silk road report - justice for iran...silk road report: december 2016 4 about the report this is our...
TRANSCRIPT
![Page 1: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/1.jpg)
OECDGuidelinesonBusiness&HumanRightsDecember2016
SilkRoadReport
![Page 2: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/2.jpg)
JusticeForIranSilkRoadReport:December2016
1
SilkRoadReport
OECDGuidelinesonBusiness&HumanRights
JusticeforIran
December2016
Email:[email protected]
Website:www.justiceforiran.org
Copyright©JusticeforIran2016
Reproductionofanyorallpartsofthisdocumentispermissibleonlywithpropercitation.
![Page 3: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/3.jpg)
JusticeForIranSilkRoadReport:December2016
2
TableofContents
ABOUTTHESILKROADPROJECT........................................................................................3
ABOUTTHEREPORT...........................................................................................................4
I. OECDINSTRUMENTS...................................................................................................5
II. DUEDILIGENCEINTHEOECDGUIDELINES..................................................................6
III. OECDCOMPLAINTPROCEDURE................................................................................8
IV. CASESTUDIES..........................................................................................................11
![Page 4: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/4.jpg)
JusticeForIranSilkRoadReport:December2016
3
AboutSilkRoadProjectTheSilkRoadwasanancientnetworkoftraderoutesthatwereforcenturiescentral
to cultural interaction through regions of the Asian continent connecting the East
andWest, fromChina to theMediterranean Sea. Tradeon the Silk Roadplayed a
significant role in the development of the civilizations of China, the Subcontinent,
Persia, Europe, the Horn of Africa and Arabia, opening long-distance political and
economicrelationsbetweenthecivilizations.
The Silk Roadproject aims to promote accountability andprotect human rights in
thecontextofIran’srapidreturntotheworldmarketsafterthe2015NuclearDeal.1
ThroughpublishingreportsonbusinessandhumanrightsinIran,thisprojectintends
to increase awareness among advocates of human rights, particularly lawyers and
civil societyactivists,andaccountability inbusinessandcorporaterelations. Italso
aimstoholdaccountablecorporateswhichareinvolvedorcomplicitinhumanright
violations,usinglegalandotheravailablemechanisms.
1TheJointComprehensivePlanofAction(JCPOA)knowncommonlyastheIrandealorIrannucleardeal,isaninternationalagreementonthenuclearprogramofIranreachedinViennaon14July2015betweenIran,theP5+1(thefivepermanentmembersoftheUnitedNationsSecurityCouncil—China,France,Russia,UnitedKingdom,UnitedStates—plusGermany),andtheEuropeanUnion.Undertheagreement,IranwillreceiverelieffromU.S.,EuropeanUnion,andUnitedNationsSecurityCouncilnuclear-relatedeconomicsanctions.
![Page 5: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/5.jpg)
JusticeForIranSilkRoadReport:December2016
4
AbouttheReportThisisoursecondreportfromtheSilkRoadReportserieswhichaimtoshedlighton
theunderlyingconceptsandinstrumentsaswellasmechanismsthatcanbeapplied
to specific cases of recent contracts and agreements between multinational
corporationsandIraniancompanies,someofwhicharecloselylinkedtoorpartially
owned by human rights violators. In this report, we will briefly explore OECD
guidelines in relation tobusinessandhuman rights. Inparticular,wewill focuson
the OECD Guidelines for Multinational Enterprises and explain the principles
reflectedtherein,placinggreateremphasisoncomplicityandduediligence.Wewill
alsoexplaintheOECDComplaintProcedurethroughanumberofcasestudies.
![Page 6: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/6.jpg)
JusticeForIranSilkRoadReport:December2016
5
I. OECDInstruments
The Organisation for Economic Co-operation and Development (OECD) is an
intergovernmental economic organisation founded in 1960 to stimulate economic
progress and world trade. The OECD member countries are: Australia, Austria,
Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia,
Luxembourg,Mexico,theNetherlands,NewZealand,Norway,Poland,Portugal,the
SlovakRepublic,Slovenia,Spain,Sweden,Switzerland,Turkey, theUnitedKingdom
andtheUnitedStates.TheadheringgovernmentsarethoseofallOECDmembers,as
wellas11Non-OECDadheringcountries:Argentina,Brazil,Colombia,Egypt,Jordan,
Latvia,Lithuania,Morocco,Peru,RomaniaandTunisia.
OECDhasproducedanumberofguidelinesinthefieldofbusinessandhumanrights.
The OECD Recommendations on Common Approaches for Officially Supported
ExportCreditsandEnvironmentalandSocialDueDiligence(CommonApproaches)2
require itsmembersandadheringstatestotake intoaccounttherelevantadverse
project-relatedhumanrightsimpacts.Itinstructsmembersto‘encourageprotection
andrespectforhumanrights,particularlyinsituationswherethepotential impacts
fromprojectsorexistingoperationspose risks tohuman rights.' Thisapplies toall
types of officially supported export credits for exports of capital goods and/or
services, except exports ofmilitary equipment or agricultural commodities,with a
repaymenttermoftwoyearsormore.
2RevisedtextfortheRecommendationoftheCouncilonCommonApproachesforOfficiallySupportedExportCreditsandEnvironmentalandSocialDueDiligence,asadoptedbytheOECDCouncilonWednesday6April2016,canbeaccessedhere:<http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=TAD/ECG%282016%293&doclanguage=en>
![Page 7: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/7.jpg)
JusticeForIranSilkRoadReport:December2016
6
OECD Guidelines for Multinational Enterprises (as last revised in 2011) 3 are
recommendationsaddressedbygovernmentstomultinationalenterprisesoperating
inorfromadheringcountries.Theyprovidenon-bindingprinciplesandstandardsfor
responsiblebusinessconductinaglobalcontextconsistentwithapplicablelawsand
internationally recognised standards. The Guidelines are the only multilaterally
agreedandcomprehensivecodeofresponsibility.
The OECD Guidelines set out principles and standards for responsible business
conduct.Theyarerecommendationsfromgovernmentstomultinationalenterprises
operatinginorfromcountriesthataresignatorytotheDeclarationonInternational
Investment and Multinational Enterprises includingthe Guidelines. They provide
guidance for responsible business conduct in areas such as: labour rights, human
rights,environment,informationdisclosure,combatingbribery,consumerinterests,
competition, taxation, and intellectual property rights. While they are not legally
binding, OECD and signatory governments are required to ensure that they are
implemented and observed. What distinguishes the OECD Guidelines from other
corporate responsibility instruments4 and mechanisms is the fact that they are
government-backed standardsand that theyhaveadispute resolutionmechanism
forresolvingconflictsregardingallegedcorporatemisconduct.
II. DueDiligenceintheOECDGuidelines
InourAutumnReport,weexaminedtheconceptofduediligenceintheUNGuiding
Principles.TheOECDGuidelines,too,refertoduediligenceonseveraloccasions,as
shownbelow:
3RevisedtextofOECDGuidelinesforMultinationalEnterprises(aslastrevisedin2011)canbeaccessedhere:<http://www.oecd.org/daf/inv/mne/48004323.pdf>.4Forexample,theUNSustainableDevelopmentGoals:http://www.un.org/sustainabledevelopment/sustainable-development-goals/
![Page 8: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/8.jpg)
JusticeForIranSilkRoadReport:December2016
7
Enterprises shouldconduct risk-based due diligence for theirownoperations–aswell as throughout their supply chains and other business relationships – toidentify,preventandmitigateactualandpotential impacts formatterscoveredbythe Guidelines. This provision applies to all enterprises in all situations, though itshould be noted that the extent and depth of due diligencemay differ from onesituationtothenext.
Enterprises should avoid causing or contributing to adverse impacts5throughoutthe enterprise or in the supply chain or other business relationships. Enterprisesshouldaddress impactswhentheyoccurandseektopreventormitigateadverseimpactsevenwheretheenterpriseitselfhasnotcontributedtotheimpact.
Enterprisesare encouraged to communicate information on their internal audit,risk management and legal compliance systems. Because due diligence is anintegral part of risk management, enterprises should disclose due diligenceprocessesandfindings.
Enterprisesshouldavoidcausingorcontributingtonegativehumanrightsimpacts.Eveniftheydonotcontributetothoseimpacts,enterprisesshouldseektopreventormitigateanyadverseimpactsthattheyarelinkedtothroughtheirsupplychainsorotherbusinessrelationships.
Enterprisesshouldconducthumanrightsduediligence.
Enterprises should mitigate the foreseeable environmental, health and safety-related impacts associatedwith theirprocesses, goodsand servicesover their fulllifecycle.
Two points are worth noting here: Firstly, in the minerals sector, the OECD Due
DiligenceGuidanceforResponsibleSupplyChainsofMineralsfromConflict-Affected
and High-Risk Areas is the international standard for companies along the whole
5Foradetaileddiscussiononadverseimpactsofbusinessesonhumanrightssee:INEF,‘AssessingBusiness-RelatedImpactsonHumanRights.IndicatorsandBenchmarksinStandardsandPractice,INEF-Report110’,2016;availableat:http://inef.uni-due.de/cms/index.php?article_id=4&clang=1&pub=1735
![Page 9: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/9.jpg)
JusticeForIranSilkRoadReport:December2016
8
supply chain. Secondly, EU and national laws mandate due diligencein specific
sectors, such as the EU Anti-Money Laundering Directive and the EU Timber
Regulation.Forexample,theEUAnti-MoneyLaunderingDirectiveexpectsMember
Statestoensurethatentitiestake“appropriate”stepstoidentifyandassessmoney
laundering and terrorist financing risks, taking into account risk factors. Those
steps— and entities’ risk management and mitigation policies, controls and
procedures—areexpectedtobe“proportionatetothenatureandsize”oftheentity.
III. OECDComplaintProcedureThe OECD Guidelines are supported by a unique implementation mechanism of
National Contact Points (NCPs), agencies established by adhering governments to
promote and implement the Guidelines. The NCPs assist enterprises and their
stakeholders to take appropriate measures to further the implementation of the
Guidelines. They also provide a mediation and conciliation platform for resolving
practicalissuesthatmayarise.
The‘SpecificInstance’procedure–astheGuidelines’complaintprocessisofficially
called – is focused on resolving disputes – primarily through mediation and
conciliation,but also throughothermeans– and canbeusedbyanyonewho can
demonstrate an ‘interest’ (broadly defined) in the alleged violation. NGOs from
around theworld have used the complaint process to address adverse social and
environmental impacts causedby corporatemisconduct.NGOshavealsoused the
complaintprocesstoraiseawarenessaboutthefactthatenterprisesareexpectedto
upholdinternationallyrecognisedstandards,contributetosustainabledevelopment
and, at a very minimum, ‘do no harm’ wherever they operate. OECDWatch has
producednumerouspublicationsinthisfieldandmaintainsanonlinedatabaseofall
![Page 10: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/10.jpg)
JusticeForIranSilkRoadReport:December2016
9
Guidelines cases filed by NGOs which are extremely helpful for other NGOs and
activists.
Threephasesofthecomplaintprocess6
Phase1
(InitialAssessment)
It startswhen a complaint is submitted to anNCP. At thisstage the NCP must conduct an initial assessment todetermineifthecasemeritsfurtherexamination.
Phase2
(Mediation)
It starts when the NCP decides the case merits furtherexamination. At this stage the NCP will try to bring thecomplainantsandthecompanytogethertoresolvethecasethroughaprocessfocusedonmediationandconciliation.
Phase3
(FinalStatement)
It involves the NCP issuing a final statement about thecomplaint and mediation process. It should outline theallegedbreachesandhowtheNCPdealtwiththecase.Finalstatements may include recommendations on theimplementation ofthe Guidelines, as well as the NCP’sdeterminationastowhetherabreachoftheGuidelineshasoccurred.
Itmustbenoted that ifmediation fails,NCPs can issuea statementwhichwill be
publiclyavailable.Thiscanthenbeusedtoputpressureonthecompany.However,
even ifadesirableandsuccessfuloutcomemaybe realisticallydifficult toachieve,
thecomplaintprocesscanstillhavestrategicbenefits.Thecomplaintcanhelpraise
public awareness of the issue and consequently, put pressure on the company to
change its behaviour. Additionally, the complaint process can alert government
officials to the alleged violations. Increasingly, investors and financial institutions
monitorthesocialandenvironmentalperformanceofthecompaniesinwhichthey
invest.AnOECDGuidelinescasemayresultinadecisiontodivestacompanyifitis
unwilling to change irresponsible behaviour and is thus putting the financial
6Source:OECDWatch,CallingforCorporateAccountability:AGuidetothe2011OECDGuidelinesforMultinationalEnterprises,availableat:<https://www.oecdwatch.org/publications-en/Publication_3962>.
![Page 11: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/11.jpg)
JusticeForIranSilkRoadReport:December2016
10
institutionatriskofbeinglinkedtoabusesthroughtheirinvestments.
It is alsoworthmentioning that in termsof transparencyandconfidentiality three
differentstagesshouldbedistinguished:
(a)Atthetimeoffilingandduringtheinitialassessment:Thegeneral
ruleforthisstageistransparency.Itispermissibleforcomplainantsto
publicly announce the filing of the complaint and to communicate
about thecontentof thecomplaintwhile theNCP is conducting the
initial assessment. Some NCPs make the outcome of the initial
assessmentpublicontheirwebsite.
(b)While the case is pending: During this phase the general rule is
transparencyofprocess,butconfidentialityofcontent.Complainants
therefore should not publicly disclose information, correspondence,
documentationoropinionslearnedorexchangedduringtheprocess.
It is acceptable for complainants to communicate publicly about
purelyproceduralaspectsincomplaintprocesses,suchaswhetheror
not the company responds to the allegations; whether meetings
betweenthepartiesarebeingorganisedorhave takenplace;and if
mediationhasbegunorended.
(c)Afterthecasehasbeenconcluded:Thegeneralruleforthisphase
istransparency.Attheconclusionofacase,theProceduralGuidance
instructsNCPstomaketheresultsoftheprocessavailableinapublic
report or statement. Complainants are free to communicate about
the outcome and process of the case, bearing inmind the need to
![Page 12: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/12.jpg)
JusticeForIranSilkRoadReport:December2016
11
respecttheconfidentialityofsensitiveinformationexchangedduring
theprocess.7
Twofurtherimportantpointsareworthnotinghere.First,NCPsshouldinformother
government agenciesof their statements and reportswhen they are known tobe
relevant to a specific agency’s policies and programmes. Second, in the case of a
multinational company, the OECD complaint can be submitted to more than one
NCP. For instance, in the case of POSCO, the complaintwas filed in South Korea,
Norway,andTheNetherlands.
IV. CaseStudiesCaseStudy:FailingToPreventHumanRightsAbuses
In2012acomplaintwasfiledagainstPOSCOforitsfailuretoseektopreventhumanrights abuses related to its proposed mine and steel plant in Odisha, India.ComplainantsalsocalledonDutchandNorwegianpensionfundstoseektopreventabuses directly linked to their operations through their investment in POSCO. TheDutch NCP issued a statement confirming that the Guidelines are applicable tofinancialinstitutionsandtoinvestors,includingminorityshareholders.Afteraseriesofmeetingsbetween theDutchpension fundABPand theDutch complainantsanagreementwasreachedonthestepstobetakenbythepensionfundtoexerciseitsleverageoverPOSCOtoensureoperationsare in linewith internationalstandards.Further agreement was reached on a terms of reference for a local independentreviewandassessmentmission.8
7Forfurtherinformationsee:OECDWatch,CallingforCorporateAccountability:AGuidetothe2011OECDGuidelinesforMultinationalEnterprises,availableat:<https://www.oecdwatch.org/publications-en/Publication_3962>.8Seeadetailedanalysisofthecasehere:https://www.academia.edu/12913545/POSCO_s_Odisha_project_OECD_National_Contact_Point_complaints_and_a_decade_of_resistance
![Page 13: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/13.jpg)
JusticeForIranSilkRoadReport:December2016
12
CaseStudy:FailingToConductHumanRightsDueDiligence
AJune2011complainttotheDutchNCPcalledonNideratoimplementacompany-widehumanrightspolicythatincludesduediligenceproceduresconsistentwiththeUN’s“Protect,RespectandRemedy”Framework.ThecomplaintwasfiledbyNGOsfollowing high-profile government investigations that exposed the company’sabusive treatment of temporary workers in its corn detasseling operations inArgentina. After a constructive dialogue, Nidera strengthened its human rightspolicy,formalisedduediligenceproceduresfortemporaryruralworkersandallowedtheNGOstomonitoritsArgentinecornseedoperationsthroughfieldvisits.9
CaseStudy:FailingToStopTheUseOfChildLabourers
In2010,sevencottondealersfromFrance,Germany,SwitzerlandandtheUKwereaccusedofknowinglyprofitingfromforcedchildlabourintheUzbekcottonindustry.Although the efficiency of the procedures conducted by the NCPs differedfundamentally, cases were concluded with joint agreements / final statementswhereby the companies acknowledged responsibility for their supply chains andpromisedtotakestepstoimprovethehumanrightssituationinUzbekistan.
While Otto Stadtlander maintained that it does not receive cotton directly fromUzbeksellers,thecompanystillagreedindiscussionsledbytheGermanNCPtotakesteps to avoid forced child labour and to report back after one year. ECOMAgroindustrialagreedintheSwissNCP-leddiscussionstoallowtheEuropeanCentrefor Constitutional andHuman Rights (ECCHR) to regularly evaluate steps taken bythecompany.LouisDreyfusagreedtofurtherdialoguewithECCHRifconsultationsbetweenthecottontradersandtheUzbekgovernmentfailtoproduceresults.TheICTCottonandCargillCottoncaseshandledbytheUKNCPincludedanagreementtoa follow-up after one year to evaluate their progress. The French NCP, whichhandledthecaseagainstDevcot,S.A.,couldnotestablishifDevcothadbreachedtheGuidelines but held trade in goods produced from forced child labour to be aflagrantviolationoftheGuidelines.
Although the complainants note the commitment of the cotton traders to end
9SeethefinalstatementbytheDutchNCPhere:http://www.oecd.org/investment/mne/Netherlands_final_statement_nidera_03-02-2012.pdf
![Page 14: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/14.jpg)
JusticeForIranSilkRoadReport:December2016
13
forced labour in theUzbek cotton supply industry decreased after the complaintshadbeen concluded, the complaints have triggered positive responses from anumberofinvestmentbanks,whichnowmonitortheUzbekforcedlaboursituationwithupdatesfromthecomplaints.10
CaseStudy:DASAirandAfrimexinDRC
Two important decisions taken by the UK NCP relating to allegations againstcompaniesoperatingintheDemocraticRepublicoftheCongo(DRC).InJuly2008,theUKNCPfoundDASAir,aUK-basedaircargocompany,inbreachofthe human rights and supply chain provisions of the Guidelines for its part intransporting minerals from rebel-held areas of the eastern DRC. Rights &AccountabilityinDevelopment,whichhadfiledthecomplaint,welcomedtheNCP'sdecisionasamajorbreakthrough.ThiswasthefirsttimeaBritishcompanyhadbeenfound to have breached the Guidelines for its conduct during the Congoleseconflict.11Amonth later, inAugust 2009, theUKNCP, in response to a complaint byGlobalWitness,concludedthatAfrimex,amineralstradingcompany,hadalsocontributedto fuelling conflict in theDRC, and that it failed to respect human rights and takeadequatestepstowardsabolishingchildandforcedlabourinitssupplychain.12Thesecaseshavebeencitedassettinganimportantprecedent.AccordingtoBritishNGOs and the Trades Union Congress (TUC), the DAS Air and Afrimex decisions,whichemphasizetheresponsibilitiesofcompaniesinvolvedintradeandservicesinconflict zones, “have demolished the artificial barriers ("supply chain" and"investment nexus") that OECD governments had erected to try to shield theircompaniesfromscrutinyandcensure.”
10SeethereportofTheEuropeanCenterforConstitutionalandHumanRights‘ForcedLabourofChildrenandAdultsinUzbekistan’:https://business-humanrights.org/sites/default/files/media/documents/130507_oecd_complaints_evaluation_en.pdf11http://www.oecdwatch.org/news-en/government-condemns-british-aviation-company-for-fueling-congo2019s-war12http://www.oecdwatch.org/cases/Case_114
![Page 15: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/15.jpg)
JusticeForIranSilkRoadReport:December2016
14
Case Study: Involvement In Building And Maintenance Of Guantanamo BayIncarcerationFacilities
In a2005 complaint filedwithNorwayNCP, the complainant, ForUM,alleged thatAker Kværner ASA, through itswholly owned subsidiary Kværner Process ServicesInc.(KPSI),hadbreachedtheGuidelines’humanrightsprovisionatGuantanamoBay,Cuba.Since2001,KPSI’sactivitieswereexpandedtoincludethebuildingandmaintenanceof facilities for the incarceration of captives taken during military operations in,among other places, Afghanistan and Cuba. The complainants contend that AkerKværnerandKPSIwerecontributingtoaprisonsystemthatabusesinternationallawandcorehumanrights.TheNCPmetjointlywiththecomplainantsandcompanyinSeptemberandOctober2005 and issued a statement the following November reprimanding the companyand noting, “the activities that the company has carried out can be said, at leastpartly,tohaveaffectedtheinmatesoftheprison”.The NCP clarified that this complaint did not raise the question of whether AkerKværner had directly violated human rights laws, as “human rights conventionsapply to states only, and companies cannot therefore be held responsible forviolationsofhumanrights.”TheNCPadded,however,thatcompaniescan,throughtheir ownactionsor omissions, be complicit in or profit fromviolationsof humanrightsbystates(OECDGuidelines,ChapterII,RecommendationNo.2).TheNCPthusconsideredwhetherthecompanyhadfailedto“respectthehumanrightsofthoseaffected by (its) activities consistent with the host government’s internationalobligationsandcommitments.”TheNCPexaminedaseriesofinternationalreportsexpressingseriousconcernaboutthe operation of the detention facilities at Guantanamo Bay. The NCP recognizedthatsuchcriticismwasdirectedatthedetentioncampandnottheMarinebase,butfound that Aker Kværner and its subsidiary KPSI had occasionally carried outmaintenanceworkonsharedoperationalandsupplyfunctionsboththebasedandtheprison.Thus,sincetheoperationoftheprisondependsonthemaintenanceofjoint infrastructure (the typeofworkcarriedoutbyKPSI), theNCPconcluded thatKPSI’sactivities“atleastinpartcanbeconsideredtohaveaffectedtheinmates.”
![Page 16: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/16.jpg)
JusticeForIranSilkRoadReport:December2016
15
TheNCPacknowledgedthatthenatureandextentofAkerKværner’sactivitieswereunclear, because the company refused to provide specific information about itsactivities at Guantanamo despite theNCP’s repeated requests. TheNCP observedthat Aker Kværner could have provided extensive documentation withoutcompromisingitsconfidentialityobligationstowardsUSauthorities.TheNCPaddedthat Aker Kværner had not submitted documentation of the company’s internalethical assessments in relation to its activities at Guantanamo Bay, including anyboarddiscussions of these issues. This led theNCP to conclude that the companyhadnot drawnup ethical guidelines for its activities.Moreover, Aker Kværner didnotusetheGuidelinesasabasisforitsassessments.The NCP emphasized the importance of continuous assessments by Norwegiancompaniesoftheiractivities inrelationtohumanrights ingeneral,addingthattheprovisionofgoodsorservicesinsituationslikeGuantanamoBayrequire“particularvigilance.”TheNCPfurtherconcludedthatAkerKværnershouldhaveundertakenathorough and documented assessment of the ethical issues in connectionwith itstender for the renewal of the contract in 2005. The NCP therefore urged thecompanytodrawupethicalguidelinesandtoapplytheminallcountriesinwhichitoperatesinordertocomeincompliancewithChapterII,RecommendationNo.2.Aker Kværner has ceased its operations at Guantanamo Bay. The official reasongivenwasthecompanylostitscontractwiththeUSDepartmentofDefence.13
13http://www.oecdwatch.org/cases/Case_81;http://www.accessfacility.org/oecd-ncp-norway-forum-environment-and-development-vs-aker-kv%C3%A6rner-asa
![Page 17: Silk Road Report - Justice for Iran...Silk Road Report: December 2016 4 About the Report This is our second report from the Silk Road Report series which aim to shed light on the underlying](https://reader034.vdocuments.mx/reader034/viewer/2022050114/5f4ba867ad875b7292524d0a/html5/thumbnails/17.jpg)
JusticeForIranSilkRoadReport:December2016
16
AboutTheSilkRoadProject
The Silk Roadwas an ancient network of trade routes thatwere for centuries
centraltoculturalinteractionthroughregionsoftheAsiancontinentconnecting
theEastandWest,fromChinatotheMediterraneanSea.TradeontheSilkRoad
played a significant role in the development of the civilizations of China, the
Subcontinent, Persia, Europe, the Horn of Africa and Arabia, opening long-
distancepoliticalandeconomicrelationsbetweenthecivilizations.
TheSilkRoadprojectaimstopromoteaccountabilityandprotecthuman
rights in thecontextof Iran’s rapid return to theworldmarketsafter the2015
NuclearDeal.1ThroughpublishingreportsonbusinessandhumanrightsinIran,
this project intends to increase awareness among advocates of human rights,
particularlylawyersandcivilsocietyactivists,andaccountabilityinbusinessand
corporate relations. It also aims to hold accountable corporates which are
involvedor complicit in human right violations, using legal andother available
mechanisms.
JusticeforIran
April2017
Email:[email protected]
Website:www.justiceforiran.org
Copyright©JusticeforIran2017