Business and Peace - Reading Companies
6 important questions on Business and Peace - Reading Companies
Guidance Point 1: Identify the interaction between their core business operations and conflict dynamics.
- What can companies do to achieve this?
(3 things).
- Develop policies and integrate them into management systems to minimize negative risks and impacts.
- Clearly communicate these policies and steps taken to implement them.
- Conduct a "conflict risk and impact assessment" prior to investing and starting operations.
Guidance Point 2:
Companies are encouraged to make a commitment to addressing grievances and disputes constructively and proactively through dialogue and by having grievances and dispute settlement mechanisms that allow affected parties to raise problems with the companies with a clear process for discussion and resolution.
- In order to develop a social license to operate, companies are encouraged to:
- Strive for meaningful and constructive engagement and dialogue with individuals and communities affected by core business operations.
- Develop policies and mechanisms according to existing standards to settle disagreements and grievances.
- Inform relevant stakeholders about existing company policies.
- Ensure the broad participation of the community.
- Adopt measures that those participating can raise grievances freely, safely, and in the knowledge that their concerns are dealt with in a timely manner.
Guidance Point 3:
Companies are encouraged to respect emerging international best practices, especially where national law sets a lower standard. Policies, strategies and operational guidance, aligned with the Global Compact's 10 principles, should be adapted to the specific needs of conflict-affected and high-risk contexts.
Systematic and large-scale violations of human rights, may accompany violent conflict and can be both a cause and a consequence of conflict and instability.
- In order to avoid this, companies are encouraged to:
- Develop corporate policies and systems throughout the company to ensure effective respect of, among other UN Framework.
- Mainstream policies and systems throughout the company.
- Such as providing training to employees. - Establish effective systems to monitor compliance and share experiences with peers and stakeholders.
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In conflict-affected and high-risk areas, companies may hire private security providers to protect their operations and personnel. If security providers use excessive force, it may account as a human rights violation.
Guidance Point 4:
Companies are encouraged to apply evolving best practices in the management of security services provided by private contractors as well as, to the extent possible, public security forces.
- To achieve this, companies are encouraged to:
- Screen potential security providers' track records, including their human rights records.
- Consult regularly with host governments and local communities.
- Record and report any credible allegations of human rights abuses.
Companies should be aware that purchasing commodities through suppliers and supply chains which may be connected to armed actors result in financial support to violent or criminal factions.
Guidance Point 5:
Companies are encouraged to carefully monitor their business relations, transactions as well as flows of funds and resources and to develop a rigorous supply chain management system.
- To avoid misuse. Companies are encouraged to:
- Carefully examine and monitor existing and newly established business relations and transactions.
- Conduct an extensive mapping exercise and focus due diligence on their suppliers to verify the origins of their products.
- Expand supply chain due diligence process to sub-tier suppliers which are responsible for providing goods and services to companies' strategic suppliers.
Corruption can take place between private sector entities and between the private sector and the public sector. It can include extortion, kidnapping, protection money etc. When systematic, such practices often aggravate grievances.
Guidance Point 6:
Companies are encouraged to develop detailed policies on specific bribery issues and put in place robust management procedures such as risk assessment, training and whistle-blowing to prevent corruption.
- How can companies prevent corruption?
- Place particular emphasis on due diligence against corruption, by adopting stringent anti-corruption measures.
- Be transparent about the selection process for awarding contracts.
- Organize periodic workshops and training for employees and contractors on anti-corruption measures.
- Join voluntary initiatives promoting revenue transparency.
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