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BCCI Symposium on Business and Human Rights By Dr Vidya Tikoo

2 Agenda

International and National Frameworks on Human

Rights

Aditya Birla Group Sustainable Business Framework

Human Rights within the ABG Sustainable Business

Framework

International and National Frameworks on Human Rights

4 Universal Declaration on Human Rights, 1948

Article 1 - All human beings are born free and equal in dignity and rights. Equality

Article 2 –Rights and freedom without distinction of any kind, such as race, colour, sex,

language, religion, political or other opinion, national or social origin, property, birth or

other status. – Non discrimination

Article 3 - Everyone has the right to life, liberty and security of person.

Article 4 - No one shall be held in slavery or servitude. – Bonded labour

Article 5 - No one shall be subjected to torture or to cruel, inhuman or degrading

treatment or punishment.

Article 6 - Everyone has the right to recognition everywhere as a person before the law.

Article 7 - All are equal before the law and are entitled without any discrimination to equal

protection of the law.

Article 8 - Everyone has the right to an effective remedy by the competent national

tribunals for acts violating the fundamental rights granted him by the constitution or by law.

Grievance management

Article 9 - No one shall be subjected to arbitrary arrest, detention or exile.

Article 10 - Everyone is entitled in full equality to a fair and public hearing by an

independent and impartial tribunal, in the determination of his rights and obligations and of

any criminal charge against him. Freedom of Association

Article 11 - Everyone charged with a penal offence has the right to be presumed innocent

until proved guilty.

Article 12 - No one shall be subjected to arbitrary interference with his privacy, family,

home or correspondence, nor to attacks upon his honour and reputation.

5 Universal Declaration on Human Rights, 1948 (contd.)

Article 13 - Everyone has the right to freedom of movement and residence within the

borders of each State. Everyone has the right to leave any country, including his own, and

to return to his country.

Article 14 - Everyone has the right to seek and to enjoy in other countries asylum from

persecution.

Article 15 - Everyone has the right to a nationality.

Article 16 - Men and women of full age, without any limitation due to race, nationality or

religion, have the right to marry and to found a family.

Article 17 - Everyone has the right to own property alone as well as in association with

others.

Article 18 - Everyone has the right to freedom of thought, conscience and religion; this

right includes freedom to change his religion or belief.

Article 19 - Everyone has the right to freedom of opinion and expression.

Article 20 - Everyone has the right to freedom of peaceful assembly and association.

Article 21 - Everyone has the right to take part in the government of his country, directly

or through freely chosen representatives.

Article 22 - Everyone, as a member of society, has the right to social security.

Article 23 - Everyone has the right to work, to free choice of employment, to just and

favourable conditions of work, to protection against unemployment, to equal pay and

equal work, to form and to join trade unions for the protection of his interests. Non

discrimination in wages, freedom of association

6 Universal Declaration on Human Rights, 1948 (contd.)

Article 24 - Everyone has the right to rest and leisure, including reasonable limitation

of working hours and periodic holidays with pay.

Article 25 - Everyone has the right to a standard of living adequate for the health and

well-being of himself and of his family, including food, clothing, housing and medical care

and necessary social services, and the right to security in the event of unemployment,

sickness, disability, widowhood, old age or other lack of livelihood in circumstances

beyond his control.

Article 26 - Everyone has the right to education.

Article 27 - Everyone has the right to freely participate in the cultural life of the

community.

Article 28 - Everyone is entitled to a social and international order in which the rights and

freedoms set forth in this Declaration can be fully realized.

Article 29 - Everyone has duties to the community in which alone the free and full

development of his personality is possible.

Article 30 - Nothing in this Declaration may be interpreted as implying for any State,

group or person any right to engage in any activity or to perform any act aimed at the

destruction of any of the rights and freedoms set forth herein.

7 United Nations Global Compact

The UN Global Compact was launched in July 26, 2000 with nine Principles. On

June 24, 2004, during the first Global Compact Leaders Summit, Kofi Annan

announced the addition of the tenth principle against corruption.

The principles are derived from the Universal Declaration of Human Rights,

the International Labour Organization’s Declaration on Fundamental Principles

and Rights at Work, the Rio Declaration on Environment and Development, and

the United Nations Convention against Corruption.

Human Rights

Principle 1: Businesses should support and respect the protection of

internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the

effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and

occupation.

8 Social Accountability 8000:2014

• Child Labour

• Forced Labour

• Health and Safety

• Freedom of Association and Right to Collective Bargaining

• Discrimination

• Disciplinary Practices

• Working Hours

• Remuneration

• Management Systems

• Policies, procedures and records

• Social performance team

• Identification and assessment of risks

• Monitoring

• Internal involvement and communication

• Complaint management and resolution

• External verification and stakeholder engagement

• Corrective and preventive actions

• Training and capacity building

• Management of suppliers and contractors

9 Guiding Principles on Business and Human Rights, 2011

The Protect, Respect and Remedy Framework of United Nations

I. THE STATE DUTY TO PROTECT HUMAN RIGHTS

II. THE CORPORATE RESPONSIBILITY TO RESPECT HUMAN RIGHTS

III. ACCESS TO REMEDY

These Guiding Principles are grounded in recognition of:

(a) States’ existing obligations to respect, protect and fulfil human rights and

fundamental freedoms;

(b) The role of business enterprises as specialized organs of society

performing specialized functions, required to comply with all applicable laws

and to respect human rights;

(c) The need for rights and obligations to be matched to appropriate and

effective remedies when breached.

10 Global Reporting Initiative Standards, 2016

11 National Voluntary Guidelines, 2011

The Government of India, through the National Voluntary Guidelines want

companies to:

• Give back something to the society;

• Be responsible;

• Be accountable for its actions; and

• Be sustainable in itself and in the environment it operates in.

Securities and Exchange Board of India (SEBI) as a part of its circular on

13th August 2012, made it mandatory for top 100 BSE and NSE listed

companies (as on March 2012) to disclose their Business Responsibility

Practices through a report (Business Responsibility Report, BRR) adhering

to the NVG framework.

12 National Voluntary Guidelines, 2011

Principle No. Aspects Principle Description

1 Ethics, transparency and accountability

Businesses should conduct and govern themselves with ethics, transparency and accountability

2 Product life cycle Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

3 Employee’s wellbeing

Businesses should promote the wellbeing of all employees

4 Stakeholder engagement

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

5 Human rights Businesses should respect and promote human rights

6 Environment Businesses should respect, protect, and make efforts to restore the environment

7 Policy advocacy Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

8 Inclusive growth Businesses should support inclusive growth and equitable development

9 Customer value Businesses should engage with and provide value to their customers and consumers in a responsible manner

Aditya Birla Group Sustainable Business Framework

1 Aditya Birla Group Sustainability Vision

December 2012

By 2017, the Aditya Birla Group endeavours to become the leading

Indian conglomerate for sustainable business practices across its global

operations.

Formation of Apex Sustainability Committee

Aditya Birla Group Sustainability Model

Legal Standards Today

Following local laws, gives business a

relatively large space to operate in.

Legal Limits / Tolerance




More Demanding Legal Standards by 2030

By 2030, to be on the road to a sustainable planet, businesses will have to

perform better than ever.

Legal Standards

needed for aSustainableWorld 2050

By 2050, only the best managed business, with

highest performance will

be able to survive.


InternationalStandards Today

Operating voluntarily to international standards requires a systematic approach

and higher levels of control and performance i.e. a constricted operating space.







Legal Standards




be able to survive.


ABG Control Limits / Int’l Stds







Best PracticeToday

Companies operating at best practice levels are

normally driven by visionary leaders.




Legal Standards




be able to survive.



Responsible StewardshipCreate a framework to move us towards international standards and mitigate our impact on ‘Externalities’.







Best PracticeToday






Legal Standards




be able to survive.



Stakeholder EngagementGain knowledge to understand how fast 'External Factors' will change and when disruptions will occur.








Best PracticeToday






Legal Standards




be able to survive.

Future-Proofing Including Our Supply ChainModify our strategic business plan to include additional mitigation and adaption to changes in ‘External Factors’.

Stakeholder EngagementGain knowledge to understand how fast 'External Factors' will change and when disruptions will occur.








Best PracticeToday






Legal Standards




be able to survive.

2 The Three Steps to Building Sustainable Business

Responsible Stewardship

Stakeholder Engagement

Future Proofing

by

Creating & Sharing

Value

3 Responsible Stewardship

Energy and Carbon

Health

Security

Transport

Safety Human Rights

MANAGING CURRENT OPERATIONS TO INTERNATIONAL STANDARDS

Resource Conservation

Air

Contaminated Site

Noise

Waste

Water

Biodiversity Supply Chain

Product Stewardship

Contractor

Sustainable Infrastructure

4 Stakeholder Engagement

Stakeholder

UNDERSTANDING THE SUSTAINABILITY TRENDS AND PLANETARY LIMITS

Business Stakeholders

Strategic Experts

• Banks and Shareholders

• Employees• Community• Suppliers and

Contractors• NGOs• Authorities

• Industry Associations

• SMEs for Energy, Climate Change, Water, Human Rights, etc.

• Think Tanks• Legal authorities

5 Future Proofing

Future Proofing our Businesses

IMPLEMENTING SUSTAINABILITY ISSUES INTO FUTURE BUSINESS STRATEGY

Acquisition, Divestment and Joint Venture

Crisis Management

Projects Development and Life Cycle management

Decommissioning, Demolition and Decontamination

ABG Sustainable Business Framework Documents6

PolicyPosition

Statements

Management Standards

Technical Standards

Guidance Notes

Group’s overall intent

Group’s position on a global issue

Mandatory requirements applicable to all areas of the framework

Mandatory requirements applicable to one policy

Guidance to implement the requirements of the Standards

Human Rights within the ABG Sustainable Business

Framework

28Human Rights within the ABG Sustainable Business Framework

Integrated Structure for Sustainable Business

Indigenous Peoples

Management

Good Faith Negotiation and Consent Process

Cultural Heritage

Management

Human Rights

Human Rights Management Plan

Land Acquisition


Stakeholder Engagement Plan

External Grievance

Management

Implementing

the Resettlement

Action Plan and

Livelihood

Restoration Plan

Human

Rights

Policy

29 Process Flow for Human Rights Management

Yes

No

Risk and Impact

Assessment

(Section 4.2.1;

Annexure B)

Establish Terms

of Reference

(Section 4.2.2)

Undertake

Assessment

Put in place

appropriate

remedy

(Section

4.5)

Management

Plan

(Section

4.3;

Annexure C)

Monitor the

management

plan

(Section 9.1)

Prepare

Management

PlanUpdate

management

plan based

on the

monitoring

results

Put in place

appropriate

remedy

(Section 4.5)

Yes

NoPut in place

appropriate

remedy

(Section 4.5)

Existing

Operations

Screening

(Section 4.1;

Annexure A)

New Project

Merger or

Acquisition

Expansion or

other change

Do potential

risks exist?

No risks identified

Put in place

appropriate remedy

(Section 4.5)

Notify CEO

(Section 4.4)

Risks deemed

unavoidable

Risks identified

and are likely

Risks identified but not likely to occur

Risks and

impacts

identified?

Is additional

management

required?

30 Outcome of Human Rights Screening Exercise

SC

REEN

IN

G

OUTCOME: No risk identified

If the screening process indicates that there are no human rights risks, the

site shall ensure that an effective grievance mechanism (i.e. remedy) is in

place for rights holders (i.e. community members potentially impacted by

the site’s activities and the site’s employees and contractors).

OUTCOME: Risks identified, but risks not considered likely

If the screening process identifies that potential human rights risks exist,

but are not considered likely to occur, appropriate management shall be

identified to mitigate the risks and the site will need to ensure that an

effective grievance mechanism is in place for rights holders. The

management measures shall be captured in the screening tool and reflected

in a HRMP.

OUTCOME: Risks identified and are considered likely to

occur

If the screening process identified potential human rights risks that are

likely to occur, further due diligence shall be required in the form of a HRIA.

However, the scope and scale of the HRIA shall be dependent on the

potential risks. It may be that the HRIA focuses on a specific risk or topic

(e.g. relating to suppliers or business relationships) or may look at a range

of risks

OUTCOME: Risks deemed unavoidable

If the screening process identifies potential human rights risk is

unavoidable, the Company CEO shall be notified. It will then be the

responsibility of the CEO along with the appropriate functions to determine

how to proceed.

31 Chance Find Procedure and Cultural Heritage Management

Operating Sites

Greenfield Projects/ Expansion

Merger & Acquisition

Change in Protection Status or Law regarding CH Sites

Self-Assessment (Annex-A)

Screening (Annex-B)

Preparation of ToR for CHIA (Annex C)

Preserve the filled Annex-A

CHIA Process(Section 4.3)

Selection of Qualified Third Party

Third Party conducts CHIA as per TS (Section

4.3.3 and Annex-D)

CHMP Preparation (Annex-E)

CHMP Implementation/ Monitoring Process

Exte

rnal

Sta

keh

old

er

Enga

gem

ent

(Sec

tio

n 6

.0)If

CH

imp

acts

No

t Sc

reen

edN

eit

her

CH

Imp

act

No

r Ex

cava

tio

n is

A

nti

cip

ated

No CH Impact But Excavation Anticipated

No

CH

Imp

act

Bu

t Ex

cava

tio

n

An

tici

pat

ed

Preserve the filled Annex-B

No

CH

Imp

act

Ne

ith

er E

xcav

atio

n

Re

qu

ired

If A

nti

qu

itie

s fo

un

d

du

rin

g Ex

cava

tio

n

If CH impacts identified

Chance Find Procedure(Section 4.2)

32 Indigenous Peoples Issues at Operating Sites

Supplementary

Management Plan for

Gaps Identified

No

No

Yes

Yes

Continuing

Implementation

End-Term Evaluation

Screening of Impact on

IPs (Annex B)

Are there

significant

Impacts on IPs?

Annex B is preserved

as Documentation

IPP/IPDP Implementation

Continuing or Completed in

in Recent Past (5 Years)

IP- Due Diligence

Closure of Management

Plans

Implementation

Completed

33 Indigenous Peoples Issues at New Projects

Are there Potential

Impacts on IPs?

Are Natural Resources/Critical

Heritage sites of IPs affected?

Yes

No

Preparation of Management Plans

IP-IA with Informed Consultation and

Participation (ICP)

Prepare a FPIC Plan for ESIA

An

ne

x C

is p

rese

rve

d a

s

Docu

me

nta

tio

n

IP-IA with FPIC

Review ESIA/ IPDPMid-Term Evaluation

End-Term Evaluation

Closure of Management Plans

Screening of Impact on

IPs (Annex C)

No

Yes & ESIA

not done

Is Impact

Assessment of IPs

in ESIA

systematic and

comprehensive

and Action Plans

Adequate?

Yes

No

34 Land Acquisition Impacts

• Relocation or loss of shelter – IFC PS 5

• Physical displacement of people, loss of

shelter, or other non-resource assets –

World Bank

Physical Displacement

• Loss of assets or access to assets that leads

to loss of income sources or means of

livelihood – IFC PS5

Economic Displacement

35 Land Acquisition Mitigation

• Payment in cash or in kind for an asset or a resource that is

acquired or affected by a project at the time the asset needs

to be replaced – IFC handbook for preparation of

resettlement action plan

• Compensation money or payment in kind to which the

people affected are entitled in order to replace the lost

asset, resource or income – ADB handbook on resettlement

Compensation

• Resettlement packages and assistance such as

transportation, food, shelter and social services provided to

affected people during relocation. Assistance may include

cash allowances that compensate for the inconvenience

associated with resettlement and cover transition expenses

such as moving expenses and lost workdays - IFC

• Rebuilding of housing assets including productive land and

public infrastructure in another location - ADB

Resettlement

• Measure taken for income restoration or economic recovery

so that the affected population can improve or at least

restore its previous standard of living - ADBLivelihood Restoration

36 Special Considerations for Land Acquisition

Legality of land ownership

Vulnerable groups Gender considerations

Cultural propertyIndigenous

peoplesDistress selling

Government land Forced evictions

37 Preference of Approach for Undertaking Land Acquisition

Privately owned land

1. Willing buyer willing seller

arrangements

2. Negotiated settlements

3. Government led land

acquisition

Government owned land

with no claims

1. Land transfer by government

Government owned land with claims

1. Negotiated settlement

2. Government led land

acquisition

38 ABG Process for Land Purchase

Identification of Land Owners (Section 4.2.4.1)

Establish of Market Value of Assets (Section 4.2.4.1)

Establish Replacement Cost (Section 4.2.4.1)

Disclosure of Information to Land Owners about the Land Purchase and its Purpose (Section 4.2.4.1)

Purchase of Land based on Informed Consent(Section 4.2.4.1)

Provision for Additional Support for Special Considerations (Section 4.2.4.1)

Documentation (Section 4.2.4.2)

39 ABG Process for Land Acquisition

Land Acquisition -Involuntary

(Section 4.2.5)

Government led Land Acquisition

Government led- Regulatory Land Acquisition Process

Gap Assessment (Section 4.2.7.1)

Engagement with Government (Section 4.2.7.2)

Formulation of Action to address identified gaps (Section 4.2.7.3)

Disclosure of Action Plan to Affected Population (Section 4.27.4)

Implementation of Action Plan (Section 4.2.6)

ABG led Land Acquisition (including negotiated settlements)

Identification of Affected Population

Establishment of Socio-Economic Baseline (Section 4.2.5.1)

Establishment of Impacts and Losses from Land Acquisition (Section 4.2.5.2)

Identification of Entitlements and Formulation of Management Plans (Section 4.2.5.3)

Disclosure of Entitlement Framework to Affected Population (Section 4.2.5.6

Agreement and Consent from Affected Population (Section 4.2.5.7)

Implementation of Management Plans (Section 4.2.6)

40 Stakeholder Engagement

Review of existing

stakeholder engagement

process

(Section 4.3)

Appoint Internal

Task Force

(Section 4.1)

Train & Orientate Task Force Members

(Section 4.2)

Identification of

Stakeholders and Issues

(Section 4.4)

Analysis and Prioritizatio

n of Stakeholders and Issues

(Section 4.5)

Development of


Plan

(Section 4.6)

41 Grievance Management

Yes

No

No

No

Yes

Yes

Grievance

Source*

(Section

4.2.1)

Central

Grievance

Management

Channel

(Section 4.1

& 4.2)

Send acknowledgement after receiving a

grievance (Section 4.2.1)

Communicate timeline for grievance

resolution (Section 4.2.3)

Forwarded to

Concerned

Department

Define Timeline and

mode of engagement

(Section 4.2.2 &

4.2.3)

Option to resubmit or use an alternate

mode of resolution (Section 4.2.4)Grievance closed

Internal

Escalation

(Section

4.2, Annex

E)

Communicate

timeline,

Action Plan

and Monitor

the status of

Grievance

(Section

4.2.4 &

4.2.5)

Receive Grievance (Section

4.2.1)Record

Grievances

in the

Grievance

Log

Grievance closed

with formal sign

off

Alternate mode of

resolution

(Section 4.2.4)

Grievance closed

through alternate

mode

Categorize

(Section 4.2.2

& Annex E)

Within

Scope

(Section

4.2.2)

Grievance

closed?

Action Plan

(Section

4.2.4)

Process Alternate mode of resolution and interaction with ‘Source’ Decisions Dotted Arrows- Parallel Process

42Establishing Sustainability Expectations in the Supply Chain

Environment

1. Material toxicity and chemicals

2. Raw material use

3. Recyclability and end of life of products

4. Greenhouse gas emissions

5. Energy use

6. Water use and wastewater treatment

7. Air pollution

8. Biodiversity

Anti-corruption

1. Conflict of interest

2. Gifts, meals and entertainment

3. Bribery and kickbacks

4. Accounting and business records

5. Protecting information

6. Reporting misconduct

Human Rights and Labour

1. Forced labour

2. Child labour

3. Working hours

4. Wages and benefits

5. Humane treatment

6. Nondiscrimination

7. Freedom of association and collective bargaining

8. Occupational safety

9. Emergency preparedness

10. Occupational injury and illness

11. Fire safety

12. Industrial hygiene

13. Physically demanding work

14. Machine safeguarding

SUPPLIER CODE OF CONDUCT / CONTRACT AGREEMENT

43Establishing Human Rights Expectations in Security Management

1. Behaviour during riots/ bandhs or any unrest

2. Tresspassing

3. Use of force

4. Rules of engagement

HUMAN RIGHTS POLICY AND CONTRACTUAL AGREEMENT

SECURITY POLICY

44 Assessing Conformance to the Framework

• Answers on an IT platform

• Allows to upload evidence and validate the answers

• Scores are generated

• Action plans to be prepared for non-conformance

Self Assessment Questionnaire

•< 60% - Unacceptable, SMEs to help the site/

business

•> 60% to < 80% - Satisfactory, remote validation of

questionnaire

•> 80% to < 95% - Good, Group or Business

assurance team to do on-site verification

•> 95% - Excellent, More detailed on site verification

Scoring

• Dash boards presented in Business Review meetingsSenior management

review

THANK YOU

45