Corporations failing to meet human rights obligations: report News
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Corporations failing to meet human rights obligations: report

The Corporate Human Rights Benchmark (CHRB) published its 2018 report Monday, reviewing 100 companies based on their adherence to UN General Principles on Business and Human Rights, and finding that most companies are falling short.

Each company received a score between 1-100 percent based on six categories. Governance and policies made up 10 percent of the final score, embedding respect and human rights due diligence made up 25 percent, remedies and grievance mechanisms made up 15 percent, company human rights practices made up 20 percent, responses to serious allegations made up 20 percent and transparency made up the final 10 percent of the score. The scores were determined based on publicly available information.

The companies represent agricultural products, apparel and extractives. Adidas was the top scoring company with a score of 87 percent. The average score for all companies was 27 percent. Over a quarter of the companies included in the study scored less than 10 percent. The lowest scoring companies were Heilan Home and Kweichow Moutai, which both scored 0 percent. Monster Beverage had the next lowest total score of 1.1 percent.

Many companies saw significant improvements over the 2017 pilot report. In the pilot report, only three companies scored over 60 percent. This was increased to eight companies in the 2018 report. ENI saw the biggest gain by increasing their score 40.7 percent to 61.9 percent. Adidas increased their score by 30.1 percent. Nine other companies saw an increase of at least 20 percent. The largest decrease in score was China Petroleum and Chemical, which saw a decrease of 4.3 percent.

Three key issues were identified in the study. Almost no companies were found to have commitments to ensure workers in their supply chain and operations had living wages. Less than 10 percent of companies had public policies to protect human rights defenders. More than half of apparel and agricultural companies were found to not meet expectations on preventing child labor in their supply chain.

Corporations have faced increased pressure to ensure human rights abuses are not committed anywhere in their supply chains. In February 2017 France enacted a law that would make parent companies liable for human rights violations committed by their subsidiaries anywhere in the world. In April 2018 the UN Working Group on Business and Human Rights praised Thailand’s progress regarding human rights abuses in several industries, and noted that further progress is still needed.