Abstract
With the existing human rights initiatives for businesses all falling short in some respect, a new system of human rights compliance for companies needs to be implemented. It will be shown that human rights violations are costly for corporations, as their reputation and brand image suffers and litigation costs can considerably dull profit. Through the creation of an effective human rights compliance strategy, corporations will not only boost consumer and shareholder goodwill, in the long run, they will increase their profit and brand value. The biggest value and benefit of such a strategy, however, is the safeguard of human rights worldwide.
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Notes
- 1.
- 2.
Clark and Grantham (2012), p. 28.
- 3.
Clark and Grantham (2012), p. 29.
- 4.
Tench et al. (2012), p. 9.
- 5.
McWilliams et al. (2006), pp. 1–18.
- 6.
- 7.
Clark and Grantham (2012), p. 29.
- 8.
- 9.
- 10.
Amunjo et al. (2012), p. 268.
- 11.
- 12.
Amunjo et al. (2012), p. 269.
- 13.
- 14.
Amis et al. (2005), p. 4.
- 15.
- 16.
- 17.
- 18.
Forstmoser (2008), p. 203.
- 19.
- 20.
Forstmoser (2008), p. 205.
- 21.
Campbell (2007), pp. 946–967.
- 22.
- 23.
- 24.
Forstmoser (2008), p. 209.
- 25.
Karpoff and Lott (1993), pp. 757–802. Engelen (2010), pp. 1–24. See furthermore a study by the ETH Zurich and the Center for Corporate Responsibility and Sustainability which analysed the effect of corporate misconduct on share prices: Kappel et al. (2009), http://www.eea-esem.com/files/papers/EEA-ESEM/2009/854/wp.pdf.
- 26.
- 27.
See generally Donaldson and Dunfee (1999).
- 28.
- 29.
Kendall et al. (2007), p. 244.
- 30.
BP ’s oil spill in the Gulf of Mexico delivers 15,200,000 hits on Google while Jebel al-Zayt only has 93,800.
- 31.
Parkinson (1999), p. 49.
- 32.
Deva (2006), p. 142.
- 33.
Habermas (1975), p. 58.
- 34.
Appiah (2009).
- 35.
For a general evaluation of biases, see Kahnenman (2011).
- 36.
- 37.
Kappel et al. (2009), p. 1.
- 38.
Kappel et al. (2009), p. 13.
- 39.
Kappel et al. (2009), pp. 12–14.
- 40.
Amunjo et al. (2012), p. 271.
- 41.
Amunjo et al. (2012), p. 269.
- 42.
Amunjo et al. (2012), p. 270.
- 43.
Amunjo et al. (2012), p. 284.
- 44.
Amunjo et al. (2012), p. 280, Table 3.
- 45.
Amunjo et al. (2012), p. 273, Table 2.
- 46.
On 21.04.2015, Google has 384,000 hits for Shell’s misconduct, 155,000 for Chevron’s and 202,000 for Exxon’s.
- 47.
Amunjo et al. (2012), p. 272.
- 48.
Amunjo et al. (2012), p. 284.
- 49.
Amunjo et al. (2012), p. 284.
- 50.
Roth (2014), p. 19.
- 51.
- 52.
Thauer (2014), p. 40.
- 53.
Roth (2014), p. 15.
- 54.
Forstmoser (2008), pp. 200 et seq. Also known as the Triple-Bottom-Line Standard.
- 55.
Roth (2014), p. 16.
- 56.
- 57.
- 58.
- 59.
Rahim (2014), p. 94.
- 60.
- 61.
Rahim (2014), pp. 100–101.
- 62.
Rahim (2014), p. 108.
- 63.
- 64.
- 65.
- 66.
- 67.
- 68.
Sabadoz (2011), p. 84.
- 69.
Sabadoz (2011), p. 80.
- 70.
Massoud (2013), p. 42.
- 71.
- 72.
See Sect. 7.2.1
- 73.
- 74.
Ekmekci (2014), p. 69.
- 75.
Ekmekci (2014), p. 70.
- 76.
- 77.
Buntenbroich (2007), p. 67.
- 78.
- 79.
- 80.
Roth (2014), p. 87.
- 81.
Wawryk (2003), p. 53.
- 82.
See Chap. 4.
- 83.
Wawryk (2003), p. 61.
- 84.
Amis et al. (2005), p. 4.
- 85.
Amis et al. (2005), p. 4.
- 86.
The Independant, May 2005. See also Amis et al. (2005), p. 5.
- 87.
Neil Makin from Cadbury Schweppes.
- 88.
Wawryk (2003), p. 61.
- 89.
- 90.
Prime example is the Norwegian Pension Fund, which has been known to remove companies from their investment list for poor human rights or environmental conduct, including DRD Gold. Belgian KBC Bank dropped Rheinmetall from their investment list following allegations of involvement in the creation of cluster bombs. See: Facing Finance 2007, http://www.facing-finance.org/database/cases/production-of-cluster-munitions-by-rheinmetall/. See also Facing Finance 2012: http://www.facing-finance.org/de/2012/07/frontal-21-geschaefte-mit-geaechteten-waffen-deutsche-ruestungskonzerne-unter-verdacht/.
- 91.
Hewitt Associates Press Release, January 3rd 2005 in. Amis et al. (2005), p. 5.
- 92.
News and Notes, Worldatwork Work Span 03/07, http://www.worldatwork.org/workspan/Pubs/News_and_Notes_Employees_Prefer_Ethical_Company_to_Higher_Pay.pdf.
- 93.
Creating an Ethical Workplace Culture: Hire for Character, Train for Skills, Business and Ethics Leadership, http://josephsoninstitute.org/business/blog/2010/11/creating-an-ethical-workplace-culture/.
- 94.
Creating an Ethical Workplace Culture: Hire for Character, Train for Skills, Business and Ethics Leadership, http://josephsoninstitute.org/business/blog/2010/11/creating-an-ethical-workplace-culture/.
- 95.
Amis et al. (2005), p. 5.
- 96.
World’s Most Ethical Companies, Ethisphere, http://ethisphere.com/worlds-most-ethical/wme-honorees/.
- 97.
World’s Most Ethical Companies, Ethisphere, http://ethisphere.com/worlds-most-ethical/wme-honorees/.
- 98.
The 25 Best Global Companies to Work For, Fortune, http://fortune.com/2014/10/23/global-best-companies/.
- 99.
- 100.
- 101.
Amis et al. (2005), p. 9.
- 102.
FTSE4 Good Global Index, http://www.ftse.com/products/indices/FTSE4Good. Dow Jones Sustainability Index, http://www.sustainability-indices.com/.
- 103.
Texaco and Home Depot Inc. have both had to pay over 100 million USD to settle discrimination suits in domestic courts. Coca Cola setteled a racial discrimination case for 192.5 million dollars, Shell paid Ken Saro-Wiwa’s wife 15.5 million USD to settle her ATS claims and Nike settled their case with Kasky for 1.5 million USD.
For further settlement cases, see http://www.lawyersandsettlements.com/settlements/civil-human-rights-settlements/.
- 104.
- 105.
Amis et al. (2005), pp. 8–9.
- 106.
Buntenbroich (2007), p. 135.
- 107.
OECD (2001).
- 108.
Buntenbroich (2007), p. 135.
- 109.
Corporate Social Responsibility Practice (2003), p. 15.
- 110.
Buntenbroich (2007), pp. 17–92.
- 111.
- 112.
Roth (2014), p. 89.
- 113.
- 114.
Leisinger et al. (2010), p. 35.
- 115.
Drucker (1993), p. 97.
- 116.
- 117.
Herrmann (2004), p. 216.
- 118.
- 119.
Jungk (1999), p. 177.
- 120.
Herrmann (2004), p. 218.
- 121.
Leisinger et al. (2010), p. 36.
- 122.
Jungk (1999), p. 179, Figure 3.
- 123.
Haasz (2013), p. 169.
- 124.
Danish Human Rights Institute, https://hrca2.humanrightsbusiness.org.
- 125.
The HRCA, https://hrca2.humanrightsbusiness.org/.
- 126.
- 127.
Thorsen (1999), p. 197.
- 128.
Leisinger et al. (2010), pp. 35–36.
- 129.
Haasz (2013), p. 170.
- 130.
Thorsen (1999), p. 199.
- 131.
Jungk (1999), p. 184.
- 132.
See Sect. 5.4.6.1. BP hired Ernst & Young to review their human rights commitment
- 133.
Forstmoser (2008), p. 208.
- 134.
- 135.
Wieland and Schmiedeknecht (2010), p. 94.
- 136.
Wieland and Schmiedeknecht (2010), p. 94.
- 137.
Ratner (2001–2002), p. 531. Furthermore Gordon and Miyake (2000) Deciphering Codes of Corporate Conduct, OECD Directorate for Fin., Fiscal & Enter. Affairs Working Paper on International Investment No. 1999/2.
- 138.
- 139.
Yahoo ’s Code of Ethics, p. 1.
- 140.
Yahoo ’s Code of Ethics, p. 3.
- 141.
Yahoo ’s Code of Ethics, p. 6.
- 142.
Yahoo Business and Human Rights Program, http://yahoobhrp.tumblr.com.
- 143.
Yahoo ’s Code of Ethics, p. 43.
- 144.
Yahoo ’s Code of Ethics, p. 44.
- 145.
Yahoo ’s Code of Ethics, p. 46.
- 146.
- 147.
Yahoo Human Rights Impact Assessments.
- 148.
Yahoo Human Rights Impact Assessments.
- 149.
Yahoo Human Rights Impact Assessments.
- 150.
Coca Cola Code of Business Conduct, Introduction.
- 151.
Coca Cola Code of Business Conduct, p. 3.
- 152.
See Sect. 6.1.
- 153.
Coca Cola Human Rights Statement, p. 1.
- 154.
Coca Cola Human Rights Statement, p. 1.
- 155.
Coca Cola Human Rights Statement, p. 1.
- 156.
Coca Cola Human Rights Statement, p. 2.
- 157.
Coca Cola Code of Business Conduct, p. 5.
- 158.
Coca Cola Code of Business Conduct, p. 8.
- 159.
Coca Cola Code of Business Conduct, p. 39.
- 160.
Coca Cola Code of Business Conduct, p. 40.
- 161.
Coca Cola Workplace Rights.
- 162.
Coca Cola Workplace Rights. See also Sect. 6.2.
- 163.
Coca Cola Workplace Rights. See also the Calvert Index, http://www.calvert.com/sri-index.html.
- 164.
See Sect. 7.4.4.1.
- 165.
See generally Fabig (1999), pp. 312 et seq. The Body Shop Values Report, p. 6.
- 166.
The Body Shop Values Report, p. 5.
- 167.
The Body Shop Values Report, p. 5.
- 168.
The Body Shop Values Report, p. 11.
- 169.
The Body Shop Values Report, p. 14.
- 170.
The Body Shop Values Report, p. 16.
- 171.
The Body Shop Values Report, pp. 19–22.
- 172.
Ethical Trade Initiative, http://www.ethicaltrade.org.
- 173.
The Body Shop Values Report, p. 26.
- 174.
The Body Shop Values Report, p. 27.
- 175.
NPR, Roddick’s Body Shop: An Empire Built on a Ruse? http://www.npr.org/templates/story/story.php?storyId = 14442261. Fabig, p. 321.
- 176.
For a detailed discussion of Shell ’s involvement in the UN “Protect, Respect and Remedy ” Framework and its success, see Lambooy et al. (2013).
- 177.
Shell Code of Conduct, Introduction.
- 178.
Shell Code of Conduct, p. 2.
- 179.
See generally Sect. 7.4.4.
- 180.
Similarly to Coca Cola , above Sect. 7.4.3.2.
- 181.
Shell ’s Business Integrity.
- 182.
Shell ’s Business Integrity.
- 183.
Shell ’s Business Integrity.
- 184.
Shell ’s Business Integrity.
- 185.
See Sect. 7.2.
- 186.
Cobus de Swardt, Managing Director of Transparency International, EY (2014), p. 18.
- 187.
- 188.
- 189.
Department of Justice, SEC FCPA Resource Guide (2012), EY, p. 19.
- 190.
ISO and the consumer, http://www.iso.org/iso/home/about/iso-and-the-consumer.htm.
- 191.
Balzarova and Castka (2012), p. 265.
- 192.
Wieland and Schmiedeknecht (2010), p. 84.
- 193.
Ward (2012), p. 10.
- 194.
Clougherty and Grajek (2014), p. 71.
- 195.
Ward (2012), p. 6.
- 196.
About ISO, http://www.iso.org/iso/home/about.htm.
- 197.
Terizovski and Guerrero (2014), p. 205.
- 198.
Clougherty and Grajek (2014), p. 71.
- 199.
Clougherty and Grajek (2014), p. 71.
- 200.
ISO Quality Management Principles, http://www.iso.org/iso/qmp_2012.pdf.
- 201.
Certification, http://www.iso.org/iso/home/standards/certification.htm.
- 202.
ISO 9000, http://www.iso.org/iso/iso_9000.
- 203.
Terizovski and Guerrero (2014), p. 197.
- 204.
Certification, http://www.iso.org/iso/home/standards/certification.htm.
- 205.
Terizovski and Guerrero (2014), p. 197.
- 206.
Terizovski and Guerrero (2014), p. 197.
- 207.
- 208.
ISO 26000.
- 209.
Ward (2012), p. 6.
- 210.
- 211.
Ward (2012), p. 6.
- 212.
Atler (2011), I.
- 213.
- 214.
Balzarova and Castka (2012), p. 267.
- 215.
Atler (2011), 2B.
- 216.
ISO 26000:2010, E, para. 3.4, p. 10, http://www.iso.org/iso/catalogue_detail?csnumber = 42546.
- 217.
Atler, IA.
- 218.
ISO 26000:2010, section 6.3.9, pp. 30–31.
- 219.
International forum revisits the road travelled, http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1691.
- 220.
Ruggie (2013), p. 121.
- 221.
Ruggie (2013), pp. 121, 161.
- 222.
Ruggie (2013), p. 161.
- 223.
Balzarova and Castka (2012), p. 267.
- 224.
See Sect. 6.2 of this research.
- 225.
- 226.
Staatlicher Appell an soziale Verantwortung, 20.04.15, Neue Zürcher Zeitung, http://beta.nzz.ch/meinung/staatlicher-appell-an-soziale-verantwortung-1.18525598.
- 227.
Thielemann and Ulrich (2009), p. 179.
- 228.
Thielemann and Ulrich (2009), p. 182.
- 229.
Thielemann and Ulrich (2009), p. 183.
- 230.
- 231.
ISO , ISO 26000 Project Overview, 2010.
- 232.
Cronstedt (2014b), p. 1.
- 233.
Cernic (2010), p. 267. Cernic argues for the creation of an Ombudsman.
- 234.
Cronstedt (2014b), p. 2.
- 235.
Cronstedt (2014b), p. 2.
- 236.
Cronstedt (2014b), p. 2.
- 237.
Cata Backer (2014a)
- 238.
Aba (2014), p. 2.
- 239.
Cronstedt (2014b), p. 2.
- 240.
Koritzinsky et al. (1991–1992), p. 45.
- 241.
Koritzinsky et al. (1991–1992), p. 46.
- 242.
Koritzinsky et al. (1991–1992), p. 46.
- 243.
Stephens (2000–2001), p. 412.
- 244.
Cronstedt (2014b), p. 3.
- 245.
Koritzinsky et al. (1991–1992), p. 46.
- 246.
Koritzinsky et al. (1991–1992), p. 46.
- 247.
Jaksic (2002), p. 320.
- 248.
Jaksic (2002), p. 320. “Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law. The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.”
- 249.
- 250.
- 251.
- 252.
CAS Procedural Rules, R. 40.
- 253.
Cronstedt (2014b), p. 4.
- 254.
Cronstedt (2014b), p. 4.
- 255.
CAS Procedural Rules, R58 Law Applicable to the merits.
- 256.
Dupuy (2009), p. 61.
- 257.
Cronstedt (2014a), p. 2.
- 258.
Guerra and Others v. Italy (116/1996/735/932), Lopez Ostra v. Spain (16798/90), Hatton and Others v. The United Kingdom (36022/97), Dubetska and Others v. Ukraine (30499/03). See furthermore Ratner (2001–2002), pp. 470 et seq.
- 259.
For a detailed discussion of the Guiding Principles , see Sect. 6.2.4.
- 260.
Cata Backer (2014b), p. 10.
- 261.
- 262.
Cata Backer (2014b), p. 11.
- 263.
Cata Backer (2014b), p. 19.
- 264.
Cata Backer (2014b), p. 19.
- 265.
Kiener and Kälin (2013), p. 42.
- 266.
Kiener and Kälin (2013), p. 45.
- 267.
Kiener and Kälin (2013), p. 51.
- 268.
Kees (2008), p. 150.
- 269.
Kiener and Kälin (2013), p. 53.
- 270.
See Bucher (1987) Drittwirkung der Grundrechte? SJZ, pp. 37 et seq.
- 271.
- 272.
Kiener and Kälin (2013), p. 52.
- 273.
Kiener and Kälin (2013), p. 53.
- 274.
Federal Council Position Paper (2015), pp. 10 et seq. See also the enclosed action plan, proposed measure B.3, p. 35.
- 275.
Federal Council Position Paper (2015), p. 10.
- 276.
EU Parliamentary Assembly Resolution 1757, http://www.assembly.coe.int/Main.asp?link=/Documents/AdoptedText/ta10/ERES1757.htm.
- 277.
See generally Kees (2008), pp. 35 et seq.
- 278.
Dearborn (2009), p. 197.
- 279.
Hansmann and Kraakman (1991), p. 1881.
- 280.
- 281.
Berle (1947), p. 343.
- 282.
Associated Vendors v. Oakland Meat Co., California District Court of Appeals, 1963. Dearborn, p. 197. Addo, pp. 191–192.
- 283.
- 284.
Loomis (1999), p. 145.
- 285.
- 286.
- 287.
Dearborn (2009), p. 200.
- 288.
Berle (1947), p. 344
- 289.
Mendelson (2002), p. 1252.
- 290.
Dix (1953), p. 255.
- 291.
Strasser (2005), p. 638.
- 292.
Dearborn (2009), p. 211.
- 293.
Dearborn (2009), p. 212.
- 294.
Dearborn (2009), p. 212.
- 295.
- 296.
- 297.
The Swiss Federal Council published a position paper on April 1st 2015, urging all companies to respect human rights even beyond the Swiss borders. Staatlicher Appell an soziale Verantwortung, Neue Zürcher Zeitung 20.04.15, http://beta.nzz.ch/meinung/staatlicher-appell-an-soziale-verantwortung-1.18525598.
- 298.
Ratner (2001–2002), p. 470.
- 299.
Ratner (2001–2002), p. 472.
- 300.
Stephens (2000–2001), p. 401.
- 301.
Stephens (2000–2001), p. 401.
- 302.
Cernic (2010), p. 267.
- 303.
As Ruggie stated at the 3rd annual UN Forum on Business and Human Rights: “Implementing the Guiding Principles will require a smart mix of measures, voluntary as well as mandatory, which are capable of generating cumulative change and achieving transformational scale.” http://lcbackerblog.blogspot.hu/2014/12/blog-post.html.
- 304.
See generally Bayefsky (2001).
- 305.
Art. 2 VCLT. Compare to a Memorandum of Understanding, which is not governed by international law and which operates as a political commitment. Aust, p. 28.
- 306.
- 307.
Grant (2012), p. 144.
- 308.
Korontzis (2012), p. 177.
- 309.
Yearbook of the International Law Commission, Vol. II, p. 166.
- 310.
Korontzis (2012), p. 184.
- 311.
Korontzis (2012), p. 196.
- 312.
Aust (2013), p. 87.
- 313.
Aust (2013), p. 145.
- 314.
See generally Aust (2013), pp. 145 et seq.
- 315.
Aust (2013), p. 160.
- 316.
Aust (2013), p. 308.
- 317.
Aust (2013), pp. 310–313.
- 318.
Permanent Representative of Ecuador to the United Nations in Geneva.
- 319.
Ruggie (2013), p. 200.
- 320.
Pegg (2003), p. 15.
- 321.
Beyond Voluntarism: Human Rights and the Developing International Legal Obligations of Companies—Summary, International Council on Human Rights Policy, p. 5.
- 322.
- 323.
- 324.
Vidal-Leon (2013), p. 919.
- 325.
Vidal-Leon (2013), p. 920.
- 326.
Vidal-Leon (2013), p. 919.
- 327.
- 328.
Bradley (2001), p. 471.
- 329.
See Sect. 5.3.
- 330.
Meyer (2003), p. 42.
- 331.
John Ruggie at the 3rd annual UN Forum on Business and Human Rights, http://lcbackerblog.blogspot.hu/2014/12/blog-post.html.
- 332.
John Ruggie at the 3rd annual UN Forum on Business and Human Rights, http://lcbackerblog.blogspot.hu/2014/12/blog-post.html.
- 333.
Cata Backer (2014b), p. 47.
- 334.
A Treaty to End Corporate Abuses? Human Rights Watch, http://www.hrw.org/news/2014/07/01/dispatches-treaty-end-corporate-abuses.
UN Human Rights Council adopts two resolutions on business & human rights - includes our analysis of recent developments, Business and Human Rights Resource Centre, http://business-humanrights.org/en/un-human-rights-council-adopts-two-resolutions-on-business-human-rights-includes-our-analysis-of-recent-developments.
- 335.
Cata Backer (2014b), p. 47.
- 336.
Cata Backer (2014b), p. 47.
- 337.
Cata Backer (2014b), p. 48.
- 338.
Cata Backer (2014b), p. 50. Furthermore Elaboration of an international legally binding instrument on Transnational Corporations and Other Business Enterprises with respect to human rights, Ecuador and South Africa’s resolution adopted by UN Human Rights Council on 26 June 2014 signed by Bolivia, Cuba, Ecuador, South Africa, Venezuela.
- 339.
- 340.
- 341.
- 342.
- 343.
See Sect. 5.3.
- 344.
See Mangan (2009). Yi (2006) Turning Medals into Metal: Evaluating the Court of Arbitration for Sport as an International Tribunal, Yale Law School Legal Scholarship Repository, Student Scholarship Papers Paper 24.
- 345.
On the general benefits of arbitration, see Sussman and Wilkinson (2012) Benefits of Arbitration for Commercial Disputes, http://www.americanbar.org/content/dam/aba/publications/dispute_resolution_magazine/March_2012_Sussman_Wilkinson_March_5.authcheckdam.pdf.
- 346.
Countries, whose implementation of a National Action Plans has begun include the UK, the Netherlands and Lithuania. UN Office of the High Commander for Human Rights, http://www.ohchr.org/EN/Issues/Business/Pages/NationalActionPlans.aspx. See 6.2.5 for the UN Working Group.
- 347.
- 348.
- 349.
- 350.
- 351.
- 352.
This includes the UK, the Netherlands and Lithuania. UN Office of the High Commander for Human Rights, http://www.ohchr.org/EN/Issues/Business/Pages/NationalActionPlans.aspx.
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Wetzel, J.RM. (2016). Translating Human Rights into an Enforceable Business Compliance Strategy. In: Human Rights in Transnational Business. Springer, Cham. https://doi.org/10.1007/978-3-319-31325-2_7
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