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[PDF] Keynote Remarks at Association of International Petroleum Negotiators Spring 2012 Conference: “Incorporating the UN Guiding Principles on Business and Human Rights in Investor/State Contract Negotiations”

Author: John Ruggie, Harvard University & Foley Hoag LLP, former UN Special Representative on business & human rights, Published on: 20 April 2012

...[Too] many C-Suites and boards—as well as those who advise them—are still not sufficiently aware of the risk premium...for failing to obtain and sustain their social license to operate...So what’s all this got to do with contract negotiations? A lot—it all starts there...First, the contracts I have seen exhibit little awareness of...human rights risks. Therefore, they have few if any provisions for how those risks should be managed...Second, some of the stabilization provisions that companies insist on unduly constrain governments even when they act on bona fide public interest grounds...We cannot...call for good governance, and at the same time undermine the capacity of governments...Finally, physical harm to people in communities...at the hands of security providers remains a major challenge... [Refers to Shell, Zijin]

Read the full post here

Related companies: Shell Zijin