Human Rights Training Toolkitfor the Oil and Gas Industry

Section 3 – Training Manual

October 2009

DisclaimerThe area of human rights law, particularly relating to the business community, is developing and evolving. Some areas are less well-defined and established. The purpose of this Training Toolkit is to provide information on human rights and how human rights issues can arise or be relevant to business across a diversity of operating environments.

This Toolkit has been developed at IPIECA’s request with the assistance of a third party. It is a useful resource document rather than a document representing standards or the views of IPIECA or its individual members. The Toolkit is descriptive rather than prescriptive and is not meant to represent consensus among the widely held views held by member companies.

1 Table of ContentsTable of Contents........................................................................................................2

1 About the Training Manual...........................................................................................4

1.1 Customizing the Toolkit............................................................................................4

1.2 Organization of Training Materials...........................................................................5

1.3 Use of photographs..................................................................................................5

1.4 Facilitation Suggestions.............................................................................................61.4.1 Making the Training Interactive.....................................................................................................61.4.2 Dilemmas for Discussion...............................................................................................................61.4.3 Terms and Translations.................................................................................................................61.4.4 Additional Information..................................................................................................................6

2 Introduction.................................................................................................................7

3 Background..................................................................................................................7

3.1 Definition and History...............................................................................................73.1.1 Slide 4 – Universal Human Rights..................................................................................................73.1.2 Slide 6 – Responsibilities................................................................................................................8

3.2 Connection to Business.............................................................................................83.2.1 Slide 7 – Connection to Business...................................................................................................83.2.2 Slide 8 – Positive Drivers for Business...........................................................................................93.2.3 Slide 9 – Negative Drivers for Business (1).....................................................................................93.2.4 Slide 10 – Negative Drivers for Business (2)...................................................................................93.2.5 Slide 11 - UN Special Representative on Business & Human Rights.............................................103.2.6 Slide 12 - UN Special Representative on Business & Human Rights.............................................10

3.3 Interested Stakeholders..........................................................................................113.3.1 Slide 13 – Stakeholders Engaged with Business on Human Rights..............................................113.3.2 Slide 14 – Other Key Agreements & Bodies.................................................................................113.3.3 Slide 15 – IFC Performance Standards.........................................................................................11

3.4 Action to Date.........................................................................................................113.4.1 Slide 16 – Action to Date.............................................................................................................113.4.2 Slides 17 - 19 – IPIECA Human Rights Work / Human Rights Workshop Series / Human Rights

and Ethics Mini-Report................................................................................................................123.4.3 Slide 20 – Company-Specific Human Rights Practices..................................................................12

4 Key Risk Areas for the Oil and Gas Industry................................................................124.1.1 Slide 21 – Key Risk Areas for Oil and Gas Industry.......................................................................124.1.2 Slide 22 – Transparency to Fight Corruption...............................................................................124.1.3 Slide 23 – Extractive Industry Transparency Initiative (EITI)........................................................134.1.4 Slide 24 – Voluntary Principles on Security and Human Rights....................................................134.1.5 Slide 25 – What do the Voluntary Principles do?.........................................................................134.1.6 Slide 26 – Implementing the Voluntary Principles.......................................................................134.1.7 Slide 27 – Company/policy action on the Voluntary Principles....................................................134.1.8 Slide 28 – Operating in areas of conflict......................................................................................144.1.9 Slide 29 – Human Rights Impact Assessments.............................................................................14

5 Relationship with Stakeholders..................................................................................155.1.1 Slide 30 – Relationship with Stakeholders...................................................................................155.1.2 Slide 31 – Employee Rights Overview..........................................................................................15

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5.1.3 Slide 32 – Forced Labour.............................................................................................................165.1.4 Slide 33 – No Employment of Underage Workers.......................................................................165.1.5 Slide 34 – Non-Discrimination and Equal Opportunity................................................................165.1.6 Slide 35 – Freedom of Association and Collective Bargaining......................................................165.1.7 Slide 36 – Employment Terms.....................................................................................................165.1.8 Slide 37 – Workplace Conditions.................................................................................................175.1.9 Slide 38 – Supply Chain Overview................................................................................................175.1.10 Slide 39 – Supply Chain Issues.....................................................................................................175.1.11 Slide 40 – Company-specific Supply Chain Management System................................................175.1.12 Slide 41 – Community Issues Overview.......................................................................................175.1.13 Slide 42 – Mitigating Community Impact.....................................................................................185.1.14 Slide 43 – Social Investment (SI)..................................................................................................185.1.15 Slide 44 – Indigenous People.......................................................................................................185.1.16 Slide 45 – Land Rights and Involuntary Resettlement..................................................................195.1.17 Slide 46 – Local Content..............................................................................................................195.1.18 Slide 47 – Free, Prior and Informed Consultation/Consent.........................................................195.1.19 Slide 48 – Relationships with Governments................................................................................205.1.20 Slide 49 – Relationships with Commercial Partners.....................................................................205.1.21 Slide 50 – Working with NGOs and other organisations..............................................................205.1.22 Slide 51 – Conclusion...................................................................................................................20

6 Appendix I - Dilemmas and Scenarios.........................................................................21

6.1 Scenario #1- Human Rights Assessment.................................................................21

6.2 Scenario #2 - Employment Related Issues..............................................................23

6.3 Scenario #3 - Security Law Issues............................................................................25

6.4 Scenario #4 - Security Issues...................................................................................27

6.5 Scenario #5 - “Complicity” Issues............................................................................28

6.6 Scenario #6 - Dialogue with Local Community Representatives.............................29

6.7 Scenario #7 - Employment-Related Issues..............................................................30

6.8 Scenario #8 - “Rights vs. Rights”.............................................................................31

6.9 Scenario #9 - Activities of Local Militia....................................................................32

6.10 Scenario #10 - Human Trafficking...........................................................................33

6.11 Scenario #11 - “Environmental Justice” and Human Rights....................................34

6.12 Scenario #12 - Employment-Related Issues............................................................35

7 Appendix II – Decision-Making Tools..........................................................................36

7.1 Integrity in Action – The Decision-Making QUEST...................................................36

7.2 QUEST Light............................................................................................................ 377.2.1 Questions to ask:.........................................................................................................................37

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2 About the Training ManualThis manual provides information for trainers using the IPIECA Human Rights Training Toolkit and should be reviewed prior to using the materials.

The manual details how to customize the Toolkit to better reflect company policies and to tailor the materials for regional presentations. It also includes facilitation suggestions and additional information that the trainer can use to help prepare for the session, and to increase their knowledge on human rights.

Note that tips on customization, facilitation and additional information are only provided as needed. There will be slides in the Human Rights Training Toolkit that do not have any tips as there may not be a need for deeper discussion or the slide may only be for information purpose. These slides are therefore not referenced in the training manual.

2.1 Customizing the ToolkitThe trainer will need to customize the Toolkit before use. Two kinds of customization are suggested:

Company-specific information such as policies and procedures or corporate statements to be added before the materials are used. The trainer will want to update these areas periodically as company expectations evolve.

Regional examples to make the material more relevant to the specific audience being presented to. The trainer will need to review these items prior to each new training session presented in a different region or to a different audience.

The following table provides a quick reference to the areas that require customization.

Subject Presentation Slide #

Workbook Page #

Trainer’s Manual Page #

Type of Customization

Organization of Training Materials n/a n/a n/a Company Regional

Photographs n/a n/a n/a Company Regional

Terms & translations n/a n/a n/a Regional Introduction 2 n/a n/a Company

RegionalResponsibilities 6 8 8 Company

RegionalNegative Drivers for Business 9 14 9 RegionalNegative Drivers for Business 10 16 9 Company

RegionalKey Risk Areas for Oil and Gas Industry 21 37 12 RegionalTransparency to Fight Corruption 22 38 12 Company

RegionalVoluntary Principles on Security and Human Rights

24 42 13 Company

Implementing the Voluntary Principles 26 46 13 CompanyRelationship with Stakeholders 30 53 15 CompanyEmployee Rights Overview 31 55 15 Company

RegionalSupply Chain Overview 38 69 17 CompanyCommunity Issues Overview 41 73 17 Regional Mitigating Community Impact 42 75 18 CompanyIndigenous People 44 78 18 Company

RegionalLand Rights and Involuntary Resettlement

45 80 19 Company

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Subject Presentation Slide #

Workbook Page #

Trainer’s Manual Page #

Type of Customization

Local Content 46 82 19 Regional Conclusion 51 90 20 Company

2.2 Organization of Training Materials

The training Toolkit consists of several materials:

A presentation, which can be used during a training session. The presentation is designed for visual impact, providing the key messages.

A workbook that can be provided to the trainee to use during the training session and expands on the key messages in the presentation. The workbook can stand alone and be kept by the trainee for future reference.

A reference manual with names of human rights documents and organizations and corresponding web links.

The training Toolkit is divided into the following sections:

Introduction Background Key Risk Areas for Oil and Gas Industry

o Transparencyo Voluntary Principles on Security and Human Rights

Relationship with Stakeholderso Employee Rightso Partnerso Supply Chaino Communitieso Governments

The material may be presented in its entirety to provide a broad overview of human rights issues. Or, the sections can be extracted and presented alone to cover a specific issue of interest, or to incorporate the material into other company training programs. Trainers may want to coordinate with their ethics; human resources; health, safety and environment; and social responsibility or sustainable development departments to determine if any of the material in this Toolkit is already covered in existing company training materials.

The trainer may wish to change the order of the presentation and workbook depending up on the key issues for the region in which a session is being held. For example, transparency and security are the key risk areas for the industry as a whole, but certain regions may have higher risk areas in community or employee human rights issues.

2.3 Use of photographsThe company will want to replace the photos in the Toolkit with company photos. In preparing the Toolkit for general use, take care to represent all the areas of company operations in the photos, as human rights are an issue throughout the world.

The trainer may wish to update the photos with regional examples prior to each session

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2.4 Facilitation Suggestions

2.4.1 Making the Training InteractiveComplex issues are best learnt when the trainee is engaged in discussion. Therefore, the trainer is encouraged to make the training session as interactive as possible. For example, tailor the introduction to your company and region of operations:

Facilitate a discussion on what participants have heard about their company and its operations within the region/country

Show video clips/press releases highlighting adverse stories. Follow this with a group discussion on what it means for their company and its reputation. Questions along the following lines can be used to engage the audience in the material that follows:

o Were any participants present during operations in this country?o Were the press reports fair?

Use of the dilemmas and scenarios can help make the training interactive as well as break up time sitting listening to slides and overheads.

2.4.2 Dilemmas for DiscussionA collection of dilemmas to facilitate discussion about human rights issues is included in the appendix of this training manual. The dilemmas are hypothetical, but draw upon actual experiences.

The trainer’s manual will reference which dilemmas may be useful to use in which section. However, the trainer is strongly encouraged to substitute these dilemmas with examples that best reflect their audience – the type of operation, region of the world, and dilemma being faced. The dilemmas provided here can serve as a template which the trainer can use when preparing their own example.

Each dilemma has a series of questions that can be used to prompt discussion. Also included in the appendix of this manual is a model, titled QUEST,1 which can be a useful framework for the dilemma discussion.

It is recommended that the Quest model is given to the trainees to use as a structure for understanding the scenarios, and that the trainer uses the expanded questions and answers during the exercise, either to prompt discussion or later when debriefing.

2.4.3 Terms and TranslationsMany terms are used when discussing human rights that may not be familiar to the trainee. The terms used in this training Toolkit are those that are frequently used in discussions on human rights. The trainer should work with the company’s corporate social responsibility / sustainable development representative to ensure they understand any unfamiliar terms.

The trainer may wish to determine whether any of these terms need to be re-phrased in simpler language to be more easily understood by their target audience. Some terms may have different connotations in different regions of the world. This may be particularly important if the company chooses to translate the materials into another language.

2.4.4 Additional InformationThroughout the manual, additional information about the topics will be provided for the trainer. This information may be helpful in answering detailed questions that trainees may ask.

1 The QUEST model has been adapted from a tool developed by Nexen Corporation, and graciously shared by Nexen for use with the Human Rights Training Tool.

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3 Introduction

Companies will need to create their own introduction to the training session. Suggested items to include are: An introduction from a company executive, emphasizing the importance of human rights to

the company – delivered by video clip or printed quote on the presentation.

An introduction by the regional manager – either in person, by video clip, or by printed quote on the presentation.

An attention-grabbing example. Examples should relate to the audience’s type of operations, region of the world, and key risks, if possible. Examples can be found from company experience, from newspaper articles, television clips, and from NGO websites. See the reference document for a list of human rights NGOs. Presenting the example in a visual way – such as a video clip, or with an action photo – helps grab the audience’s attention.

4 BackgroundThe background section covers the following topics:

Slides 4-6 Definition and History Slides 7-12 Connection to Business Slides 13-15 Interested Stakeholders Slides 16-20 Action to Date

4.1 Definition and History

4.1.1 Slide 4 – Universal Human RightsFacilitation Suggestions: Begin by posing a series of provocative questions, and try to build off those responses. Questions could include:

• How would you like to be treated as a human being? Do any documents that you know of define the rights that you expect to have? What protects those rights?

• What comes to mind when you think about the term ‘human rights’? How would you define it?• What role, if any, do human rights have in business? Do human rights only impact people, or does a

company have a reason to be concerned about human rights as well? If so, why?• Given the human rights situation of the country in which you work, what sorts of issues are you likely to

face in the future about the intersection of business and human rights?

The trainer may wish to have copies of the UDHR available.

Additional information:UDHR: The first clause in the UN Universal Declaration of Human Rights states, ‘All human beings are born

free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.’

UDHR is not a treaty, so therefore it’s not legally binding. However the UDHR is one of the most important human rights documents.

History: Governments have a long history of addressing the struggle for freedom and human dignity, such as the Magna Carta (1215), the French Declaration of the Rights of Man and of the Citizen (1789), the U.S. Declaration of Independence (1776) and Bill of Rights (1791).

International treaties began to be signed which focused on addressing particular human rights abuses, such as the abolition of slavery (Congress of Vienna in 1815) and the freedom of religion (Treaties of Westphalia in 1648). This helped create a growing body of international law that safeguarded human rights.

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4.1.2 Slide 6 – ResponsibilitiesCustomization:

Determine how the company distinguishes between protecting and respecting and promoting human rights, including examples. Tailor the words on the slides and workbook if necessary.

Identify national and/or local laws that relate to human rights.

Facilitation Suggestion: Ask the audience to discuss what these national / local laws mean for business.

The theme of government versus business responsibility with respect to human rights will recur throughout the training material. Explore both sides of the issue (government’s duty to protect human rights, and business’s duty to respect human rights).

Try to use discussions on this theme as the session progresses to help the audience build a picture of business’ role as appropriate for their situation. To promote discussion you may ask the audience to identify what their governments do to protect human rights and what companies need to do to respect human rights.

Questions might include: Has your government signed international Human Rights conventions? Has your government adopted laws to protect human rights and labour standards? Does your government enforce these rights in the courts? Does your government ensure that government security forces such as the police and army have the

understanding and skills to abide by the laws?…)

When asking what a company need to do to respect human rights some suggestions to guide discussions may include:

A company should have employment practices that are fair and non-discriminatory; A company should ensure that they do not have an adverse impact on a community for example

cause their water supply to become restricted, unreliable or polluted; A company should not prevent people from freely expressing their views about the company’s

activities.

Additional Information: These responsibilities are explained in the UDHR. The UDHR does not state that the rights in the declaration are absolute. Some of the human rights outlined in the UDHR have been translated into legal rights by individual countries.

4.2 Connection to Business

4.2.1 Slide 7 – Connection to BusinessFacilitation Suggestion:Encourage the audience to discuss what connects business to human rights in terms of international business, globalisation, voluntary principles, etc. You may encourage them to think about stories they have read in the media about alleged abuses of human rights by business. They may mention the apparel industry e.g. sweatshops in south-east Asia supplying clothes to well known western brand names. What are the attributes of the oil and gas industry that make human rights more of a risk for this industry than for others?

Note that the international scope of human rights means it could be an issue in every country the company operates in, even in its own back yard, not just non-OECD countries.

Depending on the country in which the training is being held, you could point out that the changing nature of business also includes a greater exposure of corporations to public scrutiny due to the growing gap between wealthy and poor nation states.

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4.2.2 Slide 8 – Positive Drivers for BusinessCustomization:

Determine what ‘respecting and promoting human rights’ means to the company. Edit the list provided in the workbook if needed.

Prior to a session, determine whether the local business unit has taken pro-active action to address concerns such as community unrest, to mitigate potential problems before they arise.

Facilitation Suggestion: Make this an interactive session, requesting ideas from the audience. In addition to the general categories listed in the workbook, encourage the trainee to give local examples of how their company benefits by being seen to respect and promote human rights.

4.2.3 Slide 9 – Negative Drivers for Business (1)Customization:

Prior to a session, identify specific risks – whether operational, reputation, or legal – that the company face, or that have occurred in the past. In particular, those faced by that region or business unit.

Facilitation Suggestion: Make this an interactive session, requesting ideas from the audience. In addition to the general categories listed in the workbook, encourage the trainee to give local examples. Ask the audience – how can you protect yourself, investments and personnel against these risks? Can you think of any other negative drivers that are not mentioned on the slide? Can these negative drivers prompt positive action?Help the audience understand the difference between operational risks and reputation risks. For example, community unrest is not just a reputation concern, but can also have an impact on a business’s ability to operate, even forcing a shutdown of operations with ensuing financial penalties.

4.2.4 Slide 10 – Negative Drivers for Business (2)Customization:

Understand the company’s position on the issue of allegations of ‘complicity.’ Discuss with legal department to how to present this information in the training sessions. It may also be helpful to collect any media clippings on the example.

You may wish to include other examples that may be relevant to the region or type of operations specific to the training audience.

The word ‘complicity’ may not directly translate into other languages. Work with an interpreter to determine the best language.

Facilitation Suggestion: Ensure that participants understand that this is still a very unresolved area. ‘Complicity’ has not been clearly defined by legal or judicial bodies, although Professor Ruggie, the UN Special Representative on Business and Human Rights, has discussed the concept (see slide 9). Try to encourage a discussion on what a company’s responsibilities should entail in a country in which it operates. Dilemma #5 includes the issue of ‘complicity’, and may be helpful to use in this discussion.

Ask the audience if they can think of any examples of a company being considered ‘complicit’ in the wrongdoing (e.g. human rights infringement) of another person or organisation?

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Additional Information: There is no global ‘governance’ structure for violations of corporate accountability. At a national level, some countries have developed laws and other mechanisms for imposing corporate liability for violations of human rights standards (e.g., universal jurisdiction law in Belgium, the Human Rights Act in the U.K., etc.). Some of these national laws have emphasized the notions of ‘complicity’ and ‘extra-territoriality.’

4.2.5 Slide 11 - UN Special Representative on Business & Human RightsFacilitation Suggestion:The purpose of this slide is to create awareness of the international scope of business and human rights and the scrutiny it has received and growing importance in global organizations.

Encourage the audience to discuss what they think the role of multi-lateral organizations such as the United Nations (UN) is in terms of business and human rights e.g. what do they think the value is of having an organisation like the UN appoint an eminent person to look into the issue of business and human rights? Why not let individual countries manage the issue of business and human rights themselves through their own national laws and courts? What other multi and bi-lateral organisations are involved / produce guidance on human rights issues (they might mention the International Labour Organisation)?

4.2.6 Slide 12 - UN Special Representative on Business & Human RightsCustomization:

Prior to the training session, identify any company grievance mechanisms that may be relevant in terms of ‘access to remedy’.

Understand the company’s position on the issue of “sphere of influence” and how it is defined. Discuss with legal department to how to present this information in the training sessions.

Identify the company’s due diligence processesIdentify national and/or local examples of a community or person obtaining redress and the process involved. Identify examples of regional and/or national examples of companies being considered complicit in human rights abuses.

Facilitation Suggestion: Encourage the audience to discuss the ideas put forward by Professor Ruggie – that governments should protect human rights while companies should respect them. Does this make sense?

Ask the audience to think about how a person or community may complain if they felt a company was infringing their human rights? (They might suggest company complaints processes; writing to their local government representative or newspaper; complaining to an NGO and starting a campaign; trying to bring a court case in their national courts; even international courts of justice or bringing a case in another country where the company is registered).

Ask the audience to think about what sort of ‘remedies’ a person could have recourse to if they felt that a company was infringing their human rights? How easy do you think it would be to obtain ‘remedy’? What might the remedy be? (They might suggest a private or public apology, compensation in cash or in kind, disciplinary action against the employee or contractor responsible, imposing fines or other penalties through judicial process….)

Ensure that participants understand that the concept of Sphere of Influence is an unresolved area. Ask the audience to discuss the concept of ‘sphere of influence’ of a company. What do you think this means? Is ‘sphere of activities’ a more helpful phrase? (They might mention a company’s influence in its relationship with different stakeholders e.g. local or national government, suppliers of goods and services, employees, contractors, local residents or civil society organisations, or joint venture partners)

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The issue of complicity will be discussed later in the training. Ensure that the audience understand that this is still an unresolved area.

Encourage the audience to think about what due diligence might be needed by a company to identify and avoid human rights risks and impacts? What types of issues might the company focus on? (They may suggest issues related to the country context e.g. corruption or operating in conflict zones; the types of activities that might impact human rights e.g. community impacts; or the relationships e.g. conduct of suppliers or partners).

4.3 Interested Stakeholders

4.3.1 Slide 13 – Stakeholders Engaged with Business on Human RightsFacilitation Suggestion: The trainer may want to hide this list on the slide and encourage ideas from the audience to make an interactive session. Encourage the trainees to identify the specific stakeholders for the company.

4.3.2 Slide 14 – Other Key Agreements & BodiesFacilitation Suggestion: The purpose of this slide is to create awareness that in addition to the UDHR, there are several other important international agreements on the subject of human rights, and other international organizations that address human rights. The list of ILO conventions most pertinent to the topics discussed in the training Toolkit is listed in case the trainee would like to learn more. However, for most trainees, following up on this detail will not be necessary.

4.3.3 Slide 15 – IFC Performance StandardsCustomization:

Identify if your company has accepted financing for projects currently and in the past from the IFC, you may want to include these examples in this section.

You may wish to include other examples of IFC funded projects in the region.

Facilitation Suggestion:The purpose of this slide is to create awareness of the conditions that International Financial Institutions (IFIs) like the International Finance Corporation (IFC) place on companies who accept project financing. These are not just economic conditions but also social and environmental. The IFC is the most relevant to the oil and gas industry and the slide lists the environmental and social standards that are applied.

Encourage the audience to discuss the roles of international lending in promoting respect for human rights. Do they think these standards are relevant for companies not obtaining financing? What happens if a company applies for financing at a later date once a project had already started? Would it be difficult to apply standards at a later date?

Additional information:The IFC standards are considered by many to be international best practice in terms of the social and environmental considerations in project implementation. Many private banks have adopted the IFC performance standards through signing up to the Equator Principles initiative and so companies may be subject to these standards when obtaining project financing from other financial institutions.

4.4 Action to Date

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4.4.1 Slide 16 – Action to DateFacilitation Suggestion: This slide refers to action that the oil and gas industry has taken in response to concerns about human rights. The next three slides will discuss what the industry is collectively doing through its industry association and the final slide in the section will discuss what the individual company is doing. Depending on the information the company wishes to discuss, the trainer may consider combining some of these slides.4.4.2 Slides 17 - 19 – IPIECA Human Rights Work / Human Rights Workshop Series / Human Rights and

Ethics Mini-ReportCustomization:

Prior to using the training materials, identify whether your company is an IPIECA member and has been involved in any of the human rights work or more broadly the work of the social responsibility or other working groups.

Facilitation Suggestion: These slides refer to the action the oil and gas industry have taken collectively through the International Petroleum Industry Environmental Conservation Association (IPIECA). You may want to distribute some of the publications and tools to the audience for future reference.

Encourage the audience to think about the role of industry associations in promoting human rights (they may point to the publications as promotion of good practice including this training).

4.4.3 Slide 20 – Company-Specific Human Rights PracticesCustomization:

Prior to using the training materials, update this slide and the information in the workbook to include the company’s approach to human rights. The trainer will want to change the title of the slide as appropriate. Items to include: Description of the company’s human rights policy or code of conduct, including key elements

and expectations. Discuss how this policy or code sets expectations for the company’s role in protecting and

promoting human rights, versus what it sees as government’s role. An overview or ‘map’ demonstrating the ways in which the company’s commitment to human

rights is reflected in its internal departments, policies, and programs. Flowchart of corporate structure regarding responsibility for human rights internally.

5 Key Risk Areas for the Oil and Gas Industry

5.1.1 Slide 21 – Key Risk Areas for Oil and Gas IndustryCustomization:

Transparency and security are key risks across the oil and gas industry. However, different regions may have other areas of human rights that are of higher risk. Prior to each session, the trainer should review the key risks in the area and add the key risks for that region to this section. When presenting, clarify the risks for the industry as a whole versus the region.

Facilitation Suggestion: Be clear that the issues listed in the key risks section are not the only human rights issues a company faces, and that additional issues will be explored in later sections of the training. The key risks can have a major impact on a company but this will ultimately depend on the context of the country of operation.

5.1.2 Slide 22 – Transparency to Fight CorruptionCustomization:

Prior to using the training materials, update this slide and the information in the workbook with the company’s guidance on combating corruption and bribery, FCPA, facilitation payments, political contributions, revenue transparency, or other relevant information from the company’s ethics or integrity programs. Also note if the company is participating in the listed initiatives.

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Work with the company’s ethics department to pre-identify which potential training audiences will need more detailed discussions on corruption / transparency issues.

Prior to a session, identify whether there are any national laws on combating corruption. Also, identify whether the country is participating in the Extractive Industries Transparency Initiative (EITI).

Facilitation Suggestion:Encourage the audience to discuss how corruption can contribute to human rights abuses. Can they think of any stories in the media about government corruption (this may be in home or host countries)? How, if at all, did it contribute to human rights abuses? (They may suggest for example that it takes government monies away from funding essential services such as healthcare, education, sanitation etc)

5.1.3 Slide 23 – Extractive Industry Transparency Initiative (EITI)Customization:

Prior to using the training materials, identify whether your company is a supporting company in the EITI. Update this slide and the information in the workbook with the company’s guidance or activities on implementing the EITIWork with the company’s ethics, legal, finance and government affairs departments, as appropriate, to pre-identify which potential training audiences will need more detailed discussions on EITI issues

Prior to a session, identify whether the country is participating in the Extractive Industries Transparency Initiative (EITI).

5.1.4 Slide 24 – Voluntary Principles on Security and Human RightsCustomization:

Prior to using the training materials, identify whether the company is a participant in the Voluntary Principles on Security and Human Rights (VPSHR).

Work with the company’s security department to pre-identify which potential training audiences will need more detailed discussions on the VPSHR.

Facilitation Suggestion:Prior to discussing the slide contents you may want to encourage the audience to discuss why security is a key risk issue for the industry. What types of human rights abuses might occur in relation to security forces? What are the risks? (They may suggest the use of equipment or the use of force intruders or even local communities.) Do risks to the company change if government security forces such as the military are used compared to private security forces? What if the company is operating in a conflict zones? Can the company ever be indirectly responsible? You will want to refer back at this point to the earlier discussions on complicity in human rights abuses.

5.1.5 Slide 25 – What do the Voluntary Principles do?Customization:

Work with security department to identify whether / how the key components of the VPSHR are incorporated into security procedures. The session’s audience will dictate how much detail should be provided.

5.1.6 Slide 26 – Implementing the Voluntary PrinciplesFacilitation suggestion:This slide refers to action that is required to implement the VPSHR. The next slide will discuss what the individual company is doing. Depending on the information the company wishes to discuss, the trainer may consider combining these slides.

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5.1.7 Slide 27 – Company/policy action on the Voluntary PrinciplesCustomization:

Prior to using the training materials, update this slide and the information in the workbook to include the company’s approach to implementing the VPSHR. The trainer will want to change the title of the slide as appropriate. Items to include: Description of the company’s policy or guidelines on the VPSHR, and other relevant

documentation such as rules of engagement for security, training including key elements and expectations.

Discuss how these company documents are being implemented in country with examples. Flowchart of corporate structure regarding responsibility for implementation of VPSHR

internally.

Prior to a session, identify whether the country has a specific working group or process on the VPSHR separate from company activities.

5.1.8 Slide 28 – Operating in areas of conflictCustomization:

Prior to using the training materials, update this slide and the information in the workbook to include the company’s approach to operating in conflict zones.

Prior to a session, identify whether the country has a specific conflict issues. Recognize this can be a sensitive subject to discuss,

Facilitation suggestion:Operating in conflict zones presents particular security risks for companies. Encourage the audience to discuss what these may be (they may suggest increased need for security to project assets; the use of government security forces or their presence near the facility; the local presence of rebel groups; security risks for employees; security risks for the communities and the likelihood for civil unrest).

The slide refers to the action IPIECA has taken in producing a guide for industry operating in conflict zones. You may wish to circulate a copy of the guide if relevant.

Dilemma #4 includes the issue of conflict and may be helpful to use in this discussion.

5.1.9 Slide 29 – Human Rights Impact AssessmentsCustomization:

Prior to using the training materials, update this slide and the information in the workbook to include the company’s guidance on Human Rights Impact Assessment. Work with the company’s impact assessment professionals to identify training needs for this section.

Prior to a session, identify whether a human rights impact assessment has been conducted for operations in the country, or other countries in the region.

Facilitation suggestion:This slide refers to a guide to Human Rights Impact Assessment produced by the Danish Institute, IBLF and the IFC. Not all companies conduct human rights impact assessments and some integrate this into other impact assessment they conduct. You will want to reflect your company’s approach in this slide as appropriate.

Discuss with the audience the company’s position on human rights impact assessment. Whether the company uses the tool or whether human rights impacts are integrated into other impact assessments for example, social, health and environmental (ESHIA).

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You may want to encourage the audience to discuss when and where it would be appropriate to conduct a human rights impact assessment (HRIA). You may ask whether a HRIA could have been or would be useful in any of the company’s existing or new businesses to assess potential human rights impacts. Why have they selected those places, and what sorts of potential impacts could they envisage there?

Encourage the audience to discuss how a HRIA may be received by different stakeholders, for example the host government or a local community. Ask them to put themselves in the place of these stakeholders. How might, you as the host government, feel about having a foreign investor carry out an HRIA? Is there anything the company could do to allay your concerns about the performing of a HRIA and/or the publishing of the results? How might you as a community member feel about a company that decided to conduct a HRIA? If you think it’s a good idea, would you be happy to participate, and what do you think you could contribute? Might you have concerns, and if so, what might they be?

6 Relationship with Stakeholders

6.1.1 Slide 30 – Relationship with StakeholdersCustomization:

Review the groups of stakeholders listed and make any adjustments to the generic categories in the workbook as needed to better reflect the company. Note that only broad changes are required here – regional differences are captured in the facilitation suggestion below. Identify examples of how the company addresses the human rights issues in each of these groups.

Facilitation Suggestion: Encourage the audience to provide specific examples of their local stakeholders that fit into each of the groups. Encourage the audience to think about the whole sphere of company activities. The trainees may determine that in their area, stakeholders listed in one group actually belong in another. Make note of these differences and discuss them as the topics come up in the remaining slides.

Clarify for the audience that looking at a company's relationships with various groups of stakeholders whose conduct a company might influence provides a framework to aid discussion about various human rights issues and the level of influence a company might have in dealing with the issue. It is not intended to suggest that the human rights concerns of any of the groups are more important than another.

Note that the key risk areas of transparency and security, discussed in the previous section, are important across the groups of stakeholders.

Ask the audience how these different stakeholders are addressed by the company (be prepared with company examples if needed).

Ask the audience to discuss the relationship between risk to the company and level of influence it has over the various groups of stakeholders.

6.1.2 Slide 31 – Employee Rights OverviewCustomization:

Work with the human resources department to identify which of the employee rights discussed in the training Toolkit is addressed by company policies and programs, and whether these policies and programs apply company-wide or are region-specific. Provide references to these policies and programs in the slides and workbook as appropriate.Work with ethics / integrity department to identify any areas relevant to employee rights (e.g., whistle blowing, confidentiality, etc.). Note for the trainees where they can find such information within the company, or include in this training if applicable.

Prior to a session, identify any cultural distinctions that may apply in that region. Be prepared to help the audience see those distinctions and discuss any sensitivity.

Identify any national laws in the country of operations that could conflict with international

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expectations regarding human rights, (e.g., freedom of association and China). Identify how the company has addressed this situation, or the company’s expectations. For these cases, the company may wish to write a dilemma (refer to the dilemmas provided in the appendix of the training manual for an example format) for use in training to further explore that specific country situation.Similarly, the company may want to draft dilemmas that explore the potential conflict between local culture and human rights principles, and how that can be handled (e.g., anti-discrimination and inter-tribal rivalries).

6.1.3 Slide 32 – Forced LabourFacilitation Suggestion: Use the questions listed in the workbook to help prompt discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

Additional Information: An indentured labourer is under contract to work (for a specified amount of time) for another person or a company/corporation, often without any monetary pay, but in exchange for accommodation, food, other essentials, training, or passage to a new country.

6.1.4 Slide 33 – No Employment of Underage Workers Facilitation Suggestion: Use the questions listed in the workbook to help prompt discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

6.1.5 Slide 34 – Non-Discrimination and Equal OpportunityFacilitation Suggestion: Use the questions listed in the workbook to help prompt discussion. In cases where the trainee feels the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

Encourage discussion on the local laws that govern this issue in the region. In areas where local laws allow ‘positive discrimination’ encourage discussion on how the company complies with these laws while staying true to its core values. The term ‘positive discrimination’ may not be familiar or used in all locations, and therefore may need to be explained or substituted with more familiar language.

6.1.6 Slide 35 – Freedom of Association and Collective BargainingFacilitation Suggestion: Use the questions listed in the workbook to help prompt discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

6.1.7 Slide 36 – Employment TermsFacilitation Suggestion:

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Use the questions listed in the workbook to help prompt discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

Additional Information: Some employees may not have employee contracts.

6.1.8 Slide 37 – Workplace ConditionsFacilitation Suggestion: Use the questions listed in the workbook to help prompt discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

6.1.9 Slide 38 – Supply Chain Overview Facilitation Suggestion: One method to highlight the importance of the supply chain is to provide figures on supply chain expenditures. Encourage the audience to discuss who the important members of the supply chair are for the local operations.

6.1.10 Slide 39 – Supply Chain IssuesFacilitation Suggestion: This slide refers to the risks companies face over the conduct of their suppliers. The next slide will discuss what the individual company is doing to combat that risk. Depending on the information the company wishes to discuss, the trainer may consider combining these slides.

The following questions can help foster discussion on the company’s responsibility for human rights in the supply chain:• How far down the supply chain does your company seek to promote respect for human rights?• How are your company’s businesses principles incorporated into any contracts that impact the supply

chain?• At what point do human rights become the supplier’s responsibility? How does the company decide when

to help the supplier improve its human rights approach, versus choose not to work with them?

Use the questions listed in the workbook to help prompt additional discussion. In cases where the trainees feel the aspiration of the human rights principle is difficult to achieve given the region’s environment, encourage discussion on what proactive steps the company can take – help the audience recognize there may not be a right answer, but discussing the issue ahead of time can help the trainees think through how they may handle a situation.

6.1.11 Slide 40 – Company-specific Supply Chain Management SystemCustomization:

Update slides and workbook with company policies / programs on human rights in the supply chain. Include information on due diligence in choosing suppliers, contract requirements, education programs, and monitoring for performance.

Facilitation suggestion:Refer back to the key risk areas of transparency and security (or other key risks identified). Prompt discussion on how the company handles these risks in the supply chain.

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6.1.12 Slide 41 – Community Issues OverviewCustomization:

Some regions may not face all of these issues. In that case, recognize that in the training session, but still provide a brief overview so that the trainees understand the various issues the company faces around the world.

Facilitation Suggestion: It may help to remind the audience that there are several categories of human rights, referring back to slide 10.While it is most likely that economic, social and cultural rights will be the main concerns of a community, depending on the location, community civil and political rights could also be an issue for the company. Encourage the audience to think through what types of human rights are risks for the local community in their region, and whether the company can influence how those risks are met.

6.1.13 Slide 42 – Mitigating Community ImpactCustomization:

Include in the slides and workbook references to the company’s policies and guidance on social impact assessment, health impact assessment or integrated social, health and environmental impact assessment as appropriate and community consultations.

Facilitation suggestion:

This slide and the next refer to tools available to companies towards mitigating community impact. You may want to circulate these tools to the audience if you think appropriate. Depending on the information the company wishes to discuss, the trainer may consider combining these slides.

6.1.14 Slide 43 – Social Investment (SI)Customization:

Include in the slides and workbook references to the company’s policies and guidance on social investment. Identify examples of social investment programs in the region/country.

Facilitation suggestion:Discuss with the audience the types of social investment programs undertaken by the company and how they are strategically linked to mitigating risk. Encourage the audience to discuss how a social investment program may promote human rights (e.g. social, economic and cultural rights such as access to education, water, livelihoods, or gender equality, empowering community members to hold authorities accountable, etc.)

Ask the audience if they know of any social investment projects that have had a negative consequence on human rights or failed to deliver benefits hoped for. Why do they think they failed?

6.1.15 Slide 44 – Indigenous PeopleCustomization:

Determine the company’s approach to consultation with indigenous groups. In particular, be aware of the company’s position on the issue of ‘free, prior and informed consultation / consent’, which is referenced in some international guidelines.

Work with local community relations personnel to identify whether any indigenous communities are in the area of the operations in the region and any national laws regarding indigenous communities and consultation. Update information on the slides and workbook accordingly.

Facilitation Suggestions: Remind the audience that, as indigenous peoples are diverse, there is no universal definition. There are only some common criteria shared by many indigenous peoples. Ask the attendees to discuss what kind of criteria contribute to make indigenous peoples different from other local communities. Remind them that although

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indigenous peoples are often poor, economic criteria are not relevant in their definition. (They may suggest language, vulnerability, ‘self definition’, a subsistence lifestyle etc.)

Ask the audience for suggestions of how company operations could affect indigenous people. Discuss examples of how those risks have been mitigated, in particular, the role of consultation. Also, explore how indigenous interests could conflict with the interests of other company stakeholders. Another issue for discussion is the capability of indigenous communities to enter in to negotiations.

Additional Information: In addition to the UN, several organizations state definitions for indigenous communities and/or peoples. Examples are the ILO convention 169 and the World Bank. National legislation may also contain legal definition of indigenous status.

International principles recognize indigenous peoples’ distinctive rights based on factors including: ‘Self-definition’, institutions, language, vulnerability Attachment to specific land, subsistence lifestyle

International conventions and legal documents pertaining to treatment of indigenous peoples: ILO Convention 169, applicable to:

o Tribal peoples in independent countries whose ‘social, cultural and economic conditions distinguish them from other sections of the national community’ and

o Peoples in independent countries who are ‘regarded as indigenous on account of their descent’

UN Declaration on the Rights of Indigenous Peoples World Bank Operational Policy and Bank Procedures on Indigenous Peoples (OP/BP 4.10) This seeks to ensure that indigenous people benefit from development projects and that companies

avoid or mitigate potentially adverse effects on them.

6.1.16 Slide 45 – Land Rights and Involuntary ResettlementCustomization:

Identify company guidance on land rights and resettlement and update slides and workbook as appropriate.

Facilitation Suggestion: Encourage the audience to discuss the potential human rights issues that can arise from involuntary resettlement. (They may suggest some of the social, economic and cultural rights listed in slide 10.) Also discuss with the audience the role of consultation in addressing these issues.

6.1.17 Slide 46 – Local ContentCustomization:

Identify national requirements for local content.

Facilitation Suggestion: Encourage the audience to talk through examples. Discuss the issue of sustainability – ensuring that well-meaning programs do not create a situation of dependency on the company’s support. Also, discuss the company’s role versus the role of other stakeholders in developing local content.

6.1.18 Slide 47 – Free, Prior and Informed Consultation/ConsentCustomization:

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Identify company guidance on free, prior and informed consultation/consent and update slides and workbook as appropriate – noted ambiguity.

Identify national requirements for free, prior and informed consultation/consent

Facilitation suggestions:Discuss with the audience the difference between free, prior and informed consultation versus consent.

Encourage the audience to think about a local or national example where a community was against a government or company proposed development (could be a new motorway or public incinerator for disposing or rubbish; or a new processing plant, shopping centre or factory). What happened and how was the situation resolved? Are there potential situations where the wishes of a community might be in opposition to their government’s view of the national interest? Can they think of any examples in their country, and if so, what happened?

Ask the audience to discuss whether a company’s wishes should always, sometimes or never be allowed to dominate over a community’s wishes if a development is not viewed positively by them. What about situations when a community does not want a development but there is the possibility of them benefiting from it e.g. through the tax receipts accruing to the government, or the possibility of jobs? Where should you site landfill sites, power stations, wind farms, hospitals and other large public and private infrastructure if everyone wants the income, jobs etc, but few people want the building itself on their doorstep?

Ask the audience to discuss whether they think the free prior and informed consent/consultation has a special meaning or application for indigenous peoples versus local communities.

Additional information:Free prior informed consultation or consent is a political issue and may be addressed in a particular country’s constitution or national laws in different ways. Therefore the legal framework will differ depending on the country, the context and its unique history.

6.1.19 Slide 48 – Relationships with GovernmentsFacilitation Suggestion: Ask the audience to suggest ways to engage with governments on human rights issues. Discuss which of these ideas the company must do to mitigate risk, versus would be nice to do. Are there any risks with engaging governments? Could relationships with a host government be harmed through trying to discuss human rights?

6.1.20 Slide 49 – Relationships with Commercial PartnersCustomization:

Identify company guidance and expectations regarding influencing partners to respect and promote human rights.

6.1.21 Slide 50 – Working with NGOs and other organisationsCustomization:

Identify company guidance and expectations regarding working with NGOs and other organizations with regards to human rights e.g. stakeholder engagement guidelines; partnership guidelines etc. Identify examples of programmes or partnerships the company has in place with NGOs.

Facilitation suggestion:Encourage the audience to discuss the role of other organisations and NGOs in delivering company programmes to manage human rights issues. What are the benefits or working with NGOs and what are the disadvantages? You can use the text in the workbook to stimulated discussion.

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6.1.22 Slide 51 – ConclusionCustomization:

The trainer will need to update the slides and workbook with text for the final slide, the conclusion. Items can include a summary of key messages, the next steps for the trainee, where to go for more information, or other closing comments.

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8 Appendix I - Dilemmas and Scenarios8.1 Scenario #1- Human Rights Assessment

Before Commencement of ProjectYou are the Project Manager of one of your company’s operations in a developing nation, and there is a new exploration opportunity there. You are asked to lead the process of assessing human rights risks to determine whether there are any major issues that must be resolved before the project is finalized.

There are several potential challenges that pose both legal and reputation risks to your company. To begin, all oil and gas deals in this country are structured in a way that the private companies will only be a contractor to the country’s state-owned oil company. Ultimate control over many of the human rights issues associated with the potential project lies with the state-owned oil company, the government of the host country, and the armed forces of that nation. Gross human rights abuses by the government, primarily through its security forces, are well documented both by other nations, as well as local and international human rights groups. The country has also been ranked in many sources as one of the least transparent in the world.

Additionally, the potential drilling will take place in a remote area of the nation, which is currently populated almost exclusively by local indigenous groups. Although they are not automatically opposed to the project, they have legitimate concerns, given past actions of the government and other companies, that they will not be accorded an appropriate voice regarding the development of the project and the equitable distribution of the revenue stream from its resources. They are particularly worried about how the potential project would displace their culture and lifestyle, since the project will necessitate the massive influx of migrant labour. They are lastly worried about how the government’s military and police would respect the communal and individual rights of the people living and working in the area.

Although the proposed drilling area is not directly in an environmentally sensitive zone, a rain forest rings the proposed area, and any access to the drilling area would potentially be environmentally harmful. The host nation has pledged that any necessary environmental permits would be easily granted, and that access to the site could be achieved without violating the integrity of the rain forest or any national environmental laws. A large international non-governmental organization has already promised to launch a major campaign against any oil and gas project in the proposed area, based primarily on the potential environmental concerns, but also to preserve the heritage and lifestyle of the indigenous groups.

Your company has committed to operating within the strictures of local, national and international law in promoting respect for human rights, and also strives to be a “force for good.” The company’s human rights policy expressly commits it to adherence to the Universal Declaration of Human Rights and the Voluntary Principles on Security and Human Rights.

Potential Questions for Discussion: Identify the major stakeholders in this scenario. What are the goals of each of them? What is likely to

influence their decision-making process? How would you start conducting a human rights assessment and measuring performance for your

company? What information would you consider? How do you assess the potential impact of this project on human rights in the country? What are the concerns about the potential role of the military in this project? Can anything be done to

help lessen those concerns at all? What do the Voluntary Principles suggest should be part of any risk assessment regarding security on

a potential project? Are you concerned that a human rights inquiry could harm the company’s relationship with the host

government? If so, what can be done about that? What is your strategy for working with the host government?

In reaching out to the indigenous community, who do you seek to initiate a dialogue with? Why? How can you try to alleviate the community’s concerns?

What are the legitimate environmental concerns in this situation? If the project meets all national guidelines, are there other commitments that it needs to abide by? Should you meet with the major environmental NGO?

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What sorts of environmental and social impact assessments would you commission before going forward with this project?

How do you attempt to resolve any issues between the international environmental NGO, which may always stand against this project, and the local indigenous groups (also represented by NGOs), which may want the project to proceed?

How do you recommend most effectively building local and international community support for this project? How would you craft an effective community engagement and consultation plan?

How will you recommend to the company that it move forward in this instance? What can be done to help ensure that if the project progresses, it has a positive effect on human rights in the country?

Are there any project documents that can be drafted to help ensure this occurs? What types of documents would you suggest, and between whom?

Potential Models to Highlight: Since there are few “right” or “wrong” answers to many of these questions, perhaps one way of

demonstrating how to address these complex issues is by highlighting some real-life “best practices” programmes by IPIECA members about each of the discrete issues raised in these hypothetical.

For instance, much of this material was suggested by the two case studies BP submitted, for Tangguh and BTC. In breaking down this hypothetical into major elements (e.g., indigenous communities, stakeholder consultations, environmental issues, security and human rights, migrant labour, transparency, etc.), we could try to present ways in which responsible companies have successfully dealt with some of these same issues.

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8.2 Scenario #2 - Employment Related Issues

Ongoing issues during projectYou are the Project Manager for an exploration project that is in its initial construction phase. Your company has a policy firmly barring any form of discrimination, including by race, ethnicity, gender, age, religion, or desire to demonstrate freedom of association. The host country you are active in has basic laws protecting against discrimination, but prevents the establishment of trade unions. Your company formally adheres to the Universal Declaration of Human Rights.

The project takes place in a secular Muslim nation, although a non-Muslim contractor has won the primary bid from your company to construct the project. Many of the managers, therefore, are expatriates, who have come to the country with distinct and much needed technical skills, mostly as engineers, and they are almost entirely non-Muslim. Virtually of the unskilled sub-contractors, however, are from the local communities, and are exclusively Muslim.

You are largely happy with the work to date by the main contractor, but there have been some issues of concern raised both by the contractors and several of the local hires. In particular:

Several of the local workers have complained of the perception of unequal treatment between the expatriate managers and the local workers. Expatriate managers eat in different canteens, and the food is thought to be better there. Expatriate managers sleep two to a room, whereas local workers sleep at least four. Expatriates are allegedly paid several times what local workers make. The local workers therefore complain that your company is allowing the contractor to discriminate against the local hires. The contractor, in its defence, says there is no discrimination by nationality or anything else. Rather, the more highly skilled employees, who happen to be almost exclusively foreign workers, are being compensated for their technical skills. The local hires respond that there are plenty of technically competent local hires that haven’t been selected for these jobs. They also say that the difference in working conditions, if legal, is affecting employee morale, and therefore having a negative impact on the project’s construction.

One of the technical expatriate experts is a non-Muslim woman. Although the vast majority of local workers do not seem to have a problem with her being on the team, two of the local male workers have complained that working directly for her violates their cultural beliefs. In particular, they allege that they can’t eat in the same place as her, and they are also upset that she does not cover her head when working, or dress in formal garb. They ask if you can make her cover her head, because otherwise their religious rights are being violated. They would also like her to be transferred to a different team, where they wouldn’t con need to confront these issues directly.

After a minor accident on the construction site, several of the workers have approached the contractor, asking about starting some form of group to demand better safety standards. They are not calling it a “union” per se, but they would engage in education efforts and collective bargaining activities. The workers know that both your company and the contractor’s company allow freedom of association in other nations in which they have ongoing projects.

Potential Questions for Discussion: In each of these situations, what would your response be? Why? On the issue of differing levels of payment, is that distinction warranted? Is it based on discrimination,

or is it due to true differences in skill level? How do you make that determination? Do the contractor’s salary actions have the potential of violating either your company’s policies, or the

national law? If so, what would you suggest be done about it? Are there any other ways to respond to local concerns rather than solely through salary adjustments?

What about through revised policies on canteen use or accommodations? Since this is a contractor making these decisions, is it really your issue? Do they need to follow your

company’s code of conduct as well? On the issue of religious discomfort, how do you balance local customs and cultural issues with your

company’s, and the host nation’s, equal opportunity policy? Should consideration of the local laws and customs be part of the decision-making process? If so,

how? On the issue of freedom of association, how do you address the request from the workers? Is this truly a “union”? Does it matter? Are there any other alternatives than that suggested by the

workers?

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If the government officials launched an inquiry into the start of a union, in contravention of local laws, what would the response of the company be?

What was the process for reporting each of these concerns? Was it adequate? Does your company have safeguards in place to hear all relevant complaints, even if they’re from contractors and sub-contractors, as opposed to direct employees?

How do you recommend regularly monitoring for these types of issues? Do you have any partnerships in place with non-governmental organizations or other groups to help

address employment-related problems? If not, how would you structure one?

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8.3 Scenario #3 - Security Law Issues

Voluntary Principles on Security and Human RightsYou are Managing Director of one of your company’s operations in a foreign country with a history of documented human rights abuses. The country has also been victimized by coup attempts, and has significant security threats. The Oil Ministry asks you to utilize your company resources, including boats and personnel, to maintain a constant reconnaissance of the area near the shore, in and around your operations, for security reasons. The Ministry wants you to report immediately on any marine vessels that are unmarked, or are of unknown origin. You know that it is not unusual for some fishing and trading boats in this area to be unregistered and unmarked.

Potential Questions to Consider: What is your obligation, if any, to comply with the request? What decision-making process should your company go through in deciding upon an answer to the

request? Will you consult with any other groups in making the decision? If you comply, what should you recommend be done if an unknown marine vessel is spotted and you’re

uncertain of the boat’s intentions? What would your liability be if you chose to report the boat, and the government used excessive force

on it? Later, you discover the boat, now destroyed, was nothing more than a fishing boat from a nearby village?

How would your perspective change if you were one of the following stakeholders: o A local employee for your company? o A local non-governmental organization? o The head of the local police force? o A senior member of the host government? o A senior executive at your company’s European headquarters?

What if the Ministry has also asked you, on occasion, to lend them one of your company’s boats for an evening, because they had had an emergency and didn’t have a full flotilla available that night to protect your facilities? Does your decision-making change at all if you lend a boat directly to the government?

After a while, the security situation in the country continues to worsen. Although your company has private security forces employed, the government, which is a partner in your project, passes legislation stating that all major oil and gas projects must be protected by government forces to ensure the safety of the resources. Although you don’t want the extra government “assistance,” you begrudgingly accept it, and members of the national police have been seconded to the docks surrounding your operations, in order to protect your facilities.

The security personnel assigned to your project operate on shifts. During an off-duty period, one of the security guards has gone to the nearby village, and has a bad fight with a local man, who suffers serious but not life-threatening injuries. The local community is enraged with the actions of the security force, and demonstrates, demanding compensation from your company for the injured man, alleging that your company was indirectly employing him.

Potential Questions for Discussion: What do you do in an incident like this, particularly if your company is an adherent to the Voluntary

Principles? What sort of interactions would you suggest having with government representatives? How would you document them? If the security forces were there as a result of national legislation, do you think you have any liability

for the actions of this off-duty guard? How do you help mediate a solution, given the anger of the local community? What other stakeholders do you reach out to in future discussions? Local or international NGOs?

You have provided the armed military guards protecting your facilities with an unused warehouse on the edge of your premises, so that they can stay there, out of the way of most of the employees, but still in close proximity to their work. After the demonstrations by local villages, the military becomes quite hostile towards the local villagers. There are rumours that reach your attention that the guards are randomly picking up

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villagers for “questioning” and harassing them in the near-by town. On occasion, they may have even brought some villagers back to the warehouse to torture them. The government, however has denied any torture or other forms of human rights abuses, and the relationship between it and your company has started to sour.

Potential Questions for Discussion: How would you adequately investigate such a claim? If there was any truth to the claim, does it make the company complicit in the torture or other crimes

that may have been carried out on your company’s property? Even if it was done completely without the knowledge of your company?

What do you do in an incident like this, particularly if your company is an adherent to the Voluntary Principles?

What sort of interactions would you suggest having with government representatives? How would you document them?

The government officials do not respond well to your raising of human rights concerns, and relations become extremely strained. You continue to maintain the need to record and report on excessive use of armed forces by the government. You decide to contact representatives of your home government to seek advice and assistance in communicating with the local government about this issue. You believe that they, rather than your company, should be addressing the situation. The home government states its willingness to engage in dialogue with the local government, but asks that your company assist in the training of local security personnel.

Potential Questions for Discussion: How do you balance concerns about the abusive use of force and the need to maintain good relations

with the host government? Are you in a position to provide training to the local security personnel? What practical alternatives

could you propose, if any?

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8.4 Scenario #4 - Security Issues2

Actions by Public SecurityYou are Country Chairman of one of your company’s oil and gas operations, and an armed rebel group is active in the area. The national government rules that its own armed forces must supervise security in this area. International human rights groups have made well documented allegations that these forces have committed human rights abuses against both rebels and civilians. Although attacks by the rebel group have not yet directly affected your company, you decide that you must begin to raise your concerns about the impact of the armed security forces with the government. Your local Security Chief begins to document examples where excessive use has been made of these armed forces and you raise them regularly in your private meetings with security and other government officials. Government officials do not respond well to your concerns, and relations become strained. You continue to maintain the need to record and report on excessive use of armed forces by the government, and to ask about follow-up on cases you have discussed before. You decide to contact representatives of your home country government to seek advice and assistance in communicating with the local government about this issue. You believe that they, rather than your company, should be addressing the situation. The home country government states its willingness to engage in dialogue with the local government, and asks also that your company assist in the training of local security personnel.

Potential Questions for Discussion: How do you balance concerns about the abusive use of force and the need to maintain good relations

with the host government? The security activities of the national government do not relate directly to your company’s operations.

Have you over-stepped your responsibilities by discussing them with home government representatives?

Is your company in a position to provide training to the local security personnel? What practical alternative could you propose?

2 From Shell Human Rights Dilemmas Booklet, p.8.

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8.5 Scenario #5 - “Complicity” Issues

You are your company’s Project Manager for the construction of a pipeline in a country with numerous well-documented human rights abuses. Your company is only a minority shareholder in the project, with the national government serving as the joint venture partner and the operator. There is pressure by the lending institutions to complete the pipeline quickly, and therefore, thousands of labourers are needed to complete the project. You defer entirely to the government partner in finding the labourers for this project. Many of these labourers come from a neighbouring country, and the government has agreed to special immigration measures for them to facilitate their employment.

The workers are housed near the project, and there is a significant military presence around the worksite and the housing facilities. Workers are accompanied to the worksite by military guard, and cannot leave the housing area on their own. There are rumours that all workers had to turn over their passports to the host nation government when they started on this project.

There are also unconfirmed rumours that government soldiers helped to “clear” the path for the pipeline by intimidating villagers along the Right of Way, confiscating their property, and forcing inhabitants to work on the pipeline route. It is difficult to determine what is actually occurring, however, because the Government denies any intimidation, and no domestic human rights groups are still operating in the country. It seems certain, though, that several villages were destroyed by soldiers, but it is less clear for what purpose, or if the reasons were tied to the pipeline project.

In one particular “hot spot” area, local protesters managed to organize and stage a protest. The military, however, used helicopters leased from, and piloted by, your company, to open fire on these peaceful protestors for “security” reasons. Although no one was killed in the incident, several people were injured seriously. There were subsequent allegations that local leaders who were demanding better wage and living conditions for pipeline workers were particularly specifically targeted by the military.

Potential Questions for Discussion: Under the facts described, what is the risk that the company will be accused of being “complicit” in a

human rights violation? How would you define "complicity"? What if you had knowledge that military or police forces in the country were actively intimidating

workers who tried to bargain for greater rights? What if you or your company had knowledge, for instance, that either government forces or

contracting forces working on the pipeline engaged in violence against village populations? Or that the military forced villagers to relocate? Or if there was credible evidence that security forces raped women while their husbands were working; how would you respond?

Given your company’s business relationship with the government, what forms of effective pressure could actually be exerted on the situation?

Given the lack of civil society in the country, what other resources are at your disposal in trying to address these serious issues?

If the company were to set aside some community-targeted money in an effort to promote human rights in the country, what could it do most effectively?

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8.6 Scenario #6 - Dialogue with Local Community Representatives3

You are the Project Leader of a new gas project that is going to be built in a very remote area of a developing country. Your company is in partnership with the government-owned national energy company. You engage in a thorough consultation process, and one of the NGOs concerned develops a revenue-sharing proposal that would provide income to the local community plus a livelihood restoration process before, during and after the construction. The restoration plan is well conceived, but will add £5 million to the cost of the project, and will also substantially delay completion of the project. Your partner, the national energy company, is worried about the consequences.

Potential Questions for Discussion: How do you balance the outcome of stakeholder consultation and concern for the local community

with the need to maintain project progress and keep to a budget? What process would you use to reconcile these different goals? How much do you involve your

partner, the local energy company? What are the alternative options for implementing the livelihood restoration plan and delivering the

project?

3 From Shell Human Rights Dilemmas Booklet, p.11.

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8.7 Scenario #7 - Employment-Related Issues4

Religious Beliefs of Local EmployeesYou are the Project Leader for an exploration team of your company, and working at a remote site. The foreman working with the exploration engineers is a local employee and well respected by his local colleagues. He tells you that the local male workers are upset because two female engineers, one expatriate and one local, have been added to the team. He says the religious beliefs of the men do not permit them to work side-by-side with women. In particular, they cannot eat in the same place or share the same area of accommodation with women. He asks that these women be transferred to another project. If not, his team member will take some collective action and there is a possibility of mass resignation. This is the first time you have heard about these religious beliefs. Because of the project’s schedule, you can’t afford to lose the men or transfer the women.

Potential Questions for Discussion: How can you balance local custom and an individual’s right to work in a manner consistent with

personal religious beliefs with your company’s equal opportunity policy? [Individualize with your company’s code of conduct, which most likely stipulates that differentiated treatment based on a person’s characteristics, including religion, gender, and national origin, is prohibited.]

Should consideration of local laws and customs be part of the decision-making process? If so, how should potential conflicts between these and your company’s global policy be addressed?

What are the key points for consideration and what could you recommend that would satisfy all parties to the dispute?

How would you address the conflict with regards to your project schedule?

4 From Shell Human Rights Dilemmas Booklet, p.4.

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8.8 Scenario #8 - “Rights vs. Rights”5

You are the manager of a facility who has been told by one member of your team that another spends his lunch breaks reading a hard-core pornographic magazine in the office. The magazine has recently been in the news because of its use of explicit sexual images. It was accused of inciting a man recently convicted of rape. The team member feels this type of material should not be brought into the office. You check that the man is indeed reading the magazine and say this is not acceptable. He replies that he has the right to read what he likes during his break, and that he is not inflicting his tastes on anybody else.

Potential Questions for Discussion: What would you do now? Was the employee breaching any company discipline or relevant policy? Do you have the right to censor someone’s reading material? Is there an impact on other team members? On the work of the team? Is there any potential impact on the company’s reputation?

5 From Shell Human Rights Dilemmas Booklet, p.15.

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8.9 Scenario #9 - Activities of Local Militia

You help to oversee an asset in a nation that, while not a democracy, does not appear to be an oppressive regime. The asset is guarded by your company’s private, and unarmed, guards. However, there is a local armed militia that voluntarily patrols the area, including the docks adjacent to your asset, which has not been requested by your company. The militia claims, however, that its members are there in part to “protect” your facilities and assets. The militia appears to have good relations with the community.

Potential Questions for Discussion: Should the company be concerned about human rights concerns? If so, how does the company engage the local militia in a positive way?

During an off-duty period, one of the militia “guards” has gone to the nearby village and after drinking has had a fight with a local man. The man suffered cuts, a black eye and several broken ribs. The local community has responded to the incident by holding a demonstration against the company, which they now blame for the militia’s increased presence in the region. They demand the removal of militia personnel from the site and a large sum from the company in compensation for the injured man, and say they will continue demonstrating until these two demands are met.

Potential Questions for Discussion: Is there anything your company can do to express that it does not want the local militia security forces

outside its premises? What is your company’s responsibility toward the injured man, if any? How will you respond? What will you do if the anger of the community escalates?

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8.10 Scenario #10 - Human Trafficking

You are an employee in a foreign country with a history of undocumented human rights abuses by the military, and considered one of the worst violators in trafficking persons. As you are driving home from town one night, you are stopped at what appears to be a routine military checkpoint. You are recognized as an employee of your company, and instructed by the armed guard there to give a young woman a ride to a nightclub in a nearby town through which you must pass on your way home. The young lady, dressed very provocatively, appears to be distraught.

Potential Questions for Discussion: Should you comply with the demands of the guard regarding the woman? Assuming you comply,

what, if any, liability may your company have in this situation? What possible responses could you give to extricate yourself from the situation? On a broader level, what can your company do to help facilitate change in the country’s trafficking

conditions, without offending the host government?

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8.11 Scenario #11 - “Environmental Justice” and Human Rights

You help to oversee operations for your company in a fragile environmental area, populated by a local indigenous group (e.g., the Inuits). Although the indigenous group generally has good relations with the company, one of their community groups has launched a campaign against the company stating that it has not done enough to fight global climate change. Therefore, this group alleges that your company and the host country have violated the human rights of the local indigenous peoples by not adopting aggressive enough measures to counter global warming, resulting in negative long-term consequences to traditional fishing areas for the Inuits which has affected their livelihoods. The company does, however, follow all local and international environmental standards, and received all legal environmental permits for operation. The indigenous group threatens to launch a major campaign against the project using this concept of “environmental justice” – the disproportionate negative impacts to a particular area or group.

Potential Questions for Discussion: What should you do to address the indigenous group’s concerns? How do you address the fact that different stakeholders have different, and sometimes conflicting,

goals and perspectives (e.g., the indigenous group vs. the government)? How far should you go in engaging with the indigenous community? To what extent should you take

their concerns into account in planning future operations in the area? In this particular case, what’s the optimum solution? Is there one? More broadly, how can industry best respond to human rights concerns expressed by indigenous

groups, but posed as environmental concerns?

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8.12 Scenario #12 - Employment-Related Issues

Non-DiscriminationYou are a recent college graduate who has just been hired in your home country to work on the construction of a major new pipeline project. Although you are educated, you have only been hired for a “semi-skilled” position by the operating construction company, who says that you don’t have the background or expertise to qualify for a “skilled” job. In the course of working on the project, you discover that there are very few local hires for “skilled” positions, and that, instead, almost all such skilled jobs have been filled by expatriate workers. These expatriates are paid significantly more than you. When you complain to management, the construction company justifies the difference in salaries on the basis that the expatriate workers have a higher level of expertise than you. They are also paid an additional premium for working so far from their homes. You are also upset that the expatriate workers, who seem to have the same level of college education as you, are entitled to eat in different (and seemingly better) canteens, and have better accommodations, than you and the other local hires.

Potential Questions for Discussion: Has there been discrimination against you based on your nationality? Or, is this distinction in pay

justified due to the difference in education and expertise? What are the factors that may justify a legitimate difference in salary? How should the company structure its policies to fairly distinguish between local and expatriate hires? Should local and expatriate hires be entitled to different canteens or other forms of accommodation?

Why or why not?

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9 Appendix II – Decision-Making Tools9.1 Integrity in Action – The Decision-Making QUEST

In the foregoing scenarios, it may be helpful to employ a particular method of analyzing the dilemma, and then posing and answering questions, to ensure that the scenarios are addressed as effectively as possible by the training participants. The following “QUEST” methodology was developed by Nexen, and can be applied to these scenarios, as well as to other ethical dilemmas, in an effort to best achieve thoughtful and successful results.

Ethical dilemmas like these, which do not have clearly right and wrong answers, can be approached by embarking on a “quest” which forces us to ask key questions, look at alternatives and, ultimately, make the best choices. Ethical decisions are also frequently better business decisions. Operating your business by making choices which are consistent with your company’s mission and values is a pursuit worth taking. Below is a tool that you can use when making decisions, particularly when you are faced with ethical dilemmas. The “QUEST” model offers a path to assist you in discovering the way through challenges to ultimately make wise decisions.

QueryW 5

What is the issue?Who are the critical stakeholders?Would I or others be uncomfortable?When is a decision needed?Where can I get assistance if needed?

Unlock Ideasbrainstorm; ask others for input; ethical dilemmas are rarely an either/or situation so don’t limit yourself to the first choices that come to mind

Explore Options

consider criteria: legal, ethical, companyvalues, policies, cultural issues; weigh risks/rewards (reputation self/company; financial; legal action)

Selecta Path

that is acceptable and minimizes ethical risks (golden rule, newspaper, kids, clergy)

Take ResponsibleAction

identify and deal with any new issues that arise; reapply the model (if necessary); address potentially ongoing issues; learn from the quest

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9.2 QUEST Light

9.2.1 Questions to ask:

What is the issue?Who are the critical stakeholders?When is a decision needed?Where can I get assistance?Brainstorm ideas and options – scenario questionsSelect a pathWhat are the implications?

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