A/HRC/32/45: Report on leading by example: the State, State-owned enterprises, and human rights
Published
05 May 2016
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A/HRC/32/45
Focus
Business
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Summary
In the report, the Working Group examines the duty of States to protect against human rights abuses involving those business enterprises that they own or control, which are generally referred to as State-owned enterprises. Many States the world over manage large State-owned enterprise portfolios and those enterprises have emerged as significant actors in the global economy. State-owned enterprises can have important human rights impacts, both positive and negative. Yet, not enough attention has been paid to their human rights responsibilities and impacts, nor to the duties of States in this regard.
The report calls attention to and clarifies what States are expected to do in their role as owners of enterprises and why. The starting point is principle 4 of the Guiding Principles on Business and Human Rights, which provides that States should take “additional” steps to protect against human rights abuses by business enterprises that are owned or controlled by the State. The report highlights the persuasive reasons for additional action to be taken by States in this regard, including policy coherence, legal obligations, reputation and credibility.
The Guiding Principles do not specify what steps States should take. In the present report, the Working Group suggests a range of measures that States could take to operationalize the call to take additional steps with regard to State-owned enterprises, by building on existing international guidance and national practices related to the corporate governance of those enterprises.
In working to ensure that all business enterprises respect human rights, there are compelling reasons for States to lead by example and to do their utmost to ensure that the enterprises under their ownership or control fully respect human rights. The Working Group calls on States to demonstrate that leadership.