Session co-organized by the Working Group on Business and Human Rights, The International Trade Centre (ITC), the International Organisation of Employers (IOE), the German Helpdesk, and UN Global Compact.
Brief description
Small and Medium Enterprises (SMEs) account for 90% of businesses and 50-60% of employment worldwide: they are overwhelmingly present in economic activities around the world. SMEs are vital to economic growth and job creation globally, including when operating in environments where human rights risks are heightened, especially in conflict-affected areas. SMEs frequently lack the enabling legal and policy environment, the incentives, as well as the resources and knowledge to implement effectively the UN Guiding Principles on Business and Human Rights (UNGPs), which may affect their potential of integrating human rights due diligence in their daily operations. This session aims to consider ways to strengthen the capacity of SMEs to address these matters.
It is essential for SMEs to gain awareness about their responsibilities under the UNGPs and build capacities. In addition, the introduction of new regulations with global reach, including the EU Corporate Sustainability Due Diligence Directive (CSDDD) and national human rights due diligence requirements in France, Germany, the Netherlands and Norway, present SMEs with new challenges and expectations. These new mandatory requirements expect governments to provide support and guidance to SMEs and businesses to devise collaborative approaches.
This session will aim to empower SMEs with the knowledge and tools necessary to incorporate the UNGPs, especially human rights due diligence, into their operations to ensure that they can action better their responsibilities to respect human rights. It also aims to foster sustainable business practices by SMEs and position them as important potential agents for positive transformative local change to reduce adverse human rights impacts from business activities.
Objectives
- Increase awareness and understanding of the importance for SMEs to integrate human rights due diligence into business operations, including for SMEs in conflict-affected areas.
- Assist participants with practical tools and resources to implement human rights due diligence and foster responsible business practices. This would also include guidance on conducting human rights impact assessments, stakeholder engagement, and effective grievance mechanisms.
- Foster stakeholder engagement with SMEs, particularly from supply chain end points, associations, regulators and governments (e.g., through legislation, trade policies, and diplomacy for cross-border cooperation enabling HRDD).
- Explore challenges SMEs face in taking action and highlight best practices of SMEs that have effectively integrated responsible business practices into their business models.
- Share resources available for SMEs, including training programs, online-tools, helpdesks, funding opportunities, and partnerships with civil society.
