Companies with a “high degree of respect” for human rights have more sustainable business models, according to the European Union (EU) Delegation to the Philippines.
Alongside governments and civil society, Luc Véron, EU Ambassador to the Philippines, stressed that business plays a “significant” role in promoting human rights. In fact, the EU envoy stressed that he encountered investors who believe that human rights, when unprotected, could be a “business inhibitor.”
“Sometimes we hear that human rights advocacy would stand in the way of trade and investment. Nothing could be more wrong. I have met many investors who confided that poor governance and sub-par access to justice, a context in which individual and collective rights are ignored or insufficiently protected, is one of the most powerful business inhibitors. In other words, human rights is good for business,” Véron said at a recent conference organized by the Delegation of the EU in the Philippines in celebration of Human Rights Day last week.
The EU envoy emphasized that there is “clear reputational benefit” for companies that comply with the international human rights and environmental standards. Moreover, Véron stressed that for most companies, brand value is among their most important assets and human rights violations could taint that value.
In a news statement issued on Monday, the EU Delegation of the European Union to the Philippines said, “The European Union supports the international approach outlined in the 2011 UN Guiding Principles on Business and Human Rights, which stresses that not only states have the duty to protect human rights, but companies also have the responsibility to respect them, including in their global supply chains.”
For his part, Philipp Dupuis, Minister Counselor and Head of the Trade Section at the EU Delegation to the Philippines, highlighted that, “Nowadays, a company that tolerates human rights violations in its operations, whose business model even relies on, for example, forced labor, is not a sustainable business.”
The EU has been vocal in their criticism against the Philippines due to its alleged human rights violations and suppression of freedom. Compliance with international conventions on human rights, labor, environment and good governance is a “major criteria” for a beneficiary of the EU-Generalised Scheme of Preferences Plus (GSP+) scheme.
According to the Department of Trade and Industry (DTI) the EU-GSP+ is set to expire in December 2023.
Last week, President Ferdinand R. Marcos Jr. said he hopes the country’s human rights compliance will not affect its status under the EU GSP+. The President made the remark after the EU threatened to remove the country’s trade privilege in February for its alleged human rights and press freedom violations.
Marcos said he would bring up the matter during his meetings with the European Commission, the European Council and the European Parliament.
In February, the European Parliament reiterated that human rights abuses persist under the administration of former President Rodrigo R. Duterte and called on the European Commission to “immediately initiate the procedure which could lead to the temporary withdrawal of the GSP+ preferences if there is no substantial improvement and willingness to cooperate on the part of the Philippine authorities.”
Meanwhile, Signe Elneff Poulsen, Human Rights Adviser at the UN Resident Coordinator’s Office said at the conference hosted by the EU Delegation that the adoption of a National Action Plan for Business and Human Rights in the Philippines would be a “critical milestone.”
“Only through joint action by all—including the United Nations, governments, human rights defenders, labor unions and other civil society actors and by leveraging the influence of business committed to advancing human rights do we have the best chance at tackling urgent global challenges and achieving a more sustainable future for all,” Poulsen said.
