FTSE 100-listed Vedanta’s plan to mine bauxite in the sacred mountains of the Dongria Kondh in Orissa, India, is fast becoming a cause célèbre of the business and human rights world. The Joseph Rowntree Foundation is the most recent investor to dump Vedanta’s shares over human rights concerns, following the Church of England and the Norwegian government. Even Bianca Jagger has weighed into the debate, calling on a remaining number of ‘UK county councils, including four London boroughs and state pension funds’ to sell their shares in the company.
The latest development in this ongoing battle reveals that the company has rejected a British government investigation into its planned mine in Orissa, India, by labelling government calls for a change in its corporate behaviour ‘one-sided’, and urging it to ‘rest the case’.
There is no doubt that the mechanisms available to hold business to account for human rights infringements remain frustratingly weak. However, some progress is being made through, for example, the current review of the OECD Guidelines for Multi-nationals. In addition, John Ruggie is making good strides in his role as Special Representative of the UN Secretary General for Business and Human Rights, The ongoing pilot of his human rights framework ‘Protect, Respect and Remedy’ suggests that there is a stiffening of resolve and a hardening of intentions, which will result in less room for business to wriggle free of its responsibilities. It will take more than Bianca Jagger and the Joseph Rowntree Foundation to bring Vedanta to justice, but perhaps Verdanta’s latest snub to the UK government’s report on this case will be just the catalyst the government needs to put this resolve to the test.
Cocoa farmers announce first programmes with Fairtrade Social Premium
On March 1, Cadbury Dairy Milk announced the investment plans for its first Fairtrade social premium to cocoa farmers in Ghana following its move to be the first mainstream confectioner to carry the Fairtrade Mark. The first instalment of £500,000 will go directly into projects determined by the farmers themselves since receiving the funds. The programmes include building wells and mobile health clinics and funding for carbon reduction schemes. Alongside the community investment, the money is also being used to fund farmer training, incentives and provision of tools. Cadbury Dairy Milk marked Fairtrade Fortnight in the UK and Ireland (22nd February – 7th March) by announcing that another of its brands, Cadbury Dairy Milk Buttons, has been certified to carry the Fairtrade Mark. The move to Fairtrade supports the Cadbury Cocoa Partnership, which is investing £45 million over a ten year period to secure sustainable cocoa farming in Ghana, India, South East Asia and the Caribbean, where the cocoa farming industry is facing increasing challenges. Contact: Cadbury www.cadbury.co.uk
Marks and Spencers and Asda George raise wages in Bangadesh
At a specially convened all-members’ Action Forum on Wages, organized by the Ethical Trade Initiative, M&S and Asda George shared their respective experiences of working with the German development organisation GTZ to pioneer holistic approaches to increasing workers’ wages. Activities included introducing new lean manufacturing techniques, training for managers on productivity and human resource management, and training for workers on their rights. As well as reporting higher wages and reduced overtime, both companies said that the working environment in the factories concerned is much improved, with supervisors and middle managers showing greater respect for workers. Business benefits for the suppliers concerned included a significant increase in productivity, accompanied by a marked reduction in grievance handling, absenteeism and staff turnover. Contact: Ethical Trade Initiative www.ethicaltrade.org
Vedanta Resources snubs British government and looses shareholders
On 12 March, the UK government released its final review of the investigation into Vedanta’s planned mine in Orissa, India, based on reports from both Survival and Vedanta. The mining company has attracted a torrent of recent criticism, from Amnesty International, the Church of England and the Joseph Rowntree Charitable Trust (who sold its shares in the company in February). The government’s National Contact Point review concluded that Vedanta had ‘failed to respect the human rights’ of the Dongria Kondh, whose sacred mountain Vedanta wishes to mine. The NCP concluded that a change in the company’s behaviour was ‘essential’. Vedanta, however, has simply asserted, ‘Vedanta wishes to make clear that it does not accept the UK NCP’s conclusions. Vedanta considers the UK NCP’s criticisms both inaccurate and inappropriate’. Neither Vedanta nor the Orissa government have consulted the Dongria Kondh people about the mine planned for their sacred mountain. Contact: Survival International www.survivalinternational.org
Shell can improve impacts in the Niger Delta, says new report
A new report published in February argues that the Shell can and should take both prompt and longer-term action to reduce the negative social and environmental impacts of its operations in the Niger Delta. The report, Shell in the Niger Delta: A Framework for Change, published by the Ecumenical Council for Corporate Responsibility (ECCR), considers how the operations of Shell’s Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), affect the human rights and living conditions of Niger Delta communities. The report contains ten concluding recommendations for Shell, including a greater respect for principles of open dialogue and community consent, and linking senior staff remuneration to progress on human rights and environmental issues. More specific suggestions include the need to end to gas flaring and to provision of sustainable drinking water for communities. Contact: Ecumenical Council for Corporate Responsibility www.eccr.org.uk
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