Contributed by Gregory Das and Nizam Bashir
Corporations have often been perceived as purely self-serving and profit-orientated entities. However, in the modern era of ‘go-green’ initiatives and the codification of rules that regulate the social conduct of companies, there has developed a firmly entrenched culture of corporate social responsibility within the commercial sector.
It was against this backdrop that the speakers at this session purported to address the role of businesses in upholding human rights in society.
The session was moderated by Mr. Khairil Azmi b Haji Mohamad Hasbie, the President of the Advocates’ Association of Sarawak. The panel of speakers comprised of a well qualified academic and an experienced set of practitioners, which ensured that the well-attended event contained both a conceptual and a practical discussion of the topic at hand.
The first speaker was Mr. Nahendran Navaratnam of Kadir Andri & Partners. He commenced his presentation by stating that it was imperative to ensure that corporations owe an obligation to uphold human rights. Mr. Navaratnam remarked that this was patently necessary as corporations employ 3.7% of the world’s labour force and that they therefore have the ability to be omnipresent in society.
Mr. Navaratnam then recounted the many notable instances of human rights violations perpetrated by corporations worldwide. He stated that these well-documented infringements resulted in the implementation of the mercilessly named United Nations Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights (“the Norms”) and also the United Nations Framework for Business and Human Rights (designed by John Ruggie). Mr. Navaratnam lauded the two sets of documents as being unprecedented in requiring corporations to promote and respect the Rule of Law in their operations.
The second speaker of the session was Mr. David Watkins of Slaughter and May, Hong Kong. Mr. Watkins’ presentation was focused on the role of corporations in safeguarding the human right to water. His speech commenced with the harrowing statement that there was indeed a ‘water crisis’ in the world at present as more than 1/3 of the global population lacked access to properly sanitized water. He then asserted that it was incumbent on both governments and businesses to take steps to address this problem and safeguard the human right to water in their respective societies.
Mr. Watkins proceeded to claim that there is scope for the private sector to actively assist in the provision of water in society. He cited the water industry in England as an example of the complete divestiture of all assets in the supply of water to the private sector. Mr. Watkins attributed the success of the water industry in England to the innovative financing of the government and the clear regulations that have been implemented.
Mr. Watkins then concluded his presentation by referring to the numerous examples of large corporations playing an active role in the promotion of the human right to clean and sanitized water (eg. Pepsi Co.).
The final speaker of the session was Dr. Tan Seng Teck, a Senior Lecturer of the Taylor’s Business School, Taylor’s University. Dr. Tan began his speech by suggesting that the modern perspective of human rights abuses differed from the conventional perception of the same. Specifically, he noted that human rights abuses in the present day was subtle in nature, as is evidenced by the unethical practices of businesses in the context of globalization (Dr. Tan here cited Nike’s exploitation of foreign child labour as an example).
Dr. Tan then made the bold assertion that “human rights was never part of the corporate DNA”, in claiming that businesses were not conventionally designed to protect and promote human rights. He however stated that the modern perception was that there was a clear need for companies to take heed of corporate social responsibility initiatives. Dr. Tan then referred to the Malaysian Code of Corporate Governance, which provides for the delisting of companies in the event they fail to adequately safeguard human rights in their operations.
Dr. Tan concluded his presentation by suggesting that the ‘Value Chain Model’ promulgated by Michael Porter in 2002 was the most viable way to ensure that corporations adopted a balanced approach in achieving their commercial aspirations whilst simultaneously upholding their social obligations in safeguarding human rights. He referred to Starbucks as an example of a company that adopts the Michael Porter Model as they often valiantly boast of the ethical procurement of the coffee beans used in their products.
The instructive session then culminated in a brief question and answer segment, where Mr. Navaratnam stated that it would be difficult to draft legislation that would compel companies to behave in a socially responsible way. He did however state that it was open to countries to implement laws to prevent companies from behaving unethically in their commercial endeavors.