Using International Corporate Standards
and Frameworks
This module has the following objectives:
Enable the participants to• Determine the human rights coverage of international corporate standards/frameworks;• Determine how the international corporate standards/frameworks are applied incompany operations to address human rights issues;• Analyze the international corporate standards regarding involvement of stakeholders;• Discuss how the international corporate standards address human rights issues withthe participation of the stakeholders; and• Identify ways by which stakeholders can influence companies in preparing reports
and other actions to comply with the international corporate standards or framework.
Time: 3 hours and 45 minutes
Materials:• Big size papers, colored pens, writing papers, adhesive tapes;• Equipment - computer, projector, screen;• Video/documents on the international corporate standards/frameworks.

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Using International Corporate Standards and Frameworks
I. Procedurea. Opener - 30 minutes
Show the video entitled “UNGP Reporting Framework: Salient Human Rights Issues”(https://vimeo.com/154834462) and raise the question on how companies should start theirwork on addressing human rights issues.
Ask the participants, in plenary, to answer the question. Stress that an important startof the work of companies to address human rights issues is in putting their commitment todo so in writing and making that document available to the public.
b. Activity – 1 hour
Introduce the corporate declarations, codes of conduct and reports that have been issued
by different companies in Northeast Asia/country.
Ask the participants to discuss in small groups sample corporate declarations, codes ofconduct and reports to determine the human rights content of the documents.*
Ask the participants to present the results of the group discussion in a panel discussion
format.
Make a table of answers of the groups regarding company operations and the humanrights components. The table may include the following items:
Corporate document
PolicyRightsHuman rights in general

Code of Conduct

Right to remedy

Annual report

Labor rights and some humanrights

Comment
Needs more clear statement on
specific human rights
Easy procedure for lodging
complaint
Discussion on cases of rights
abuse neededc. Input - 1 hour
Provide an input on international frameworks on business and human rights (aside fromthe UN framework) that focus on institutionalization of company commitment to addresshuman rights issues and report on practical steps taken. These international frameworks
can include the following:**
1. International Guidance Standard on Organisational Social Responsibility (ISO26000);
2. Guidelines for Multinational Enterprises of the Organisation of Economic Cooperation and Development (OECD);
3. Global Reporting Initiative (GRI);* Here are some examples:a. Human Rights Initiatives at Workplaces - Ajinomotowww.ajinomoto.com/en/activity/csr/pdf/2015/063e.pdf
b. Respecting Human Rights and Building a Great Place to Work – Chubu Electric Powerwww.chuden.co.jp/english/resource/corporate/ecsr_report_2015_26.pdf
c. Human Right and Labor Practices (Condition of work and Human development) - Taisei Corporation
www.taisei.co.jp/english/csr/hr/everyone.html.
** The Introduction in Bridging Human Rights Principles and Business Realities in Northeast Asia, pages 8-15, provides
highlights of these international frameworks.

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4. Equator Principles (EPs);
5. 2012 Sustainability Framework of the International Financial Corporation (IFC); and6. The Caux Round Table (CRT) Principles for Responsible Business.
See Annex A for brief description of these international standards and frameworks.
Emphasize to the participants that these international frameworks require the companies
to state in their corporate reports actual steps taken to respect and protect human rights.
This is the reporting commitment of the companies.***Provide an input on human rights content on corporate reports and identify the areasof company operations where human rights have been applied.****
d. Activity - 1 hour
Tell the participants to brainstorm in small groups the practical measures that different
stakeholders can employ to influence company reports on different human rights issues
regarding:–– company operations (internal); and–– company relations with the community.
Remind the participants to discuss also how small and medium-size companies might
be able adopt measures to address their human rights issues.
Tell the participants to classify and justify which measures raised in the brainstorming
session are feasible, hardly feasible, and not feasible.
Ask the participants to present their group reports in a TV talk show style. They will
decide on who will be the TV host, and guests [“experts”] who will explain why the corporate
measures are feasible, hardly feasible, and not feasible.
Ask the other participants to raise comments and questions as members of the “liveaudience” in the “TV show.”II. Summary
Time: 15 minutes
Summarize the main points discussed during the session such as the following:• Human rights content of the international corporate standards or frameworks;• Practical measures under the international corporate standards or frameworks suchas stakeholder mechanisms and actions by stakeholders that can influence corporate
behavior.

*** A video on reporting framework can be used for this part of the input, see “UN Guiding Principles Reporting
Framework Launch, February 2015,” https://vimeo.com/124811300?from=outro-local.
**** The report of HURIGHTS OSAKA in Bridging Human Rights Principles and Business Realities in Northeast Asia,
pages 147-157 and its Appendix B, pages 200-202, provide examples of surveys on human rights content of corporate
reports.

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Annex AInternational Guidance Standard on Organisational Social Responsibility (ISO 26000)
ISO 26000 provides guidance on how businesses and organizations can operate ina socially responsible way. This means acting in an ethical and transparent way that
contributes to the health and welfare of society.
ISO 26000:2010 provides guidance rather than requirements, so it cannot becertified to unlike some other well-known ISO standards. Instead, it helps clarify whatsocial responsibility is, helps businesses and organizations translate principles into
effective actions and shares best practices relating to social responsibility, globally. It
is aimed at all types of organizations regardless of their activity, size or location.
This International Standard is intended to assist organizations in contributing tosustainable development. It is intended to encourage them to go beyond legal compliance, recognizing that compliance with law is a fundamental duty of any organization
and an essential part of their social responsibility. It is intended to promote common
understanding in the field of social responsibility, and to complement other instruments
and initiatives for social responsibility, not to replace them.
In applying this International Standard, it is advisable that an organization take
into consideration societal, environmental, legal, cultural, political and organizational
diversity, as well as differences in economic conditions, while being consistent withinternational norms of behaviour.
This International Standard is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any
offer to certify, or claims to be certified, to ISO 26000 would be a misrepresentation of the intent and purpose and a misuse of this International Standard. As thisInternational Standard does not contain requirements, any such certification would
not be a demonstration of conformity with this International Standard.
The standard was launched in 2010 following five years of negotiations between
many different stakeholders across the world. Representatives from government,
NGOs, industry, consumer groups and labour organizations around the world wereinvolved in its development, which means it represents an international consensus.
(Source: Text drawn from ISO 26000 – Social Responsibility, www.iso.org/iso/home/standards/iso26000.htm; and www.iso.org/obp/
ui/#iso:std:iso:26000:ed-1:v1:en)

Guidelines for Multinational Enterprises of the Organisation of Economic Co-operationand Development (OECD)The Guidelines are the first international instrument to integrate the corporate
responsibility to respect human rights as set out in the UN’s Guiding Principles on
Business and Human Rights. The Guidelines are also the first international corporate
responsibility instrument to incorporate risk-based due diligence into major areas ofbusiness ethics. The nature and extent of due diligence depend on the circumstancesof a particular situation, an important point considering the complexity of international
business.
The Guidelines are the only existing multilaterally agreed corporate responsibility
instrument that adhering governments have committed to promoting in a global context. They express the shared views and values of countries, including major emerging
economies, that are the sources and the recipients of a large majority of the world’s

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investment flows and are also home to a majority of MNEs. The Guidelines cover all
major areas of business ethics. Their recommendations are set out in 11 chapters andcover topics such as information disclosure, human rights, employment and labour,environment, anti-corruption, and consumer interests. The Guidelines also encompass
three areas - science and technology, competition, and taxation - not as fully coveredby any other international corporate responsibility instrument.
Unique implementation mechanism
The active way in which the Guidelines are implemented distinguishes them fromother international corporate responsibility instruments.
National Contact Points
Adhering countries are obliged to set up National Contact Points (NCPs) that aretasked with furthering the effectiveness of the Guidelines by undertaking promotional
activities, handling inquiries, and providing a mediation and conciliation platform forresolving issues that arise from the alleged non-observance of the Guidelines. Thismakes the Guidelines the only international corporate responsibility instrument witha built-in grievance mechanism.
Proactive Agenda
The effective implementation of the Guidelines is supported by the proactive agenda. The proactive agenda aims to promote the effective observance of the Guidelines
by helping enterprises identify and respond to risks of adverse impacts associatedwith particular products, regions, sectors, or industries. Central to its potential to effectchange on a broad scale is its employment of the multi-stakeholder process which
gives relevant stakeholders the opportunity to participate side-by-side with enterprises
in developing strategies to avoid and address risks of adverse impacts.
(Source: OECD Guidelines for Multinational Enterprises Responsible Business Conduct Matters, pages 2-3, http://mneguidelines.
oecd.org/MNEguidelines_RBCmatters.pdf)

Equator Principles (EPs)
The Equator Principles (EPs) is a risk management framework, adopted by financial
institutions, for determining, assessing and managing environmental and social riskin projects and is primarily intended to provide a minimum standard for due diligenceto support responsible risk decision-making.
The EPs apply globally, to all industry sectors and to four financial products 1)
Project Finance Advisory Services 2) Project Finance 3) Project-Related Corporate
Loans and 4) Bridge Loans. The relevant thresholds and criteria for application is
described in detail in the Scope section of the EPs.
Currently 82 Equator Principles Financial Institutions (EPFIs) in 36 countries haveofficially adopted the EPs, covering over 70 percent of international Project Financedebt in emerging markets.
EPFIs commit to implementing the EP in their internal environmental and social
policies, procedures and standards for financing projects and will not provide Project
Finance or Project-Related Corporate Loans to projects where the client will not, oris unable to, comply with the EPs.

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While the EPs are not intended to be applied retroactively, EPFIs apply them tothe expansion or upgrade of an existing project where changes in scale or scope may
create significant environmental and social risks and impacts, or significantly change
the nature or degree of an existing impact.
The EPs have greatly increased the attention and focus on social/community
standards and responsibility, including robust standards for indigenous peoples, labour standards, and consultation with locally affected communities within the Project
Finance market. They have also promoted convergence around common environmental and social standards. Multilateral development banks, including the European
Bank for Reconstruction & Development , and export credit agencies through theOECD Common Approaches are increasingly drawing on the same standards as theEPs.
(Source: Equator Principles, www.equator-principles.com/index.php/about-ep)

G4 Sustainability Reporting Guidelines
G4, the fourth generation of the Guidelines, was launched in May 2013. Thelaunch marked the culmination of two years of extensive stakeholder consultationand dialogue with hundreds of experts from across the world from a wide variety ofsectors, including companies, civil society, labor organizations, academia, and finance.
The aim of G4 is simple: to help reporters prepare sustainability reports that matterand to make robust and purposeful sustainability reporting standard practice. G4 isdesigned to be universally applicable to all organizations of all types and sectors, largeand small, across the world.
G4 includes references to other widely recognized frameworks, and is designed
as a consolidated framework for reporting performance against different codes andnorms for sustainability. This includes harmonization with other important global frameworks, including the OECD Guidelines for Multinational Enterprises, the UN Global
Compact Principles, and the UN Guiding Principles on Business and Human Rights.
The guidance in G4 is designed to be compatible with a range of different reporting
formats. In addition to enhancing the relevance and quality of standalone sustainability
reports, G4 also offers a widely recognized global standard for sustainability information to be included in integrated reports.
(Source: An Introduction to G4 - The next generation of sustainability reporting, www.globalreporting.org/resourcelibrary/GRI-Anintroduction-to-G4.pdf)

2012 Sustainability Framework of the International Financial Corporation (IFC)The Sustainability Framework articulates IFC’s strategic commitment to sustainable
development and is an integral part of our approach to risk management.
Our Sustainability Framework helps our clients do business in a sustainable way.
It promotes sound environmental and social practices, encourages transparency andaccountability, and contributes to positive development impacts. IFC’s PerformanceStandards, which are part of the Sustainability Framework, have become globallyrecognized as a benchmark for environmental and social risk management in theprivate sector.

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Originally adopted in 2006, the Sustainability Framework has recently been updated following an 18-month consultation process with stakeholders around the world.
Effective on January 1, 2012, our updates reflect the evolution in good practice forsustainability and risk mitigation over the past five years. They incorporate modifications on challenging issues that are increasingly important to sustainable businesses,
including supply-chain management, resource efficiency and climate change, andbusiness and human rights.
The Sustainability Framework Consists of• The Policy on Environmental and Social Sustainability, which defines IFC’scommitments to environmental and social sustainability.
• The Performance Standards, which define clients’ responsibilities for managingtheir environmental and social risks.
• The Access to Information Policy, which articulates IFC’s commitment totransparency.
• Environmental and Social Categorization.
(Source: International Finance Corporation, www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_site/
Sustainability+and+Disclosure/Environmental-Social-Governance/Sustainability+Framework)

The Caux Round Table (CRT)The Caux Round Table (CRT) is an international network of business leaders working to promote a morally and sustainable way of doing business. The CRT believes
that its Principles for Responsible Business provide necessary foundations for a fair,
free and transparent global society.
The Caux Round Table was founded in1986 by Frits Philips Sr, former President ofPhilips Electronics, and Olivier Giscard d’Estaing, former Vice-Chairman of INSEAD, asa means of reducing escalating international trade tensions between Europe, Japanand the USA.
At the urging of Ryuzaburo Kaku, then Chairman of Canon, Inc, the CRT began tofocus attention on the importance of global corporate responsibility in reducing socialand economic threats to world peace and stability. This led to the development ofthe 1994 Caux Round Table Principles for Business around three ethical foundations,
namely: responsible stewardship; the Japanese concept of Kyosei - living and working
for mutual advantage; and respecting and protecting human dignity.
The 2009 CRT Principles for Responsible Business comprise seven principles andmore detailed Stakeholder Management Guidelines covering each of the key stakeholder dimensions of ethical business practices: customers, employees, shareholders,suppliers, competitors, and communities.
The CRT Principles have been published in twelve languages, utilized in businessschool curricula worldwide, and are widely recognized as the most comprehensive
statement of responsible business practice formulated by business leaders for business leaders.](Source: Caux Round Table, www.cauxroundtable.org/index.cfm?menuid=8)94

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Materials
International frameworks and standards:•International Guidance Standard on Organisational Social Responsibility (ISO26000); ISO 26000 – Social Responsibility, www.iso.org/iso/home/standards/
iso26000.htm; and www.iso.org/obp/ui/#iso:std:iso:26000:ed-1:v1:en;•Guidelines for Multinational Enterprises of the Organisation of Economic Cooperation and Development (OECD); http://mneguidelines.oecd.org/text/;•Global Reporting Initiative (GRI); https://www.globalreporting.org/standards/g4/Pages/Introduction-to-G4-brochure.aspx;•

Equator Principles (EPs); http://www.equator-principles.com/index.php/about-ep;•

2012 Sustainability Framework of the International Financial Corporation (IFC);
http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_
Corporate_site/Sustainability+and+Disclosure/Environmental-Social-Governance/
Sustainability+Framework and•The Caux Round Table (CRT) Principles for Responsible Business - http://www.
cauxroundtable.org/index.cfm?menuid=8.

Introduction in Bridging Human Rights Principles and Business Realities in Northeast Asia
(Osaka/Kuala Lumpur: HURIGHTS OSAKA and SIRD, 2014)

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