The ABCs of business and human rights

In today’s world, businesses are no longer judged solely by their profits or market dominance. Increasingly, consumers, investors, and civil society are scrutinizing how companies impact people and communities—especially in terms of human rights. From how a company treats its workers, to how it sources its raw materials, the question of human rights is now central to how responsible businesses operate. This growing awareness has given rise to the field of Business and Human Rights (BHR)—a framework that outlines how companies should respect, protect, and remedy human rights across their operations.

Understanding Business and Human Rights

At its core, Business and Human Rights is about recognizing that companies—no matter their size or industry—have a responsibility to respect the fundamental rights and freedoms of individuals affected by their activities. These rights are based on internationally recognized standards such as the Universal Declaration of Human Rights and the International Labour Organization’s core conventions.

Businesses can affect human rights in many ways. A company may harm workers by failing to provide safe conditions, or it might be complicit in child labor within its supply chain. Communities may face displacement due to land acquisition for industrial projects, or suffer health effects from environmental pollution caused by industrial waste. Even digital platforms are now under scrutiny for the ways they collect and use user data, which can infringe on privacy rights.

The Responsibilities of Businesses

The role of business in society has evolved. No longer can companies claim that human rights are solely the responsibility of governments. While governments still have the primary duty to protect human rights, businesses are expected to respect those rights and avoid contributing to abuses. This involves:

1. Identifying and assessing potential human rights impacts of business activities.
2. Taking concrete steps to prevent or mitigate those impacts.
3. Providing or cooperating in remediation when human rights harms occur.
4. Engaging transparently with stakeholders, including workers, affected communities, and investors.

Respecting human rights is not just good ethics—it’s smart business. Companies that ignore these responsibilities face reputational risks, legal liabilities, and disruptions in operations. On the flip side, those that take human rights seriously build stronger relationships with customers and communities, and are more resilient in the face of social or political pressure.

Key Global Standards and Frameworks

Two of the most important global references in the field of business and human rights are the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises.

1. UN Guiding Principles on Business and Human Rights (UNGPs)

Adopted in 2011, the UNGPs provide a global standard for preventing and addressing the risk of adverse human rights impacts linked to business activity. The framework is built on three pillars:

• Protect: States must protect people against human rights abuses by third parties, including businesses.
• Respect: Businesses must respect human rights by avoiding harm and addressing any impacts they cause.
• Remedy: Both states and businesses must ensure access to effective remedies for victims of human rights abuses.

The UNGPs have been widely endorsed and serve as the foundation for national action plans, corporate policies, and investor expectations around the world.

2. OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises are a set of government-backed recommendations that provide voluntary principles and standards for responsible business conduct, including in the area of human rights. First introduced in 1976 and most recently updated in 2023, the Guidelines cover a wide range of topics such as employment and industrial relations, environment, anti-corruption, consumer interests, and human rights. When it comes to human rights, the Guidelines closely align with the United Nations Guiding Principles on Business and Human Rights (UNGPs), emphasizing that businesses have a responsibility to respect human rights and should carry out risk-based due diligence to identify, prevent, and mitigate actual and potential adverse impacts.

In practice, the OECD Guidelines encourage companies to integrate human rights considerations into their core operations and supply chains. This includes conducting regular human rights due diligence, engaging stakeholders—including potentially affected communities—and providing or cooperating in remediation when harm occurs. One unique feature of the OECD system is the National Contact Points (NCPs)—government-supported offices in each adhering country that help resolve issues related to the Guidelines. Through the NCP mechanism, individuals or communities can file complaints against companies that may have violated the Guidelines, offering a non-judicial platform for remedy. As such, the OECD Guidelines serve not only as a roadmap for responsible conduct but also as a practical tool for accountability in global business.

Key Takeaways for Businesses

Whether you run a global corporation or a growing startup, the principles of business and human rights apply to you. Here are a few essential takeaways:

• Know your impact: To respect human rights, businesses must first understand how their activities, relationships, and supply chains affect people. This involves conducting human rights due diligence—a process of identifying, assessing, and addressing actual or potential human rights risks. These risks might not always be obvious. For example, a clothing company may not directly employ child labor, but a subcontractor several tiers down the supply chain might. By mapping out operations and business partners, companies can uncover hidden risks and take steps to mitigate harm. Knowing your impact isn't a one-time exercise—it's an ongoing effort that must evolve as your business grows or shifts into new markets.
• Embed human rights into your values and strategy: Respecting human rights should not be treated as an isolated compliance task—it should be part of a company’s core values and strategic vision. This means integrating human rights considerations into everyday decision-making processes, corporate policies, training programs, and leadership priorities. From the boardroom to the factory floor, employees at all levels should understand the company’s human rights commitments and how they apply to their roles. Embedding these values creates a strong ethical foundation and helps foster a culture of accountability, transparency, and long-term thinking. Companies that lead with values are better equipped to build trust with stakeholders and weather reputational challenges.
• Engage your stakeholders: Businesses don't operate in a vacuum—their actions affect workers, consumers, suppliers, communities, and many others. Meaningful stakeholder engagement is crucial to identifying concerns early and building trust. This means going beyond formal consultations or surveys; it requires listening actively, being responsive to feedback, and including marginalized or vulnerable voices in the conversation. For example, a mining company planning to operate on Indigenous land should engage with local communities to understand their rights, expectations, and fears. Engaging stakeholders helps companies better anticipate risks, improve decision-making, and create more socially responsible outcomes.
• Be transparent and accountable: Transparency is essential for building credibility in the area of business and human rights. Companies should publicly communicate their human rights policies, due diligence processes, and progress—both successes and challenges. Reporting regularly and honestly about human rights performance shows that a business takes its responsibilities seriously and is committed to continuous improvement. When things go wrong, accountability means acknowledging harm, investigating the causes, and taking steps to provide or support effective remedies. In a world where consumers, investors, and regulators increasingly demand transparency, companies that are open and accountable are more likely to gain public trust and long-term support.
• Use global frameworks: Navigating the complex landscape of human rights can be challenging, but businesses don’t have to go it alone. International standards such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises provide a clear framework for responsible business conduct. By aligning with these globally recognized tools, businesses can benchmark their efforts, meet stakeholder expectations, and reduce the risk of legal and reputational harm. These frameworks also offer practical guidance on conducting due diligence, engaging with affected communities, and ensuring access to remedy. Embracing these standards not only strengthens a company’s human rights approach—it positions it as a leader in responsible and sustainable business.

Conclusion

In an increasingly transparent world, respecting human rights is not a choice for businesses—it is an essential part of responsible and sustainable operations. Companies that ignore human rights risks expose themselves to serious consequences, including reputational damage, loss of investor and consumer trust, legal liabilities, and operational disruptions. But beyond the risks, embracing human rights is also an opportunity: it allows businesses to build stronger relationships with stakeholders, strengthen their social license to operate, and contribute positively to the communities they affect.

Human rights are not abstract ideals—they are real issues that play out in the workplace, supply chains, product development, and customer interactions every day. That is why businesses must take a proactive, structured approach to understanding and managing their human rights impacts. This means going beyond surface-level compliance and committing to a continuous process of risk identification, impact assessment, mitigation, monitoring, and evaluation. By integrating these steps into company strategy and operations, businesses not only uphold their moral and legal responsibilities, but also future-proof themselves in a world where expectations around ethics, accountability, and transparency are higher than ever. The business case for human rights is clear: doing the right thing is not just good for people—it’s good for business.

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