Memorandum submitted by BP
INTRODUCTION
1. National governments and international
law provide the ultimate protection of human rights—and
their definition. Business cannot supplant this role. The duty
of national and international companies alike is to comply fully
with the legal and constitutional frameworks which governments
have established. For international companies, the responsibility
is wider, since we operate across jurisdictions and in countries
with varying levels of respect for human rights. BP freely acknowledges
that, in the conduct of our business, we must always have regard
to the human rights impact of our activities. This entails acting
in a manner which respects the human rights of those who are involved
and affected by our business activities, including those who work
for us and the communities and countries in which we operate.
2. In this submission, BP will provide details
of how we put this into practice, and especially the way in which,
through a variety of mechanisms, we incorporate human rights considerations
within our business activities.
PROCESSES
3. It was lessons learnt in Colombia which
provided BP with the impetus for a wider consideration of the
impact of our business upon human rights. In the mid 1990s, we
were criticised for alleged acts of wrongdoing relating to security
issues in Colombia. Following our own and independent investigations,
it was concluded that there was no basis to the allegations made
of inappropriate ties between BP and illegal paramilitary groups.
However, spurred by this experience, we took a number of steps
to develop internal 'process' with the intention of ensuring that
considerations of human rights are embedded within our business
practice.
4. Thus, BP's objective is now always to
incorporate human rights requirements within processes and policies
governing all business activity, including the behavioural expectations
of those who work for the company. The main elements of this broad
framework include the need for clear policy positions which are
articulated and backed-up by supporting developed processes; for
ensuring that human rights requirements are enshrined in third
party procurement and contracts, particularly in high risk areas;
and for the provision of independent monitoring, assurance and
reporting techniques.
A. Clear policy positions and processes
5. Some years ago BP communicated, through
a Human Rights Guidance note to staff, our clear support for the
Universal Declaration on Human Rights and our expectations on
how these should be enforced in our operations—specifically
in relation to employees, communities and in the provision of
security. We have since embedded our commitment to respect human
rights through various policies and practices.
6. For example, BP's code of conduct outlines
our commitment to fair employment and equal employment opportunity,
and to the provision of a safe and secure work environment; and
expresses our commitment to engage in open and transparent dialogue
and consultation with communities and other representatives of
civil society. We also make a very explicit statement against
the use of child labour and forced and compulsory labour. The
code establishes principles for business conduct applicable throughout
the Group, regardless of location. Where differences exist as
the result of local customs, norms, laws or regulations, we apply
either the code or local requirements—whichever sets the
highest standard of behaviour. This Code is strictly enforced
and employees are provided with a mechanism to report confidentially
breaches of the Code
7. Additionally, we are in the process of
developing a new Group practice applicable to all major new projects
with the aim of including social factors (along with environmental,
cultural and historical factors) in the screening of major project
risks. This new practice includes requirements to consider questions
such as the provision of security, the rights of indigenous peoples,
involuntary resettlement and worker welfare and items related
to natural resource rights or environmental justice, such as water.
Several new projects have used these social indicators when screening
for environmental and social risks. The findings have helped projects
to identify the most important social and environmental risks
when performing the impact assessments. By embedding the new screening
requirements within our Operating Management System, we are reinforcing
our commitment to ensure such issues are considered, along with
technical risks, from the very early stages of planning a project.
This new practice emphasises that reviewing and mitigating social
risks is an important issue for us and our stakeholders.
B. Third Party Procurement and Contracts,
particularly in high risk areas
8. Considerations of human rights also inform
our relationship with third parties (including Government and
Security Forces, suppliers and business partners), particularly
where we believe such considerations help to reduce a significant
business operating risk either to BP's reputation or through potential
project delays. Also, our ability to influence such third parties
can have a direct and indirect effect of improving the overall
human rights situation in these areas. The most relevant third
party arrangements relevant to this debate are provisions in certain
major projects agreements; the supplier procurement process; and
in the provision of security.
9. Several of BP's significant investment
agreements include provisions on human rights. For example, the
bilateral security protocol for our operations in Azerbaijan ensures
that the Universal Declaration of Human Rights, the United Nations
Code of Conduct for law enforcement officials, and the United
Nations basic principles on the use of force and firearms by law
enforcement officials are part of the legal framework for our
Azeri-Chirag-Gunashli oil project, the Shah Deniz gas project,
the South Caucasus gas pipeline and the Baku-Tbilisi-Ceyhan pipeline.
10. We have also agreed with the Government
of Azerbaijan that this bilateral security protocol will extend
the application of the Voluntary Principles on Security and Human
Rights to all the assets there for future operations. At the Tangguh
LNG project in Indonesia, a commitment to follow human rights
principles and procedures which are consistent with the Voluntary
Principles is included in the Joint Security Guidelines, an agreement
signed with the Papuan police. Similar commitments are included
in the formal agreements with the Colombian Ministry of Defence
in the Exploration and Production Project in Casanare, Colombia.
11. In the supply and procurement area,
we are currently working towards the development of more common
processes for assessing suppliers and qualifying them to work
with us. This is intended to cover issues relating to human rights
as well as employment conditions and diversity.
12. This process is informed by our experience
in China where we have already begun to screen potential suppliers
to examine their human rights practices. Companies under consideration
as potential suppliers are sent questionnaires which cover working
conditions. In 2008, we audited 25 potential suppliers and
rejected five for social compliance or safety issues. The principles
and practices learned in China have been incorporated in a global
common sourcing process which, starting this year, will be implemented
across BP.
13. The provision of security is one of
the most challenging and sensitive areas. In 2000, BP joined other
leading oil, gas and mining companies, non-governmental organizations
and the US and UK Governments in developing the Voluntary Principles
on Security and Human Rights. BP was one of the founding members
of the Voluntary Principles and we have gained experience in putting
these principles into practice in several of our major operations
and projects. This includes risk assessment exercises in Algeria,
contracting with private security providers in Georgia, supporting
human rights training for public security in Azerbaijan and internal
audit of Voluntary Principles management practice in Colombia.
14. At the end of 2008, we codified this
experience in the BP's Voluntary Principles Implementation Guideline.
This aims to make implementation more effective and consistent
by providing practical tools for businesses and by integrating
guidance as much as possible into BP's management systems. The
guideline, which consists of seven elements addressing risk identification,
mitigation, performance evaluation and improvement, has been made
available on BP's website as dynamic content that will be updated
and improved periodically.
C. Independent monitoring, assurance and reporting.
15. Often, an external perspective of our
performance enhances credibility and demonstrates to external
stakeholders the extent to which we are seeking to manage risks
such as human rights. In that regard, BP has occasionally sought
the help of independent experts to provide scrutiny and advice
on projects with complex environmental, economic and social issues.
16. In Indonesia, for example, the Tangguh
Independent Advisory Panel (TIAP), chaired by former US Senator
George Mitchell, published last year its sixth report on the non-commercial
aspects of the Tangguh liquefied natural gas project in West Papua,
Indonesia. TIAP's reports have provided advice on the Project's
impacts on the local community and environment, including such
topics as security, employment, education and health. In the 2008 report,
TIAP noted that, in respect of most of those Papuans affected
by it, support for the project remained strong. It said that residents
of villages who have been resettled in new locations are benefiting
from new homes, employment, better health and education. Other
directly affected villages have also benefited. However, there
was criticism of the Project's programmes as villagers adjusted
to changes affecting their traditional fishing economy and in-migration
to the villages.
17. A human rights risk or impact assessment
may also become necessary when a project occurs in a particularly
challenging environment, especially when, for example, there have
been allegations of human rights abuses either by state or non
state actors; or where the project's impact on the indigenous
population is high because of fundamental issues such as involuntary
re-settlement or because of increased contact with the outside
world. BP considered such an exercise necessary prior to the start
of construction in Tangguh. The results of the study conducted
in association with leading US human rights experts provided insight
into the human rights related impacts (such as specific indigenous,
labour and security issues) which the project needed to address
and ameliorate so as to create benefit for the local community.
The subsequent BP project development was shaped to take the findings
into consideration and the TIAP report mentioned above referred
to the positive progress.
CONCLUSION AND
FUTURE PRIORITIES
18. First, we acknowledge the work of Professor
John Ruggie, UN Special Representative of the Secretary-General
for Business & Human Rights. We supported the initial phase
of his work by seconding one of our staff to support his research
effort. He has helped to bring clarity to this contentious issue
which previously had been characterised by sharply divided opinions
on the scope, scale and accountability of business in the matter
of human rights. We support him in his continuing task, and we
re-iterate his assertion that it is the State which has a duty
to protect citizens against human rights abuses by third parties,
including corporations.
19. There will always be a sensitive line
between the role of business in respecting human rights, and the
role of home and host governments in defining and enforcing them,
particularly for companies like BP which operate in multiple jurisdictions.
Consistent with our support for the Universal Declaration on Human
Rights, BP insists upon a framework of ethical practice (embracing
a respect for human rights) in all our business activities, and
including those conducted indirectly on our behalf. However, as
a business, we must be cautious of imposing BP's standards upon
activities outside our legitimate sphere of control. Our best
contribution is to lead by example through rigorous enforcement
of our internal code in all our external interactions.
20. We believe firmly that voluntary, multi-stakeholder
efforts are the most effective means of promoting positive change
in human rights practices at the operating level. While legislation
has a role, the engagement of all stakeholders is essential if
a genuine improvement in human rights standards is to be achieved.
21. We also believe that further development
of the Voluntary Principles is required. This initiative is already
having success, both in term of the number of companies engaged
and in finalising the rules of governance. Key governmental support
and encouragement should also be given to finalising performance
and reporting criteria so that companies are held accountable
to their obligations under the initiative.
22. A primary requirement for business is
to demonstrate a transparent and rigorous internal process embedding
the protection and enhancement of human rights, including mechanisms
for redress, in all its operations. Such a process will serve
in the long term to both protect and enhance the general well-being
of the communities in which business operates—including
their civil and human rights.
23. BP's goal is to make a positive difference
in the societies in which we operate through genuine partnerships
that seek to create mutual advantage. Ultimately it is our ability
to engage with local stakeholders, including governments, which
enable us to create an opportunity for improvement. Such dialogue,
supported by our strong internal process, is the most effective
way of enabling business to contribute as a progressive force
towards a wider and higher acceptance of human rights in all areas
applicable to economic development.
30 April 2009
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