5
Commentary
States should not assume that businesses invariably prefer, or benefit from,
State inaction, and they should consider a smart mix of measures – national
and international, mandatory and voluntary – to foster business respect for
human rights.
The failure to enforce existing laws that directly or indirectly regulate
business respect for human rights is often a significant legal gap in State
practice. Such laws might range from non-discrimination and labour laws
to environmental, property, privacy and anti-bribery laws. Therefore, it
is important for States to consider whether such laws are currently being
enforced effectively, and if not, why this is the case and what measures may
reasonably correct the situation.
It is equally important for States to review whether these laws provide the
necessary coverage in light of evolving circumstances and whether, together
with relevant policies, they provide an environment conducive to business
respect for human rights. For example, greater clarity in some areas of law
and policy, such as those governing access to land, including entitlements
in relation to ownership or use of land, is often necessary to protect both
rights-holders and business enterprises.
Laws and policies that govern the creation and ongoing operation of
business enterprises, such as corporate and securities laws, directly shape
business behaviour. Yet their implications for human rights remain poorly
understood. For example, there is a lack of clarity in corporate and securities
law regarding what companies and their officers are permitted, let alone
required, to do regarding human rights. Laws and policies in this area
should provide sufficient guidance to enable enterprises to respect human
rights, with due regard to the role of existing governance structures such as
corporate boards.
Guidance to business enterprises on respecting human rights should
indicate expected outcomes and help share best practices. It should advise
on appropriate methods, including human rights due diligence, and how to
consider effectively issues of gender, vulnerability and/or marginalization,
recognizing the specific challenges that may be faced by indigenous
peoples, women, national or ethnic minorities, religious and linguistic