“With Power Comes Responsibility”: Amnesty Chair Mario Santos talks Human Rights Due Diligence for boards
Human rights should be part of every board’s due diligence process. That’s the message from when we sat down with Mario Santos, the Chair of Amnesty International Australia, and FDI alum. But for the grittier details, read FDI Founder Paul Smith and Mario’s wide-ranging conversation below to learn more about the state of human rights today and how we can all take action from the boardroom, to make a positive impact on the world.
Mario is an international non-executive director, board chair and facilitator.
Currently the Chair of Amnesty International Australia, he leads a diverse and high-performing board on a journey of continuous improvement.
Future Directors Founder & CEO
PS: Human Rights. You’d think we’d gotten there already, but what’s the state of play?
MS: Sadly, not the best. We operate in a world of increasing complexity and the challenges to human rights are substantial, including some that are existential for humanity. Climate change is already impacting individuals and communities everywhere, affecting the most disadvantaged people disproportionately. Globalisation has generated unprecedented wealth but also growing inequality within and between states, including endemic poverty in parts of the world. Developments in digital and biological technology are bringing new possibilities to the way we live, but the technology is often deployed to subvert civil and political freedoms. Strongman leadership fosters division, discrimination and oppression of minorities and vulnerable groups and individuals. At an inter-state level we are seeing increasing levels of conflict and a shift of power to the East. And the power of multinational corporations continues to grow, in many cases surpassing that of the states in which they operate.
“In the midst of all that, human rights around the world are under attack, injustice is on the rise, lives are at risk, and entire communities and cultures face threats to their existence. But people movements against abuses of power and the resulting intersecting forms of exclusion are also on the rise and are not going away any time soon.”
In the midst of all that, human rights around the world are under attack, injustice is on the rise, lives are at risk, and entire communities and cultures face threats to their existence. But people movements against abuses of power and the resulting intersecting forms of exclusion are also on the rise and are not going away any time soon.
PS: Could you unpack climate change a little more, and the link between it and human rights abuses?
MS: I see them as one and the same. Quite apart from the fact that the right to a clean, healthy and sustainable environment is a recognised human right in itself, damaging the environment results in adverse human rights impacts every time. When water sources are contaminated, when forests disappear, when fish stocks are depleted, and when temperatures rise, the human rights to health, to a decent standard of living, to housing, to one’s own culture, to be free from discrimination and in many cases to life, to name a few, are all compromised.
PS: Ok, so far from resolved and only getting more complex. In that context, how does Amnesty help navigate these complex systems to achieve better outcomes for people most vulnerable to human rights injustices?
Amnesty’s role is to stand with those at the receiving end of injustice and human rights abuses. As a global movement of more than 10 million people in more than 150 countries, we campaign to prevent and end abuses of human rights. We expose human rights violations wherever they occur, mobilise supporters from all over the world, engage with those who have the power to make the changes we need, and hold to account those responsible for human rights violations. Amnesty is the largest and most democratic human rights organisation in the world and our vision is of a world in which all persons enjoy all human rights. There is no human rights issue that we don’t work on.
We call on governments and multilateral institutions to ensure that all corporations are required by law to take steps to identify, prevent and address human rights abuses (human rights due diligence, of which more below). We campaign for corporations to be held to account for the abuses they commit, for people whose rights have been abused to be able to access justice and remedy, and for the law to operate across borders where relevant.
PS: You mentioned engaging those with power to address human rights violations. I’m interested in knowing what you think the power of organisations and corporations is, in this mission?
“The majority of the top economies in the world are corporations, not countries. Individuals at the top of those corporations therefore hold immense power. “
MS: The majority of the top economies in the world are corporations, not countries. Individuals at the top of those corporations therefore hold immense power. They contribute to the improvement of living conditions of people around the world, but they are also capable of causing considerable harm. Most if not all the actions of corporations impact someone’s human rights, be it their employees, customers, or people within the communities in which they or their suppliers operate. It would be hard to come up with a human right that can not be impacted by their actions or inactions.
PS: What kind of frameworks or guidelines exists that help organisations integrate human rights considerations into their overall business strategy and decision-making processes?
MS: A proliferation of instruments have been developed over time to address business and human rights issues. The United Nations Guiding Principles on Business and Human Rights is the best known and it applies to all businesses and sectors everywhere. There are also sector-specific instruments, such as the Equator Principles for the finance sector, and individual companies’ guidelines, policies and processes. All of those instruments provide invaluable guidance. But they’re all voluntary.
It’s easier to ensure respect for human rights when there is legislation setting out clear expectations for CEOs and board directors. While there is existing legislation in some jurisdictions dealing with the human rights responsibilities of businesses, such as the UK and Australia’s Modern Slavery Acts, most focus on reporting obligations solely, which is a step in the right direction but it is just that, a step. More encouraging is the recent trend for legislation focused on mandatory human rights due diligence, particularly in Europe, where France, Norway and Germany have already enacted legislation, and there is an EU-wide proposal going to the European Parliament later this year. Mandatory due diligence requirements send a clear message to business leaders that they have a responsibility to protect and respect human rights in their operations, including their supply chain, and thus will be more effective than mere reporting in preventing abuses and protecting people’s rights.
PS: The carrot and stick approach. Once something is mandatory, we turn to compliance. What are the other trends and influences that are helping to push forward good governance with regard to human rights?
MS: The primacy of shareholder interest is also an important consideration, given its pivotal role in the way corporations originated and continue to be regulated. While boards may have a focus on shareholder interest, societal and increasingly legal expectations make it impossible to justify a narrow interpretation that excludes the impact on the lives of individuals and communities where businesses operate. The 2019 Business Roundtable (US association of CEOs) put it well when they stated that “companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers and support the communities in which they operate.”
“Human rights due diligence is key to identify, prevent, mitigate and account for actual and potential adverse human rights impacts. It needs to be adequately resourced and be elevated to the board through high level reporting and time allocated at meetings”
PS: So, let’s get practical. There are large corporations that might be well-equipped and resourced to address human rights. And there are medium to small organisations with a lot of desire but not a lot of focus. So what can they, and in particular, their boards, do to bring this into focus?
MS: Human rights due diligence is key to identify, prevent, mitigate and account for actual and potential adverse human rights impacts. It needs to be adequately resourced and be elevated to the board through high level reporting and time allocated at meetings. Meaningful stakeholder engagement, particularly of those most impacted by the actions or inactions of the organisation, is a crucial part of due diligence. It is also an opportunity to bring the voices of the community and people with lived experience into the boardroom.
At a minimum, it needs to include:
Identification and assessment of actual or potential adverse human rights impacts through the actions or inactions of the corporation and actors within its supply chain.
Integration of any findings across relevant company processes and action to prevent, mitigate, stop and remedy when relevant any adverse impacts.
Evaluation of measures and processes to address adverse human rights impacts.
Meaningful stakeholder engagement.
Human rights diligence may require an investment in internal and external resources. It’s been argued that such an investment may be too much of a burden in challenging times for corporations. But there’s a bigger picture at play here. It’s key for board directors to ensure that their business model does not depend on violating human rights or turning a blind eye to issues within their supply chain, such as child labour, slavery, depletion of natural resources beyond sustainability levels and/or contamination of the air that we breathe and the water that we drink.
PS: And bringing it down to an even smaller level, what else can individual board directors and other business leaders do to support human rights?
MS: Contribute to public discourse. While business leaders in the public discourse obviously have direct responsibility for the human rights impacts of their businesses, they also have a role to play engaging publicly and in the community with human rights issues regardless of their company’s area of influence.
In cases when their business has caused adverse human rights impacts or has the potential to do so, it is obviously right for CEOs and board directors to ensure the business prevents, mitigates and if relevant remedies any impacts. It is also an opportunity to engage with the issue publicly and in the community, allowing for any privacy or confidentiality considerations.
Additionally, CEOs and board directors have a public role to play on human rights issues when there isn’t a direct connection to their company’s operations but there are bigger societal implications.
PS: And, your final thoughts for Business Leaders and the Governance Community?
“Desmon Tutu’s famous quote, “if you are neutral in situations of injustice, you have chosen the side of the oppressor”, applies to business leaders as much as anyone else, and possibly more given the platform they enjoy and the power they hold.”
MS: People at the helm of corporations hold immense power and with that power comes responsibility, not only towards shareholders but also towards the communities in which they operate. Part of that responsibility is ensuring that human rights due diligence is resourced and elevated to the board.
Contributing to the public discourse on human rights issues is also important. Desmon Tutu’s famous quote, “if you are neutral in situations of injustice, you have chosen the side of the oppressor”, applies to business leaders as much
as anyone else, and possibly more given the platform they have and the power they hold.
Mario Santos is a long-time friend, Alum, and sounding board for the Future Directors Institute. He’s an international non-executive director, board chair and facilitator whose career spans four continents and multiple fields, illustrating his lifelong passion for purpose-driven organisations.
You can find out more about Amnesty International Australia here.
If you’d like to contribute your thoughts and expertise to the FDI community, reach out to us at hello@futuredirectors.com