The importance and acceptance of the human rights
lens in business have been increasing globally for the
past years, driven by evolving regulations, investor
demand, business relationships, and public interest.51
Companies are beginning to recognize that its
environmental, social, and governance policies and
practices are inextricably linked to the long-term health
of their businesses. Thus, it should strive to improve the
well-being of its employees, the community, and the
planet. In turn, a society with strong human rights
allows the free flow of information, investment, and
entrepreneurial innovation.
Financial Costs of Neglecting Human
Rights50
1998 Mitsubishi lawsuit (sexual
harassment, USA): USD$34 million
2001 DuPont lawsuit (pollution,
USA): USD$235 million, medical
expenses of over 70,000 people
2003 Nike lawsuit (Kasky v. Nike,
denial of labor abuses): USD$1.5 million
2013 Shell/BASF lawsuit (land &
underground water contamination,
Brazil): USD$316 million
The benefits for the business respect of human rights in their operations are as follows: 52
increased employee productivity
Human Resource Case
talent attraction and retention
improved worker relations
ensure license to operate
Reputational Case
better manage and mitigate reputational risks
prevent litigation
more secured supply chains
Operational Case
anticipate new regulation
business continuity due to lower risks
meet investor expectations or requirements
Financial Case
reduced cost of capital
customer acquisition and loyalty
Moreover, in today’s highly competitive business
environment, it is not enough that businesses produce
quality products at an affordable price. Comparative
advantage is slowly shifting as more consumers and
stakeholders demand products that are made under
gender-sensitive and safe working conditions, use
biodegradable materials without causing harm to the
environment, to name a few. Given these trends, a
business demonstrating its commitment to respecting
human rights will have significant opportunities to
differentiate itself from its competitors, gain higher
consumer trust levels, and enhance its engagement
with its stakeholders. It will produce short-term benefits
and contribute to the long-term sustainability of
businesses.
Benefits of Respecting Human Rights
Evidence from the Better Work program
of the ILO and the International Finance
Corporation53 shows that:
in participating factories in Vietnam
with comfortable and trusting work
environment, profitability is 7.6%
higher, workers reach daily production
targets nearly 40 minutes faster, and
the revenue-cost ratio increased by 25%
in factories in Indonesia, training line
supervisors, especially women, has
shown to result in a 22% increase in
productivity
3.3. CSOs
The vibrant civil society in the Philippines serves as a bridge between the communities and
other stakeholders, particularly the government, the business sector, and international
organizations. Rather than perceiving CSOs as a deterrent or, in some cases, a nuisance, these
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