www.ssoar.info Business and human rights in ASEAN: lessons from the palm oil sector in Malaysia AB. Wahab, Andika Veröffentlichungsversion / Published Version Zeitschriftenartikel / journal article Empfohlene Zitierung / Suggested Citation: AB. Wahab, A. (2019). Business and human rights in ASEAN: lessons from the palm oil sector in Malaysia. Journal of ASEAN Studies, 7(1), 73-85. https://doi.org/10.21512/jas.v7i1.5520 Nutzungsbedingungen: Terms of use: Dieser Text wird unter einer CC BY-NC Lizenz (Namensnennung- This document is made available under a CC BY-NC Licence Nicht-kommerziell) zur Verfügung gestellt. Nähere Auskünfte zu (Attribution-NonCommercial). For more Information see: den CC-Lizenzen finden Sie hier: https://creativecommons.org/licenses/by-nc/4.0 https://creativecommons.org/licenses/by-nc/4.0/deed.de Diese Version ist zitierbar unter / This version is citable under: https://nbn-resolving.org/urn:nbn:de:0168-ssoar-64009-5 Business and Human Rights in ASEAN: Lessons From the Palm Oil Sector in Malaysia Andika Ab. Wahab Institute of Malaysian & International Studies, Malaysia Abstract The release of the United Nations Guiding Principles on Business and Human Rights (UNGP-BHR) in 2011 aims to address gaps in human rights governance by setting a standard and corporate culture of respecting human rights. As part of the state responsibility to implement these guiding principles, some member states of the Association of Southeast Asian Nations (ASEAN) have already embarked preliminary steps towards establishing their respective National Action Plan on Business and Human rights (NAPBHR), while others are still lag behind. Drawing from the palm oil sector’s experience in Malaysia, this study aims to provide lessons for ASEAN member states to contemplate when developing their NAPBHR, in particular under Pillar 2 of the UNGP-BHR. In this article, I argue that while some large palm oil companies have shown modest progress in realizing their human rights obligation, challenges emerge in many forms including the lack of leadership, collaboration and ambition to steer and scale up industry transformation on human rights across the supply chain. Equally important, challenges around certification scheme depict that it is not the only solution in persuading respect to human rights. Meaningful values transfer often overlooked in certification practice resulting in typical "ticking the audit box" exercise without understanding principles behind it. As such, the development of NAPBHR among the ASEAN member states should reflect on this reality and challenges. Key words: business and human rights, palm oil, due diligence, compliance, certification Introduction benefited the international community on various aspects of life, the globalization Globalization has brought with it and expansion of transnational economic increasing economic interdependence activities have its dark side. through a rapid expansion of cross-border movement of goods, services, technologies Corporate-related human rights and human capital across the globe. violation has been argued to be one of the Arguably, such expansion has critical negative consequences brought by strengthened trade-related standards as globalization in the context of today’s the economic actors compete to provide international business. Ruggie in his final the best products and services in their report submitted to the United Nations’ respective businesses. While it has Human Rights Council (UNHRC) Journal of ASEAN Studies, Vol. 7, No. 1 (2019), pp. 73-85 DOI: https://doi.org/10.21512/jas.v7i1.5520 ©2019 by CBDS Bina Nusantara University and Indonesian Association for International Relations ISSN 2338-1361 print / ISSN 2338-1353 electronic 74 Business and Human Rights in ASEAN highlighted that the root cause of the assist the states to identify national business and human rights predicament priorities, develop concrete policy and today lies in the governance gaps created regulatory options related to business and by globalization – between the scope and human rights. impact of economic forces and actors, and The Office of the High the capacity of societies to manage their Commissioner for Human Rights adverse consequences. The gaps in (OHCHR, 2019) reports that there are 21 governance provide a permissive countries who have already produced environment for wrongful acts by their respective NAPBHR. None of the unscrupulous companies without member states of the Association of adequate reparation (Ruggie, 2008, pp. 3). Southeast Asian Nations (ASEAN) has In 2011, the United Nations’ produced a NAPBHR, but countries such Human Rights Council (UNHRC) as Thailand, Indonesia and Malaysia have endorsed the United Nations Guiding expressed their commitment to Principles on Business and Human Rights developing theirs. The OHCHR (2019) (UNGP-BHR) – a global framework that also reports that countries such as the aspires to serve as an authoritative focal Philippines and Myanmar had earlier point to enhance standards and practices indicated their readiness to develop with regard to business and human rights NAPBHR in coming years. so as to achieve socially sustainable In short, the years 2019 and 2020 globalization. The UNGP-BHR is are a very crucial period for some ASEAN grounded in recognition of its core general member states in developing their principles, namely (i) States’ existing NAPBHR. While the development process obligations to respect, protect and fulfil of the NAPBHR would certainly involve human rights and fundamental freedoms businesses as one of the stakeholders, (Pillar 1); (ii) the role of business limitations persist due to time, enterprises as specialized organs of geographical and methodological society performing specialized functions, constraints. As such, the stakeholders' required to comply with all applicable engagement might not be able to fully laws and to respect human rights (Pillar reflect the real challenges facing 2); and (iii) the need for rights and businesses dealing with the complex obligations to be matched to appropriate supply chain. and effective remedies when breached (Pillar 3) (UNHRC, 2011, pp. 1). Pillar 2 of the UNGP-BHR stresses the important role of the industry players In order to implement these as specialized organs of society – to guiding principles, the states are expected comply with all applicable laws and to develop and enact a National Action corporate regulations, as well as to initiate Plan on Business and Human Rights their respective commitment and strategy (NAPBHR). The NAPBHR is expected to Journal of ASEAN Studies 75 to respect human rights beyond legal ASEAN Intergovernmental Commission compliance. on Human Rights (AICHR). Drawing specifically from the The thematic study reports that palm oil sector’s experience in Malaysia, though many member states are already this study aims to provide lessons for in possession of rules and regulations to ASEAN member states (including address potential corporate human rights Malaysia) to contemplate when impacts, general awareness on the nexus developing their NAPBHR, in particular between CSR and human rights remains under Pillar 2 of the UNGP-BHR. low. The report suggests the AICHR and other ASEAN bodies to work together to In this article, I rely heavily on publicly develop an ASEAN-wide CSR-human available sources comprising companies' rights guidelines to assist member states annual and sustainability reports, to enhance their understanding and sustainability progress updates, corporate practices that are aligned with sustainability dashboards and other internationally-recognized standards on related sustainability information human rights. available in their respective official websites. As the follow up to the publication of AICHR thematic study on CSR and Business and Human Rights human rights, the AICHR organized a Development in ASEAN four-day training in Bangkok in Human rights are becoming a November 2017 to exchange views on more prominent subject in ASEAN. issues and challenges facing the ASEAN Article 1(7) of the ASEAN Charter member states and businesses in their provides a clear commitment among the respective country in the implementation ASEAN member states to promote and of UNGP-BHR. At the end of this training, protect human rights and fundamental participants reiterated the need for the freedoms in the region. The establishment AICHR to develop a regional framework of the ASEAN Intergovernmental on business and human rights in the Commission on Human Rights in 2009 region. and the proclamation of the ASEAN In June 2018, the AICHR Human Rights Declaration (AHRD) in collaborated with the UNDP Asia-Pacific 2012 further show that human rights are and several other international an important regional agenda. organizations in organizing an inter- Amongst the earliest initiative regional dialogue to share good practices with respect to human rights and business among different regional mechanisms and in ASEAN was the conduct of a thematic countries from other regions in Bangkok, study on corporate social responsibility Thailand. The Thai government (CSR) and human rights initiated by the representative who officiated the inter- regional dialogue expressed its 76 Business and Human Rights in ASEAN government strong commitment to more than 5,000 foreign corporations from expedite the development process of its 40 countries operating their businesses in NAPBHR and subsequently urged other many key economic sectors including ASEAN member states to do the same. agriculture (Yusof,