Paparan Unair Legal Framework for the Implementation of Human Rights 311016
Global Framework on
Corporate’s Human Rights
Due Diligence
Director for Human Rights and Humanitarian Affairs
Ministry of Foreign Affairs of the Republic of Indonesia
November 2016
Outline
International
Business and
Human Rights
Initiatives
United Nations
Guiding Principles
on Business and
Human Rights
Open-ended
Intergovernmental
Working Group
(IGWG) on
Transnational
Corporations and
Other Business
Enterprises with
Respect to Human
Rights
National Efforts
Challenges and
Way Forward
International Initiatives on
Business and Human Rights
• UN Global Compact (2000)
Ten principles on human rights, labor environment, and anti corruption for business
• Voluntary Principles on Security and Human Rights (2000)
Guidelines for companies in extractive industry to maintain the safety and security of their operations
with respect for human rights.
• ISO 26000 (2010)
ISO guide for companies with regard to social responsibility
• Extractive Industries Transparency Initiatives (2010)
International Organization which maintains a transparency standard for extractive industries
• United Nations Guiding Principles on Business and Human Rights
(UNGP)
United Nations Guiding Principles on Business
and Human Rights (UNGP)
• Endorsed in 2011 through Human Rights Council Resolution 17/4
• It is the first normative document on Business and Human Rights
endorsed by the UN intergovernmental body.
• Indonesia reaffirmed its commitment towards protection and
promotion of Human Rights in business activities by supporting the
resolution.
• 3 pillars of UNGP
State duty to protect
Corporate responsibility to respect
Availability of access to remedy
IGWG on Transnational Corporations
and Other Business Enterprises with
Respect to Human Rights
• In 2013, Ecuador and other like-minded countries stated their views on ” the
necessity of moving forward toward a legally binding framework..” with regards to
business and human rights
• In Nov 2013, Civil Society Organizations convened in Bangkok to support the
creation of legally binding framework.
• In Nov 2014, Human Rights Council adopted 2 resolutions on Business and Human
Rights:
Resolution 26/9 (co-sponsored by Ecuador and South Africa) on the establishment
of Open Ended Intergovernmental Working Group (IGWG) “to elaborate an
international legally binding instrument” -> Indonesia supported, end result of the
voting was 20-14-13
Resolution 26/22 (co-sponsored by Norway, Russia, Ghana and Argentina)
• Resolution 26/22 extended the mandate of Expert Working Group on
issue of Human Rights and Transnational Corporation and Other
Business Enterprises for 3 years as well as requested OHCHR to
continue exploring “the full range of legal options and practical
measures to improve access to remedy for victims of business related
human rights abuses”.
• IGWG first session in July 2015 discussed about: principles of legally
binding instrument (it must respect national sovereignty), scope of
TNC’s legal liability, monitoring and enforcement mechanism.
• IGWG second session on 24-28th October 2016 focuses on the
socioeconomic and cultural impact of transnational business activities
and the issue of remedy in UNGP, including: extraterritoriality of state’s
TNC operating abroad, international cooperation in providing remedy
and access to justice, as well as exploring different approaches and best
practice applicable to business enterprises with regards to human rights.
Indonesia’s
stance on
legally
binding
instrument
In short run, the most
feasible option for countries
is to voluntarily
implementing UNGP.
However, Indonesia is open
for discussion to explore the
possibility of legally binding
instrument in the long run.
National Efforts
• Indonesia actively participated on OHCHR’s Annual Forum on Business and Human
Rights since 2011 and the first Regional Forum on Business and Human Rights in April
2016.
• The Ministry of Foreign Affairs has already conducted National Symposium and Seminar
on Business and Human Rights on September 2015 and January 2016, respectively as
an effort to disseminate information as well as to collect inputs from national
stakeholders (including business sector, NHRI, CSOs, academics, and media)
Important Notes from the
National Symposium and Seminar
on Business and Human Rights
• Business and Human Rights goes beyond Corporate Social Responsibility.
Human Rights-based business practice have to be forward looking and
solution seeking to guarantee sustainable and inclusive conduct;
• Corporations are expected to focus not only in profitability but also
sustainability and competitiveness of their business, as well as compliance
to international human rights provisions including UNGP;
• Previous initiatives such as Voluntary Principles on Security and Human
Rights, UN Global Compact, and ISO 26000 can be used in formulating BHR
policies;
• The government as policymakers have to increase their bargaining position
vis-à-vis corporation in promoting human rights-based approach in business
practices.
Cont’d
• Necessity to harmonize national legislations relevant to the issue;
• Possibility to develop a National Action Plan on Business and Human
Rights (NAP-BHR) that aligns with National Action Plan on Human
Rights 2015-2019;
• Special protection mechanism for SMEs -> big corporations are
expected to cooperate in assisting SMEs in terms of capacity building;
• Importance of socialization to national and local stakeholders;
• Government have to constantly encourage business to implement
provisions of UNGP.
Challenges and Way Forward
• National Focal point for Business and Human Rights
Some alternatives: (1) MoU between relevant institution; (2) Incorporating Business and Human Rights
issue in the National Action Plan on Business and Human Rights; (3) Ministerial regulations, particularly
by institutions with authority to issue licenses and permits.
• Further dissemination on the issue to all stakeholders
Through FGD/Seminar, establishment of national working group, harmonizing national legislation.
• Careful consideration for legally binding instrument on Business and
Human Rights with regards to Small and Medium Enterprises (SMEs)
SMEs, which accounts for more than 90% of Indonesian economy have to be fully aware of the issue and
government should put particular attention in formulating Business and Human Rights’ policy for SMEs.
• Current global trend: development on National Action Plan on Business
and Human Rights
In line with National Action Plan on Human Rights 2015-2019
Thank you
Directorate of Human Rights and
Humanitarian Affairs
Ministry of Foreign Affairs
Jl. Taman Pejambon No. 6, Ex BP-7 Building,
7th Floor
Corporate’s Human Rights
Due Diligence
Director for Human Rights and Humanitarian Affairs
Ministry of Foreign Affairs of the Republic of Indonesia
November 2016
Outline
International
Business and
Human Rights
Initiatives
United Nations
Guiding Principles
on Business and
Human Rights
Open-ended
Intergovernmental
Working Group
(IGWG) on
Transnational
Corporations and
Other Business
Enterprises with
Respect to Human
Rights
National Efforts
Challenges and
Way Forward
International Initiatives on
Business and Human Rights
• UN Global Compact (2000)
Ten principles on human rights, labor environment, and anti corruption for business
• Voluntary Principles on Security and Human Rights (2000)
Guidelines for companies in extractive industry to maintain the safety and security of their operations
with respect for human rights.
• ISO 26000 (2010)
ISO guide for companies with regard to social responsibility
• Extractive Industries Transparency Initiatives (2010)
International Organization which maintains a transparency standard for extractive industries
• United Nations Guiding Principles on Business and Human Rights
(UNGP)
United Nations Guiding Principles on Business
and Human Rights (UNGP)
• Endorsed in 2011 through Human Rights Council Resolution 17/4
• It is the first normative document on Business and Human Rights
endorsed by the UN intergovernmental body.
• Indonesia reaffirmed its commitment towards protection and
promotion of Human Rights in business activities by supporting the
resolution.
• 3 pillars of UNGP
State duty to protect
Corporate responsibility to respect
Availability of access to remedy
IGWG on Transnational Corporations
and Other Business Enterprises with
Respect to Human Rights
• In 2013, Ecuador and other like-minded countries stated their views on ” the
necessity of moving forward toward a legally binding framework..” with regards to
business and human rights
• In Nov 2013, Civil Society Organizations convened in Bangkok to support the
creation of legally binding framework.
• In Nov 2014, Human Rights Council adopted 2 resolutions on Business and Human
Rights:
Resolution 26/9 (co-sponsored by Ecuador and South Africa) on the establishment
of Open Ended Intergovernmental Working Group (IGWG) “to elaborate an
international legally binding instrument” -> Indonesia supported, end result of the
voting was 20-14-13
Resolution 26/22 (co-sponsored by Norway, Russia, Ghana and Argentina)
• Resolution 26/22 extended the mandate of Expert Working Group on
issue of Human Rights and Transnational Corporation and Other
Business Enterprises for 3 years as well as requested OHCHR to
continue exploring “the full range of legal options and practical
measures to improve access to remedy for victims of business related
human rights abuses”.
• IGWG first session in July 2015 discussed about: principles of legally
binding instrument (it must respect national sovereignty), scope of
TNC’s legal liability, monitoring and enforcement mechanism.
• IGWG second session on 24-28th October 2016 focuses on the
socioeconomic and cultural impact of transnational business activities
and the issue of remedy in UNGP, including: extraterritoriality of state’s
TNC operating abroad, international cooperation in providing remedy
and access to justice, as well as exploring different approaches and best
practice applicable to business enterprises with regards to human rights.
Indonesia’s
stance on
legally
binding
instrument
In short run, the most
feasible option for countries
is to voluntarily
implementing UNGP.
However, Indonesia is open
for discussion to explore the
possibility of legally binding
instrument in the long run.
National Efforts
• Indonesia actively participated on OHCHR’s Annual Forum on Business and Human
Rights since 2011 and the first Regional Forum on Business and Human Rights in April
2016.
• The Ministry of Foreign Affairs has already conducted National Symposium and Seminar
on Business and Human Rights on September 2015 and January 2016, respectively as
an effort to disseminate information as well as to collect inputs from national
stakeholders (including business sector, NHRI, CSOs, academics, and media)
Important Notes from the
National Symposium and Seminar
on Business and Human Rights
• Business and Human Rights goes beyond Corporate Social Responsibility.
Human Rights-based business practice have to be forward looking and
solution seeking to guarantee sustainable and inclusive conduct;
• Corporations are expected to focus not only in profitability but also
sustainability and competitiveness of their business, as well as compliance
to international human rights provisions including UNGP;
• Previous initiatives such as Voluntary Principles on Security and Human
Rights, UN Global Compact, and ISO 26000 can be used in formulating BHR
policies;
• The government as policymakers have to increase their bargaining position
vis-à-vis corporation in promoting human rights-based approach in business
practices.
Cont’d
• Necessity to harmonize national legislations relevant to the issue;
• Possibility to develop a National Action Plan on Business and Human
Rights (NAP-BHR) that aligns with National Action Plan on Human
Rights 2015-2019;
• Special protection mechanism for SMEs -> big corporations are
expected to cooperate in assisting SMEs in terms of capacity building;
• Importance of socialization to national and local stakeholders;
• Government have to constantly encourage business to implement
provisions of UNGP.
Challenges and Way Forward
• National Focal point for Business and Human Rights
Some alternatives: (1) MoU between relevant institution; (2) Incorporating Business and Human Rights
issue in the National Action Plan on Business and Human Rights; (3) Ministerial regulations, particularly
by institutions with authority to issue licenses and permits.
• Further dissemination on the issue to all stakeholders
Through FGD/Seminar, establishment of national working group, harmonizing national legislation.
• Careful consideration for legally binding instrument on Business and
Human Rights with regards to Small and Medium Enterprises (SMEs)
SMEs, which accounts for more than 90% of Indonesian economy have to be fully aware of the issue and
government should put particular attention in formulating Business and Human Rights’ policy for SMEs.
• Current global trend: development on National Action Plan on Business
and Human Rights
In line with National Action Plan on Human Rights 2015-2019
Thank you
Directorate of Human Rights and
Humanitarian Affairs
Ministry of Foreign Affairs
Jl. Taman Pejambon No. 6, Ex BP-7 Building,
7th Floor