Companies must pursue the advancement of human rights despite an uncertain landscape and stricter regulatory framework
Greater corporate commitment to human rights and the boost delivered by the new regulatory framework were the core topics of today’s session in the Esade – SERES Foundation Lecture Series entitled “Empresa y derechos humanos. ¿Estamos avanzando?” (“Business and human rights. Are we making progress?”) The meeting focused on the shift from a soft law (not legally binding) approach to one of hard law (mandatory compliance), due particularly to the legislative drive by the European Union, and the opportunities and challenges that this shift poses to the business community.
“Human rights are a strategic issue, a real lever of transformation. By investing in due diligence we can anticipate risks, understand the value chain better and build a more resilient, sustainable strategy: a must in today’s uncertain world,” said Ana Sainz, general director of the SERES Foundation. She also explained that the foundation has been working with companies for over seven years on advancing the strategic management of human rights: “By means of our Human Rights LabS, we help companies understand and manage better the impact that business has on people’s rights, applying an approach that spans the entire value chain and aims for a long-term, people-centric strategy.”
Ignasi Carreras, professor and director of NGO Management Programs at the Esade Institute for Social Innovation, emphasized the complicated times we are experiencing due to present-day geopolitical conflicts, and underlined that “this can also affect the performance and commitment of companies as regards ESG issues.” He also reminded the audience that companies have been making progress for decades, “less than we would like, but far more than in previous stages”, and that this progress is the fruit of “voluntary commitments, good practice manuals and the pioneering companies that have led the way”. Finally, he highlighted that “in recent years, the European Union has established a regulatory framework, particularly the directive on the due diligence of companies regarding sustainability issues, which obliges companies to identify, prevent, mitigate and be accountable for the adverse impacts that both their operations and entire value chain may cause to human rights and the environment”, adding that “these regulations are an opportunity to reconsider companies as actors committed to human rights."
A short-, medium- and long-term competitive edge
Throughout the session, all participants agreed that, although major challenges do exist, companies are undoubtedly making progress in human rights management. The shift towards stricter regulatory compliance not only obliges companies to adapt, but also provides a gateway to transformative leadership based on a commitment to human rights.
Esteban Beltrán, director of Amnesty International Spain, upheld that “European governments and companies must show their commitment to respecting human rights in their operations and collaborate in transposing the Due Diligence Directive in each country: a historic advancement.” He also urged institutions not to restrict the scope of these regulations, “Complying with human rights cannot be voluntary for companies.”
In the business world, Anna Villà, ESG Expert at Cellnex Telecom, pointed out that “implementing the EU human rights legislative framework is a challenge, but it’s also an opportunity to bolster our commitment and leadership, and promote a fairer, more responsible scenario in all our operations.” The main challenges include the instability of the regulatory environment, causing uncertainty in decision-making; the difficulty of effectively incorporating human rights into operations and supply chains that are not necessarily ready to do so; and the need to change the traditional approach to risk management, in order to examine not only what affects the company, but also how business affects its environment. In addition to these, there are also the demand for greater transparency and the need for companies to convince themselves about the strategic value of investing in this type of processes.
Carlos Monjas, Manager of Relations with Communities and Human Rights at Repsol, valued the progress made in recent years positively and highlighted that, although regulation has not been the main driving force of the company’s work in this area, it has helped bolster and structure its human rights efforts. “The strategy has always been to stay close to business, operations, difficulties and operational risks. It’s only when corporate areas are close to the business that we can proactively incorporate human rights.” In this respect, he stressed the importance of putting commitments into practice systematically from the early days of projects. “Working well on these issues delivers a competitive edge in the short, medium and long term,” he concluded.
Since 2011, the Esade – SERES Foundation Lecture Series has welcomed 150 speakers at more than 50 meetings offering insights into trends, experiences and good business practices in the third sector.
