Seminar: Global Markets, Human Rights, and the Press

BSPA-GB.3305.10

Fall 2020

Michael Posner Jerome Kohlberg Professor of Ethics and Finance Director of the Center for Business and Human Rights [email protected]

Scheduling: [email protected]

This course will explore some of the choices global businesses face when trying to incorporate human rights values into their core business decisions and operations and the risks they take when they fail to take these issues into account. We will be especially focused on the challenges raised by accelerating globalization and advances in information technology in recent years, and will rely on a series of case studies to illustrate and analyze business decisions made in this context. Many of the issues we will examine have become more prominent in public discourse since the coronavirus.

Today, consumers and investors in Western countries are inextricably, but often invisibly, linked to garment workers in and Bangladesh, child cocoa farmers in West Africa, cobalt miners in the Democratic Republic of Congo, and construction workers in Qatar. While these sprawling global supply chains are often obscured from view for the average consumer, increasingly news media and social networks are shining a spotlight on brands and their practices around the world. As the public becomes more knowledgeable about, and sensitive to, this reality, business decisions related to human rights protections affect businesses’ reputations and their revenues.

At the same time, the information and communications sector is itself under growing scrutiny. People around the world have become increasingly concerned with the practices of these companies regarding their dealings with China, efforts to combat disinformation and hate speech on internet platforms, and misuse of user data in violation of fundamental privacy rights.

This course will unpack the ways companies tackle these challenges, and the strengths and weaknesses of their responses. To do so, the course will draw upon academic research, case studies, and a series of guest speakers from industry and the media. After outlining a broad human rights framework, the course will turn to individual sectors with insights from guest speakers who have expertise and experience tackling these questions. Students are encouraged to participate actively in class discussions towards developing a greater understanding of the decisions facing business leaders today as they confront these human rights challenges in their global operations.

Assignments

Classes will include a combination of lectures, discussions, debates, full class role-playing exercises, and guest speakers who will present case studies on various industries.

There will be modest class readings in connection with each class. The assigned readings include policy writing, news articles, and several business case studies. Though some students will have prior background in human rights, it is not a prerequisite for this course.

There will be one course paper (15 pages, double spaced) due at the end of the term (December 21). A short draft outline will be due in the middle of the term (November 24). Starting the third week of class, teams will be chosen to debate various business and human rights topics each week. Each member of the class will participate in one of these debates, which will constitute 20% of your grade. Part of your grade also will be based on class participation; you will be expected to have a basic familiarity with the assigned readings.

Below you will find the course schedule, which is subject to change.

Session 1 (09/24): Setting the Standard – What are Human Rights?

The first class will focus on the origins and content of international human rights standards. We will look at how these standards were developed and how they have been interpreted and applied at national and international levels.

Discussion Topics: ! Pre-World War II antecedents to the concept of human rights ! Development of a universal standard for human rights, growing out of WWII and the UN Charter ! Eleanor Roosevelt & the development of the Universal Declaration of Human Rights (UDHR) ! Translation of the UDHR into international legal standards ! Relationships among national systems, regional organizations, and the ! Durability of UDHR rights – are the human rights aspirations established in 1948 still relevant today? Do new threats, technologies, or political changes call for amendments to these rights? ! Relationships between rights – what happens when rights come into conflict?

Assigned Readings: ● Universal Declaration of Human Rights (1948) ● International Covenant on Civil and Political Rights (1976) ● International Covenant of Economic, Social and Cultural Rights (1976) ● Michael Posner, “The Four Freedoms Turn 70,” the American Society of International Law’s 105th Annual Meeting, Washington, D.C. (2011)

Session 2 (10/01): Human Rights and Business – How do Human Rights Apply to Business?

The second class will be our first look into how businesses deal with human rights issues. We will begin to consider how companies are considering human rights in the context of media scrutiny.

Discussion Topics: ! UN efforts: the UN Global Compact, Guiding Principles on Business & Human Rights, the Sustainable Development Goals (SDGs) ! Globalization and the governance gap – who determines how companies handle human rights? ! The gradual evolution from Corporate Social Responsibility (CSR) to Business & Human Rights (BHR) ! Developing industry standards, metrics, and means of assessment and evaluation ! The growing focus on Environmental, Social and Governance (ESG) factors. ! The impact of COVID-19 on these issues

Assigned Readings: ! Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy That Serves All Americans’ (2019) ! Michael Posner, “Wall Street CEOs Show True Leadership In The Khashoggi Case” Forbes (2018) ! Larry Summers, “Global Trade Should be Remade from the Bottom Up” Financial Times (2016) ! Dorothee Baumann-Pauly & Michael Posner, “Making the Business Case for Human Rights: An Assessment”, in Business and Human Rights: From Principles to Practice, Routledge (April 2016) – PDF available on Classes

Session 3 (10/08): Building and Maintaining Trust

This class will focus the importance of trust and public perception to businesses, and the decline in global trust in institutions over the last 20 years. It also will examine various ratings agencies and how they address human rights risks as an indication of trust as it relates to rights protections.

Discussion Topics: ! Why trust matters to businesses ! Lessons from the Edelman Trust Barometer: the decline of trust in public and private institutions ! Dealing with external constituencies – consumers, the media ! Dealing with internal constituencies – employees, global business partners, investors ! Regaining public trust in the face of crisis ! The ratings game – the missing S in ESG and efforts to develop meaningful ratings for social issues in labor supply chains

Assigned Readings: ! 2020 Edelman Trust Barometer ! Abigail Daisy Morgan, “Long-Term Effects of Oil Spills in Bodo, Nigeria” Al Jazeera (2017) ! Jennifer Latson, “How Poisoned Tylenol Became A Crisis- Management Teaching Model” Time (2014) ! Casey O’Connor-Willis, Putting the S in ESG: Measuring Human Rights Performance for Investors, NYU Stern Center for Business and Human Rights (2017) – read intro and recommendations

Optional Readings: ! NYU Stern Buyer-Supplier Metrics – PDF available on Classes ! Knight Foundation, Crisis in Democracy: Renewing Trust in America (2018) ! Alan Taylor, “Bhopal: The World’s Worst Industrial Disaster, 30 Years Later” The Atlantic (2014)

Session 4 (10/15): Human Rights and the Media – The Role of Investigative Journalists

This class will examine the relationship between investigative journalists and the companies they cover. We will explore how journalism affects public perception of companies and how companies respond to media inquiries relating to various human rights issues. We will also discuss the impact of declining local news coverage.

Discussion Topics: ! Traditional relationships between business and journalist: the role of public relations, marketing and CSR ! The increasing importance of investigative journalists in reporting on the human rights records of companies and sensitizing consumers to these issues ! Crisis communications – how companies respond in the face of public crisis ! The changing media landscape and the loss of local news outlets ! Case Study: Glock

Assigned Readings: ! GLOCK: The Rise of America’s Gun - written by Paul Barrett (select chapters) ! T. Christian Miller & Jonathan Jones, “Firestone and the Warlord: The Untold Story of Firestone, Charles Taylor and the Tragedy of Liberia” ProPublica (2014) - skim ! UNC Hussman School of Journalism, The Loss of Local News: What it Means for Communities (2020) ! Behind the Brands: Oxfam’s scorecard ! Know the Chain: https://knowthechain.org/benchmarks/

Session 5 (10/22): Supply Chains Part I – Apparel Manufacturing in Bangladesh From Rana Plaza to COVID-19

This class will explore the nature of manufacturing supply chains, focusing on the ready-made garment sector in Bangladesh. We will assess the human rights decisions businesses operating in this sector face, and the outcomes of different approaches. We will also consider the impact of COVID-19, and how the virus highlighted long-standing human rights issues in this area.

Discussion Topics: ! The growth of the global apparel industry and the nature of low wage manufacturing ! Human rights issues in supply chains – the outsourcing of responsibility ! Case Study: Bangladesh, how global brands responded to the Rana Plaza factory collapse ! Case Study: the situation of low-wage workers post COVID-19 – how global brands have responded to new and old challenges

Assigned Readings: ! Richard Locke, “We Live in a World of Global Supply Chains”, in Business and Human Rights: From Principles to Practice, Routledge (2016) – PDF available on Classes ! Paul Barrett, Dorothee Baumann-Pauly, and April Gu, Five Years After Rana Plaza: The Way Forward, NYU Stern Center for Business and Human Rights (2018) – read Executive Summary and Recommendations ! Michael Posner, “Seven Years Later, What the Rana Plaza Factory Collapse Teaches Us About COVID- 19” Forbes (2020) ! Elizabeth Patton, “‘Our Situation is Apocalyptic’: Bangladesh Garment Workers Face Ruin” New York Times (2020)

Session 6 (10/29): Supply Chains Part II – the Outsourcing of Responsibility

This class will continue our discussion of manufacturing supply chains, looking specifically at and Walmart as businesses facing these challenges on an unprecedented scale.

Discussion Topics: ! The genesis and rationale for outsourcing ! The growth of global supply chains and the globalization of trade ! The effects of outsourcing on human rights and the evolution of outsourcing responsibility ! Case Study: The Walmart effect – lowering the costs of production ! Case Study: The Amazon model – the emerging model of outsourcing

Assigned Readings: ! Jesus Lopez, “What is Outsourcing? What Does it Mean for Companies?” Medium (2017) ! Walmart, Walmart Leverages Global Scale to Lower Costs of Goods, Accelerate Speed to Market, Improve Quality of Products (2010) ! Simon Mainwaring, “Why Purpose is Paramount to Business and Branding Success: A Walmart Case Study” Forbes (2017) ! Rick LeBlanc, “How Amazon is Changing Supply Chain Management” The Balance Small Business (2019) ! Michael Posner, “Amazon’s Responsibility for Workers Facing COVID-19” Forbes (2020) ! Karen Weise & Kate Conger, “Gaps in Amazon’s Response as Virus Spreads to More Than 50 Warehouses” New York Times (2020)

Session 7 (11/05): Migrant Workers in the Gulf States – a Focus on Construction

This class will turn to the issues faced by migrant construction workers in the Persian Gulf states. We will discuss the unique human rights violations endured by migrants, and the ways businesses have failed to guarantee rights protection. We will also discuss the ways COVID-19 exacerbated problems in the area.

Discussion Topics: ! Unique vulnerabilities of migrant workers – recruitment, exploitation, discrimination ! Countries efforts to balance their responsibilities to migrant workers and their own citizens ! Assigning responsibility - who has ultimate responsibility for the well-being of migrant workers? What is the responsibility of corporations who employ recruiters and migrant workers? What is the responsibility of the clients of said corporation? ! The situation of migrant workers post COVID-19

Assigned Readings: ! Verite, An Exploratory Study on the Role of Corruption in International Labor Migration, (2016) – read Background, Key Findings, and Context, pp. 4-8; Conclusion, p. 21 ! David Segall, Making Workers Pay: Recruitment of the Migrant Labor Force in the Gulf Construction Industry, NYU Stern Center for Business and Human Rights (2017) – read Executive Summary and Part 3: Conclusions and Recommendations ! Declan Walsh, "Tiny, Wealthy Qatar Goes its Own Way, and Pays for It” N.Y. Times (2018) ! Rejimon K, "Qatar Steps Up To Protect Migrant Workers, but Activists are Not Celebrating Just Yet" Firstpost (2020) ! Khan, Zahra,“COVID-19 Relief Efforts Are Ignoring the People Who Need it Most” Quartz (2020)

Session 8 (11/12): Human Rights Issues in the Extractive Sector

This class will examine the human rights issues facing businesses in the extractives sector, focusing on two case studies to illustrate these challenges and assess decision-making approaches and strategies.

Discussion Topics: ! Security of assets and people in the oil, gas, and mining sectors ! The inadequacy of regulatory systems in producing countries - how to enforce prohibitions on child labor without support from the national legal system? ! The need for collective response and action across the industry ! Case Study: Barrick Gold in Papua New Guinea ! Case Study: Addressing child labor in Cobalt mining in the Congo (DRC) - the Global Battery Alliance

Assigned Readings: ! Barrick 2018 Human Rights Report, Advancing Together ! Enodo Rights, Pillar III on the Ground: An Independent Assessment of the Porgera Remedy Framework (2016) - read “Introduction” ! Henry Sanderson, “Congo, Child Labour and Your Electric Car” Financial Times (2019 ! Global Battery Alliance, Discussion Paper – Davos, NYU Stern Center for Business and Human Rights & Geneva School of Economics and Management (2020) – PDF available on Classes

Session 9 (11/19): Human Rights and Technology Part I – Social Media Platforms, Case Study

Technology is changing the way we interact and this shift raises new human rights issues. In this class we will discuss the rise of modern communication technology and social media, and the challenges brought with it. We will focus on the decision-making by social media platforms, focusing specifically on Facebook, as they grapple with new human rights challenges.

Discussion Topics: ! Technology as the Fourth Industrial Revolution ! The explosive growth of the social media platforms and the consequences of its advertising-based revenue model ! The evolving approach to governance – the balance between government regulation and company self- governance ! The challenge of content moderation and the ways different platforms have addressed the issue ! Case Study: Facebook

Assigned Readings: ! Paul Barrett, Disinformation and the 2020 Election: How the Social Media Industry Should Prepare, NYU Stern Center for Business and Human Rights (2019) – read Executive Summary and Conclusions & Recommendations ! Michael Posner, “Confronting Facebook’s Growing Pains” Forbes (2018) ! Casey Newton, “The Trauma Floor – The Secret Lives of Facebook Moderators in America” The Verge (2019) ! Joshua Brustein, “Facebook’s First Human Rights Chief Confronts Its Past Sins” Bloomberg (2020)

Session 10 (12/03) Human Rights and Technology Part II – A Global Perspective

This class will continue our discussion of the ways advances in technology shape human rights protection and violation, and the new challenges that have attended these advances. We will also discuss the misuse of technology by governments and the responsibilities of technology companies and governments in addressing these issues.

Discussion Topics: ! Government interference in privacy: surveillance technology, facial recognition ! Government interference in free speech and free expression ! Other ways governments use technology as a weapon: Myanmar, India, and Russia ! The role of tech sector companies in countering this governmental overreach - should companies take steps to limit the reach of governments?

Assigned Readings: ! Rene Raphael and Ling Xi, “Discipline and Punish: The Birth of China’s Social-Credit System” The Nation (2019) ! Yascha Mounk, “Verboten: Germany’s Risky Law for Stopping Hate Speech on Facebook and Twitter” New Republic (2018) ! Paul Mozur, “A Genocide Incited on Facebook, With Posts from Myanmar’s Military” N.Y. Times (2018) ! Ashley Gold & Nancy Scola, “Lawmakers Unveil Bill to Thwart Russian election Ads on Social Media” Politico (2017) ! Paul Barrett, Tara Wadhwa, and Dorothee Baumann-Pauly, Combating Russian Disinformation: The Case for Stepping Up the Fight Online, NYU Stern Center for Business and Human Rights (2018) – read Executive Summary and Recommendations

Session 11 (12/10): the Role of the Investment and Consulting Sectors

The investment sector also plays an important role in influencing how companies address human rights challenges. This class will explore the relationship between investors, consultants, and corporations in managing human rights issues, as well as the responsibilities of each to ensure human rights are protected.

Discussion Topics: ! The relationship between investors, consultants, and companies when it comes to managing human rights challenges ! The responsibility of investors - to what extent are investors responsible for the end products created with capital from their investments? Does this responsibility vary between limited and general partners? ! How to deal with bad actors - should consulting firms agree to work for entities with records of significant human rights violations? If so, how should firms shape their engagement with these entities? If not, are firms giving up an opportunity to improve the situation for individuals? ! Promoting greater diversity within the investment community ! Case Study: Consulting for Human Rights Violators – McKinsey and Saudi Arabia

Assigned Readings: ! Michael Forsythe et al., “Consulting Firms Keep Lucrative Saudi Alliance, Shaping Crown Prince’s Vision” N.Y. Times (2018) ! Michael Posner, “How McKinsey & Co. Fails as a Global Leader” Forbes (2018)

! Lindsay Gorman & Matt Schrader, “U.S. Firms are Helping Build China’s Orwellian State” Foreign Policy (2019) ! Knight Foundation, Diversifying Investments – A Study of Ownership Diversity in the Asset Management Industry, Executive Report (2019) – read pp. 1-6

Session 12 (12/17): The Way Forward

This concluding class will provide an overview of the lessons learned in each sector, and will outline a way forward for businesses grappling with human rights challenges. We will focus on the need for a sector-specific human rights framework, strong industry standards, and collective approaches.

Major topics: ! A better way forward for companies: adopting a human rights framework ! Building industry standards, metrics, and means of assessment ! The multi-stakeholder approach