The business and human rights field and the international LGBTI human rights agenda have evolved almost entirely separately. The United Nations ‘Standards of Conduct for Business on Tackling Discrimination against LGBTI People’ (2017) is the primary effort to bridge this gap. Although drafted in a way that strongly aligns with the second pillar of the United Nations Guiding Principles on Business and Human Rights on corporate responsibility, the dissemination of the Standards has mainly been untethered from the human rights framework and system. This article identifies the need to reassert the human rights foundations of the Standards and leverage their existing momentum to set out a more robust research and policy agenda for meaningfully accounting for sexual orientation, gender identity and expression, and sex characteristics in business and human rights frameworks. To that end, the article sets out priority areas for greater attention from researchers, decision-makers and advocates.

This contribution discusses business attitudes to human rights obligations and how the United Nations Guiding Principles on Business and Human Rights (UNGPs) have affected them. These are best understood historically through a number of periods. The first, between the mid-1970s and the end of the 1980s, coincides with intergovernmental organization-based codifications relevant to corporate social responsibility. Business representatives were highly defensive towards extensive international legal obligations not only in relation to human rights but to corporate social responsibility (CSR) more generally. This was followed by a period of ‘voluntarism’. By the 1990s, businesses had accepted that there could be a link between their operations and human rights violations but continued to reject binding legal duties. Instead, businesses opted for voluntary codes of conduct based on individual corporate, or sectoral, initiatives. It was out of this period that the UN Global Compact emerged. ‘Voluntarism’ continues into the third period, the era of the UNGPs. The UNGPs can be characterized by ‘institutionalized voluntarism’ achieved through the framework for business and human rights represented by the UNGPs. Each period will be examined followed by a concluding section that considers business attitudes to an emerging fourth period that introduces legal obligations through mandatory due diligence laws.

For the first time in four decades, leading business associations, corporations, and the corporate law and governance community are seriously debating moving beyond shareholder primacy toward some form of ‘stakeholder governance. But the how question unveils significant differences of opinion as well as difficulties. We focus on a pathway that complements the ambition of stakeholder governance, but which current reform proposals have largely overlooked. We draw on practical experience in the field of business and human rights, where leading companies are increasingly embedding human rights due diligence processes into their strategic decision-making. We contend that as human rights due diligence is made mandatory for companies, which it is in a growing number of jurisdictions, including for foreign firms with a significant business presence in them, risks to stakeholders become a material corporate governance issue. That makes it necessary for firms to address stakeholder concerns and to demonstrate that they are, with possible legal consequences for having failed to do where harm occurs. Such changes by themselves may not constitute a full-blown system of multi-fiduciary obligations, but they mark substantial strides on the path toward it, and they are doing it in the relatively near-term.

This article presents a review of the literature on the United Nations Guiding Principles (UNGPs) for the purpose of situating the UNGPs in the voluntary corporate social responsibility (CSR) infrastructure. We identify four key themes that underlie the debate: (1) a critical assessment of the UNGPs, (2) their application to different sectors, (3) a discussion of how to embed key aspects of the UNGPs into national and regional contexts, and (4) reflections on the role of due diligence. We discuss these themes and outline some practical and theoretical take-away messages. Our review highlights some similarities and differences to the discussion of voluntary initiatives in the field of CSR, especially the UN Global Compact. Our discussion helps to understand how the UNGPs are situated in the voluntary institutional infrastructure for CSR. Finally, we show how the theoretical and practical discourse on the UNGPs can be further advanced.

This is a study of three authoritative instruments that promote a common idea: economic activities and development should be conducted with respect for human rights. The World Bank Framework, the International Financial Corporation Performance Standards and the UN Guiding Principles on business and human rights are examined to get clarity on how human rights risk management differs from more conventional management approaches. The focus here is on prevention of human rights impacts. Do the three instruments employ approaches adequate for handling human rights risks? To understand prevention, one needs to reflect on what makes human rights a particular type of impact and account for the regulatory context of protecting human rights transnationally. The analysis identifies four ‘offsets’ through which economic decision-makers can distort their human rights performance and place causal observers at a disadvantage. Prevention becomes an issue of how to relate to ‘residual impacts’ on human rights. This article finds that the ‘hierarchy or mitigation’ and even ‘human rights due diligence’ under illuminate the challenge. The proposal here is to add ‘reduction at source’ as a parameter of human rights risk management. The sources for this analysis are the three instruments, and the practice of implementing organizations, particularly IFC projects, CAO cases, impact assessments, and CSR reports. In conclusion, the potential for cross-fertilization among instruments is genuine. Increased clarity on prevention of human rights impacts should assist economic decision-makers in their risk management task and casual observers in assessing their performance.

The UN Guiding Principles on Business and Human Rights provide authoritative guidance for states and businesses on how to prevent and address business-related human rights harms, including in conflict-affected areas. States need to explore a more innovative range of policy and regulatory options in such situations, whether they are engaging with cooperating companies or dealing with uncooperative ones. Companies need to be able to know and show that they can operate with integrity – and avoid being involved in gross abuses of human rights – and that their risk assessment, mitigation, and remediation processes take full account of the potential risks to affected stakeholders, not just risks to the business.