Peacebuilding Business Criteria: Overview for Discussion
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1 Peacebuilding Business Criteria: Overview for Discussion Thomas Carr
2 Introduction This set of criteria is being developed within the PeaceNexus Business and Peace team in order to simplify and harmonise competing conceptions of what is required of a business in order to be classified as engaging in peacebuilding. This can later serve as the foundation of an index or targeted investment mechanism to enhance the peacebuilding impact of the PeaceNexus endowment fund. This project is undertaken on the assumption that there is no perfect set of criteria for defining peacebuilding businesses, and that the final product will be a pragmatic framework that reflects, and as best possible, integrates, diverse viewpoints on the matter. Contents This document outlines: Scope 1. The overall structure of the criteria, with the six themes that cover the criteria and the different activities under each 2. Two elaborated examples of what kinds of policies and procedures would be classified under the different themes 3. Four brief overviews of the remaining themes and activities that would come under each 4. Ten key questions which condense the main ideas into an easily accessible format, and can serve as an opening point for discussion on the criteria The scope of the application of the Peacebuilding Business Criteria is limited geographically, as the assessed businesses must maintain operations in fragile and conflict-affected states. Nonetheless, companies operating outside this scope can be assessed on whether their suppliers and business partners conform to the criteria. There are important questions around the size of the relevant businesses and the sectors the criteria should focus on, but it is envisaged that these details will be specified later, once a more concrete product is under development.
3 Overall Structure Peacebuilding Impact Labour Relations Sourcing and Distribution Community Relations Governance Security Environment Inclusive Hiring Policies Conflict-sensitive selection of partners Space for Dialogue Anti-corruption Procedures State Security Forces Minimise Impact on Communities Economic Opportunities Local Sourcing Grievance and Dispute Management Transparency and accountability Private Security Partners Minimise Total Environmental Impact National Labour Standards Heightened Due diligence Strategic Social Investment Financial Management Risk Management Awareness of Conflictenvironment Link Training and Awareness Raising Capacity-building in Conflict Sensitivity Culture and Heritage Land Access and Acquisition Community Security Promote International Standards Grievance and Dispute Management Supply Chain Security Crisis Management Board Composition Employee Attitudes
4 Elaborated Examples: Labour Practices and Security Labour Practices LP1. Conduct regular assessment of the context to inform labour policies and procedures Consult with employees, trade unions, local government and community groups to determine the needs of local workers and existing norms around labour Assess the labour market in operating area with respect to levels of: youth employment, excombatant employment, discrimination and division between ethnic, religious, national and political groups LP2. Set and implement inclusive hiring policies that acknowledge and as best possible address divisions within society Explore diversity standards or affirmative action programs to ensure minorities are included Ensure as best possible that roles or hierarchies within the company do not reflect existing divides within society Incorporate anti-discrimination, conflict management and other relevant training into induction procedures Prevent corruption in hiring processes that could lead to employment of a certain group and therefore conflict LP3. Set and implement hiring policies that provide economic opportunities to local populations with an elevated likelihood of engaging in or being affected by violence. Incorporate a preference for local recruitment into hiring policies Create training programs for local populations when skills are required that are not present in the local labour market Create specific recruitment procedures, or incorporate provisions into standard procedures, to facilitate the employment of ex-combatants and other at-risk populations Create specific training opportunities for at-risk populations to facilitate their integration into the workforce LP4. Work to promote national labour standards that reflect international best practice Enter dialogue with government about national standards and advocate for international best practice Collaborate with business, trade unions and others to mobilise support for higher standards Collaborate with other businesses on how to best uphold international standards given local challenges Connect local and international trade unions to facilitate dialogue on labour standards LP5. Invest in conflict-relevant training and awareness raising initiatives for employees Maintain formal induction procedures to ensure expatriate staff are thoroughly informed about the local context and conflicts upon arrival Train local staff on international standards Develop contextualized training tools to improve the conflict-sensitivity, inclusiveness, conflict management, negotiation and communication skills, de-escalation strategies of employees (workshops, experiential learning, site visits, management manuals, internet-based simulation manuals) LP6. Adopt a proactive approach to internal grievance and dispute management that addresses employee concerns before they lead to unrest Conduct regular consultation with your workforce to understand how changes to the local context affect their needs Hire insider mediators to deal with labour and inter-ethnic conflicts Collaborate with trade unions to understand and address grievances preemptively Train trade union leaders in negotiation and communication to facilitate cooperation Where trade unions are not effective in representing workers rights, help establish alternative worker representation
5 Security S1. Conduct regular assessment of the context to understand security risks and inform security policies Analyze past conflicts and security issues in your operating area Assess your business security arrangements and practices, including your security staff and providers Assess whether the government controls the whole territory, the level of freedom of movement, violations of human rights by security forces, the extent to which violations are accepted or sanctioned by government, government strategies to fight crime Determine the government s awareness of arms flows and measures it takes to control arms For security forces, assess their military strength, the way they function (line of command), types of abuses, trends With business partners, assess how they perceive and deal with the security situation, how the security situation affects their business, and what kind of deals they ve made with different actors to keep their operations safe Assess the implications of working with private vs. public security providers where you have the choice S2. Promote responsible security provision with state security services Consult regularly with government and communities about the impact of state security provision on the community Communicate standards of ethical conduct and human rights to state security providers Encourage host governments to make security arrangements transparent to the public S3. Promote responsible security provision with private security forces Vet each member of your contracted security forces before hiring Provide human rights trainings to them Maintain clear codes of conduct for security service providers Make adherence to the Voluntary Principles on Security and Human Rights (VPSHR) a condition to enter into security contracts S4. Maintain a robust system for the management of risks associated with your security arrangements Implement a monitoring system for security incidents and threats that ensures information is aggregated and reported to management for preventive/remedial action Consult regularly with the government and community about the impact of the company s security arrangements on surrounding communities Record and report any credible allegations of human rights abused by security forces to government authorities S5. Adopt an inclusive approach to community security, that involves local community members in your processes and secures their personal safety and assets Consult on the security needs of local population and incorporate provisions to address local needs where possible Expand your safety measures to the communities where your workers live Work with local stakeholders, as well as with other businesses, to support community security councils and other joint initiatives to promote public security S6. Promote greater conflict sensitivity in employees attitudes toward security and safety Have a clear policy of zero arms/violence tolerance at work Facilitate meetings between security forces, workers, and the community, to promote mutual understanding and respect Provide all relevant staff with trainings in conflict-sensitivity, conflict management skills etc. to prevent, foresee or mitigate potential security threats
6 Brief Overviews: Sourcing and Distribution, Community Relations, Governance, Environment Sourcing and Distribution SD1. Conduct regular assessment of the context to inform sourcing and distribution decisions SD2. Where appropriate, purchase goods and services locally with sensitivity to local conflict dynamics SD3. Adapt heightened due diligence procedures to your partners in this specific context SD4. Provide support to strengthen conflict-sensitivity among suppliers and clients SD5. Carefully assess your suppliers security and encourage them to adopt measures in line with the security section of this document Community Relations CR1. Conduct regular assessment of the context to inform community engagement strategy CR2. Actively create spaces for dialogue between different interest groups in the surrounding community on conflict issues affecting the company CR3. Establish mechanisms for grievance and dispute management where operations impact local communities CR4. Make strategic social investments that create shared value for both the company and the communities affected by business operations CR5. Take particular caution to respect culture and heritage in interaction with affected communities CR6. Prepare for crisis management and consequences of crisis in collaboration with the government and with other relevant stakeholders Governance G1. Conduct regular assessment of the context to determine the quality of governance in the region and inform relevant corporate policies G2. Implement a strong anti-corruption and anti-bribery strategy that includes provisions to positively improve standards among business partners and communities G3. Promote high standards of transparency and accountability both within the company and in interaction with different partners G4. Adopt heightened due diligence in financial management and promote such standards with government G5. Approach land access and acquisition with sensitivity to conflict dynamics G6. Ensure the corporate board has the expertise and incentives to address conflict issues
7 Environment E1. Conduct regular assessment of the context to identify local environmental standards and to determine the expected environmental impacts of your operations E2. Work with local stakeholders to ensure environmental impact is managed with respect for community interests and in a conflict sensitive manner E3. Work to minimize the negative environmental impact of your product and operational processes which might exacerbate local tension E4. Build awareness about the connections between environmental destruction and conflict among governments and the public sector E5. Work with government, companies, and communities to implement and promote environmental standards that can contribute to conflict prevention
8 10 Key Questions The following questions do not capture the full scope of the peacebuilding criteria, but rather provide a light introduction to the main themes as a means to start a conversation on the important issues. 1. Do you conduct a systematic process of conflict analysis and stakeholder mapping to inform your business decisions? 2. Do you conduct regular monitoring and stakeholder consultation to allow local actors to express concerns about your activities and provide effective grievance and remediation mechanisms? 3. Do your business hiring practices aim to promote social inclusiveness and create jobs for the local population? 4. Does your business conduct high levels of due diligence to ensure that no business in your supply chains is contributing to violent conflict? 5. Do you target your social investment to address the needs of communities affected by your operations in a way that benefits all groups in those communities? 6. Do you take a consultative approach, premised on broad community acceptance, to acquiring or accessing land for your business? 7. Do you work with government, other businesses, and community stakeholders to promote international standards on human rights, governance and the environment? 8. Do you incorporate performance standards related to conflict-sensitivity or peace promotion (such as maintaining good stakeholder relations, or conducting thorough due diligence) into contracts, at both the operational and executive level? 9. Do you engage with police and militia to develop a sustainable and inclusive security approach around your operations and neighbouring communities? 10. Do you work to prevent negative environmental impacts of your operations that could threaten livelihoods or increase community tensions?
9 Useful Resources on Peacebuilding Business Practices International Alert (2005). Conflict-Sensitive Business Practice: Guidance for Extractive Industries. International Alert: London. International Alert (2006). Local Business, Local Peace: The Peacebuilding Potential of the Domestic Private Sector. International Alert: London. IPIECA (2008). Guide to operating in areas of conflict for the oil and gas industry. International Petroleum Industry Environmental Conservation Association: London. Nelson, J. (2000). The Business of Peace: The private sector as a partner in conflict prevention and resolution. International Alert, Council on Economic Priorities, and The Prince of Wales Business Leaders Forum. van Dorp, M. (2014). Multinationals and Conflict: International principles and guidelines for corporate responsibility in conflict-affected areas. SOMO: Amsterdam. United Nations Global Compact (2010). Doing Business While Advancing Peace and Development. United Nations Global Compact Office: New York. United Nations Global Compact & PRI (2010). Guidance on Responsible Business in Conflict- Affected and High-Risk Areas: A resource for companies and investors. United Nations Global Compact Office: New York. United Nations Global Compact (2013). Responsible Business Advancing Peace: Examples from Companies, Investors & Global Compact Local Networks. United Nations Global Compact Office: New York.
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