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Human rights risks and business
Companies should be concerned with their connection to, and possible tacit endorsement of, the government’s human rights record. It’s critically important for acompany to investigate, understand, and act on facts that might pose real risks to it and its stakeholders in order to ensure that it addresses those risks.
In most countries, poor human rights practicesare related to activities of rebel groups or cultural traditions. For this reason is necessary to distinguish between those governments that endorse and perpetuate human rights violations throughtheir laws and practices and ineffective governments, where the government acknowledges and respects human rights but is unable or unwilling to fully secure them.
For example, in both Malawi and SaudiArabia women face discrimination. But whilst in Malawi, gender discrimination is endemic to the culture; the government has taken legal steps to secure and uphold women’s equality, and is generallysupportive of initiatives to enable women to secure their rights. In Saudi Arabia, gender discrimination is also generally practised, but it is sanctioned by the state and reinforced in law andgovernmental programs.
Indirect connection
Situations when companies may contribute to human rights violations indirectly, that means without perpetuating them. This includes for example companies investingin the developing world, may have an indirect connection or perceived to be involved in human rights violations if child labour is encountered in supplier factories.
Core business:
The companymight be indirectly connected to violations through dealing in strategic commodities like oil or other natural resources subject to power conflicts. Or the company might unwittingly undertake an operationfor an abusive government, such as providing public utilities which the regime only offers to members of a dominant ethnic group.

Business network:
Companies should be wary of possible indirect...