Q. We are a large international company with over 50,000 employees scattered around the globe. Operating in so many countries, I dread a question about human rights abuses at our upcoming AGM. What can I do to prepare for it?
A. Does your company have a policy on human rights? Or indeed a code of conduct of any kind? If not, then I suggest that you create one as soon as possible and let as many line managers as you can look at the draft and comment on it. Their views, and those of your board of directors, should be compiled into the eventual statement. Then make sure your chairman is well briefed on what countries are currently on the human rights abuse watch list (have a look at www.hrw.org) and what the status is of your operations in those countries.
Of course human rights abuses occur everywhere, and include labor relations at home as well as child labor in the Far East. The subject is a veritable minefield, and you should seek professional advice.
Consultancies that specialize in this area are now starting to emerge; in the UK one such is Good Business, run by Steve Hilton and Giles Gibbons. You could have a look at their web site (www.goodbusiness.co.uk) or even engage their services, but a first step and perhaps a cheaper alternative might be to buy their new book, published in May 2002. It’s also called Good Business, published by Texere. The book puts global capitalism on trial, so to speak, but then speaks for the defense, showing how large corporations can improve human rights.
Q. I know China is supposed to have a long history of human rights abuse but we are planning a major initiative there and don’t want the positive aspects of this to be obliterated by a torrent of criticism about our involvement in the country. How can we avoid this?
A. If your company has navigated its way to a major business deal in the PRC, then that is indeed an achievement and one to be proud of. Plus this is a large market – remember there are more people learning English in China than there are English-speakers in the US. Most companies simply put out the good news without mentioning anything other than positive vibes; have a look at Manganese Bronze Holding’s announcement in February about how the London taxi is to be built in China as an example (www.manganese.com). Finally, I suggest you remind potential detractors that you are far more likely to have an influence on how matters are conducted in China if you are present than if you are absent.
Q. My company is so big and operates in so many countries that I can’t help but think we must be perpetrating some human rights abuse somewhere. In fact, I am starting to lose sleep over this. What happens if something somewhere comes to light and all our investors desert us?
A. Probably 10 percent of your investor base care about these things enough to sell the stock regardless of financial performance. On the other hand, probably 90 percent of your investor base would sell the stock if your human rights record were perfect but the financial performance substandard. The moral of the story is to focus your mind on your company’s financial performance rather than anything else. You cannot afford to fret aimlessly about such matters. If you seriously suspect your company violates human rights law, then investigate, formulate a policy and take action, or get some Prozac prescribed, or resign.
E-mail questions to Heather McGregor – [email protected]. McGregor is a former IRO and investment analyst who currently works on IR assignments for Taylor:Bennett, an executive search firm specializing in communications jobs
