Human rights and transnational corporations

HUMAN RIGHTS COUNCIL
14th session
Item 3: Promotion and protection of all human rights

June 2, 2010

Mr. President,

For many years, we have witnessed serious violations committed by transnational corporations (TNCs). These violations are not limited to extractive industries; they are present across the primary, secondary, and tertiary sectors, including finance. These violations are increasing day by day due to the ongoing economic and financial crisis.

The impunity of these entities, which can be everywhere and nowhere to evade their responsibilities, seems to prevail, as we still do not have a binding legal framework at the international level to regulate their activities that harm human rights.

However, the UNRISD had already recommended a few years ago to “strengthen procedures to monitor compliance with ILO standards and international human rights norms, and to promote complaint mechanisms” regarding TNCs. We wish to reiterate this recommendation, which remains relevant and valuable.

The High Commissioner has also called on states to develop “universal human rights standards applicable to business.”

The former Sub-Commission on the Promotion and Protection of Human Rights adopted in 2003 the “Norms on the Responsibility of Transnational Corporations with Regard to Human Rights,” the only global and comprehensive international initiative on this issue, which to this day remains collecting dust in the drawers of the UN.

Since his appointment, the Special Representative of the Secretary-General has avoided the essential question of binding standards for TNCs, and his reports contain no concrete proposals on this matter. The Special Representative’s legal approach boils down to voluntary codes of conduct for TNCs, and the failure of this option is no longer in question.

His legal approach is also reflected in his working method. Indeed, under the guise of a broad consultation involving various social sectors, the real interlocutors of the Special Representative remain employer organizations and business experts, as we observed during the “consultations” he organized last October. In particular, we regret that the main social movements and international trade union organizations were not consulted.

The ideology behind the Special Representative’s work is reflected in paragraph 121 of his annual report. Seeking to be pragmatic, the Special Representative wants to address “remediable” injustices. However, he fails to tell us who will decide and who has the legitimacy to decide whether an injustice is remediable or not.

In this context, the Special Representative’s proposal to create a “Focal point for business and human rights” within the Office of the High Commissioner for Human Rights does not seem to address the challenges posed by the power of TNCs and the scope of human rights violations they commit.

At this point, we believe it is both necessary and urgent to create a mechanism based on international human rights standards, with a mandate to monitor and sanction human rights violations committed by TNCs.

Geneva, June 2, 2010