Benefits of a Positive Position
A positive stance on human rights can:
A positive stance on human rights can:
- help a business to anticipate and manage risk more effectively
- help a business to respond more effectively to allegations of human rights abuses
- enhance a company's reputation for good governance
- limit the risk of "sleepwalking" into avoidable controversy
- enhance the competitive edge of a company, as consumers put a value on ethical behaviour
- assist a company to establish operations or continue to operate in areas with poor human rights records by reducing the potential for association with poor practice and subsequent public criticism.
In summary, human rights can have material reputational, operational, financial, and legal implications for a company.
At the same time, the UN Guiding Principles indicate that human rights due diligence can be included in the company' risk management systems, provided that it goes beyond identifying only material risks to the company itself, and thus should include risks to the rights-holders.