Human rights compliance programmes in the Technology sector

The risk of adverse environmental, social or human rights impacts is one that Technology businesses will be familiar with.

According to the Sustainability Accounting Standards Board, the financially material sustainability issues arising across the 6 Technology-related industries include energy management, water & wastewater management, waste & hazardous materials management, privacy & data security, labour practices, health & safety, diversity & inclusion, product design & lifecycle management, materials sourcing and anti-competitive behaviour. All of these issues have the potential to create adverse human rights impacts.

Common human rights issues that can arise in the Technology sector include, for example:

• Misuse of personal data
• Impacts on freedom of expression and unauthorised access to data, especially in connection with requests from governments
• Hate speech and online abuse
• Labour exploitation and modern slavery in the production of hardware and devices, including use of forced and child labour, abuse of migrant labour, gender discrimination, working hours, freedom of association
• Health, safety and working practices
• Sourcing of conflict minerals

Despite the varied nature of business activities, supply chains and relationships in the Technology sector, common examples of factors that can elevate these risks include, for example:

• Lack of transparency around the handling and use of personal data
• Inadequate policies and risk processes to deal with impacts on users caused by new technologies and/or algorithm based services, e.g. targeted political advertising or automated decision making
• Lack of transparency around the policing of online content
• Government requests for user data or to restrict online content
• Sourcing minerals from or component production in high risk, conflict and post-conflict areas
• Artisanal or small-scale mining
• Manufacturing and production in countries with inadequate labour protections or non-compliance with international labour standards
• Short lead times on orders or rapid changes to deadlines

Historically, drivers for human rights due diligence have included reputation risk and compliance with best practice and “soft-law” standards. However, the global legal landscape is evolving rapidly and human rights due diligence is a regulatory requirement in a growing number of jurisdictions with a focus on identifying, mitigating and reporting on human rights risks. Mainstream investors’ expectations are converging around a number of common elements in human rights compliance programmes, namely:

• A policy commitment to respect internationally recognised human rights
• Human rights governance structures
• Human rights due diligence and risk assessment processes
• Disclosure and reporting
• Effective grievance mechanisms

The anti-corruption and business human rights agendas both seek to drive attitudes and behaviours that create a rights-respecting culture of integrity – these fundamental objectives are the same and merit integration where possible, appreciating that this may require something of an expanded focus from risks to the business to risks to people. The business benefits of doing so are many, from ensuring a holistic understanding of both types of risk, to making efficient use of compliance budgets and guarding against due diligence fatigue.

Access a copy of our article here outlining some of the points of alignment between the two agendas.