header-logo header-logo

12 February 2020
Issue: 7874 / Categories: Legal News , Human rights
printer mail-detail

Preventing corporate human rights harms

UK businesses want certainty on how to avoid human rights abuses
A ‘failure to prevent’ law similar to the Bribery Act could be introduced for human rights concerns, a major report has concluded.

The study, by the British Institute of International and Comparative Law (BIICL), with the support of global law firms Hogan Lovells and Quinn Emanuel, looked at the impact of the Bribery Act 2010 and considered the legal feasibility of a corporate duty to prevent human rights harms.

The report, ‘A UK failure to prevent mechanism for corporate human rights harms’, sets out a model legal provision. It is based on s 7 of the Bribery Act and would apply to ‘human rights’, which would be defined to include environmental harms. BIICL recommends that it apply to all sizes of companies carrying out business in the UK, including SMEs. However, ‘guidance should clarify the recognition that any due diligence processes should be proportionate to their size and the complexity of their operations’. The defence would be that ‘reasonable due diligence’ was carried out. Civil remedies would be available.

The report includes the results of a business survey, which found 69% of UK companies and multinationals want more legal certainty about which procedures are required to avoid legal risks for human rights abuses.

The majority of respondents thought more regulation would benefit business―82% agreed it would provide legal certainty, 74% thought it would level the playing field and 75% said it would create a non-negotiable standard to facilitate leverage with third parties.

Quinn Emanuel partner Julianne Hughes-Jennett said: ‘The direction of travel is clear: we will see more regulation, in particular, in relation to human rights due diligence.

‘It is important any such regulatory developments provide legal certainty and a level-playing field.’

BIICL senior research fellow Lise Smit, said: ‘Although each jurisdiction would need to develop its legal mechanism to fit within its own legal system, these developments are all based on the framework of the UN Guiding Principles on Business and Human Rights.’

 

Issue: 7874 / Categories: Legal News , Human rights
printer mail-details

MOVERS & SHAKERS

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
back-to-top-scroll