Business and human rights principles in action

The business world has embraced the UN Guiding Principles on Business and Human Rights as a strong framework yet as recent incidents involving extractives companies show embedding the framework effectively in corporate management systems remains a challenge. Peter McAllister, executive director of the Ethical Trading Initiative, spoke to Ethical Corporation’s Steven Wilding about how companies can better manage human rights risk in their operations and supply chain.

Ethical Corporation: Please tell us what it is you do.
Peter McAllister: I’m director of the Ethical Trading Initiative, a leading alliance of companies, trade unions and NGOs that work together to improve the lives of workers around the world.

I joined ETI in October 2010. A central focus since taking on the role has been establishing a new supply chain approach to driving sustainable change for workers. In total I have spent 20 years engaged in international development and rights-based initiatives around the world, including seven years at the Geneva-based International Cocoa Initiative (ICI) and 13 years with the international development NGO Care.

Ethical Corporation: What are the big issues to watch in 2013?

Peter McAllister: For me, there are four key issues to watch in 2013.

First, and perhaps most importantly, I’d like to see a greater focus on outcomes for workers and the development of better tools to assess this. I’d also like to see businesses across the board making a concerted effort to ensure workers participate in the processes that influence their welfare and rights.

Second, improving factory fire safety in the Asia region is also high on the agenda. The recent devastating factory fires in Pakistan and Bangladesh have been a real wake-up call for global brands, retailers and governments. I hope these players will be bold and brave enough to play their part fully in driving sector-wide changes to fire safety practices.

Third, there has been a lot of excitement about Burma, and no doubt we will see investment in production facilities there in 2013. This offers the business world an opportunity to build in respect for social standards from the bottom up.

Last, but not least, I hope to see the UN Guiding Principles on Business and Human Rights being translated into practical action. These present a challenge to business to better understand their supply chains and human rights impacts, and to team up with other like-minded businesses on this.

Ethical Corporation: What are your priorities for 2013?

Peter McAllister: This is an exciting time for ETI and our members. Having spent time laying the right building blocks, we are now putting in place our new supply chain programmes. These take a whole supply chain approach from production to point of sale, and work across a range of different countries and sectors.

With our company, trade union and NGO members, we’ve worked really hard to build an accurate picture of these supply chains, so we can understand and address the root causes of workers’ rights abuses.

So the focus for 2013 is delivering our activities in-country, working collaboratively with interested stakeholders and driving real, sustainable and measurable change for workers. We’re also looking at how we can scale up the lessons we learn, and extend the impact and reach of this work.

We have also created a process that supports member companies taking a more strategic approach to their ethical trade efforts. This recognises that in a challenging global economic environment, meaningful impact in key areas is vital.

Ethical Corporation: In terms of corporate responsibility, which industry sector would you pick out to watch, and why?

Peter McAllister: What really strikes me is that we’re at a crucial moment where there is no room for complacency. All sectors are grappling with demanding corporate responsibility challenges, not just the usual suspects.

From a workers’ rights perspective, ETI is particularly concerned about any sector where there is a high proportion of casual and migrant labour. These workers are particularly vulnerable, and make up a large part of the workforce across many sectors including construction, food and agriculture, and tourism.

Ethical Corporation: Climate change – mitigation or adaptation?

Peter McAllister: Adaptation

Ethical Corporation: A government to watch on sustainability?

Peter McAllister: China

Ethical Corporation: CR impact: Obama or Xi Jinping?

Peter McAllister: Xi Jinping

Ethical Corporation: “Shared value” or “sustainability”?

Peter McAllister: Why not both?

Peter McAllister, executive director of the Ethical Trading Initiative, John Morrison, executive director of the Institute of Human Rights and Business, Annemarie Muntz, director of public affairs at Ranstad Holdings and president of the European Confederation of Private Employment Agencies, and Philippe Gailey, policy officer at the European commission will be discussing human rights implementation in further detail at the Responsible Business Summit May7th and 8th in London. For more information download a brochure.