United Kingdom

By Daniel Morris | 1. May 2018

The UK 2013 NAP

The State’s Duty to Protect Human Rights 

The existing UK legal and policy framework

The UK is subject to international human rights obligations under customary international law and as a result of the international legal instruments we have signed and ratified. Human rights obligations generally apply only within a State’s territory and/or jurisdiction. Accordingly, there is no general requirement for States to regulate the extraterritorial activities of business enterprises domiciled in their jurisdiction, although there are limited exceptions to this, for instance under treaty regimes. The UK may also choose as a matter of policy in certain instances to regulate the overseas conduct of British businesses.

The UK has specific laws protecting human rights and governing business activities. As with all UK law, these are set out in legislation or sometimes protected by common law rules which, taken together, ensure certain rights and liberties. Some of these provisions have been in place for many years and will be familiar to business. Like all States we need to continually re-assess whether the current mix is right, what gaps there might be and what improvements we can make.

The UK has ratified a series of international treaties and agreements – the International Labour Organisation’s eight core conventions, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and the European Convention on Human Rights – which enshrine human rights and fundamental freedoms and have been given effect through the law. The Human Rights Act 1998 ensures that individuals in the UK have a remedy for the breach of rights which are protected by the European Convention on Human Rights (ECHR). It applies to all public authorities and other bodies performing public functions, as private companies sometimes do.

The relevant legal framework in the UK includes employment regulations that require companies not to discriminate against employees on grounds of sex, race, sexual orientation and religious belief, and environmental regulations. Examples of wide ranging legislation protecting human rights in the business context include the Health and Safety at Work Act 1974, and the Data Protection Act 1998 which applies to companies and ensures respect for the privacy of individuals. Legislation has also been passed to plug specific gaps in the protection of workers under the law such as the Gangmasters (Licensing) Act 2004, which created an agency to prevent the exploitation of workers in agricultural work, shellfish-gathering and related processing or packaging.

The UK has created or endorsed a number of instruments that motivate different aspects of good corporate behaviour and respect for human rights. These include:

  • the UK Bribery Act where, in line with our OECD commitments, UK companies are now liable in the UK for acts of bribery committed anywhere in the world;
  • the Declaration on Fundamental Principles and Rights at Work adopted in 1998 and the 8 core ILO Conventions ratified by the UK on labour standards;
  • the OECD Guidelines for Multinational Enterprises, where the UK is generally recognised as having one of the most effective National Contact Points;
  • Section 172 of the Companies Act 2006, which makes it clear that, in fulfilling their duty to act in a way which they consider would be most likely to promote the success of the company, directors must think about matters which might have a bearing on that success, including the interests of the company’s employees and the impact on the community of the company’s operations.

The Government exercises controls on the export of “strategic” goods and technology through the export licensing system. All export licence applications are rigorously assessed against the Consolidated EU and National Arms Export Licensing Criteria. These assessments take full account of possible human rights impacts; a licence would not be granted if we judge there is a clear risk that the proposed export might be used for internal repression.

Actions taken 

(i) under the UK’s Presidency of the G8, obtained G8 support for responsible business investment in Burma in line with the UN Guiding Principles. We have also funded the creation of a resource centre in Rangoon to sensitise incoming investors to the importance of human rights compliant business in Burma, based on the UNGPs. The FCO’s initial funding has now been supplemented with support for the next stage from the UK’s Department for International Development (DFID).

(ii) sought and are committed to ensuring that in UK Government procurement human rights related matters are reflected appropriately when purchasing goods, works and services. Under the public procurement rules public bodies may exclude tenderers from bidding for a contract opportunity in certain circumstances, including where there is information showing grave misconduct by a company in the course of its business or profession. Such misconduct might arise in cases where there are breaches of human rights. In addition, UK public bodies are required to have due regard for equality-related issues in their procurement activity.

(iii) negotiated and agreed the OECD 2012 Common Approaches, including a requirement for Export Credit Agencies (ECAs) to take into account not only potential environmental impacts but also social impacts, which is defined to include “relevant adverse project-related human rights impacts.” The OECD 2012 Common Approaches also require ECAs to “consider any statements or reports made publicly available by their National Contact Points (NCPs) at the conclusion of a specific instance procedure under the OECD Guidelines for Multinational Enterprises.” UK Export Finance will consider any negative final NCP statements a company has received in respect of its human rights record when considering a project for export credit.

(iv) played a leading role in developing the International Code of Conduct for Private Security Service Providers (ICOC). This sets out companies’ commitments to standards of behaviour, particularly on human rights, and will be independently audited. By June 2013 a total of 659 companies had signed the ICOC, including about a third from the UK.

(v) taken account of business activity in conflict and fragile states, or countries with high levels of criminal violence, within the Building Stability Overseas Strategy. Companies operating in these difficult environments have an important role to play incontributing to stability, growth, development, prosperity and the protection of human rights. We support the implementation of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones. We will also continue to help develop, and monitor implementation of, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas. The Government will also continue to encourage higher standards in the diamond supply chain.

(vi) continued to provide financial support to the UN Global Compact, a global mechanism that encourages and enables companies to align their operations and strategies with ten universally accepted principles in the area of human rights, labour, environment and anti-corruption.

(vii) invested £750,000 in 2012-13 from the FCO’s Human Rights and Democracy Programme in projects promoting the UNGPs and anticipate a similar level of spending in 2013-14.

New Actions Planned

The Government will do the following to reinforce its implementation of its commitments under Pillar 1 of the UNGPs:

(i) Develop partnerships with other countries seeking to implement the UNGPs. We already have a strong collaborative partnership with the Government of Colombia on implementation in both countries, in the context of the November 2011 joint statement on human rights by the Prime Minister and President Santos.

(ii) Begin certifying Private Security Companies in the UK based on the agreed UK standard for land-based companies, by working with the UK Accreditation Service (UKAS) to take forward the certification process, ensuring this includes expert human rights advice. We will also agree a standard for maritime PSCs this year. We will take forward our work with the Swiss, Australian and US governments, industry and NGOs to establish an international mechanism to monitor compliance with the International Code of Conduct for Private Security Service Providers. We will engage with state and non-state clients to urge them to commit to contracting only with PSCs that are pursuing certification against recognised standards by accredited certifying bodies, and membership of the ICOC Association.

(iii) Work together with partners in the Voluntary Principles on Security and Human Rights to strengthen the implementation, effectiveness and membership of the Voluntary Principles, including through the UK Chairmanship of the initiative beginning in March 2014.

(iv) Review the degree to which the activities of UK State-owned, controlled or supported enterprises, and of State contracting and purchasing of goods and services, are executed with respect for human rights, and make recommendations to ensure compliance with the UNGPs.

(v) In line with the UK Cyber Exports Strategy, develop guidance to address the risks posed by exports of information and communications technology that are not subject to export control but which might have impacts on human rights including freedom of expression on line.

(vi) Promote new project activity on raising awareness and tackling the negative impacts of business activity, including on the human rights of groups like indigenous peoples, women, national or ethnic minorities, religious and linguistic minorities, children, persons with disabilities, and migrant workers and their families, by tasking our diplomatic missions in countries where these are concerns.

(vii) Ensure that agreements facilitating investment overseas by UK or EU companies incorporate the business responsibility to respect human rights, and do not undermine the host country’s ability to either meet its international human rights obligations or to impose the same environmental and social regulation on foreign investors as it does on domestic firms.

(viii) Lobby foreign states, including through ministerial contact and our embassies and high commissions, to support widespread international implementation of the UNGPs and other relevant international instruments including the ILO’s Fundamental Principles and Rights at Work and the eight core Conventions which embody them, and the OECD Guidelines for Multinational Enterprises.

(ix) Work with EU partners to implement the UNGPs across member states and internationally, starting with the undertaking made by member states in the EU Action Plan on Human Rights and Democracy to develop their own national plans by the end of 2013.

(x) Support the UN Working Group on the issue of human rights and transnational corporations and other business enterprises in their role to promote uptake of the UNGPs and develop guidance and best practice (we contributed £100,000 in 2012).

(xi) Instruct our embassies and high commissions to support human rights defenders working on issues related to business and human rights in line with EU Guidelines on human rights defenders.

UK’ companies responsibilities to respect human rights

Government expectations of business

Actions taken to support business implementation of the UNGPs

To help businesses to fulfil their responsibility to respect human rights we have so far:

(i) published this action plan, setting out the Government’s actions and expectations on business and human rights. We will seek clear and consistent communication of this policy through ministers, UK business ambassadors and officials who engage with business, and on Government websites and social media pages, including those of our embassies and high commissions.

(ii) taken steps to ensure that from 1 October a clarification of the Companies Act 2006 means that company directors will include human rights issues, in their annual reports;

(iii) developed the joint FCO-UKTI Overseas Business Risk (OBR) service, which provides information about business environments in the countries where UK Trade and Investment (UKTI) has a presence, to ensure it includes specific country human rights information and links to the UNGPs and other relevant tools and guidance; http://www.ukti.gov.uk/export/howwehelp/overseasbusinessrisk/countries.html

(iv) updated the Government’s “Business and Human Rights Toolkit” – a detailed guidance manual for officials – in light of the UNGPs and have brought it to the attention of all relevant officials, including through the training courses we run for FCO and UKTI staff.;

(v) instructed our embassies and high commissions to work with host governments, local and UK business, trade unions, NGOs, human rights defenders, academics lawyers and other local experts so we can help inform companies of the human rights risks they face;

(vi) provided support to convening mechanisms that bring together business and civil society representatives to drive practical action, for example, the Ethical Trading Initiative.;

(vii) funded an online hub – in 6 languages – providing guidance and information on the UNGPs where companies can share successful outcomes and promulgate best practice. http://www.business-humanrights.org/UNGuidingPrinciplesPortal/Home

Further actions planned

We will:

(i) continue to develop Government guidance so that it is accessible and helpful, especially to SMEs. We will work with relevant industry associations and other corporate groupings. And we will signpost guidance specifically intended to help SMEs, such as that available from the Equality & Human Rights Commission at:

http://www.equalityhumanrights.com/advice-and-guidance/here-for-business/human-rights-matter-to-business/

and the European Commission at:

http://ec.europa.eu/enterprise/policies/sustainable-business/files/csr-sme/human-rights-sme-guide-final_en.pdf

(ii) encourage trade associations/sector groupings of companies to develop guidance relevant to their members’ sector of activity on developing human rights policies and processes, including due diligence. There is generic guidance online about doing this e.g. at the Business & Human Rights Resource Centre. Some sector-specific guidance also exists, for example the International Council on Mining and Metals has produced a guide for mining companies on human rights due diligence. The European Commission has created guidance on the information communications technology (ICT), oil and gas and employment and recruitment sectors; http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/human-rights/index

(iii) support dialogue between business people, parliamentarians and civil society on the implementation of the business and human rights agenda, and share examples of good practice and examples of where the absence of this has created difficulties for companies.

(iv) instruct our diplomatic missions to raise with local authorities our concerns in situations where companies have problems implementing their human rights responsibilities because local law is incompatible with international human rights law.

The UK 2016 updated NAP

2. The State’s Duty to Protect Human Rights [page 7]

(…)

12.The UK has specific laws protecting human rights and governing business activities. As with all UK law, these are set out in legislation or sometimes protected by common law rules which, taken together, ensure certain rights and liberties. Some of these provisions have been in place for many years and will be familiar to business. Like all States we need to continually re-assess whether the current mix is right, what gaps there might be and what improvements we can make.

13.The UK has ratified a series of international treaties and agreements – the International Labour Organisation’s eight core conventions, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and the European Convention on Human Rights – which enshrine human rights and fundamental freedoms and have been given effect through the law. Currently the Human Rights Act 1998 ensures that individuals in the UK have a remedy for the breach of rights which are protected by the European Convention on Human Rights (ECHR). It applies to all public authorities and other bodies performing public functions, as private companies sometimes do.

14.The relevant legal framework in the UK includes employment regulations that require companies not to discriminate against employees on grounds of sex, race, sexual orientation and religious belief, and environmental regulations. Examples of wide ranging legislation protecting human rights in the business context include the Health and Safety at Work Act 1974, and the Data Protection Act 1998 which applies to companies and ensures respect for the privacy of individuals. Legislation has also been passed to plug specific gaps in the protection of workers under the law such as the Gangmasters (Licensing) Act 2004, which created an agency to prevent the exploitation of workers in agricultural work, shellfish-gathering and related processing or packaging.

15.The UK has created or endorsed a number of instruments that motivate different aspects of good corporate behaviour and respect for human rights. These include:

  • the UK Bribery Act where, in line with our OECD commitments, UK companies are liable in the UK for acts of bribery committed anywhere in the world;
  • the Declaration on Fundamental Principles and Rights at Work adopted in 1998 and the 8 core ILO Conventions ratified by the UK on labour standards;
  • the OECD Guidelines for Multinational Enterprises, where the UK is generally recognised as having one of the most effective National Contact Points (see paragraph 19 below);
  • Section 172 of the Companies Act 2006, which makes it clear that in fulfilling their duty to act in a way which they consider would be most likely to promote the success of the company, directors must think about matters which might have a bearing on that success, including the interests of the company’s employees and the impact on the community of the company’s operations. The Act was revised in October 2013 to ensure that directors of quoted companies consider human rights issues when making their annual strategic reports
  1. The Government exercises controls on the export of “strategic” goods and technology through the export licensing system. All export licence applications are rigorously assessed against the Consolidated EU and National Arms Export Licensing Criteria. These assessments take full account of possible human rights impacts; a licence would not be granted if we judge there is a clear risk that the proposed export might be used for internal repression.

 

Actions taken [page 9]

17. To give effect to the UN Guiding Principles, the Government has:  (…)

(i) introduced the Modern Slavery Act which consolidates and simplifies existing legislation, toughened penalties to allow a maximum sentence of life imprisonment, and provides safeguards for victims. Companies covered by the Act are required to produce a “slavery and human trafficking” statement for each financial year setting out what steps they have taken to ensure that slavery and human trafficking is not taking place in its business and supply chains. The Act, which entered into force on 31 July 2015, also created an Independent AntiSlavery Commissioner.

(ii) implemented the requirements of the OECD 2012 Common Approaches, an considered relevant adverse project-related human rights impacts in providing applicable Export Credit Agency (ECA) support through UK Export Finance(UKEF). UKEF will consider any reports made publicly available by the UK National Contact Point (NCP) in respect of the human rights record of a company when considering a project for export credit. The UK has been involved with the discussions, and negotiations, on the implementation of the OECD 2012 Common Approaches and the need to amend this, in respect of ongoing experience on project-related human rights. The UK continues to be involved in negotiations on any agreed clarifications to the OECD 2012 Common Approaches.

(iii) taken account of business activity in conflict and fragile states, or countries with high levels of criminal violence, within the Building Stability Overseas Strategy. Companies operating in these difficult environments have an important role to play in contributing to stability, growth, development, prosperity and the protection of human rights. We support the implementation of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones. We will continue to promote implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas. The Government will also work with EU partners and other like-minded countries to deliver increased effectiveness of the Kimberley Process Certification Scheme and higher standards of responsible sourcing in the global diamond supply chain.

(iv) in March 2015 the Government concluded its chairmanship of the Voluntary Principles Initiative. During our chairmanship we worked to raise awareness of the VPI in priority countries for membership, to support UK oil, gas and mining companies to use the VPs to manage security and human rights risks more effectively, and encouraged greater openness by companies in line with the UN Guiding Principles on Business and Human Rights. More detail on our chairmanship year can be found in our 2014 annual report.

(v) in 2015, the ISO 28007 maritime standard and ISO 18788 land standard for Private Security Companies were published. The UK Accreditation Service (UKAS) conducted a pilot certification process and has issued guidance for certifying bodies for ISO28007, including on human rights. UKAS will also issue guidance on ISO18788.

(vi) supported the UN Working Group on the issue of human rights and transnational corporations and other business enterprises in their role to promote uptake of the UNGPs and develop guidance and best practice.

(vii) invested around £1.5 million from the FCO’s Human Rights and Democracy Programme in projects promoting the UNGPs and supporting business and human rights.

(viii) developed partnerships with other countries seeking to implement the UNGPs. We have a strong collaborative partnership with the Government of Colombia, and supported the development of their National Action Plan, the first published by a non-EU state. We have advised and encouraged the development of National Action Plans in Malaysia, South Korea and with a number of EU partners. We held events to promote the UNGPs in Geneva, Washington, Stockholm, Mexico City and Bogota, and have spoken in support of national processes in Dublin, Madrid, Brussels and Brasilia.

(ix) strengthened international rules relating to digital surveillance, including leading work in the Wassenaar Arrangement to adopt new controls on specific technologies of concern. Specifically new controls were agreed on:

– equipment and software for creating and delivering “intrusion software”

designed to be covertly installed on devices to extract data.

– “internet surveillance systems” which can monitor and analyse internet traffic

and extract information about individuals and their communications.

(x) continued to promote the Government’s “Business and Human Rights Toolkit and developed new resources and training for FCO and UK TIstaff, trade envoys and visiting delegations.

Government commitments [page 10]

18. The Government will do the following to reinforce its implementation of its commitments under Pillar 1 of the UNGPs:

(i) Continue to support the implementation of the UNGPs in other countries, including through the development of National Action Plans. This will create certainty, a level-playing field and a positive environment for UK business. We will lobby foreign states, including through ministerial contact and our embassies and high commissions, to support widespread international implementation of the UNGPs and other relevant international instruments including the ILO’s Fundamental Principles and Rights at Work and the eight core Conventions which embody them, and the OECD Guidelines for Multinational Enterprises.

(ii) Work with EU partners to implement the UNGPs across member states and internationally, starting with the undertaking made by member states to develop their own national plans.

(iii) Continue to ensure that UK Government procurement rules allow for human rights-related matters to be reflected in the procurement of public goods, works and services, taking into account the 2014 EU Public Procurement Directives and Crown Commercial Service guidance on compliance with wider international obligations when letting public contracts. In addition, UK public bodies are required to have due regard for equality-related issues in their procurement activity.

(iv) Work with government, industry and civil society members of the International Code of Conduct Association to establish an international mechanism to monitor compliance with the Code. This will take the form of (i)certification against the Code, (ii) monitoring by the Association, and (iii) a complaints process. We continue to engage with government and non-state clients to promote the Code and the Association.

(v) Continue to work closely with Voluntary Principles on Security and HumanRights Initiative (VPI) member governments, extractive companies and civil society organisations, to promote greater understanding of the Voluntary Principles and strengthen the implementation, effectiveness and membership. To maintain the momentum from our chairmanship March 2014-March 2015, we will continue to work on better corporate implementation of the Voluntary Principles on the ground. This includes maintaining dialogues with ‘host’ governments. For example, we have worked with the Government of Angola to promote the Voluntary Principles to the participating governments of the Kimberley Process Certification Scheme.

(vi) Consider new project activity on raising awareness and tackling the negative impacts of business activity, including on the human rights of groups like indigenous peoples, women, national or ethnic minorities, religious and linguistic minorities, children, persons with disabilities, and migrant workers and their families, by tasking our diplomatic missions in countries where these are concerns.

(vii) Support the EU commitment to consider the possible human rights impacts of free trade agreements, including where these include investment protection provisions, and take appropriate steps including through the incorporation of human rights clauses as appropriate.

(viii) Continue to work through our embassies and high commissions to support human rights defenders working on issues related to business and human rights in line with EU Guidelines on human rights defenders

Case Studies

Modern Slavery Act [pages 11-12]

It is estimated that there are between 10,000-13,000 potential victims of modern slavery in the UK alone. Globally, the ILO estimates the total illegal profit made from the use of forced labour amounts to more than $150 billion a year. The UK Government is committed to tackling this heinous crime and as a response the Modern Slavery Act came into force on 31July 2015. It makes the penalties for those who perpetrate Modern Slavery simpler and tougher and provides help for victims, including through a statutory defence for victims of modern slavery who are forced to commit some offences as a direct consequence of their slavery. It also created an Independent Anti-Slavery Commissioner whose work is expected to lead to an increase in investigations and convictions. His work will also look at the countries of origin for victims of slavery and recommend measures to address the problem at source. The Act is supported by a Modern Slavery Strategy, published in November 2014 and guidance for companies on eliminating slavery through increased transparency in supply chains, published in October 2015.

 Rana Plaza

The collapse of Rana Plaza, in 2013, a building housing a number of commercial ventures including several garment factories, shocked the world and the implications still continue to reverberate over two years later. Over 1,100 people were killed and many more were injured. For the victims and their families the events that unfolded on that day have irrevocably affected their lives. Following the collapse, the British High Commission in Dhaka alongside DFID Bangladesh, have done a number of things to support the victims and try and ensure a disaster like this never happens again.

  • DFID Bangladesh, in partnership with Canada and the Netherlands, will provide a total of £7.4m to improve building safety and working conditions, empower workers and urge buyers to take responsibility for their supply chains.
  • To date over 1000 structural, fire and electrical safety inspections have been carried out, nearly 200 new inspectors recruited and 299 survivors trained to enable them to find alternative jobs or start small businesses.
  • 144 senior masters have been trained in health and safety, who will in turn train 7,600 supervisors that will themselves train over 300,000 workers.

DFID Bangladesh funding has also worked to try and ensure justice for garment workers, supporting a number of NGOs to file public interest litigation to protect workers’ rights, and increase awareness of worker rights. To support this, in 2015 the British High Commission began work with Global Rights Compliance and Action Aid Bangladesh to increase state, corporate, trade associations and trade union understanding and uptake of the UN Guiding Principles, increase accountability and reduce human rights violations in the garment, leather and tannery sectors.

The Nairobi Process: A Pact for Responsible Business

Kenya has recently granted 47 oil and gas exploration licences. This has raised expectations of economic benefits by government, business and local communities. Experience elsewhere in Africa suggests that if the licences are not managed carefully then competing expectations of these actors can lead to community tensions and security risks. The Human Rights and Democracy Programme (2013/14) funded the Nairobi Process: A Pact for Responsible Business – an initiative developed by the Institute for Human Rights and Business (IHRB) in collaboration with the Kenya National Commission on Human Rights (KNCHR). It aims to embed the UN Guiding Principles on Business and Human Rights in the extractives sector in Kenya. It focused on several strands of engagement, including bringing together multinational and national extractive companies, government and civil society and communities to collaboratively address key areas of human rights concern. It also supports business to business learning, capacity building for National Human Rights Institutions in the region and advocates for the implementation of the UNGPs by the government of Kenya.

Support for Land Tenure and other Property Rights

The UK Government is committed to supporting the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (Land Guidelines, VGGT)[1] including through commitments to accelerate VGGT implementation during its G8 Presidency in 2013.

The UK supports the VGGT:

  • Through its funding to the Food and Agriculture Organisation in a three-year programme for £4.9 million to raise awareness, improve tenure governance, and support global reporting on progress with VGGT implementation;
  • Through its leadership in the 2013 G7 commitment to implement the VGGT through country partnerships with interested governments. These partnerships aim to accelerate and target support to countries’ existing land governance programmes in conjunction with businesses, in particular farmers, and civil society;
  • The global donor working group on land chaired by the UK (DFID) in its inaugural year has published a global land programme database and map. The database[2] includes an initial 589 programmes in 127 countries with a combined worth of US$4.9 billion. All programmes are mapped against relevant sections of the human rights based VGGT;
  • Jointly with US, Germany, France, the AU Land Policy Initiative and FAO, the UK has developed a land investment due diligence framework[3] based on the VGGT and other international standards, to guide private sector investments under the New Alliance for Food Security and Nutrition.
  • In 2015, under the German Presidency, the UK joined a new G7 commitment to align all its Overseas Development Assistance-supported investments with the VGGT[4]. This is being taken forward over the coming years.
  • DFID is increasing its work on land, bilaterally and at the global level (for an overview of what we do to drive responsible land investments by the private sector, see our 2nd Land Policy Bulletin 1.

2. Government’s expectations of business 

Actions taken to support business implementation of the UNGPs [pages 15-19]

24. To help businesses to fulfil their responsibility to respect human rights the Government has:

i. updated this action plan, setting out the Government’s actions and expectations on business and human rights. We will seek clear and consistent communication of this policy through ministers, UK business ambassadors and officials who engage with business and other appropriate channels.

ii. provided guidance to companies on transparency in supply chains and implementing the reporting requirement in the Modern Slavery Act 2015. https://www.gov.uk/government/publications/transparency-insupply-chains-a-practical-guide 

iii.partnered with the Cyber Growth Partnership industry guidance on assessing human rights risks relating to cyber security exports, with techUK and input from civil society. https://www.techuk.org/images/CGP_Docs/Assessing_Cyber_Security_Ex port_Risks_website_FINAL_3.pdf 

iv.provided funding to the Corporate Human Rights Benchmark Initiative, the first wide scale project to rank companies on their human rights performance.. http://business-humanrights.org/en/corporate-human-rightsbenchmark 

v. supported the UNGPs Reporting Framework, the world’s first comprehensive guidance for companies to report on how they respect human rights. http://www.ungpreporting.org/ 

vi.provided funding for the Economist Intelligence Unit research report on business leadership attitudes to and actions on the corporate responsibility to respect human rights. http://www.economistinsights.com/businessstrategy/analysis/road-principles-practice 

vii.continued to update and promote the joint FCO-UKTI Overseas Business Risk (OBR) service, which provides information about business environments in the countries where UK Trade and Investment (UKTI) has a presence, to ensure it includes specific country human rights information and links to the UNGPs and other relevant tools and guidance. http://www.ukti.gov.uk/export/howwehelp/overseasbusinessrisk/countries.html 

viii.continued to provide financial support to the UN Global Compact, a global mechanism that encourages and enables companies to align their operations and strategies with ten universally accepted principles in the area of human rights, labour, environment and anti-corruption.

Government commitments 

25. The Government will continue to encourage UK companies in their work to respect human rights. We will:

i. provide support to Board Directors on human rights reporting and practical guidance for companies in the care and security sectors in the UK, through Equality and Human Rights Commission funded projects.

ii.ensure the provisions of an EU Directive on non-financial disclosure are transposed in the UK to enable greater consistency and comparability of public information on the human rights policies and performance of listed companies in Europe.

iii. facilitate dialogue between business people, parliamentarians and civil society on the implementation of the business and human rights agenda as requested.

iv. instruct our diplomatic missions to work with host governments, local and UK business, trade unions, NGOs, human rights defenders, academics, lawyers and other local experts so we can help inform companies of the human rights risks they face.

v. instruct our diplomatic missions to raise with local authorities our concerns in situations where companies have problems implementing their human rights responsibilities because local law is incompatible with international human rights law.

BOX: “UNGPs Reporting Framework + Unilever human rights report 

The FCO’s Human Rights and Democracy Fund supported Shift to develop the UN Guiding Principles Reporting Framework. This is the first comprehensive guidance for companies to report on human rights issues in line with their responsibility to respect human rights. In today’s ever more transparent world, companies are under increasing pressure to show that they respect human rights throughout their operations and value chains. There is increasing demand for greater formal reporting by companies on their human rights performance, including from regulations such as the EU non-financial reporting directive and the UK’s Companies Act and Modern Slavery Act reporting requirements.

The UNGPs Reporting Framework provides companies clear and straightforward guidance on how to answer these questions with relevant and meaningful information about their human rights policies, processes and performance. We are pleased to see UK companies at the forefront of best practice in reporting on human rights. Unilever became the first adopter of the Framework when they published their groundbreaking human rights report in July 2015.”

 

BOX: “EHRC Projects – practical guidance for care/ security sectors and Board Directors/ reporting 

The Commission is working in partnership with the Financial Reporting Council and Shift to publish guidance early in 2016 to help company boards to understand what they are expected to know, do and say about human rights. It will provide company boards with smart questions to ask of the business, help them to understand how human rights risks align with business risk, and bring clarity and coherence to different human rights reporting requirements.

The Commission is working with the Institute of Human Rights and Business to publish guidance in early 2016 for UK businesses in the care and private security sectors. The guidance will include an assessment of the main human rights impacts in each sector and practical guidance for managers in areas such as human resources, operational delivery and procurement.”

 BOX: Corporate Human Rights Benchmark Initiative 

The UK provided support and start up funding to the Corporate Human Rights Benchmark. This initiative is established by a multi-stakeholder group led by Aviva Investors. It aims to rank the top 500 globally listed companies on their human rights policies, processes and performance, to harness the competitive nature of the markets to drive better corporate human rights performance.

It is based on the premise that improved business transparency combined with public rankings of companies’ performance can help to drive a race to the top. It aims to provide investors with information to direct investments to companies respecting human rights, business with the incentive to make information publicly available, customers with the knowledge to make well-informed choices and policy makers with an objective means to focus on those companies and business sectors that have the greatest human rights impacts. 

BOX: Cyber Export Guidance 

The expansion of ‘cyber space’ has brought huge economic and social benefits. However, it also poses risks and new opportunities for hackers, criminals and terrorists. To help mitigate these risks, companies have developed security products and services which defend networks from malicious activity. In many countries, such as the UK, these products are used legitimately, including by law enforcement authorities, in accordance with domestic and international law obligations. However, in some countries which do not adhere to their international human rights obligations, there is a risk that the same products are used in ways that could breach state’s legal obligations, e.g. to restrict freedom of expression or to contribute to internal repression.

Normally, exports that could cause harm, such as arms, are covered by the export licensing regime. However, many cyber capabilities, products and services are not listed. This problem was recognized by the Cyber Growth Partnership a joint body representing industry, academia and government. The FCO worked with techUK, a technology trade association, and the Institute for Human Rights and Business to produce practical guidance for companies on managing human rights risks.

“Assessing Cyber Security Export Risks: Human Rights and National Security” was published in November 2014. It is the first guidance for this sector in the world, and sets out:

  • the different sorts of potential harm associated with particular cyber capabilities;
  • a process to help companies assess country specific risks and to evaluate business partners and re-sellers; and
  • potential mitigation options for avoiding or reducing risks.

BOX: Myanmar Centre for Responsible Business in Burma

The UK’s trail-blazing funding to the Myanmar Centre for Responsible Business in Burma (MCRB) helped create a resource hub that is now well-established and well respected, with financial support from a number of countries.

MCRB’s reputation as a knowledgeable and neutral source of information on responsible business has grown with all its stakeholders. This has led to more requests for advice from companies from an increasingly wide range of nationalities and sector. MCRB has played an important role in regulatory advocacy, offering proposals drawing on what it knows of business and CSO experience and interests, as well as international standards

Local civil society organisations have come to understand the value of MCRB as a knowledge and training resource for them but also as a conduit to business and an amplifier of their concerns. The media has turned to MCRB for comments on a range of responsible business issues which MCRB is using to shape debates on issues as diverse as tax evasion and environmental impacts, and to highlight international standards and key issues in Myanmar

4. UK Action Plan implementation and further development [page 24]

“32. A non-exhaustive list of the different mechanisms for the promotion of good corporate behaviour, together with the Government departments that lead on them, is available on the online copy of this paper, found at https://www.gov.uk/government/publications/bhr-action-plan”