Guidance on Responsible Business in Challenging Contexts
ICC has issued guidance to support businesses faced with challenging situations that cause stay-or-leave dilemmas, requiring crisis management and due diligence to identify, prevent and mitigate the impacts of company decisions on human rights, society and the conflict.
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Why a guide on responsible business conduct?
In situations of conflict, such as an armed conflict, a gross human rights violation, the imposition of trade sanctions, or a governance crisis, such as a coup d’état, businesses are expected to understand their role and the risks of business involvement in the conflict to respect international humanitarian law.
When a crisis evolves, companies are under pressure from stakeholders to take prompt action, including deciding whether to remain in or exit the market, while sumultaneaously assessing the impacts on people, communities and society more broadly. These expectations can be daunting for companies, in particular, when they do not have the prerequisites or a developed strategy to act responsibly in these contexts.
How does the guide on responsible business conduct support executives?
By implementing this guidance and establishing an adapted tactical planning programme for high-risk countries of operation, a company can set a solid foundation for a crisis response.
Companies can support their remain-or-exit resolutions with sound evidence-based due diligence, through engagement with stakeholders, with due consideration of the company’s responsibilities, and by applying creative leverage.
Which steps can companies take to ensure responsible business conduct in challenging contexts?
- Ensure the safety of its workforce as a first priority
- Avoid rushing into a decision under pressure of circumstance or scrutiny
- Respect the human rights of affected stakeholders, including employees and workers in the supply chain and consumers and impacted communities
- Use their leverage to mitigate adverse human rights impacts
- Use collaborative platforms for shared assessments and responses to crises