Corporate Power over Human Rights: An Analytical Framework

Birchall, David

doi:10.1017/bhj.2020.23

Cited by 16 publications

(3 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The UNGPs contain relatively detailed provisions on the corporate responsibility to respect human rights, as well as guidance on how to carry out human rights due diligence, but they do not mention climate as such. Interpreting the UNGPs without making the connection to climate change, however, raises questions about the very relevance of this instrument, considering that climate change is 'the defining crisis of our times' [15] and that 'many severe human rights impacts can be traced to climate change' [16], thus inevitably linking the two issues [17]. Moreover, the contribution of the private sector to climate change is undeniable, especially, but not limited to, the extractive sector [18].…”

Section: International Instrumentsmentioning

confidence: 99%

Business, Human Rights and Climate Due Diligence: Understanding the Responsibility of Banks

Bernaz

Macchi

2021

Sustainability

View full text Add to dashboard Cite

Under the 2011 UN Guiding Principles on Business and Human Rights (UNGPs), banks, like all businesses, have a responsibility to respect human rights and to carry out human rights due diligence. Although climate due diligence is not explicitly included in the UNGPs, tackling an enterprise’s direct and indirect climate change impacts is arguably a dimension of the corporate responsibility to respect human rights and should form part of the human rights due diligence process. At present, it is unclear how such responsibility applies to banks, whose contribution to climate change is mostly indirect. This article addresses the research question: how should the law be interpreted to form a coherent climate due diligence standard for banks? To address it, the article first maps out the climate responsibility of banks under international soft law standards and assesses privately developed guidance. It then elucidates the emerging concept of climate due diligence, reading climate change responsibilities into the now well-established corporate responsibility to respect human rights as authoritatively elaborated in the UNGPs. Finally, it explains how such normative standard applies to banks and unpacks the key elements that a bank’s climate due diligence process should include.

show abstract

Section: International Instrumentsmentioning

confidence: 99%

Business, Human Rights and Climate Due Diligence: Understanding the Responsibility of Banks

Bernaz

Macchi

2021

Sustainability

View full text Add to dashboard Cite

show abstract

“…Perhaps the most well-known PE investment in housing is that of Stuyvesant Town in New York City (Birchall 2019a , 461; Birchall 2021a ). Stuyvesant Town is the largest residential block in Manhattan comprising over 11,000 apartments.…”

Section: The Human Rights Impacts Of the Pe Modelmentioning

confidence: 99%

“…In analysing the application of BHR principles to the PE model, the paper also questions the scope and limits of human rights principles in managing, or at least reducing, harm, within the contemporary economy. This focus on business strategy develops nascent work on how underlying business strategy and incentives can increase risks to rights-holders (OHCHR 2021 , 13; Shift 2021 ; Birchall 2021a , b ; Birchall 2022a , b , 406–408), by focusing on a model in which business success is determined by a particularly narrow focus on investor returns.…”

Section: Introductionmentioning

confidence: 99%

Business Strategy as Human Rights Risk: the Case of Private Equity

Birchall

Bernaz

2023

Hum Rights Rev

Self Cite

View full text Add to dashboard Cite

In this article, we apply the UN Guiding Principles on Business and Human Rights to the private equity (PE) business model. PE firms often adopt a controversial, ‘value extractive’, business model based on high debt and extreme cost-cutting to generate investor returns. PE firms own large numbers of companies, including in many rights-related sectors. The model is linked to increased human rights risks to workers, housing tenants, and in privatized health and social care. We map these risks and analyse the human rights responsibilities of PE firms. Our analysis has major implications for understandings of human rights responsibility. We argue that value extractive methods are the root cause of eventual harm to human rights, even though they may not harm rights directly. To respect human rights, PE firms must mitigate the risks of these value extractive methods. We define how human rights due diligence (HRDD) could achieve this and argue that given the extent of harm and the lack of a business case for adopting such a view of human rights responsibility, business strategy level HRDD should be a core component of forthcoming HRDD laws.

show abstract