Human Rights in the Mining and Metals Industry - Overview, Management Approach and Issues

36 Pages·2009·2.632 MB·English

Human Rights in the Mining & Metals Industry
Overview, Management
Approach and Issues
May 2009
CONTENTS
FOREWORD 1
1
SECTION 1: BACKGROUND AND KEY POINTS 2
1.1 Why has ICMM produced this guidance? 3
1.2 What should reasonably be expected of companies in this area? 3
1.3 Are there clear distinctions between the roles of government and of companies? 4
1.4 If human rights are so broad in scope, why is this guidance so short? 4
1.5 What are the main points of this guidance? 4
2
SECTION 2: OVERALL MANAGEMENT APPROACH 6
2.1 Policy and guidance 7
2.2 Governance and implementation 8
2.3 Due diligence 9
2.4 Complaint procedures and access to remedy 11
2.5 Training 12
2.6 Business partners, suppliers and customers 13
2.7 External engagement & partnerships 14
3
SECTION 3: FOCUS ISSUES 16
3.1 Employment issues 17
3.2 Security 18
3.3 Resettlement 20
3.4 Indigenous Peoples 21
3.5 Conflict 22
3.6 Artisanal & small-scale mining 24
3.7 Anti-corruption & transparency 26
APPENDIX 1: FOOTNOTES 28
ACKNOWLEDGEMENTS 32
Front cover: Artisanal and Small Scale Miners, Siguiri District, Guinea. Image courtesy of AngloGold Ashanti.
FOREWORD
D
R
O
W
E
R
O
F
In the past decade, the issue of human ICMM’s view is that respect for human
rights has assumed increasing rights is a key aspect of sustainable
prominence in discussions concerning development. One of the principles
corporate social responsibility in general, adopted by our Council of CEO’s in 2003
and the extractives sector in particular. was that members should “uphold
While many leading companies accepted fundamental human rights and respect
that business had some responsibilities customs, cultures and values”. As an
with respect to human rights, the scope of organisation, we have committed to
what these responsibilities ought to be has helping to advance industry good practice
been hotly debated. However, in the early on human rights, and this publication is
2000’s the discourse over the boundaries the first of a number that we have planned
between the human rights responsibilities to help deliver on this commitment.
of companies’ and host nation states led to
a blurring of what ought to be thought of Our overall objective here is to provide an
as distinct, as opposed to shared, overview of the main challenges and
responsibilities. dilemmas that companies in the mining
and metals sector are often faced with.
The “Protect, Respect and Remedy” More specifically we review management
framework produced by John Ruggie in approaches that member companies have
2008 provided some much needed clarity, applied to dealing with human rights
and outlined in a complete and compelling challenges.
way the distinctive, albeit complementary,
roles of states and corporations. There is We do not to attempt to address all
now broad acceptance that governments dimensions of the multi-faceted human-
have the primary responsibility for the rights issue in depth. Subsequent efforts
protection of human rights, and that will explore issues such as effectively
companies have neither a political nor a dealing with community concerns and
shareholder mandate to assume this grievances, and ensuring that companies’
responsibility. In parallel, however, there is due diligence efforts address human rights
also widespread acceptance that concerns. We look forward to working
companies have a responsibility to respect collaboratively with our members and
human rights. Because this represents a external stakeholders to advance practice
baseline expectation, companies cannot and performance in this important area of
compensate for human rights harm by corporate responsibility.
performing good deeds elsewhere.
R. Anthony Hodge
President, ICMM
1
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
BACKGROUND & KEY POINTS
1
1.1 Why has ICMM produced this guidance?
1.2 What should reasonably be expected of companies in this area?
1.3 Are there clear distinctions between the roles of government and of companies?
1.4 If human rights are so broad in scope, why is this guidance so short?
1.5 What are the main points of this guidance?
2
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
D S
N T
N
U
O OI
R P
G Y
K E
C K
BA &
1.1 Why has ICMM produced this guidance? 1.2 What should reasonably be expected of
Respect for human rights is a key aspect of sustainable companies in this area?
development. Promotion of sustainable development, in Human rights are universal values. The key
turn, is a core part of ICMM’s mandate. ICMM’s members internationally agreed definition of human rights is
are committed to the ICMM Sustainable Development contained in the United Nations Universal Declaration on
(SD) Framework which includes, among other Human Rights, proclaimed in 1948 by the UN General
requirements, the principle that members should: Assembly. It is widely recognised that governments have
prime responsibility for protecting human rights.
Uphold fundamental human rights and respect cultures, Companies cannot and should not be expected to
customs and values in dealings with employees and substitute for state responsibility: they have neither the
others who are affected by our activities [Principle 3] political mandate to do so, nor the mandate from
shareholders to devote unlimited resources to this area.
This publication aims to:
A growing body of corporate good practice on human
• Outline the various elements of the SD rights, however, has given a clearer indication of what
Framework relating to human rights (in addition might reasonably be expected from companies – that is,
to a core set of 10 Principles, the Framework beyond the minimum requirement that companies
also comprises a number of ICMM Position comply with host governments’ laws and regulations, but
Statements and detailed reporting and also recognising the political and practical constraints
assurance requirements1); that they face. In addition, the report of the SRSG to the
• Highlight key pressure points of relevance to Human Rights Council at the end of his first mandate
business and human rights, as well as some (Protect, Respect and Remedy: A Framework for
relevant external tools and initiatives; and Business and Human rights3), helps to further clarify the
• Briefly document approaches to dealing with distinctive yet complimentary roles of governments and
human rights issues adopted by a number of companies with respect to human rights, which has met
ICMM members in order to facilitate the spread with widespread approval from governments, business
of good practice. and civil society. This guidance aims to help ICMM
members interpret what might reasonably be expected in
The main audience for the guidance is ICMM’s members the area of business and human rights.
and other interested companies in the mining industry.
ICMM’s overall work on human rights, however, has also It also needs to be recognised that companies in the
involved significant external engagement. For example, normal course of their business help uphold a variety of
ICMM has made three submissions to John Ruggie2, the human rights. Their contribution to economic growth, for
Special Representative of the UN Secretary-General on example, provides the support necessary for fulfilments
the issue of human rights and transnational corporations of various economic, social and cultural rights.
and other business enterprises (SRSG). The second of Responsible mitigation of environmental impacts, close
these included a commitment that “ICMM members will consultation with local communities, and employment
continue to advance industry good practice on human procedures – for example, preventing discrimination –
rights” and also that ICMM would support “sharing and also help uphold different sorts of rights.
adoption of best practices on human rights-related
issues across its members”. This publication also aims This means that companies’ approach to human rights
to help deliver on this commitment. issues may need to be coordinated across multiple
internal departments (including, for example, human
resources, business development and security as well as
CSR/Sustainable Development functions). But it does not
necessarily mean that companies need to conceptualise
or even describe their positive efforts in human rights
terms: what matters is fair and positive outcomes for
individuals concerned, not the label used for corporate
procedures which help to achieve this.
For further references, see Appendix 1: Footnotes on pages 28-29
3
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
BACKGROUND & KEY POINTS
1.3 Are there clear distinctions between the roles of The second part of the guidance (Section 2: Overall
government and companies? management approach) highlights some basic elements
Much of the heat that historically characterized the of good practice for managing human rights in general.
business and human rights debate was catalyzed by the Section 3: Focus issues then examines a small set of
blurring of the boundaries between what ought to be human rights-related issues which either pose a
thought of as distinct (albeit complimentary) as opposed particular challenge in the mining sector or on which
to shared responsibilities. The “Protect, Respect and additional clarity on good practice may be helpful.
Remedy” framework outlined in the report of the SRSG Among the issues not dealt with in this section, to give
clearly outlines a set of different but complementary an example, is environmental management: though
responsibilities. This comprises three core principles: the protection of the environment is clearly an aspect of
state duty to protect against abuses of human rights by upholding human rights, good practice in this area has
third parties, including business; the corporate for some time been well understood and documented.
responsibility to respect human rights, which is
positioned as a requirement to “do no harm”; and the It is also important to note that the examples given of
need for more effective access to remedies in the event good practice by ICMM members (see boxes in each
of disputes over the human rights impacts of companies section) represent just a sample of the initiatives
(which is largely a state responsibility, but may also underway across the membership. Likewise various
include non-judicial mechanisms such as company other ICMM projects, such as the Resource Endowment
complaint mechanisms). The framework also recognises Initiative4 and the Community Development Toolkit5, are
that companies may undertake additional voluntary not detailed here, but may be useful to members in
commitments in relation to human rights, but that the developing their work on human rights.
responsibility to respect is the baseline expectation for
all companies.
1.5 What are the main areas addressed within the
In considering potential impacts on human rights beyond guidance?
the workplace and in identifying opportunities to support The primary focus of this publication is on the corporate
human rights (to go voluntarily beyond the baseline responsibility to respect human rights. It also deals with
expectation to ‘respect’), the concept that companies how mining companies can ensure that both employees
have concentric “spheres of influence” is potentially and communities have access to remedy at the
useful. This implies that they have most responsibility operational level, in response to legitimate concerns
over issues where they have greatest control, such as (whether or not these explicitly relate to human rights).
treatment of employees and local communities, and less In addition, the value of and approaches to proactive
over issues less under their sway, such as the behaviour engagement with stakeholders is covered, which is
of state agencies in their region of operations (but even relevant to both the responsibility of companies to
here, companies may potentially exert some legitimate respect human rights and improving access to remedy (in
influence). However, the SRSG’s report points to the addition to being relevant to voluntary action in support
limitations of the spheres concept in defining the of human rights).
corporate responsibility to respect, through effective due
diligence. This is because the responsibility to respect is Based on the human-rights related elements of ICMM’s
neither based on proximity nor on influence, but depends SD Framework and also the procedures that have been
on the potential or actual human rights impacts of developed among ICMM members, the basic building
companies’ business activities and the relationships blocks of an overall good practice approach to human
associated with these activities. The most appropriate rights are described. In terms of management systems
mechanism for determining potential impacts is through (Section 2), which set the framework within which
effective due diligence. effective due diligence occurs, companies are
encouraged to:
1.4 If human rights are so broad in scope, why is this • Policy and guidance– Develop clear policies covering
guidance so short? all relevant human rights issues facing their
The aim of the guidance is not to cover all potential operations (these may or may not be explicitly labelled
human-rights issues in depth, nor to cite all the growing “human rights” policies); communicate these policies
number of relevant external initiatives and tools. It is clearly internally; and support them with operational
rather to provide a succinct and useful document to guidance for managers and employees where
members, which is cognisant of the challenges and needed (2.1)
dilemmas often facing companies in this area. It also • Governance and implementation– Build these
sets out some practical potential steps and provides policies into internal control, governance or other
links to more detailed information where most helpful. internal management systems (such as HSEC) so as
to ensure their implementation (2.2)
For further references, see Appendix 1: Footnotes on pages 28-29
4
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
D S
N T
N
U
O OI
R P
G Y
K E
C K
BA &
• As part of this, seek to build human rights issues into
impact assessment and due diligence processes
where these issues are not already adequately
assessed (2.3)
• Develop robust complaint mechanisms for local
communities and employees (2.4)
• Provide appropriate human rights training to relevant
staff, including security personnel (2.5)
• Encourage customers, business partners and
suppliers to adopt practices relating to human rights
comparable to their own; and in the case of suppliers
make this a condition of business, supported by
monitoring, where appropriate (2.6)
• Proactively engage and develop partnerships with
communities, governments, and other stakeholders,
to build trust and help deliver positive outcomes
around operations – while keeping within the
boundaries of companies’ legitimate role and
responsibilities on human rights (2.7) “The baseline expectation of
• Publicly report on commitments and outcomes
business is that it will respect –
(addressed throughout the publication).
that is, not harm – human rights.
Similarly in terms of particular human-rights related
issues (Section 3), which should be considered in the Exercising due diligence to
conduct of effective due diligence, to ensure that
identify, address and manage
companies adopt a good practice approach on human
rights, they are encouraged to: human rights risks will help
• As part of their management of employment issues: business to respect human rights,
define a clear approach to employee representation
including avoiding complicity in
and union issues, drawing upon relevant legislation
and international principles; make clear their human rights abuse.”
prohibition on child and forced labour; and find ways
to support diversity, including women’s role in mining
Georg Kell, Executive Director, UN Global Compact
(3.1)
• Ensure security personnel and contractors follow
human rights principles, including restrictions on the
use of force; and where feasible, always keeping
within the boundaries of companies’ legitimate role on
human rights, seek to exert legitimate influence over
police and state security forces if the rights of
employees and local communities are at risk (3.2)
• Avoid involuntary resettlement where feasible, and
adopt an approach towards resettlement based on
accepted international good practice standards (3.3)
• Ensure alignment of their practices with the
commitments in the ICMM Position Statement on
Mining and Indigenous peoples (3.4)
• Assess the risks of conflict around, or associated with,
projects where appropriate and seek to minimise
these risks, always keeping within the boundaries of
companies’ legitimate role (3.5)
• Build an understanding of potential human rights
issues into their approach towards, and interactions
with, artisanal and small scale miners around their
operations (3.6)
• Enforce their policies against bribery and corruption
through robust internal processes; and support
countries which endorse and actively seek to
implement the Extractive Industries
Transparency Initiative (EITI) in ways set out in ICMM
position statements on EITI (3.7)
5
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
OVERALL MANAGEMENT APPROACH
2
2.1 Policy and guidance
2.2 Governance and implementation
2.3 Due diligence
2.4 Complaint procedures and access to remedy
2.5 Training
2.6 Business partners, suppliers and customers
2.7 External engagement & partnerships
6
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
L T H
L N C
A E A
R M O
E E R
OV G P
A P
N A
A
M
2.1 Policy and guidance
An obvious starting point for companies on human rights The G3 Guidelines include 9 performance indicators
is to set out a policy, or policies, stating their approach (6 core or mandatory indicators and 3 additional ones)
on relevant issues (though these need not necessarily be relating to human rights, and several additional
labelled explicitly as “human rights” policies). Issues indicators relating to labor practices. The MMSS also
typically covered include the human rights aspects of includes supplementary requirements relating to
community relations, employment policies, and security. security provision.
Some ICMM members have also developed detailed
guidance setting out what commitments in such areas NGOs have often argued that company policies ought to
mean in practice for managers on the ground. refer explicitly to international human rights standards.
While ICMM has no formal position on this, several
Various elements of ICMM’s SD Framework are relevant members make reference to the UN Universal
in terms of policy. The ICMM Assurance Procedure6– the Declaration of Human Rights or some of the ILO
third element of the SD Framework – requires assurance conventions, which is consistent with the G3 Guidelines.
providers to assure that member companies’ policy A review of the human rights policy provisions of seven
commitments are in line with ICMM’s Principles. This leading extractive sector companies is an additional
would include the commitment to “Uphold fundamental source of guidance for mining companies to consider in
human rights and respect culture, custom and values in reviewing their policy commitments9. A number of ICMM
dealing with employees and those who are affected by members are also signatories to the Global Compact,
our activities” (ICMM Principle 3), as well as the specific whose ten principles cover various key human rights
commitments embodied in the ICMM Position Statement issues10.
on Mining and Indigenous Peoples7.
“Managing human rights in a
The SD Framework also commits ICMM member
companies to report in line with the Global Reporting
proactive manner means
Initiative (GRI) 2006 Sustainability Reporting Guidelines
(G3 Guidelines) and the GRI Mining and Metals Sector managing legal and reputational
Supplement8. The GRI Human Rights Performance
risks, meeting shareholder and
Indicators require organizations to report on the extent to
which human rights are considered in investment and stakeholder expectations and
supplier/contractor selection practices. The guidelines
for companies on ‘Disclosure of Management Approach’ maintaining and motivating staff
specify the following requirements:
performance. It also involves
“Provide a concise disclosure on the following companies in having a better
Management Approach items with reference to the
Human Rights Aspects listed below. The ILO Tripartite rounded appreciation of their
Declaration Concerning Multinational Enterprises and
impacts – positive and negative;
Social Policy (in particular the eight core conventions of
the ILO which consist of Conventions 100, 111, 87, 98, direct and indirect – on the world
138, 182, 20 and 105), and the Organisation for Economic
around them.”
Co-operation and Development Guidelines for
Multinational Enterprises should be the primary
reference points. [Investment and Procurement Mary Robinson, President of Realizing Rights
Practices, Non-discrimination, Freedom of Association & Mark Moody-Stuart, Chairman, Anglo American plc
and Collective Bargaining, Abolition of Child Labor,
Prevention of Forced and Compulsory Labor, Complaints
and Grievance Practices, Security Practices, Indigenous
Rights].”
For further references, see Appendix 1: Footnotes on pages 28-29
7
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues
OVERALL MANAGEMENT APPROACH
2.2 Governance and implementation
Policy & guidance: examples
ICMM’s 2nd submission to John Ruggie stated that, as
part of ICMM’s overall commitment to good practice,
Rio Tintohas developed an explicit human rights policy as
“members will continue to strengthen internal
well as a number of other policies related to human rights,
management processes to ensure implementation of
such as on communities, employment and land access, all
their policies and commitments relating to human
of which are contained within the company’s overall
statement of business practice ‘The way we work’11. rights”18. This is an important area, and the 2nd
Detailed guidance booklets are available for business units, submission documented how some members are
including on ‘business integrity’, ‘human rights’ and a building human rights issues into their existing
‘communities standard’. The human rights guidance12 governance systems in order to achieve this. A variety of
comprises four main sections: the first three focus on local- approaches are being used by different members, and
level human rights considerations in dealing with may be generally suitable, including: incorporating
communities, employees, and security. The final section on
human rights-related issues into HSEC processes at the
‘difficult issues’ considers the company’s role and tactics in
operational level, building such issues into company-
situations where it may have less control, for example
wide internal risk and control systems, and also tasking
where there is a risk of abuses being committed by the
particular board members or board committees with
government or third parties.
oversight of human rights. Underlying all this work is
Newmontis among a number of ICMM members to often a view that corporate policies and management
explicitly support the Universal Declaration of Human systems on human rights, as on other issues, need to go
Rights, in this case in the context of the company’s ‘social hand in hand.
responsibility policy’13. The policy is underpinned by 19
management standards and 14 discipline-specific Management systems and approaches are addressed
standards, several of which are relevant to human rights14.
within ICMM’s Assurance Procedure, which requires the
A standard on human rights awareness, for example,
following ‘subject matter’ to be considered within the
requires all facilities to have a process in place for raising
scope of an assurance engagement:
such awareness among employees. Others standards cover,
for example, the management of significant religious and
cultural sites, land access, indigenous employment and • Subject Matter 2:The company’s material SD risks
business development, and security forces’ management. and opportunities based on its own review of the
A ‘human rights primer’ and a ‘human rights training guide’ business and the views and expectations of its
are available to sites to build knowledge and capacity to stakeholders [which in almost all cases would
implement the human rights related standards at the include issues relating to human rights].
operational level. • Subject Matter 3:The existence and status of
implementation of systems and approaches that the
Other examples include BHP Billiton’s15high-level
company is using to manage each (or a selection) of
commitment to human rights in its Sustainable
the identified material SD risks and opportunities.
Development Policy which is underpinned by a more
detailed Community Standard containing specific minimum
and mandatory requirements in relation to human rights. The ‘systems and approaches’ referred to in subject
Xstratahas developed internal ‘human rights guidelines’ to matters 2 & 3 may include plans, policies, procedures
help implement the human rights commitments contained etc. that member companies have in place to manage
in its statement of business principles and HSEC policy16. their risks relating to human rights. ICMM does not
Goldfields17has also developed a stand-alone policy on require member companies to have ten separate
human rights. policies and underlying management systems in place
to address each of the ICMM SD Principles individually,
and these commitments may be reflected in integrated
policies and systems. The Assurance Procedure provides
further guidance in an annex to inform the design of
member companies’ management systems and
processes aligned to each of the ICMM Principles.
A potentially useful external resource in this area is a
guide produced by the Business Leaders Initiative on
Human Rights on integrating human rights into
management systems19. It is important to emphasize
however there are no set ways of doing this: members
may choose to develop their own implementation
approaches tailoring them closely to existing systems.
For further references, see Appendix 1: Footnotes on pages 28-29
8
Human Rights in the Mining & Metals Industry Overview, Management Approach and Issues