Responsible Business and Human Rights – Where is Thailand now?
Thailand has been taking the lead in the region in addressing issues regarding business and human rights, and the government has shown political commitment and willingness for a more open dialogue. However, the issues are not solved overnight. What is currently happening in Thailand regarding Responsible Business and Human Rights? Read the analysis by Ms. Leeni Toivanen, Junior Desk Officer, on the situation in Thailand.
The economic growth in Thailand has been relatively fast, and the development from a low-income country to upper-middle income country happened only in about 30 years. Today, Thailand is one of the most advanced economies in Southeast Asia. However, the country remains to have structural attributes and deficiencies that create challenges regarding corporate responsibility and sustainable development.
Despite the fact that Thailand is moving towards a technology-driven society, the labour-intensive sectors with lower salaries and harsh working conditions such as manufacturing, construction, agriculture, fishing and hospitality remain as important contributors to the overall GDP. Thailand’s economic development, ageing population, decreasing birth rate and rising education level have resulted that these sectors must rely strongly on migrant workers for their workforce. In addition, the Thai economy is highly dependent on exports, accounting for almost 70 per cent of the GDP as of 2018.
To address the challenges that Thailand’s economic environment creates and to answer the increasing concern over global sustainable development, Thai government has taken a step forward.
Thailand Taking the Lead in ASEAN
Corporate responsibility in terms of respect for human rights is currently a timely topic in Thailand. The government has shown leadership in this matter in ASEAN, and a lot of national progress during the recent years has been made. In 2016, the government announced the Thailand 4.0 development strategy, which aims to transform the country into a high-income society and reduce social disparity by 2036. Human rights are on the national agenda to drive the Thailand 4.0 policy and to promote sustainable development.
To move forward on this path, the Thai government invited the UN Working Group on Business and Human Rights to visit Thailand in order to discuss the country's challenges for the very first time in March-April 2018. The purpose of the visit was to examine efforts to prevent, mitigate and remedy detrimental human rights impacts of business operations. The full statement of the visit is available at https://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=22915&LangID=E(Link to another website.).
In January 2019, Thailand, as the first Asian country, ratified the International Labour Organization (ILO) Convention Work in Fishing (no. 188) in the wake of successful and constructive cooperation with EU concerning the EU Commission’s Illegal, Unreported and Unregulated (IUU) Fishing regulation. The ratification highlights Thailand's commitment to improve the human rights situation and labour conditions of its export-intensive industries. Thailand was the first country in Asia to ratify the convention, and it will enter into force in 2020.
The most recent example of Thailand’s political commitment is the National Action Plan on Business and Human Rights (NAP on BHR) that is scheduled to be published during this year. The NAP is a strategic plan produced by the government to prevent adverse impacts of businesses on human rights and it is made in accordance with Thailand’s international commitments under its second Universal Periodic Review and to adhere to the United Nations Guiding Principles on Business and Human Rights (UNGPs). The NAP would be the first of its kind in the region and therefore many countries are paying close attention to this example. Ideally, the NAP will be a starting point to address corporate accountability, ensure responsible business conduct as well as promote the Thai economy that is sustainable and respects human rights. The NAP identifies four priority areas: 1) Labour Rights and Standards; 2) Communities, Land, Natural Resources and the Environment; 3) Human Rights Defenders; and 4) International Investments and Transnational Corporations.
The main responsibility for drafting the NAP has been assumed by the Rights and Liberties Protection Department (RLPD) of the Ministry of Justice (MoJ), and good practice in the process has been acknowledged. Stakeholder engagement has been positive and voices of communities and civil society have been taken into account partially through regional dialogues and the development of an independent civil society national baseline assessment led by Manushya Foundation and the Thai BHR Network voicing concerns of affected communities and identifying the key priority areas of the NAP, which the government followed. However, human rights organizations still identify some deficiencies when comparing the NAP to international standards and obligations. For example, Manushya Foundation and Thai BHR Network have pointed out the exclusion of certain groups of individuals altogether, such as indigenous people and sex workers, as well as strong mandatory measures to ensure rights that are enforceable. In addition, Manushya Foundation and the Thai BHR Network, submitted comments to RLPD and MoJ calling for a comprehensive mix of voluntary and mandatory measures such as mandatory human rights due diligence, secured access to non-discriminative remedy mechanisms and an inclusive implementation and monitoring process, amongst other aspects. The summary of joint comments on the final draft of the NAP can be found at https://www.manushyafoundation.org/summary-joint-comments-nap-on-bhr(Link to another website.).
Stakeholder Dialogue Ongoing
In addition to national improvements, the first half of the year 2019 has included several events focusing merely on responsibility issues of businesses with an aim to promote the issue to a larger audience. In February, the Organization for Economic Co-operation and Development (OECD), ILO and EU held a stakeholder engagement event concerning their joint project “Responsible Supply Chains in Asia” that was kicked off at the end of 2017. The aim of the project is to contribute to an enhanced respect for human rights as well as labour and environmental standards of businesses with supply chains in Asia, and it covers five other Asian countries in addition to Thailand. The key message in Thailand is that Thai companies must comply with responsible business practices in order to be part of EU-Thailand supply chains. The stakeholder engagement event aimed to create visibility to the project and the attendees included business and industry association representatives as well as trade unions, worker groups and government officials.
In each country, the project targets specific sectors to maximize impact. In Thailand, the focus is on agriculture (poultry and pineapple) and vehicle parts sectors, both of which account for a high number of jobs in the country and have trade linkages with the EU. The project objectives for Thailand are 1) to increase opportunities for businesses to have dialogue on good practices, challenges and opportunities in relation to corporate social responsibility (CSR)/responsible business conduct (RBC); 2) to create policy environment conducive to promoting socially responsible conduct among businesses; and 3) to increase understanding and knowledge of investors, businesses, workers, CSOs, and policymakers on CSR/RBC from the perspective of decent work. To read more about the project, please see https://www.ilo.org/asia/projects/rsca/WCMS_672798/lang--en/index.htm(Link to another website.).
In June, Thailand hosted the “Responsible Business and Human Rights Forum” organized by the Thai government, OECD, UNDP Thailand, United Nations ESCAP, ILO and Global Compact Network Thailand. The two-day, multi-stakeholder event was organized outside Paris for the very first time and it provided a platform for policymakers, industry leaders, and civil society representatives to share their expertise in this matter as well as to update on the current progress in promoting responsible business and human rights in the region as well as globally. The forum explored responsible business and human rights issues, including links to trade and investment policy, sustainable development, gender equality, new technologies, climate change, the future of work, and a range of other topics. The forum attracted over 700 participants, including more than 100 Thai government officials.
The forum highlighted Thailand as an important partner for OECD with an increasing willingness for more open dialogue. In order to further deepen the partnership, a representative of the Ministry of Justice of Thailand mentioned the consideration of the establishment of a National Contact Points for Responsible Business Conduct (NCPs for RBC) to address and resolve issues in the areas of human rights, business responsibility and anti-corruption. NCPs are agencies established by the government with the aim to promote the OECD Guidelines for Multinational Enterprises and other related due diligence guidance as well as to handle grievances. NCPs should be set up in all countries that are committed to the OECD Code of Conduct.
Businesses and Financial Markets Showing Increasing Interest
During the visit of the UN working group on Business and Human Rights to Thailand, the delegation identified growing interest and awareness about the importance of responsibility issues, especially among larger Thai companies with exposure to global markets. Furthermore, OECD reports increasing interest from company boards and industry associations globally as well.
The increased interest and vivid dialogue among business representatives has been perceivable in Thailand. The CEOs of the biggest Thai multinationals shared their views on responsibility issues at “Thailand Corporate Sustainability Symposium”, which took place in Bangkok in March 2019. The CEOs shared and emphasized the importance of transparency, materiality assessment, community dialogue as well as global reporting and monitoring as ways to address the key issues they are facing.
Financial markets are in a key role in achieving the UN Sustainable Development Goals and promoting responsible business practices, and the main respective bodies in Thailand have raised the issue publicly. In May, Thailand’s capital market regulator Securities and Exchange Commission (SEC) and the National Human Rights Commission of Thailand signed an MoU regarding “UN Guiding Principles on Business and Human Rights Driven and Implementation” during the “National Conference on Human Rights: Driven Factors of Listed Companies” event. According to SEC, following UNGPs is a way for Thai companies to remain competitive, gain better business results, respond to Thailand’s structural problems, as well as to support the achievement of Sustainable Development Goals. In addition, according to the chairperson of the Thai Stock Exchange, investors have started to express their concern towards sustainable development and call for accountability and transparency of businesses regarding responsibility issues.
The role of investment is also acknowledged in the Thai NAP: Once published, the NAP will encourage Thai investors to implement responsibility safeguards and to respect human rights both in Thailand and abroad.
Challenges and Solutions
As Thailand is an emerging market with a large workforce, an export-oriented economy and a huge labour-intensive sector, the challenges concerning social accountability of businesses are not tackled overnight. The issues concerning discrimination, harassment, social inequality, decent working conditions and standards, land rights, modern slavery and child labour need a further focus.
The following groups have been identified by policymakers, private sector representatives, NGOs and civil society, as particularly vulnerable to human rights violations in Thailand:
- Human rights defenders and activists
- Migrant workers
- Ethnic minorities
- Indigenous people
- Victims of child labour
- Women workers
- Victims of forced labour and human trafficking
- Disabled people
- Sex workers
- LGBTQ+ community
- People with HIV
- Stateless people
To address the issues of human rights violations that these groups face, many experts call for a multi-stakeholder partnership where government, private sector, trade unions, NGOs and civil society come together. In addition, the UN’s "Protect, Respect and Remedy" Framework is widely acknowledged. The framework proposes that it is the government’s responsibility to protect the citizens from human rights violations, the companies’ responsibility to respect the human rights, and a shared responsibility of companies and the government to provide access to remedy when abuses occur.
Many labour rights experts emphasize that being able to assemble and collective bargaining are some of the most fundamental ways to promote decent work for all. Trade unions provide a platform for social protection, legal assistance, training as well as complaint and remedy mechanisms. Experts address that the lack of freedom for association leads to a situation where the human rights violations within the labour force tend to remain. Freedom of association is a constitutional right in Thailand; however, the country is yet to ratify the two fundamental ILO conventions concerning assembly: Freedom of Association and Protection of the Right to Organize (no. 87) and Right to Organize and Collective Bargaining (no. 98).
Technology is changing the way people work and that will affect the responsibility issues of businesses as well. Responsibility experts on various occasions have addressed the challenges that automation and artificial intelligence create regarding labour standards and human rights. During the coming years increasing number of low-skilled jobs will be affected by technology, resulting in loss of jobs and increasing unemployment rates if not well mitigated. Those already in the most vulnerable positions will be most affected, and this is something governments and businesses need to address, especially within the framework of national strategies such as Thailand 4.0.
Within the "Protect, Respect and Remedy" framework, the government needs to have a leading role in protecting human rights and decent labour conditions by policymaking, efficient implementation and monitoring efforts as well as securing access to grievance and remedy. Policy coherence is needed for creating incentives and disincentives for businesses as well as ensuring a functioning justice system. Those affected by the businesses need to be in the center of the policymaking.
The role of the private sector is to respect the effective policies and initiatives, but the businesses also have a chance to show their leadership in this matter and to speed the process of achieving Sustainable Development Goals by going beyond legal compliance. However, poorly implemented overlapping policies and lack of space for knowledge sharing can cause confusion, especially among SMEs. According to experts, many companies would want to mitigate their human rights risks and take accountability but are confused about where to begin. Thus, the importance of more open dialogue is extremely critical for a more coherent partnership.
Towards Sustainable Development Goals
Various stakeholder groups have expressed their increasing concern over global sustainable development. To address these concerns and to meet with the Sustainable Development Goals, both the government and businesses need to address the issues regarding the adverse impact of business operations. Respecting human rights in business operations can contribute to several Sustainable Development Goals, usually in a catalytic manner.
The importance and awareness of responsibility issues of businesses in Thailand continue to grow and international free trade agreements, when entered into force, will support the creation of a more transparent business environment. Thailand’s leading role in having a more open dialogue in this matter has been exemplary in ASEAN and the steps taken forward on a national level extremely important.
Leeni Toivanen, Junior Desk Officer