PART 4: HOW SHOULD BUSINESS RESPOND? Understanding ‘cause’, ‘contribute’ and ‘directly linked’ A business may cause an adverse human rights impact through its own operations. For example, underpaying its workers, engaging child labour or exploiting women in exchange for a promotion. In these situations, the business should take the necessary steps to prevent and cease these activities and provide remediation. A business may contribute to an adverse human rights impact through its acts or omissions. For example, agreeing to a purchasing order with a supplier whose timeframe makes it impossible to complete the order without cutting corners and breaching human rights standards. In these situations, the business should take the necessary steps to cease or prevent its contribution and use its leverage to mitigate any impact. It should also take action to ensure remediation is provided. Situations where a business is directly linked to an adverse impact become more complex. These involve situations where a business has not caused or contributed to an adverse impact, but that impact is linked to the business’ operations, products or services through its business relationships. For example, a supplier subcontracts work, without your knowledge, to a contractor that uses forced labour. In this scenario, if this business has leverage it should use it to prevent or mitigate the harm. If leverage does not exist, the business should look for ways to build it. In cases where a business is directly linked to an adverse impact, there is no direct responsibility under the UN Guiding Principles to provide remediation, however the business may take a role in doing so. While the UN Guiding Principles outline these categories to assist in identifying a business’ relationship to a harm and an appropriate response, the nature of business operations means that, in practice, there is a continuum between these categories depending on the acts or omissions of the business. Your business’ risks may not always fit neatly into one of these categories. Understanding leverage Leverage is all about a business’ ability to influence others. The UN Guiding Principles states ‘leverage is considered to exist where the enterprise has the ability to effect change in the wrongful practices that causes harm’.122 46 |