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GENEVA (23 June 2017) –<strong> </strong>States should control
corporations across national borders to protect communities from the
negative impacts of their activities, UN human rights experts have said
in an authoritative new guidance * on the Obligations of States
parties to the International Covenant on Economic, Social and Cultural
Rights (CESCR) in the context of business activities.</p><p align="left">
“States should regulate corporations that are domiciled in their
territory and/or jurisdiction. This refers to corporations which have
their statutory seat, central administration or principal place of
business on their national territory,” the experts of the UN Committee
on Economic, Social and Cultural rights say in the guidance*,
officially termed the General Comment, published today.</p><p align="left">
In practice, the Committee expects home States of transnational
corporations to establish appropriate remedies, guaranteeing effective
access to justice for victims of business-related human rights abuses
when more than one country is involved.</p><p align="left">
In light of the practices revealed by the Panama Papers and the
Bahamas Leaks, the General Comment emphasizes that States should ensure
corporate strategies do not undermine their efforts to fully realize
the rights set out in the Covenant.</p><p align="left">
"To combat abusive tax practices by transnational corporations,
States should combat transfer pricing practices and deepen
international tax cooperation,” the guidance states. </p><p align="left">
“Lowering the rates of corporate taxes with a sole view to attracting
investors encourages a race to the bottom that ultimately undermines
the ability of all States to mobilize resources domestically to realize
Covenant rights.”</p><p align="left">
"This practice is inconsistent with the duties of the States parties
to the Covenant. Providing excessive protection to bank secrecy and
permissive rules on corporate tax may affect the ability of States where
economic activities are taking place to mobilize the maximum available
resources for the implementation of economic, social and cultural
rights.”</p><p align="left">
The new General Comment sets out what States can and must do in order
to ensure that companies do not violate rights such as the right to
food, housing, health or work, which the States themselves are bound to
respect. </p><p align="left">
“If States take seriously their duties to ensure businesses comply
with economic, social and cultural rights, markets can gradually
contribute to the aims of the Covenant. They will be more sustainable
and move societies in the right direction.</p><p align="left">Communities
will also be better protected from the negative impacts of corporate
activities where they have had the most damaging consequences, such as
in the extractive industry,” said Virginia Bràs Gomes, Chairperson of
the UN Committee on Economic, Social and Cultural rights.</p><p align="left">
The Co-Rapporteur of the General Comment, Olivier de Schutter,
emphasized: “Businesses cannot ignore that the expectations of society
are changing. The first ones to change shall be rewarded by consumers,
whose purchasing choices are increasingly driven by immaterial aspects —
the reputation of the company, and the ethical and sustainability
dimensions associated with its products.” </p><p align="left">
The experts highlighted that the issue of business and human rights
had been addressed recently in different forums, including the Human
Rights Council and the International Labour Conference, and through a
combination of tools — regulations, self-imposed codes of conduct,
economic incentives and action plans. </p><p align="left">
“These initiatives show how the field is fast-growing, and this is
welcome. It entails the risk, however, that States lose sight of what is
obligatory, as opposed to what is simply recommended as a good
practice,” added Zdzislaw Kedzia, the Vice-Chair of the UN Committee on
Economic, Social and Cultural rights. </p><p align="left">
“It also may be tempting for States to seek refuge behind the
initiatives taken by the corporate sector, rather than adopting the
appropriate regulatory and policy initiatives that they must adopt. Our
General Comment seeks to recall their obligations under the Covenant
and define the role they must assume in regulating corporate conduct.” </p><p align="left">
ENDS</p><p align="left">
For media requests please contact:
Nicoleta Panta, +41(0) 22 9179310/<a href="mailto:9179310/npanta@ohchr.org">npanta@ohchr.org </a></p><p align="left">
<strong>Background </strong></p><p align="left">
* The General Comment provides guidance for the 165 States parties to
the Covenant and defines their duties based on the experience gained by
the Committee in the examination of State reports since 30 years. </p><p align="left">
The adoption of the General Comment followed a widespread
consultation with States, academic research institutes and civil society
organisations, as well as international organisations such as the
Council of Europe and the International Labour Organisation.</p><p align="left">
Read the General Comment <a href="http://tbinternet.ohchr.org/_layouts/treatybodyexternal/Download.aspx?symbolno=E/C.12/GC/24&Lang=en">here</a>.</p><p align="left">
Members of the Committee on Economic, Social and Cultural Rights are
independent human rights experts drawn from around the world, who serve
in their personal capacity and not as representatives of States
parties. The Committee’s concluding observations are an independent
assessment of States’ compliance with their human rights obligations
under the treaty. More information: <a href="http://www.ohchr.org/en/hrbodies/cescr/pages/cescrindex.aspx">http://www.ohchr.org/en/hrbodies/cescr/pages/cescrindex.aspx</a> </p><p align="left">
Tag and share: Twitter: @UNHumanRights and Facebook: unitednationshumanrights</p><p align="left">
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rights today. #Standup4humanrights and visit the web page at <a href="http://www.standup4humanrights.org/">http://www.standup4humanrights.org</a></p></div></span></div></div>