Paparan Unair Legal Framework for the Implementation of Human Rights 311016

Global Framework on

Corporate’s Human Rights

Due Diligence

Outline

International Initiatives on

Business and Human Rights

• _{UN Global Compact (2000)}

Ten principles on human rights, labor environment, and anti corruption for business • _{Voluntary Principles on Security and Human Rights (2000)}

Guidelines for companies in extractive industry to maintain the safety and security of their operations with respect for human rights.

• _{ISO 26000 (2010)}

ISO guide for companies with regard to social responsibility

• _{Extractive Industries Transparency Initiatives (2010)}

International Organization which maintains a transparency standard for extractive industries

• _{United Nations Guiding Principles on Business and Human Rights}

United Nations Guiding Principles on Business

and Human Rights (UNGP)

• Endorsed in 2011 through Human Rights Council Resolution 17/4

• It is the first normative document on Business and Human Rights endorsed by the UN intergovernmental body.

• Indonesia reaffirmed its commitment towards protection and promotion of Human Rights in business activities by supporting the resolution.

• 3 pillars of UNGP

 State duty to

protect

IGWG on Transnational Corporations

and Other Business Enterprises with

Respect to Human Rights

• _{In 2013, Ecuador and other like-minded countries stated their views on ”the}

necessity of moving forward toward a legally binding framework..” with regards to business and human rights

• _{In Nov 2013, Civil Society Organizations convened in Bangkok to support the}

creation of legally binding framework.

• In Nov 2014, Human Rights Council adopted 2 resolutions on Business and Human Rights:

 Resolution 26/9 (co-sponsored by Ecuador and South Africa) on the establishment

of Open Ended Intergovernmental Working Group (IGWG) “to elaborate an international legally binding instrument” -> Indonesia supported, end result of the voting was 20-14-13

• _{Resolution 26/22 extended the mandate of Expert Working Group on}

binding instrument (it must respect national sovereignty), scope of TNC’s legal liability, monitoring and enforcement mechanism.

• _{IGWG second session on 24-28}th October 2016 focuses on the

Indonesia’s

stance on

legally

binding

instrument

In short run, the most

feasible option for countries is to voluntarily

implementing UNGP.

National Efforts

• Indonesia actively participated on OHCHR’s Annual Forum on Business and Human Rights since 2011 and the first Regional Forum on Business and Human Rights in April 2016.

• The Ministry of Foreign Affairs has already conducted National Symposium and Seminar on Business and Human Rights on September 2015 and January 2016, respectively as an effort to disseminate information as well as to collect inputs from national

Important Notes from the

National Symposium and Seminar

on Business and Human Rights

• _{Business and Human Rights goes beyond Corporate Social Responsibility.}

Human Rights-based business practice have to be forward looking and solution seeking to guarantee sustainable and inclusive conduct;

• _{Corporations are expected to focus not only in profitability but also}

sustainability and competitiveness of their business, as well as compliance to international human rights provisions including UNGP;

• _{Previous initiatives such as Voluntary Principles on Security and Human}

Rights, UN Global Compact, and ISO 26000 can be used in formulating BHR policies;

• _{The government as policymakers have to increase their bargaining position}

Cont’d

• _{Necessity to harmonize national legislations relevant to the issue;}

• _{Possibility to develop a National Action Plan on Business and Human}

Rights (NAP-BHR) that aligns with National Action Plan on Human Rights 2015-2019;

• _{Special protection mechanism for SMEs -> big corporations are}

expected to cooperate in assisting SMEs in terms of capacity building;

• _{Importance of socialization to national and local stakeholders;}

• _{Government have to constantly encourage business to implement}

Challenges and Way Forward

• National Focal point for Business and Human Rights

Some alternatives: (1) MoU between relevant institution; (2) Incorporating Business and Human Rights issue in the National Action Plan on Business and Human Rights; (3) Ministerial regulations, particularly by institutions with authority to issue licenses and permits.

• Further dissemination on the issue to all stakeholders

Through FGD/Seminar, establishment of national working group, harmonizing national legislation.

• Careful consideration for legally binding instrument on Business and Human Rights with regards to Small and Medium Enterprises (SMEs)

SMEs, which accounts for more than 90% of Indonesian economy have to be fully aware of the issue and government should put particular attention in formulating Business and Human Rights’ policy for SMEs.

• Current global trend: development on National Action Plan on Business and Human Rights

Thank you

Directorate of Human Rights and

Humanitarian Affairs

Ministry of Foreign Affairs