The Corporate Responsibility to respect Human Rights MATTHIAS LEISINGER KUONI TRAVEL SWITZERLAND UTRECHT, JANUARY 2017

PROMOTING POSITIVE BUSINESS ETHICS AND SOCIAL SUSTAINABILITY   Fostering positive relations with local communities, leading to a ‘social licence’ to operate   Attracting and retaining the best employees – become an employer ‘of choice’

REDUCING AND MANAGING RISKS

  Legal and reputational risks: arising from perceived or actual complicity in rights violations  Operational risk: including revenue loss due to delays and disruptions; insurance and security   Board member liability: providing corporate boards with strong protection against mismanagement claims by shareholders   Early adopter: legislative developments at national, EU and international level

COMPETITIVE ADVANTAGE AND OPPORTUNITIES FOR GROWTH

  Enhanced company reputation  Demonstrate business leadership in sustainability and competitive advantage, shape regulatory developments  Meeting investor expectations: inclusion in Socially Responsible Investment (SRI) Indices   Ensure long-term attractiveness of tourism destinations

The business case for Human Rights

HUMAN RIGHTS DUE DILIGENCE

HUMAN RIGHTS DUE DILIGENCE

Human Rights are not a new issue in tourism

o  Risks to human rights violations in tourism occur in the context

of local tourism development and during tourism operation.

-  land rights, right to water, right to food

-  working conditions

-  (sexual) exploitation of children

-  rights of vulnerable groups

-  right to participation

o  High number of risk-hours in tourism due to the international

nature of tourism and the complex supply chain in tourism.

o  Increasing awareness of clients, investors and media

o  New attention on business and human rights

Strategic approach: Managing Human Rights Due Diligence (HRDD)

Policy Commitments &

Action plan

Stakeholder Engagement, Partnership &

Dialogue

Training

Risk Assessment

Impact Assessment

Working Group

Grievance Mechanisms

Monitoring & Reporting

HUMAN RIGHTS DUE DILIGENCE

I. Assess main business-related

human rights risks per country/business

segment

II. Conduct Human Rights impact

assessment in high-risk countries/business

segments

III. Develop action plans

IV. Implement and monitor action plans

5 HUMAN RIGHTS DUE DILIGENCE

Assess main business-related human rights risks per destination

Assess main business-related human rights risks per destination

MEDIUM RISK COUNTRIES

(e.g. Myanmar, Turkey, Egypt)

HIGH RISK COUNTRIES

(e.g. India, Thailand) H

uman

Rig

hts

risk

s*

impact & ability to influence

•  Business volume (PAX) •  Own operations

•  Corruption •  Human Rights •  Labour Rights &

Protection

LOW RISK COUNTRIES

(e.g. USA, Spain, France)

*based on Corruption Index Transparency International, Human & Labour Rights indices maplecroft (summarizing various publicly available resources)

HUMAN RIGHTS DUE DILIGENCE

HUMAN RIGHTS DUE DILIGENCE

Areas of Human Rights impacts

HumanRightsImpacts

SupplyChain

Products&services

Employees

Commu-ni=es

Securityarrange-ments

(Un-)ethicalbusinessconduct

...

The most salient human rights for a business enterprise are those that stand out as being most at risk.

OBJECTIVES   Understand human rights risks and impacts (positive and negative) of operations and business relationships   Define appropriate mitigating actions to reduce negative and strengthen positive impacts on human rights   Foster partnership with key stakeholders, including employees, suppliers, NGOs and other businesses and organisations

METHODOLOGY   HRIAs conducted based on the 6 phases of the Kuoni HRIA toolkit developed for the Kenyan pilot (2012) and adapted for the HRIA in India (2013)   The methodology includes background research, interviews with internal and external stakeholders, workshops with management and employees and the development of an action plan   As part of its human rights due diligence process, Kuoni further implements and tailors the HRIA toolkit to suit the needs of other business segments

HUMAN RIGHTS DUE DILIGENCE

Human Rights Impact Assessments (HRIAs)

I. Set-up II. Preparation III. Country Visit IV. Analysis and Documentation

V. Follow Up VI. Implementation, Review and Scale up

Reports available at: http://www.kuoni.com/corp-responsibility/human-and-labour-rights/due-diligence

Greatest business risk posed by perceived inequity in distribution of economic benefits

HRIA Kenya: Five major issue areas identified

HUMAN RIGHTS DUE DILIGENCE

HRIA India 2013: scope value chain

HUMAN RIGHTS DUE DILIGENCE

Greatest business risk posed by labour issues of key service providers

HRIA India: Seven major issue areas identified

HUMAN RIGHTS DUE DILIGENCE

KEY LESSONS LEARNED FROM KENYA AND INDIA   External stakeholder involvement increases credibility

  Huge asset to have an assessment team combining business engagement and community engagement skills

  Clear limits of desk-based research: direct engagement with local stakeholders revealed new issues

  Confidentiality and expectation management are crucial especially when talking to workers and community members

  Need for local partners/facilitators for community engagement

  Abstract human rights language needs to be operationalized

  Difficult to discern specific company impacts from broader industry impacts

  Need for effective dissemination of results on the ground

Reports available at: http://www.kuoni.com/corp-responsibility/human-and-labour-rights/due-diligence

HUMAN RIGHTS DUE DILIGENCE

Human Rights Impact Assessments (HRIAs)

EXAMPLES FOR PREVENTIVE/MITIGATION ACTIONS DEFINED FOR KENYA & INDIA KENYA •  Integrate findings in new Human Resources manual Private Safaris •  ILO SCORE project: capacity building workshops to improve working

conditions in hotels •  Promote beach operator and hotel cooperation to mitigate tourist harassment •  Raise issues at destination level with other players in the industry/government

INDIA •  Develop & promote sustainable houseboats in the Backwaters •  Establish innovative collaboration with ITC [Indian Hotel Group] to

develop and promote sustainable products •  Develop information material to sensitize customers •  Improving working conditions of subcontracted staff (e.g. drivers) •  Raise issues in local industry associations

HUMAN RIGHTS – HUMAN RIGHTS IMPACT ASSESSMENTS (HRIA)

HUMAN RIGHTS DUE DILIGENCE

Integrating Human Rights in business processes

Human rights training for employees

HUMAN RIGHTS DUE DILIGENCE

Integrate human rights in management system

Assess human rights risks & impacts

Take specific measures based on the HRIAs

►  Internal audit/risk management

►  Supply chain management

►  Human resources

►  Assess effectiveness of company-

level grievance mechanisms

►  Human rights risk assessment

of destinations/business units

►  HRIAs in selected high risk

destination

►  Labour issues

►  Labour issues at key suppliers

►  Child protection

►  Distribution of economic benefits

►  Women’s rights & empowerment

HUMAN RIGHTS DUE DILIGENCE 14

Integrating Human Rights due diligence

Creating the enabling structure and environment to: ü  Supervise and coordinate implementation progress ü  Provide strategic oritentation ü  Contribute technical expertise

Communication

Procurement

Compliance

Legal

Human Resources

Risk Management

CEO

15 HUMAN RIGHTS DUE DILIGENCE

Key Messages

 Respecting human rights means ‘treating people with dignity’  Think about impacts, not only risks  Human rights impacts cannot be “off-set”  Engage with affected groups and take particular care of the most vulnerable  Responsibility to respect applies to all enterprises regardless of size, sector, operational context, ownership and structure to fulfil their own human rights obligations  Human rights due diligence is an on-going process that encompasses a company’s own activities and its business relationships   It is not a passive responsibility, it demands meaningful engagement with affected parties within and beyond the company

HUMAN RIGHTS DUE DILIGENCE

Thank you

HUMAN RIGHTS DUE DILIGENCE