Commentary: Why the G20 Labour & Employment Statement on responsible business conduct matters
...First, globalisation itself is once again under the spotlight as it was with the “Battle of Seattle” over trade nearly two decades ago, and with the more recent financial crisis. True, for some globalisation has always been seen as a central problem...Second, the commitment to uphold labour standards and human rights in global supply chains might look basic but it is unprecedented. Whilst it is true that the G20 is not a law-making body, it does shine an important light on existing international law and where we might expect to see more in the years ahead. The recent G20 statement in some significant ways went beyond the G7 statement issued in Baden Baden in 2015. References in the G20 statement to the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Rights at Work and the OECD Guidelines for Multinational Enterprises are welcome, in particular when many of those governments endorsing the latter are not even OECD members...The third reason this statement matters is answered just be reading the list of G20 members who agreed to it. Read the list and then remind yourself of the business and human rights commitments the statement represents for a broad range of countries, some under populist, nationalist and protectionist leadership...These governments represent not just the lion’s share of the global economy (85% of the world’s GDP), they account also for two thirds of its citizens. There is every indication that Argentina, which chairs the G20 in 2018, will pick up where Germany leaves off on crucial issues such as Modern Day Slavery, perhaps beginning to explore some of the main disclosure and due diligence steps that both governments and business should take....