Mr. Chairman,

Today even the most abusive governments at least pay lip service to human rights principles. They respond to United Nations initiatives and to those from private organizations such as Human Rights Watch. But in an era of global business in which more and more corporations routinely do business outside their home country, many of these companies still argue that they do not bear any responsibility for human rights in the places where they trade and invest. In this context, Human Rights Watch sees the development of guidelines as a very important first-step in order to address the issue of corporate complicity in human rights violations. We see it as a complementary process to the longer-term effort to develop binding human rights standards on corporations.

Human Rights Watch believes that there is a need for binding standards to prevent corporations from having a negative impact on the enjoyment of human rights. 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 have a negative impact on the enjoyment of human rights and unless binding standards apply to all forms of corporations, there is no way to ensure that the rights of all individuals will be adequately protected. Moreover, some corporations may argue that they are at a "competitive disadvantage" because they adhere to standards that their competitors ignore. In order to counter this dynamic, we believe that standards for corporate responsibility should not be limited to those corporations that choose to adhere to them, but should require all companies to uphold the same standards.

Human Rights Watch supports the efforts by the Working Group and Professor Weissbrodt, in particular, to draft, refine and improve the Draft Universal Human Rights Guidelines for Companies. Throughout the process, Professor Weissbrodt has sought and received the input of nongovernmental organizations (NGOs), companies, multilateral organizations, and other experts. This consensus approach has strengthened the content of the Draft Guidelines and has led to a thoughtful and pragmatic document. The Sub-Commission should extend the mandate of the Working Group for another three years in order to allow the Group to continually refine these guidelines and to allow for further consultations from all of the interested parties.

The extension of its mandate would also allow the Working Group to creatively build upon Article 4(b) of its mandate that directed 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."

There is a need to build on this directive possibly by creating a forum to receive and assess information regarding corporations and the impact of their activities on the enjoyment of human rights. The Working Group could facilitate the creation of such permanent forum that would provide a venue to receive and consider information from local communities, companies, governments, NGOs, or other interested parties.

We call on the Working Group to continue to build upon its work and on the Sub-Commission to extend the Working Group's mandate. 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.