header-logo header-logo

12 February 2020
Issue: 7874 / Categories: Legal News , Human rights
printer mail-detail

Preventing corporate human rights harms

UK businesses want certainty on how to avoid human rights abuses
A ‘failure to prevent’ law similar to the Bribery Act could be introduced for human rights concerns, a major report has concluded.

The study, by the British Institute of International and Comparative Law (BIICL), with the support of global law firms Hogan Lovells and Quinn Emanuel, looked at the impact of the Bribery Act 2010 and considered the legal feasibility of a corporate duty to prevent human rights harms.

The report, ‘A UK failure to prevent mechanism for corporate human rights harms’, sets out a model legal provision. It is based on s 7 of the Bribery Act and would apply to ‘human rights’, which would be defined to include environmental harms. BIICL recommends that it apply to all sizes of companies carrying out business in the UK, including SMEs. However, ‘guidance should clarify the recognition that any due diligence processes should be proportionate to their size and the complexity of their operations’. The defence would be that ‘reasonable due diligence’ was carried out. Civil remedies would be available.

The report includes the results of a business survey, which found 69% of UK companies and multinationals want more legal certainty about which procedures are required to avoid legal risks for human rights abuses.

The majority of respondents thought more regulation would benefit business―82% agreed it would provide legal certainty, 74% thought it would level the playing field and 75% said it would create a non-negotiable standard to facilitate leverage with third parties.

Quinn Emanuel partner Julianne Hughes-Jennett said: ‘The direction of travel is clear: we will see more regulation, in particular, in relation to human rights due diligence.

‘It is important any such regulatory developments provide legal certainty and a level-playing field.’

BIICL senior research fellow Lise Smit, said: ‘Although each jurisdiction would need to develop its legal mechanism to fit within its own legal system, these developments are all based on the framework of the UN Guiding Principles on Business and Human Rights.’

 

Issue: 7874 / Categories: Legal News , Human rights
printer mail-details

MOVERS & SHAKERS

Freeths—Rachel Crosier

Freeths—Rachel Crosier

Projects and rail practices strengthened by director hire in London

DWF—Stephen Hickling

DWF—Stephen Hickling

Real estate team in Birmingham welcomes back returning partner

Ward Hadaway—44 appointments

Ward Hadaway—44 appointments

Firm invests in national growth with 44 appointments across five offices

NEWS
The Police and Criminal Evidence Act 1984 transformed criminal justice. Writing in NLJ this week, Ed Cape of UWE and Matthew Hardcastle and Sandra Paul of Kingsley Napley trace its ‘seismic impact’
Operational resilience is no longer optional. Writing in NLJ this week, Emma Radmore and Michael Lewis of Womble Bond Dickinson explain how UK regulators expect firms to identify ‘important business services’ that could cause ‘intolerable levels of harm’ if disrupted
Criminal juries may be convicting—or acquitting—on a misunderstanding. Writing in NLJ this week Paul McKeown, Adrian Keane and Sally Stares of The City Law School and LSE report troubling survey findings on the meaning of ‘sure’
The Serious Fraud Office (SFO) has narrowly preserved a key weapon in its anti-corruption arsenal. In this week's NLJ, Jonathan Fisher KC of Red Lion Chambers examines Guralp Systems Ltd v SFO, in which the High Court ruled that a deferred prosecution agreement (DPA) remained in force despite the company’s failure to disgorge £2m by the stated deadline
As the drip-feed of Epstein disclosures fuels ‘collateral damage’, the rush to cry misconduct in public office may be premature. Writing in NLJ this week, David Locke of Hill Dickinson warns that the offence is no catch-all for political embarrassment. It demands a ‘grave departure’ from proper standards, an ‘abuse of the public’s trust’ and conduct ‘sufficiently serious to warrant criminal punishment’
back-to-top-scroll