Human Rights Content
The guidance addresses corporate respect for all internationally recognised human rights, which at a minimum are those expressed in the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. This includes the human rights of workers and the rights of individuals or groups facing risks of heightened vulnerability or marginalisation, such as women, children and indigenous peoples.
Companies’ Activities and Business Relationships
The guidance applies to commodity trading firms’ own activities and to their business relationships with third parties. “Business relationships” in the UNGPs are understood to include “relationships with business partners, entities in its value chain, and any other non-State or State entity directly linked to its business operations, products or services.” (UNGP 13). For example, in the context of commodity trading, this may include financial institutions, certification providers, State owned enterprises (SOE), producers, shipping and other transportation providers.
Companies of all Sizes
The guidance is meant to be applicable to all companies working in the commodity trading sector of various sizes and with varying types of ownership and structure. The UNGPs note that small and medium-sized companies may have less capacity as well as more informal processes and management structures than larger companies, and therefore policies and processes will take different forms. Nevertheless, all companies can be involved in severe adverse impacts requiring corresponding measures regardless of their size (UNGP 14). Wherever possible, attention is given in the Guidance to approaches that may be more appropriate for smaller companies in the sector.
UNGP 14 Commentary
...The means through which a business enterprise meets its responsibility to respect human rights will be proportional to, among other factors, its size. Small and medium-sized enterprises may have less capacity [...] but some can have severe human rights impacts, which will require corresponding measures regardless of their size. Severity of impacts will be judged by their scale, scope and irremediable character... However, the responsibility to respect human rights applies fully and equally to all business enterprises...
Global Applicability
The guidance was developed through a process involving Swiss-based stakeholders (Mapping Study p7), but seeks to be as globally applicable as possible given the issues involved and the nature of the activities of the sector. The guidance should be useful for trading firms that also operate outside of Switzerland and should encompass any efforts by the sector with respect to corporate responsibility.