A/HRC/14/27
proceedings to protect its interests, including for breach of directors’ duties, provided a
court decides that the action is necessary to protect the claimant’s legal rights.26
41.
Corporate law provisions requiring directors, as part of their duty to the company, to
consider the company’s broader social impacts, including on human rights, would mark a
significant step toward fostering rights-respecting corporate cultures, even if the benchmark
remains the company’s own success.
42.
Under criminal law, a fourth tool is recognizing the “corporate culture” of
companies as a factor at the prosecution or sentencing stage – where “culture” refers to the
adequacy of a company’s internal systems of oversight and control, coupled with prevailing
company ethics. In Australia, a firm itself may be held liable when its systems and culture
expressly or tacitly permit the commission of an offence by an employee or officer,
including participation in an international crime.27 An Italian criminal statute similarly
provides that a corporation can be found liable if it lacks effective systems of control and
supervision.28 In the United States, the Federal Sentencing Guidelines require judicial
consideration of whether a corporation has an “organizational culture that encourages ethical
conduct and a commitment to compliance with the law” in assessing criminal penalties.29
Such provisions incentivize companies to ensure they have a culture of legal compliance
and ethical standards.
43.
In conclusion, most Governments are still at an early stage of policy development in
fostering rights-respecting corporate practices – ironically, the most underutilized tools are
those that most directly shape business behaviour. States should reconsider the
misconception that companies invariably prefer, or benefit from, State inaction. Indeed,
where companies are facing difficult, politically charged situations, they are particularly in
need of and look for guidance from Governments on how to manage the risks such
environments inevitably pose.
D.
Conflict-affected areas
44.
The worst corporate-related human rights abuses occur amid armed conflict over the
control of territory, resources or a government itself – where the human rights regime
cannot be expected to function as intended and illicit enterprises flourish. However, even
reputable firms may become implicated in abuses, typically committed by others; for
example, security forces protecting company installations and personnel. Businesses
increasingly seek guidance from States. Yet, Governments — host, home and neighbouring
alike — are reluctant and poorly equipped to provide such assistance.30 Even the directly
relevant Voluntary Principles on Security and Human Rights still lack a critical mass of
participating States.
45.
As noted, the Special Representative has convened a group of States in informal,
scenario-based, off-the-record brainstorming sessions to generate innovative and practical
approaches for preventing and mitigating corporate abuses in these difficult contexts. On the
agenda are the potential roles of home-country embassies; closer cooperation among home26
27
28
29
30
10
Section 165, Companies Act 2008, expected to come into force in 2010.
Sections 12.3, para. 2 (c) and (d), Criminal Code Act 1995 (Cth).
Legislative decree No. 231 of 8 June 2001.
U.S.S.G, sect. 8B2.1 (a).
There are exceptions: the British Government has issued a “Business and Human Rights Toolkit” for
its overseas missions. Available from http://www.fco.gov.uk/resources/en/pdf/3849543/bus-humanrights-tool.pdf; see also OECD, “Risk Awareness Tool for Multinational Enterprises in Weak
Governance Zones”. Available from http://www.oecd.org/dataoecd/26/21/36885821.pdf.
GE.10-12629
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