Mr. Chairman,

Today even the most abusive governments at least pay lip service to human rights principles. They respond, if at times only with empty rhetoric, to United Nations initiatives and to recommendations from private organizations such as Human Rights Watch. But in an era of globalization in which more and more corporations routinely do business outside their home countries, many companies still argue that they do not bear any responsibility for human rights in the places where they trade, invest, and operate. In this context, Human Rights Watch sees the development of the "Human Rights Principles and Responsibilities for Transnational Corporations and Other Business Enterprises" by the Working Group as a very important step in addressing complicity of multinational enterprises in human rights violations. We see this process as complementary to the longer-term effort to develop human rights standards for all corporations that are not only mandatory on paper, like the Principles, but effectively enforced and respected in practice.

Human Rights Watch believes that only when binding standards are combined with the possibility of punitive sanctions for their violators can corporations be uniformly prevented from having a negative impact on the enjoyment of human rights. In addition, such standards should not just be limited to transnational corporations but should apply to any corporation: local, national, or transnational. A company of any size can negatively affect the exercise of human rights, and unless binding standards apply to all corporations, there is no way to ensure that the rights of all individuals are adequately protected. Moreover, by requiring all corporations to uphold the same standards, corporations can no longer argue that they are at a "competitive disadvantage" because they adhere to standards that their competitors ignore. We hope that, as it makes further revisions, the Working Group will ensure that the concept of "other business enterprises," referenced in the Principles’ title as well as the text, is, indeed, construed broadly so as to apply the Principles to all companies.

Human Rights Watch supports the efforts by the Working Group and Professor Weissbrodt, in particular, to draft, refine, and improve the Principles. Throughout the process, Professor Weissbrodt has sought and received the input of nongovernmental organizations (NGOs), trade unions, companies, multilateral organizations, and other experts. This consensus approach has strengthened the content of the Principles and has led to a thoughtful and pragmatic document complementary to but not a substitute for existing international human rights instruments that apply to states. In successive revisions of the document, Professor Weissbrodt has been transparent and made the document publicly available for critique and consultations. We commend the Sub-Commission for extending the mandate (E/CN.4/SUB.2/RES/2001/3) of the Working Group for another three years, providing further opportunities for the Group to refine these Principles and consult with interested parties.

We strongly encourage the Working Group to use its renewed mandate to continue to examine ways in which it can creatively implement Article 4(a) of its mandate that directs the Working Group "[t]o examine, receive and gather information, including any working paper prepared by a member of the Sub-Commission, on the effects of the working methods and activities of transnational corporations on the enjoyment of economic, social and cultural rights and the right to development, as well as civil and political rights." Acting on this directive, the Working Group could facilitate the creation of a permanent forum, that could later evolve into a formal complaints mechanism, to receive, consider, and assess information from local communities, companies, governments, NGOs, trade unions, and other interested parties regarding corporate conduct and its impact on the enjoyment of human rights.

We also encourage the Working Group to continue to examine ways in which it can creatively implement Article 4(d) of its mandate that directs the Working Group to "[a]nalyse the possibility of establishing a monitoring mechanism in order to apply sanctions and obtain compensation for infringements committed and damage caused by transnational corporations, and contribute to the drafting of binding norms for that purpose." Although this effort should not be considered a substitute for the continued development of the Principles, it is, nonetheless, of critical importance. Binding standards on corporations are only truly binding, in practice, when corporations know, with relative certainty, that they can and will face real and significant consequences for violating those standards. Such an analysis is a crucial step towards achieving this goal.

We call on the Working Group to continue to build upon its work in order to further develop the Principles. We will continue to keep Professor Weissbrodt informed of the results of our research on the practices of corporations and their impact on the enjoyment of human rights and will continue to provide input into the Working Group.