Chairperson’s Opening Statement for the First Session of the OEIWG on Transnational Corporations and other Business Enterprises with respect to Human Rights

With great appreciation I address you today in such a significant moment to thank you, on behalf of Ecuador, for the support I received to be appointed as Chairperson of this Open-ended Intergovernmental Working Group on transnational corporations and other business enterprises with respect to human rights, an appointment that I will conduct with impartiality and in compliance with the established procedures.

The discussions within the United Nations on a regulatory framework for transnational corporations and other business enterprises with respect to human rights dates back to more than forty years ago, and it is on this basis that today we start a new stage in which we will carry out, for the first time, an intergovernmental negotiation on this matter, with the wide participation of civil society and other relevant stakeholders.

Since the adoption of Resolution A/HRC/RES/26/9 by the Human Rights Council on 26 June 2014, the discussions on the need for a binding instrument establishing a regulatory framework on business and human rights was finally settled. Now we must focus in the next steps that we must take, in accordance with the clear mandate given by the Human Rights Council, for an international binding instrument to regulate the activities of transnational enterprises and other businesses in international law to enjoy the broadest support and recognition. The time that will take us to achieve this aim will depend in our own work and the constructive spirit of our participation in the process.

The sponsorship of Resolution 26/9 was shared with South Africa, whom I publicly thank, and together with the rest of the sponsors, we concur in the vision of bringing equilibrium where there are legal voids that have not been covered by other measures or international instruments on the matter.

In a world in which almost eighty percent of goods are produced by outsourcing methods through supply-chains located in different territorial jurisdictions, it is important to have general and universal norms in the human rights field that provide security for the benefit of all: States, businesses and, particularly, human beings whose rights could be at risk because of wrongful corporate conduct. The philosophy leading this initiative has as basis the principles of equity, legality and justice that must prevail in the international context in the interest of all, particularly for those who have been victims of violations and abuses against their human rights by businesses acting against the law.

What was above-mentioned should not be misinterpreted, nor assumed that this process intends to affect the business sector. It should be recognised that transnational corporations can have a positive impact in different areas of economy and society, generating employment and investment. These corporations have a role in the sustainable development process.

Even more, in the last years the expressions of interest and commitment on the fulfilment of human rights by businesses’ representatives have increased. These expressions allow us to sustain that the possibility of undertaking binding commitments from early voluntary rules should not imply additional efforts for businesses, particularly for those that currently comply and respect human rights.

Recent good practices by corporations have shown that nowadays businesses have much to gain by respecting human rights, as this will directly benefit their image and consumers will show interest in their products or services. On the contrary, behaviour adversely impacting human rights of persons or communities will lead to a negative corporate image difficult to overcome, particularly on an era in which civil society and social networks freely expose and massively disseminate their ideas.

From this perspective, a binding instrument will constitute the ideal tool to establish clear and universal norms on transnational corporations and other business enterprises with respect to human rights. These rules will apply in a non-discriminatory manner and in a predictable context through an international framework for the fulfilment of human rights, bringing hope, justice and equilibrium to those who have been affected by harmful corporate conduct. An environment of legal certainty and clarity is always positive to encourage investment.

During the adoption of Resolution 26/9, as well as in the preparatory stage of this first session, it was evidenced that some States still have reservations about the task mandated by the Human Rights Council through this resolution, and these countries have preferred not to participate in this debate. Even if such decision is respectable, I hereby invite again all Parties to revaluate their decision, because the best time and place to elucidate and share their concerns and doubts in a clear and democratic way is in this intergovernmental working group. The participation, dialogue and processing of agreements and dissents are the very essence of the multilateralism that we must defend and strengthen.

I must also emphasise that, during this preparatory stage, much has been speculated on the role that the United Nations Guiding Principles on Business and Human Rights will have in the process for the adoption of a binding instrument. Some voices have even sought to initiate a controversy between both initiatives by attempting to confront both of its respective proponents. I would like to clarify that it is in the interest of all that both procedures are considered from a perspective of mutual reinforcement. Even though the Guiding Principles are not binding, they are the tools some countries are using in accordance with their reality and interests for the moment. They also constitute a reference that we have at our disposal. Without doubt, the Guiding Principles will be one of the sources frequently used in our debates. The recognition of its importance has been reflected in the program of work, and we trust that all the contributions received will allow us to lay the foundations of our more ambitious goal, a future international binding instrument.

The manner in which the work will be carried out was laid out in the concept note developed under my supervision, as well as in the Program of Work that was submitted for the consideration of States sufficiently in advance, and that was enriched by the contribution of some States without affecting the text of the resolution, its mandate, or the possibility to reach agreements in the proposed subjects of the agenda. This was one of the main tasks in the last stage of numerous consultations carried out by the Mission of South Africa, the Mission of Ecuador and by myself since September last year until this date, as a clear gesture of our trust in sincere and open dialogue, and democratic mechanisms to reach consensus. I can express with satisfaction that Ecuador and South Africa exhausted all their efforts until the end for everyone to participate in this process, and I would like to thank all those who, independent of their position with respect to the mandate of Resolution 26/9, gave us their time to explain our ideas and hear theirs.

I would also like to thank the strong and decisive support of the civil society, given through more than one thousand non-governmental organisations around the world; as well as the support given by the European Parliament and the Holy See, among other stakeholders. This is indicative of the global trend that pushes forward the need to have an international binding instrument that regulates, in a clear and universal manner, the respect and compliance of human rights by transnational corporations.

I must recognise that among the subjects that we will discuss, some have generated concerns that cannot be solved in this early stage, because the work of the working group is just starting. This is the reason why I extend an open invitation to all actors who are really committed to human rights to participate in our debates and call for their support in the fulfilment of my duties, but especially I call for their support in the work we start today. Likewise, in my capacity as Chairperson, I reiterate my commitment for guaranteeing an inclusive, transparent and democratic process that considers different voices of interest through a constructive dialogue, meant to foster sustainable economies and more just and equitable societies.

This statement is an unofficial translation by Daniel Uribe, Visiting Researcher at the South Centre. The original statement in Spanish is found at http://www.ohchr.org/Documents/HRBodies/HRCouncil/WGTransCorp/Session1/Ecuador_Opening_Statement.pdf.