AT A GLANCE

 

Comparing the:

Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights

with the

United Nations Global Compact[1]

Attribute

Norms

Global Compact

Purpose:

-> Provide soft law norms for transnational corporations (TNCs)[2] and other business enterprises[3] to promote and protect human rights on an international scale. These Norms may be viewed as a basis for the potential development of a treaty, establishing and confirming the rudimentary obligation of States, individuals and corporations to respect, ensure respect for, prevent abuses of, and promote human rights.

-> Create voluntary business operating principles to advance responsible corporate citizenship and encourage businesses to participate in solving the challenges of globalization. It also seeks to facilitate cooperation and partnerships between businesses and the U.N. to promote support of U.N. goals.

Scope:

Who:

->TNCs, all other business enterprises, and their officers.

 

What:

-> Both documents cover human rights, non-discrimination, the abolition of child labor, employee representation, and environmental protection.

->The Norms additionally address consumer protection, corruption, national sovereignty, and security of persons. The Norms are broad statements within specific areas, which enable the almost universal application to TNCs and business enterprises of any size or reach.

 

Who:

->Companies, labor organizations and NGOs, which agree to the principles.

What:

-> Both documents cover human rights, non-discrimination, the abolition of child labor, employee representation, and environmental protection.

 

-> The Compact is extremely brief in all its provisions and does not contain specific implementation measures or detailed principles. It merely sets out core principles which constitute ideals for global citizenship and corporate responsibility.

Implementation:

Document Status:

-> The Norms are to be viewed as soft law norms, beginning as recommendations, and later building as the basis of a possible treaty; differing from a company code of conduct that might be changed or altered easily. Intended to establish soft law, the Norms interpret human rights obligations. The Norms also set forth basic implementation approaches.

 

Specific Methods/Techniques:

-> TNCs and business enterprises: are to adopt, disseminate and implement internal rules of operation in compliance with the Norms. They must also perform self-evaluations, record claims of Norm violations, incorporate the principles into contracts with their business partners, and provide reparations to those negatively affected.

 

-> Governments: should implement the Norms by using them as a model for legislation or administrative provisions for enterprises acting in their country, perform monitoring (including labor inspections), and utilize their national courts for determining responsibility for violations.

 

-> U.N.: should monitor implementation of the Norms by creating State reporting requirements and additional implementation techniques, by receiving complaints and giving businesses the opportunity to reply, by possibly engaging a group of experts to take action for failure to comply, and by raising concerns about continued human rights abuse by TNCs and business enterprises. In addition, the U.N. may use the Norms to develop procurement standards.

 

-> NGOs: perform monitoring and reporting on the efforts and potential violations of the Norms.

 

-> The Sub-Commission’s Working Group on the Working Methods and Activities of Transnational Corporations: receive information concerning the possible negative impact of the activities of TNCs and other business enterprises on human rights, and particularly affecting the implementation of the Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights. The Working Group will invite any TNCs or other business enterprises concerned, to provide whatever comments they may wish to provide within a reasonable time. In addition, the Working Group shall study submitted information and transmit comments and recommendations to the appropriate parties. Finally, the Working Group will also consider other methods to encourage full implementation of the Norms.

Document Status:

-> The Compact contains nine voluntary principles suggested for businesses to demonstrate good global citizenship. It has no implementation provisions, but relies on public accountability, transparency, and the self-interest of companies to pursue its principles rather than a regulatory scheme.

 

 

 

Specific Methods/Techniques:

->Businesses: are to support and adopt the nine principles to build a sense of ownership in the global community.

 

 

 

 

 

 

 

 

 

 

 

->U.N.: the U.N. Secretary General's office, U.N. Environment Program (UNEP), the International Labor Organization, and the High Commissioner for Human Rights work together to facilitate appropriate compliance with the principles through global policy dialogues, local networks, partnerships projects, and other projects to increase learning and awareness of corporate citizenships issues.

 

Source:

-> Drafting:

In 1999, the Working Group on the Working Methods and Activities of TNCs started developing the Norms based on human rights standards. The Working Group prepared a preliminary draft, and with each new draft thereafter, they sought and incorporated comments from businesses, NGOs, unions, and others. Throughout the entire drafting process, the Working Group has continually sought and accepted outside perspectives and comments, including posting the drafts on the internet to ensure full accessibility and comments from all interested parties. The Working Group currently seeks additional comments, as it expects to submit a draft to the Sub-Commission in July/August 2003.

->Originating Documents

The Norms rely heavily upon the Universal Declaration of Human Rights; the International Covenant on Civil and Political Rights; and the International Covenant on Economic, Social and Cultural Rights. It also takes into account the International Labor Organization (ILO) Tripartite Declaration of Principles Concerning MNEs and Social Policy, the ILO Declaration on Fundamental Principles and the Rights at Work, the OECD Guidelines, and the U.N. Global Compact in addition to many other influential international legal documents.[4]

 

The Norms reflect the binding norms within these documents, but incorporate the most commonly used provisions in the less binding documents as well.

-> Drafting:

U.N. Secretary-General Kofi Annan proposed the Global Compact at the Davos Conference in 1999.

 

 

 

 

 

 

 

 

 

 

-> Originating Documents:

The Global Compact's nine principles are derived from the Universal Declaration of Human Rights, the Declaration of the International Labor Organization on Fundamental Principles and Rights, the Copenhagen Summit, and the Rio Declaration of the 1992 U.N. Conference on Environment and Development.