Tata, IOC in global list of cos with human rights policy

New Delhi: Having a stated human rights policy is no longer a matter of choice, but a business imperative for an increasing number of companies around the world. And in the Indian context, it’s just right that two of the country’s largest and respected companies—the Tata Group and Indian Oil—have made it to the list of 270 companies worldwide to have adopted a human rights policy statement, according to a report released at a recent UN business summit in the US.

“Companies everywhere are realising that human rights are core business concerns. It’s about putting people at the centre of what businesses do. It’s about the social sustainability of markets and enterprises. This understanding builds on a longstanding tradition in the relationship between business and communities in India,” says John G Ruggie, special representative of UN secretary-general for business and human rights.

Explaining the rationale behind having a written policy, VC Agrawal, director (Human Resources), Indian Oil & director-in-charge (IBP division), says, “It’s helpful to have a written human rights policy in today’s world because human beings are now increasingly being seen as central to business, and everything flows from a policy.”

Ruggie was the star speaker at the UN Global Compact Leaders Summit, which was attended by representatives from over 1,000 businesses and saw high profile NGOs—Realising Rights and the Business & Human Rights Resource Centre—share the list of companies having a human rights policy. The UN Global Compact is a public-private initiative, which encourages companies to commit to sustainability and corporate citizenship by adhering to its principles on human rights, labour, environment and anti-corruption.

Recent problems like those in land acquisition have highlighted the need for businesses to look into human rights aspects. And even the Tata Group, despite its long track record of corporate social responsibility, was the target of public ire in Singur, West Bengal, over land acquisition, which finally led to its group company Tata Motors abandon the Nano project and shift to Gujarat. “Companies are realising that they not only have to respect human rights, but also demonstrate it. If businesses have to grow, they cannot operate in their own islands of prosperity amidst deprived population. If they do so, it can lead to a backlash,” says Uddesh Kohli, a special adviser to the UN Global Compact.

Delays over land acquisition alone can derail investment of about $100 billion, estimates industry chamber Assocham....