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Article

15 Jun 2010

Author:
[opinion] Rory Sullivan, former Head of Responsible Investment at Insight Investment, in Ethical Corporation

Business and human rights: Why investors need rules not principles

Institutional investors...have a vitally important role to play in the protection and promotion of human rights... Yet...I have been struck by the extent to which human rights has remained so clearly off the agenda for mainstream institutional investors... The major reasons appear to be the lack of consensus on the specific human rights obligations of companies and the lack of pressure from civil society for investors to take action... The lack of consensus...has...made it very difficult for investors to properly assess corporate human rights performance... The ‘Protect, Respect and Remedy’ framework that has been advanced by the Special Representative – and endorsed by the UN’s Human Rights Council – envisages that companies should conduct due diligence to avoid infringing human rights... However, these proposals are nowhere near enough... First, the Special Representative needs to propose a clear human rights performance framework for companies (probably similar to the UN Sub-Commission’s Draft Norms). Second, the major human rights and development NGOs need to press the Special Representative to develop such a framework and, equally importantly, press companies and investors to support and ensure the effective implementation of such a framework.