral
domains; ensure transparency; and conduct the FPIC processes in local languages. She
called on the Special Representative to elaborate on the concept of FPIC and recommended
that the United Nations establish a mechanism to hold corporations accountable at the
international level, where national mechanisms are insufficient.
35.
Adam Greene (Vice-President, Labour Affairs and Corporate Responsibility, United
States Council for International Business) highlighted the characteristics and the limitations
of the due diligence process. Firstly, he pointed out that it is an effective approach because
it builds on existing business processes and helps integrate human rights into company
operations. Secondly, he stressed that it assists companies in meeting the responsibility to
respect human rights by proactively looking at issues and managing factors, including
internal governance systems, risks from third parties, political, financial, operational and
ethical risks. The due diligence process has to be dynamic to allow examination of new
issues as they arise. While due diligence can make companies understand their human
rights risks, it cannot change the broader context or resolve underlying human rights issues
in the countries of operation. He noted that legal compliance is not voluntary for
companies, but that there is often a huge gap between legal standards and practice. He
stressed that compliance with the law is necessary even when the laws are not enforced. Mr.
Greene concluded by noting that the due diligence process can only work as part of the
broader framework of the State duty to protect and provide access to remedies and that
there is a need for continued collaboration between stakeholders to address the root causes
of human rights abuses.
Summary of discussion
36.
Participants raised the issue of due diligence in relation to corporate complicity in
human rights violations. It was suggested that corporate complicity is based on causation,
knowledge and proximity. It was noted that the closer the company is in geographical terms
to the abuser, the more likely a company will be found to be complicit and therefore the
greater is its due diligence obligation. Other participants found assigning responsibility on
the basis of proximity to be problematic, especially in light of the technological advances of
society where a corporation may act and influence activities far beyond its physical
presence. It was recommended that the due diligence process to avoid complicity should
involve considering the track record of potential business partners, examining publicly
available information to gain an understanding of human rights risks and obtaining expert
advice. Once a company becomes aware that it risks being complicit in human rights
abuses, the risk should be mitigated.
37.
One participant pointed to the human rights due diligence process of the financial
sector, which is often not well developed but can play an important role in preventing
corporate human rights abuse. The effort by the Special Representative to clarify the role of
investors and other financial institutions was welcomed.
38.
Participants raised the challenge of ensuring due diligence in the context of supply
chains. It was pointed out that there is often a gap between the corporate responsibility
policies of headquarters and actual practices along the supply chain. It was noted that
human rights violations are often found far down the supply chain and that there is a need
10
GE.10-12935
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents