Tom Fox has already established why he thinks compliance should be leading ESG programs. Today, he takes things in a different direction to discuss the role of compliance when crafting a strategy to tackle human rights violations in your business.
Human Rights Violations
Tom explains the three categories of human rights violations:
- Human rights abuse in the way companies’ products are made or delivered.
- Human rights abuse in the way companies’ products/services are used.
- Human rights abuse by regimes where the company operates.
Obligations to Address Human Rights Violations
Both compliance and ESG have driven the discussion about the role of corporations in dealing with human rights issues. “Due to a statement by the Business Roundtable, companies are now being called upon to engage as responsible corporate citizens,” Tom states. Human rights should be considered a priority for multiple reasons; morality, legal considerations and soft laws, and reputation.
Crafting a Strategy
Tom highlights the three key decisions needed to determine and execute the proper strategy:
- Should you exit, voice, or stay silent?
- Collective or individual approach?
- Which actions and tactics should be chosen? (Either direct or indirect); He identifies two examples of possible outcomes of a company choosing to ‘leave’ when human rights abuse becomes intolerable, “The bottom line is, doing nothing is no longer an option.”
Compliance and Human Rights
“As human trafficking and modern slavery become more publicized, international companies must work to assess and manage risks through a human rights strategy,” explains Tom. This is something compliance professionals do every day; they manage risk! Tom cites this as the reason for his belief that compliance is uniquely suited to lead the corporate effort of addressing human rights violations.
RESOURCES
Tom Fox’s email
Does Your Business Need a Human Rights Strategy?
