Program: Human Rights and Business Roundtable

Joint Statement of Principles of the Representatives of the Business and Human Rights Communities Participating in the Roundtable

1. The participants from both the business community and the human rights community commit themselves to work together to promote global respect for and observance of the rights and freedoms set forth in the Universal Declaration of Human Rights.

2. There is a shared recognition that the goals of the human rights community -- to secure respect for human rights and to achieve sustainable development -- and the goals of the business community – to maximize shareholder returns and improve the quality of life through the free market mechanism – can be complementary and can be mutually supportive. The protection of human rights contributes to political stability and reduces the risk of social unrest, conditions which are essential to a favorable investment climate. By the same token, thriving markets are a precondition for the creation of jobs and improvement of living standards, and can contribute to an environment which is conducive to improved social and political conditions.

3. The participants from both the business community and the human rights community commit themselves to the promotion of the Rule of Law -- a system of laws applied by an independent judiciary in a non-arbitrary and non-discriminatory manner consistent with international norms and standards. From the perspective of the business community, the Rule of Law is essential to the protection of property, the enforcement of contracts, the elimination of corruption and the maintenance of a stable and productive work force. From the standpoint of the human rights community, the Rule of Law is the very foundation upon which the protection of all human rights rests.

4. The participants from the two communities also commit themselves to the promotion of open societies worldwide and to free access by all members of the world community to one another, conditions under which the goals of each community are most likely to be advanced.

5. The two communities recognize the growing economic interdependence among nations. This interdependence underscores the critical importance of providing an appropriate level of resources and authority to the United Nations and other multilateral institutions which play a central role in advancing human rights. Likewise, the role of these institutions in promoting peace and development contributes importantly to a favorable investment climate. These relationships were recently recognized in the Joint Statement on Common Interests by the Secretary-General of the United Nations and International Chamber of Commerce: “Efforts by the international community to promote appropriate policies and good governance, to strengthen institutions and infrastructures, to eradicate poverty and to develop human resources are critical to the creation of a business-friendly environment. . . Business is well aware that it must be a responsible partner in the social order in which it operates.”

6. The participants from the corporate community and the participants from the human rights community commit themselves to the continuance of dialogue, to the continued search for common interests, to work together to advance those goals and principles which are the subject of this Joint Statement and to work to explore the possibilities for development of a mutually supportive relationship. Each recognizes that such a relationship will require a better understanding of the other community and is likely to require changes in behavior and in tactics.

(a) The participants from the human rights community recognize that cooperation with industry can be an effective means to address areas of common concern. The participants from the human rights community also recognize that there are often limits to a corporation’s ability to exert political and social influence and on their authority to do so; and that corporate management has a fiduciary obligation to its shareholders to seek to earn a fair profit. Going forward, the participants from the human rights community commit themselves:

(i) To make themselves available to representatives of the business community for dialogue in respect of the human rights dimensions of their investments – both actual and potential; and

(ii) To make information available to representatives of the business community to facilitate informed decision making where human rights considerations are present subject to considerations of confidentiality and the necessity of protecting sensitive sources.

(b) By the same token, the participants from the corporate community recognize that there are fundamental international human rights standards to which their companies must adhere to be good international corporate citizens. They are:

(i) To avoid complicity in governmental human rights abuses in the countries in which they operate.

(ii) To uphold and respect human rights in the corporation’s own practices and sphere of influence. This includes avoidance of the use of child or forced labor; promotion of equal opportunity for employees at all levels without regard to color, race, gender, age, ethnicity, religion or national origin; respect for employee freedom of association and right to collective bargaining; and provision of a safe and healthy workplace.

(iii) To make measurable progress toward the goal of a wage level for all workers which will provide them and their families with basic human needs.

(iv) To develop explicit company policies and procedures to ensure that security arrangements do not contravene international human rights standards.

(v) To actively engage with the leadership and voluntary organizations of the communities in which they operate regarding the impact or potential impact of company operations on the enjoyment of universal human rights; and to use their influence with host governments to cause the local community to share appropriately in the benefits realized by the host government from company operations.

(vi) To afford transparency with respect to compliance with these standards.

April, 2001