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