Erb Institute Toolbox: Business & Human Rights Implementation

BUSINESS & HUMAN RIGHTS TOOLBOX

Implementation

Contents Introduction and Business Case ...........1

BUSINESS & HUMAN RIGHTS TOOLBOX

Implementation

Definitions ...............................................2 The United Nations Guiding Principles on Business and Human Rights ............3 Identifying Human Rights Risks and Opportunities ..................................4 Integrating Human Rights Into Organizations..........................................5 Integrating Human Rights Into Decision-Making Systems .....................7 Key Trends In The Management Of Human Rights Impacts ........................11 Appendix...............................................12

Implementation

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Introduction + Business Case Globalization has presented business with both unique opportunities and significant antt challenges, n not the least of which is the violation of human rights. This has been accompanied by an increased ncreased aw awa awareness inesss and human rights. and interest from consumers and investors in the relationship between business The combination of these factors has created new and complex pressures es on companies; ompanies; at times ghts hts issues. Lead situating the private sector in effect on both sides of critical human rights Leading human rights atch, tch, add to this pressure on business organizations, such as Amnesty International and Human Rights Watch, e express press purpo by sponsoring research and participating in joint activities for the purpose of monitoring and reporting on human rights issues affecting companies.

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Today the notion that business has human rights responsibilities – moral and/or legal – is widely accepted and was given a significant boost in 2011 when the United d Nations Human Rights Council unanimously endorsed d the Guiding Principles on Business and Human Rights ghts (GP). The GP, outlined in greater detail in Section n 3, set et forth a number of expectations for companies, s, including ding the adoption of human rights policies, the conduct onduct of human rights due diligence and public reporting eporting orting on human rights performance. Although h a growing ing number of companies around the world have ve in fact met these expectations, there remains an enormous mous am amount of work to ensure that business respects no matter cts human man rights n where or in which conditions. n ns.

The future uture success of business in respecting strengthening human rights will in part depend on the hu extent to which whic it is able to incorporate human rights issues and decision criteria into core management systems. systems tem Despite substantial baseline knowledge, there is still stil a need to better understand the nature and scope of o business’ potential impact on human rights (both negative and positive) across industries, social and political systems and development levels. Going forward, there is also a critical need to develop a commensurate base of knowledge around best practice in the integration of human rights into management systems through awareness raising, capacity building, modification of decision-making processes and procedures, performance incentives and monitoring of outcomes.

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This Business ness and a Human Rights Implementation Toolbox complements lements the th Business and Human Rights Impact Assessment oolbox. It offers o Toolbox. guidance to business leaders on operationalizing the he GP, iincluding strategies to both integrate human rights as an organizational priority across functions and address human rights organiz

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HUMAN RIGHTS

However, through the evolution on of global business practices and the increasing ncreasing ing voice of advocacy a organizations, many companies have hav adopted different methods for managing naging resour resources and become more attentive to and demands of stakeholders. o the he viewpoints an Sustainable ainablee businesses rrecognize that a resource used wisely respected rather than exploited. selyy is a resource re business leaders who now employ Theree are many bu strategies to go beyond compliance to set new innovative novative strat standards ffor sustainability concerns such as human rights. In ffact, “Business is a major contributor to economic growth around the world and, as an essential econom vehicle for human progress, it helps underpin global veh vehic human rights.”2 Business leaders recognize that there is hu opportunity to create innovative strategies that generate positive impact, thereby reinforcing their companies’ reputations and, in turn, ensuring their ability to grow and even expand into new markets.

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Put simply, “Human rights are basic standards aimed at securing dignity and equality for all.”1 The concept of human rights flows from the understanding that each person is inherently entitled to a certain standard of well-being. There is generally a common understanding of what constitutes human rights, with the International Bill of Human Rights outlining the internationally recognized standards. However, in some cases, stakeholders have different perceptions of human rights terms, definitions, standards and the roles and responsibilities of those involved, and the translation of these instruments into national law and practice may ay vary across countries.

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Definitions

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“Human rights are basic asic standards aimed att ty and securing dignity ” equality for all.”

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BUSINESS & HUMAN R RIGHTS

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Businesses are inextricably nextricably ttie tied to human rights and the inverse se iss also true. The success of a business venture hingess in partt on its abi ability to use resources wisely and abilit to maximize potential. But in some instances ximize their pote over emphasized the exploitation of businesses esses have ove environmental resources, violating human human uman and envir ignoring needs and rights of communities rights ights and ign stakeholders. At the same time, many companies and nd stakeho stakeh largely regarded human rights as a responsibility have lar larg of the state.

Today, compliance is a minimal requirement to conduct business, while leadership in innovation through sustainability has become a source of competitive advantage.

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Human Rights Translated: A Business Reference Guide.

2 Human Rights Translated

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The United Nations Guiding Principles on Business & Human Rights

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The GP present a three-pillared “Protect, Respect, Remedy” framework rk which defines n the role

of both government and business in upholding human rights. While ile not legally bin binding, the GP ness in respecting human rights have been widely accepted as the prevailing standard for business wherever it operates.

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Citing the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work in defining human rights, the GP second pillar “Respect” outlines the processes that companies should follow w to ensure that they respect human rights. Operationally, onally, y, businesses are expected to both develop a policy icy commitment to respect human rights and to o carry out human rights due diligence.

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The latter is in essence the e implementati implementation mplementati aspect of the GP and encompasses: ncompasses passes::

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Assessing risks and impacts;

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king progress; Tracking

Integrating Integra findings di into management systems;

Communicating progress to external stakeholders;

While the GP is regarded reg as the global standard, there are also other international instruments ot o which to a greater or lesser degree focus on human gre rights, and among the most significant are:

• T The OECD Guidelines for Multinational Enterprises; • The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy; • The United Nations Global Compact; and

• The International Finance Corporation Performance Standards on Social and Environmental Sustainability.3

and Remediating any adverse impacts the business has caused.

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Identifying Human Rights Risks & Opportunities

The Human Rights Impact Assessment (HRIA) framework enables a company ompany to identify and assess the human rights risks and impacts of its business activities. ess activiti Inclusive engagement underpins the HRIA process and hence it iss critical tthat the businesse engages with individuals and communities throughout HRIA process. ughout the HR

Taking a simpliďŹ ed view of the HRIA process, there are three principal ipal stages: (1) Scoping, (2) IdentiďŹ cation, and (3) Assessment. In the scoping phase, the business iness establishes establ the boundaries for the HRIA requiring a number of questions, including:

Why is it being undertaken?

Who will conduct it?

What ge geographies and pro products will be ccovered?

When can it be performed and how long will it take?

In the identiďŹ cation phase, the task is to start with the een entire universe of human rights and then narrow this down to those that are most applicable to or operation. This will necessitate extensive qualitative o a particular lar business bus busin

and quantitative research related ed to risks of huma human rights impacts in the business itself, its relationships with other

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businesses, the nature of thee industry try and the ggeographic context.

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An important consideration ideratio within this process is the identification of opportunities in addition to risks. While risk is understandably a focal c point of the HRIA, companies may overlook significant opportunities ningful impact imp for meaningful if the scope of their responsibility is limited to ng risk. The Appreciative Inquiry approach calls for identifying addressing d building bu and upon what is working well rather than a traditional problemiagnosis-s diagnosis-solution methodology. Such a lens may help companies to find unique opportunities and creative solutions to the many human rights challen challenges that exist.

Finally, the assessment phase involves analyzing the human rights impacts and prioritizing them according to F likely severity, probability of occurring, potential scale of impact, and potential for remediability. The Business and Human Rights Impact Assessment Toolbox offers a detailed overview of this process.

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Integrating Human Rights into organizations

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The integration of new criteria that alter existing management processes, ses, es, procedures a and incentive structures is always diďŹƒcult, but even more so as a business grows in n complexity, ssi size and scope of operations. In addition, sustainability criteria such as human rights hts are re challengi challengin challenging to integrate into liarity amon management systems owing to their relative newness, lack off familiarity among employees, and, in

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some cases, diďŹƒculty in quantifying.

y of Michigan’s Ro Gerald Davis and Christopher White of the University Ross School of Business, in their book Changing Your Company from the Inside Out, share hare tactics tactic derived from social movement

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activists for change agents aiming to integrate socially-driven ally-driven in initiatives into their organizations. This framework is used to describe human rightss and business usiness in integration.

Social Movement Framework, ork, k, Gerald Davis Da D and Christopher White

When? n

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How should the initiative be framed? What is the compelling case for change?

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What is the opportunity portunity structure str for the initiative? What events eve in and outsidee makes the time ti right for change? ge?

Why?

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Who? W

W is the network? Who are the Who key decision makers, potential allies and potential roadblocks?

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How?

How should the initiative be mobilized? What tools and resources should be used?

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Integrating Human Rights into Organizations

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WHO?

The functional mapping presents an pping tables in appendix a overview of how teams within a ow the he various functional fun company might engage in human rights work. It is also hu important ant to consider which w whi external parties might influence consumers, advocacy ence this work, whether wh groups, and industry groups roups,, or other companies com tackling ackling similar issues. iis

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The opportunity structure for integrating human rights as a business priority varies. In many cases business has taken a reactive approach to human rights issues, embracing action only after an issue has occurred (e.g., Rana Plaza collapse) or regulation has been implemented (e.g., the “conflict minerals” law).

This approach can lead to “putting out fires” and being perceived as taking action merely to appease the public and reduce external stakeholder pressure.

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At times, a good idea may not get traction if presented at the wrong time, while a counter-intuitive idea can get traction if presented at an opportune moment.

Generally speaking, the challenge for change agents is to use shifts in the strategic priorities or leadership of the organization to their advantage, and to find ways to create urgency for those considering the proposal.

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1 WHEN?

it empowers employees to understand how and why human rights is relevant to their work, ratherr than an an issue that is managed separately by a sustainability ainability ity or social responsibility group. Nike, for example, mple, approaches sustainability as a key driver innovation, river off innovatio which ties directly back to its organizational anizational zational mission of bringing innovation to its consumers. umers. s.

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However, the genuine opportunity structure for business with respect to human rights exists when en a company takes a proactive, collaborative and businessdriven approach, often beginning with an HRIA RIA (Section 4). This allows for thoughtful, collaborative borative and ultimately sustainable action in addressing human rights concerns.

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rights initiative (often expressed in When the human hu of a code of conduct or human rights policy) the form o directly to a company’s existing policies and values, ties dir i

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H HOW?

In addition to mapping who is involved, it is important to consider the most effective strategy for mobilizing their support, including: •

Methods for stakeholder engagement, with consideration for these different groups’ priorities, concerns and limitations

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The role of leadership support and advocacy for this work

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Mechanisms for promoting awareness, dialogue and transparency, including external reporting structures. For example, the nonprofit “Labor Voices” promotes a “bottom up” approach to human rights action by using technology to give voice to the concerns of workers in manufacturing facilities.

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How human rights concerns intersect with business decisions, and how business decisions can be adapted to take these concerns into account.

The following section elaborates on integrating human rights into management decisions.

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While everyone would ould like “th “the right thing to do” to be a sufficient incentive change, it is helpful to ncentive ve to drive ch connect the cause existing mission and values use to the existin of a company, any, as well as strategic str strate objectives. Davis and White advocate identifying a “master frame” (or case cate identifyin for support) organization as a whole, and then upport) ort) ffor the org adapting dapting ng the focus o of that frame to the interests of the involved. different stakeholders stakehol

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Implementation

Integrating Human Rights into Decision-Making Systems: A Management Approach

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The GP and related publications stress that the identification of the actual, ual, perceived an and/ or potential human rights impacts of a business is only one step in the he overall proc process of

managing human rights. To effectively prevent and/or mitigate adverse se human rig rights impacts ment be inco requires that the findings of a human rights due diligence assessment incorporated into

the relevant internal functions and processes of a company to ensure the necessary level of

ave been not internal awareness and action is achieved. Although there have noticeable advances in o business proce companies taking steps to integrate human rights into processes, this still remains one of the least implemented features of the GP.

Companies have handled integration in a variety off ways, but ge generally speaking there are two

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ences with respect to focus and scope. The first is the approaches that have both similarities and differences

lated criteria into management functional areas and decisionintegration of human rights issues and related velopment and implementation of management plans to making processes. The second is the development tions that the company has either caused or contributed to address specific human rights issues or violations

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through its operations and actions. Each o of these approaches will be discussed below.

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INTEGRATING NG HUMAN MAN RIGHTS SINES FU ACROSS BUSINESS FUNCTIONS

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HRIA yield d specifi pecific findings about a the impacts of a ny on the internatio company internationally recognized human rightss of individuals uals and communities. As noted earlier, these ese findings ndi can be of actual human rights violations, violations ions that are a perceived by stakeholders to have violations that in the judgment of the occurred ccurred or vio assessment tteam could potentially occur over a specific assessmen timeframe. Simply put, the HRIA is a tool to help timefram comp compa companies respect human rights. This requires that the findings be assessed from the perspective of how a co company’s management systems and decision making procedures can be adjusted to prevent future violations of human rights.

A key step in this process is to identify the functional areas within a company and/or operational site that can in principle have a direct or indirect impact on how these human rights are impacted. For example, the land acquisition function of a company can directly impact the rights of individuals and communities to own and dispose of land and to preserve their cultural heritage; and the procurement function can impact the working conditions for employees of suppliers in the areas of health and safety and hours of work. The nature of these impacts on human rights generated by the policies and actions at the functional level of a company will vary by the company and industry, and mapping and assessing these impacts will be a critical step in the overall effort to integrate the HRIA findings into a company’s management systems.

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Integrating Human Rights into Decision-Making Systems: A Management Approach

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Marketing/Sales

Establish guidelines that require the assessment ssme of customer’s potential for negatively impacting acting human rights

Ensure that all forms of marketing embody fu full ure of the product transparency about the nature product’s characteristics related to the e invasion of privacy pri

Right to Privacy

Provide awareness training aining to all marketing m staff tand the hu to ensure they understand human rights ciated with the prod issues associated products

the policies es and d procedures of o the marketing/sales department information and technology company. ment of an informa informat After fter identifying entifying the functional areas within a company that could have a ssignificant impact on human rights, it is then possible possib to develop policies, procedures and poss incentive structures to support the integration of ncentive str human rights into decision-making frameworks. This rig ri turns urns the th focus to the issues discussed in Section 5 of this Toolbox around change management and the “why” T and an “how” aspects of driving social initiatives within organizations.

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To illustrate the relationships involved and provide a replicable implementation framework, Tables 1-3 in the Appendix chart out the potential implication of various functional areas in human rights for companies in the food, manufacturing and high technology industries.

Functional areas included in the tables range from legal and corporate affairs to marketing and human resources, while the human rights used as the point of analysis include food security, child labor, right to privacy, wages, right to education and freedom from conflict. The schematic below depicts one possible ssible scenario where the right to privacy is impacted acted cted by

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Although human rights integration ion and change chang management m are complex with many moving parts, there are four principal elements ents that together will support the consideration of human rights criteria when business decisions isionss are made. ma

GENERAL AL AWARENE AWARENESS WAREN NG – RAISING

Develop op communication municatio messages and platforms all employees and forms ms that reach al provide rovide an overvie overview of human rights, the company’s role in respecting those rights and the cchallenges and opportunities it faces. The socialize the importance of human goal is to so soc rights to the company and its stakeholders.

Potential delivery vehicles include internal Potent oten newsletters and external communications, new lletters from senior leadership and mechanisms within a company’s intranet.

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CAPACITY BUILDING – For those functional areas with direct and indirect impacts on human rights, a training program and related material should be developed that involves different styles of learning to account for the variety of individuals, functional areas and locations that will be targeted. For instance, engineering and marketing will approach the issue from different backgrounds and understanding of the business necessity for addressing human rights, and reaching both audiences will require an adapted training approach.

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PERFORMANCE MANAGEMENT –

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POLICY AND PROCEDURE MODIFICATIONS –

Decisions that impact human rights are often part of a larger framework of policies and procedures at the corporate, country and/or site levels. It is therefore critical that human rights criteria be integrated into these policies and procedures. Functional areas that may impact human rights should include criteria relevant to human rights issues in their decision making frameworks. This will require calibrating human rights issues with functional area impacts, and among the process steps should be gathering input from those functions. One aspect of this process is to conduct a Gap Assessment of the current policy frameworks in order to gain a thorough understanding of the decisions that could impact human rights.

Ensuring that human rights issues es aree being properly managed requires ires the establishment of a system for or monitoring outcomes. To be effectivee thiss should align with and/or be incorporated current orated into nto curren monitoring and risk processes. k assessment ssment proc proce

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The example below demonstrates some of the past steps that Microsoft has taken to integrate findings from HRIAs into decision-making ecision-makin processes, accountability structures and human rights training programs multiple levels within the company. This ms at multipl illustrates a proactive approach to managing nagin human rights integration that is embraced by many companies.

Integration Case Study: Micros Microsoft

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Microsoft used the resultss from a ser series of product-level HRIAs to modify policies approach to conducting icies and appr appro human rights due diligence ligenc

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Recommendations endations ation from HRIA H

• Improve rove the clarity and a accessibility of Microsoft’s privacy rivacy vacy policies and te terms of use.

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• Develop targeted human rights training program for velop a targete staff and bus business partners. busine • Move from an ad hoc approach to human rights due diligence ligenc with business partners to one that more ligence holistic tic and centralized.

• Include the evaluation of human rights risks and opportunities in the product development stage.

Takeaways • Results from HRIAs should be used to strengthen policies and training on key risks.

• HRIAs can be used to make forward-looking recommendations, which is critically important in a fast-paced industry.

• A gap analysis of current policies and processes against human rights risks can help you figure out where to focus your resources.

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Integrating Human Rights into Decision-Making Systems: A Management Approach

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For example, if an HRIA discovers that a food company is sourcing agricultural commodities from farms employing child labor in a particular country, then the immediate need is for the company

to devise a management plan that eliminates nates orr mitigates this human rights violation. This could ld include clude a shift in suppliers, establishment of a program with ram to collaborat collaborate w the farms in order to remove children labor ildren ren from their la forces, exertion of leverage over order to induce ver thee farms in o ord a change in operations, or, most likely, some ccombination of these approaches. Such potentially, but not ch a plan could po pot necessarily, require the support cooperation of a variety upport or coop of departments and nd d functional areas both at the operational and corporate levels. evels. vels. Nevertheless, Nevertheless Nevertheles the plan’s focus would still be narrowly defined by the need nee to address the human rights violation that is tied to a spe specific time and location(s). spec

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When an HRIA identifies one or more actual human rights impacts, the GP state that a company should take steps to eliminate and/or mitigate the impact and provide remedies for those whose rights have been negatively impacted. Integration in this case is a narrower concept than the process described above (which is focused on broad functional areas and management systems) because it is targeted to address specific human rights violations that are generally circumscribed by space and time.

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HUMAN RIGHTS IMPACT MANAGEMENT PLANS

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The scope and complexity of a human rights hts impact management m plan will vary by company and the nature of the human an rights ghts violation violat viola being addressed, but the major nd will include: include elements will be broadly similar and

Setting Objectives –

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In some cases this may be obvious (e.g., g elimination of threats to life) but in others rs it may be more nuanced given the human rights concerned and the situational context. F For example, a finding that a company’s operations any’s opera does not respect the right to freedom o of association in a particular ular country where free trade unions are not allowed ed may lead to an objective of creating alternative mechanisms ating alt for representation rather than establishing tion rathe independent dent unions.

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Determining the Approach – Deter

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The recomm recommendations in the HRIA will provide foundation for creating potential approaches the fou addressing the human rights violation(s). In to addr some cases there may be a variety of ways to aaddress a human rights issue. Determining the most effective approach will involve internal assessments and perhaps additional engagement with external stakeholders.

Assigning Tasks, Roles and Responsibilities – As in any management plan there has to be a defining of tasks and an assigning of responsibilities, and this will involve some combination of local and corporate level functions and staff.

Performance Targets, Monitoring and Feedback Loop – Setting a performance target is necessary in order to ensure clarity for employees and stakeholders on the expected outcomes for rights holders of the companies addressing the human rights violations. It is also important that a system be in place to receive feedback from rights holders on the company’s efforts; note that an effective mechanism may already be in place if the company has a grievance mechanism for

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Implementation

external stakeholders.

Human Rights Impact Management Plan - Summary Issue

Security Management Goal

Ensure that security measures taken by public or private security actors, and involving operations, do not adversely adver impact

Objectives

Actions

Actions are the concrete activities or initiatives necessary to achieve the objective

Actions

Objective

Define the roles and interactions between the private security forces and local police (i.e. a Organize team to consider whether to support local police forces with financial or physical If resources are provided to local police forces, develop monitoring system to ensure no misuse of Research local NGOs to determine if there are opportunities to partner for security awareness

1 1 1 2

Owner Start Date

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Not Starte Started

In Progress

Complete

1-Jun-15 -Jun-15 1-Jun-15 n-15 1-Jun-155 1-Jun-15

Key Performance Indicators (KPIs)

Targets

Notes

An indicator of performance toward a key objective.

Number of interview trips completed.

Number of high-risk issues identified and escalated.

Number of low risk issues identified and monitored.

Quantifiable goals for fo KPIs TBD BD through mid-2016

Additional Notes

Key Trends in the managem management of human rights impacts acts

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Objectives are specific and measurable steps that together support achievement of a goal.

1 solution training).

Conduct on-boarding and annual trainings with private security personnel on human rights (in addiiton to current dispute resolution 2 Identify and escalate recurring issues before they become serious impacts that could cause delays to project.

3 Monitor and analyze low risk issues to identify those that may require escalation.

4 Develop team to engage with local police forces.

5 Produce monthly reports tracking KPIs.

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An example of an actual human rights impact management plan that integrates human rights into specific processes is found in the chart to the right.

Many companies across a variety of industries stries and co countries have established human rights programs in line with the GP includ including the adoption of human rights policies, due diligence processes, and monitorin monitoring and reporting procedures.

Key trends going forward include: lude

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bility: As corpo Accountability: corporate experience with HRIA has grown, so too has the realization that a crucial step in respecting human rights stabli is establishing clear governance structures (in ms of accountability accou terms for implementing the findings of an impact assessment). Therefore, it is impo important that the company has a clear roadmap for the implementation of HRIA rec recommendations and assigns clear roles and res responsibilities pertaining to human rights.

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Legal Requirements: Taking together ogether th the actions of governments and d NGOs, there is a reasonable chance that at in the near to medium term what is now a voluntary ntary process proce for bec managing human rights will become more of a legal requirement. nt.

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the organizational change it is meant to drive.

Companies are experimenting with various approaches and there appears to be a lot of “white space” in terms of the most effective methods.

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Standards and Data: Assessing a company’s impact on human rights is made more difficult in some instances by the absence of generally accepted standards of measurement and what is oftentimes a paucity of data. The adoption of the Sustainable Development Goals and the continuing advances around “big data” have the potential to address both issues.

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Transparency: As in all aspects of business operations, the age of transparency is creating new opportunities for engaging with stakeholders around human rights as well as increasing demands for information about specific events or issues.

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Capacity Building: One of the most important aspects of integration is capacity building and

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APPENDIX

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Table 1: Agricultural Functional Mapping g

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Human Rights Impact

Agriculture Functional Mapping Company Function

* Collaborate with external organizations to spread and encourage best practices * Facilitate steps to be taken based on HRIA

Sustainability

Freedom from Child Labor and Right to adequate wages

Human Rights at a High Level

* Create and support programs that encourage and enable education * Initiate educational programs for children employed legally and local children * Create internal communications on the importance of upholding child labor laws

Human Resources

* Uphold laws pertaining to human rights * Advocate fair hiring practices

* Guide the policy formation process to assure a baseline compliance with applicable legal standards * Collaborate across functions tions to encourage innovative policies olicies that strengthen human rightss initiatives

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* Engage with th government stakeholders to understand local challenges and to find innovative ind in ways strengthen human rights ays to str Government (Internal) from high lev level policy to on the implementation and External Affairs ground implem * Partner with competitors and across to share best cross industries indus practices and cultivate multidimensional programs to effect dimens positive change posit

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Operations atio

* Work closel closely with sourcing partners to establish line of sight sigh to the exact source of products and communities impacted by property acquisition the he comm land acquisition strategies, work with local * In lan entities to understand impacted communities and e entit give these factors weight when determining g gi entrance strategy

* Highlight the company's comm commitment sanitation to the access to wat water and sa in external and internal communications mmunic that * Exhibit an understanding understan understa impact the access to agriculture can imp these ese rights and that the company has policy to assure access to taken a pol populations and future local popul popula generations generation neration

* Establish hiring practices racticess with robust ro checks on age that hat are compliant with local, national,, and international rnational laws (refer to ILO O C 182, Article icle 3 3)

Assure that workers are allowed *A access to water and sanitation on the acc job

* If local populations are displaced, work across the company to find opportunities to provide adequate living wages or work with external organizations when necessary to provide such opportunities

* Work with human resou resources to establish robust company policies tha that uphold u checks on age that are a compliant with local, cal, national, nati and international laws 182, Article 3) (refer to ILO C 1

* Shape company policy according to local, state, and national water laws * Work with operations and procurement to establish policy that supports right to water and sanitation for local populations is upheld

* Assure that recognized land owners provide free, prior, and informed consent (FPIC) in property acquisition deals with relocated communities * Improve company policy where necessary and uphold the policy to assure adherence to local, national, and international law

* Work with government officials to uphold laws that prevent child labor (commonly prior to age 15) * Lobby with external organizations to uphold right to education and prevent child labor * Pay living wages to ensure that families can subsist without additional wages from children and encourage the practice across industry

* Advocate for improved access to water and sanitation * Collaborate with other local companies to understand the collective strain on water and challenge peers to set policy to minimize water impact and withdrawal * Consider supporting external water and hygiene programs that contribute to the improvement of local conditions

* Work with local governments to assure that impacted communities' rights are upheld * Act as advocate to improve these policies locally to meet or exceed international standards

* To the extent that child labor is legal,

* Align operations with company policy to minimize water withdrawal and impact * Leverage innovative irrigation and farming methods to reduce water use

* Understand environmental impacts to assure minimal impacts on current and future generations * Integrate an evaluation of potential impacts on local communities into operations strategies

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Legal

* Establish external communications about the importance of compliance with child labor laws * Profile the company's commitment to keeping children out of the fields and nd a commitment to education (where e applicable)

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* Communicate meaningfully externally about the company's stance on human rights issues * Prolile how the company's approach and values shape products from design to pricing

Marketing

* Examine impacts on water security ty when evaluating products ucts and potential sourcing partners * Assess whetherr any activitie activities in supply chain will ill potentially disrupt dis access to water ater er and sanitation in every local context ext

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Procurement

* Provide of the vide a comprehensive understanding und on impacts of locall landscape to give guidance guida proposed osed strategies stra environmental impacts that * Give guidance on envir en will have implications for future generations

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* Establish a rigorous code of conduct to assure that suppliers set and monitor legal ages for employment that comply * Establish and enforce policy and with all levels of applicable law and code of conduct with suppliers company policy throughout supply chain * Encourage compliance through unscheduled audits and by integrating * Challenge industry norms standards into standard supplier evaluations

nversion and Resettlement Land Conversion

Right to Water and Sanitation

* Understand the water dynamics of local regions to understand if populations have adequate access and whether the company's practices ces will disrupt this access

* Collaborate across functions to establish increased measures to ensure assure that the work force is health and safety employed legally and safely and that no actions adversely impact stakeholders * Advocate for safe working conditions, fair hours and living wages along with other workers' rights

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Table 2: ICT Functional Mapping Human Rights Impact

ICT Functional Mapping

Company Function

Sustainability

Procurement

Marketing

Human Resources

* Collaborate with external organizations to spread and encourage best practices * Facilitate steps to be taken based on HRIA

Right to privacy

* Cultivate a clear dialogue with stakeholders on the right to privacy and disclose the company's current actions and policies * Work across functions to establish an assessment on the right to privacy and advocate for transparency

* Uphold laws pertaining to human rights * Advocate fair hiring practices

* Guide the policy formation process to assure a baseline compliance with applicable legal standards ns to t * Collaborate across functions encourage innovative policiess that strengthen human rights initiatives

ot to

* Engage with government nt ders to understand local stakeholders nges and to find f challenges innovative o strengthen human rights ways to Government (Internal) from high level policy polic to on the implementation and External Affairs ground implement * Partner wit with competitors and oss indus across industries to share best ces a practices and cultivate multidimensional programs to effect po positive change

N

Operations Opera

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rom Conflict (conflict (c Freedom from minerals)

* Engage age with external stakeholders ((c (consumer, advocacy, industry, ustry, supplier, upplier, local groups) * Coordinate annual conflict minerals report te completion of annu * Develop on conflict minerals policy elop and educate internally intern

* Work with suppliers to assure that child labor standards are upheld and nd that education opportunities are ree provided to local communities * Work with source partners rtners to provide access to education on platforms ms

* Establish direct liline of sight through the entire supply chain * Ensure suppliers supplie adhere to company's conflict minerals policy * Support suppliers in coming into compliance with conflict Supp sup minerals nera policy p

* Ensure that all forms of marketing embody full transparency about the nature of the product's characteristics related to the invasion of privacy * Provide awareness training to all marketing staff to ensure they understand stan stand the human rights issues associated d with the products

* Integrate ratee the company's commitmen com commitment to education cation into communications * Strive to find opportunities in the t education ion market to create low lo cost access to educational materials ducational tools and ma

* Coordinate with Sustainability and external affairs on public messaging on conflict minerals * Determine if product-level messaging is appropriate * Identify consumer education opportunities

* Work with legal to create eate an internal nternal policy that provides clarity on right ight to privacy * Clearly communicate municate this policy to all levels of employees ployees

* Provide access a to education for the current curren workforce at all levels * Assure all workers are given living wages Ass to reduce the likelihood of child labor

* Ensure incoming talent understands how the conflict minerals work is prioritized by the company * Offer educational opportunities for employees on conflict minerals

* Frame ame company policy to in include national and inte international legal standards pertaining to o right to pr privacy * Work with product oduct innovation to ensure that these rights are a integrated into the design process desig that government demands and * Assure ttha contracts tracts with large enterprises do not infring upon users' rights infringe

* Form company policy that supports the right to education * Work with procurement to establish a code of conduct for suppliers to prevent child labor and encourage educational support for suppliers

* Coordinate submission of annual SEC reports with Sustainability and Legal * Assist in interpreting the contractual obligations of suppliers * Support Sustainability and Procurement in appropriately incorporating supplier expectations into contractual terms and conditions

* Work with companies in the industry alongside the government to elevate issues of privacy and to restrict access to personal information * Assure that government demands do not infringe upon users' rights

* Partner with local governments to *Coordinate submission of annual SEC reports with Sustainability understand local education needs and and Legal strive to fill gaps on an ongoing basis * Advocate for future enhancements to the conflict minerals law * Encourage competitors to collaborate to improve education systems

* Establish and enforce policy and code of conduct with suppliers throughout supply chain * Challenge industry norms

* Communicate meaningfully externally about the company's stance on human rights issues * Prolile how the company's approach and values shape products from design to pricing

Right to Education

* Understand areas where company technology can greatly increase access to education and work across functions to extend those opportunities

be

Legal

Human Rights at a High Level

* Provide continual feedback in product * Work with human resources to assure workforce has access to education programs

* Collaborate across functions to design to ensure products provide assure that the work force is privacy employed legally and safely and that no actions adversely impact stakeholders * Advocate for safe working conditions, fair hours and living wages along with other workers' rights

UNIVERSITY OF MICHIGAN | Erb Institute for Sustainable Global Enterprise

Implementation

Re di st rib ut ed

Table 3: Manufacturing Function Mapping Human Rights Impact

Company Function

Human Rights at a High Level Fair / Living Wages

Procurement

throughout supply chain * Challenge industry norms

* Communicate meaningfully externally about the company's stance on human rights issues * Prolile how the company's approach and values shape products from design to pricing

Marketing

Human Resources

* Uphold laws pertaining to human rights * Advocate fair hiring practices

be

ot to N

* Create internal and external communications on the importance of upholding child labor laws hat * Create and support programs that on encourage and enable education ams for children chi * Initiate educational programs employed legally duct to assure that hat *Establish code of conduct fo suppliers set and monitor legal ages for employment thatt comply with local, state state, nternational laws and company comp national, and international policy

* Comply with h company ny policy that is d in compliance ance with local and established ments to assure th tthat nationall legal requirements rect workforce kforce receives fair all direct mpensation ion compensation * Assure those hose individuals working work w for the company are recognized and an given access to benefits benef

* *Establish hiring practices with robust checks on age that are compliant with local, national, and international laws. Refer to ILO C 182, Article 3

* Educate the workforce on safe working practices and standards * Encourage employees to report unsafe practices and conditions and cultivate trust and psychological safety to do so

* Establish compan company policy based on fair

*Establish company policies that uphold robust checks on age that are compliant with local, national, and international laws. Refer to ILO C 182, Article 3

* Create company policy alongside operations and procurement to assure local and national laws are met and international standards are upheld

* Engage with government to understand local wage standards * At more advanced levels, encourage the state to increase minimum wage standards and to put formal standards and processes in place * Work with industry peers to increase wage standards across the industry

* Work with government officials to uphold laws that prevent child labor (prior to age 15) * Lobby with external organizations to uphold right to education and prevent child labor * Pay living wages to ensure that families can subsist without additional wages from children and encourage the practice across industry

* Encourage local authorities to establish and enforce safe building codes * Work with local infrastructure to establish emergency response systems and to assure that local health systems can treat injuries * Work with industry peers to elevate industry working condition standards

* Work with HR to assure all workers

* Establish increased measures to ensure health and safety for children that are legally allowed to be within manufacturing areas

* Integrate regular safety checks * Encourage reporting on violations of policy and safety standards * Collaborate across departments to report on safety compliance to encourage transparency and improved standards across industry

wage standards st that are in compliance * Guide the policy formation with th the state's st state legal requirements process to assure a baseline ble legal leg compliance with applicable standards * Collaborate across functions to encourage innovative policies that hen human rights strengthen ves initiatives

* Engage with government vern takehold stakeholders to understand local challenges and a to find innovative ways to stre strengthen human rights Government (Internal) ternal from high le level policy to on the round implementation im and External Affairs ground * Partner with competitors and ar across industries to share best acros practices and cultivate multidimensional programs to effect positive change

Operations

departments to create a * Work across departmen rigorous audit system to t maintain safe and workable condit co conditions at company and partner factories facto * Encourage better be industry-wide standards and standar a communicate externally to promote promo transparency throughout Wor with contractors and sourcing Wo * Work part partners to enforce safety standards for a materials sourced externally all * Conduct randomized audits to assure factories are kept up to standard and suspend relationships when there are violations * Maintain steady workflow with partners to assure that workloads can * Work with procurement and operationss * Establish external communications commun about * Include the company's stance on safe he importance of comp complia to establish pricing that allows for fair the compliance with child labor working conditions in massaging to wages laws ws consumers to keep the issue current * Include the compa company's commitment to and to challenge competitors to uphold hildren o keeping children out of the factories as well similar values and standards comm commitme to education (where as a commitment applicable applicable)

* Understand the local landscape and industry standards * Challenge company practices to offer wages at or above the peer average * Challenge wage standards in industry and highlight benefits to fair compensation * Work with sourcing partners to ensure compliance with wage standards * Establish and enforce policy and * Work with contracted entities to assure their practices are in alignment with code of conduct with suppliers company policy on wage standards

* Collaborate with external organizations to spread and encourage best practices * Facilitate steps to be taken based on HRIA

Sustainability

Legal

Manufacturing Functional Mapping Freedom from Child Labor Safe Working Conditions Co

* Collaborate across functions to are recognized and given benefits assure that the work force is employed legally and safely and that no actions adversely impact stakeholders * Advocate for safe working conditions, fair hours and living wages along with other workers' rights

BUSINESS AND HUMAN RIGHTS TOOLKIT | MARCH 2016

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PREPARED BY: Denise Miller Kristine Schantz

WITH SUPERVISION FROM: Roger McElrath