What Are The Justifications For Doing Business With Countries That Have Human Rights Issues?

by Kimberly Munsey-Carlton

In the book, " Business Ethics: Critical Perspectives on Business and Management", edited by Alan R. Malachowski, the thought is stated. "The only justification for a multinational doing business with a regime that violates human rights is the claim that in doing so, the country's human rights record will improve. " Even then the business's continued justified sustaining relationship with that country would have to be based on judging its results. (1)

When a country has closed its doors and borders to all other influences but its own, history has proven that like a fungus, human rights are vanquished in a nation void of worldwide light shining in on it. The benefit of corporations, more easily invasive than governments, being encouraged to continue to do business with even the world's most rights vacant countries, may be the fact that they have the door open to view and influence. They may be the globe's eyes and ears and they may, in fact, have some positive influence over the regime or country's leadership in a way that even the UN, or international opinion or law does not.

But, can the promise or hope that business entities can actually influence the politics of a nation known for human rights negligence justify their actually profiting from these countries and helping them with products and money? Rev. Leon Sullivan, an African-American preacher, was a member of the board of General Motors in the late 70's. G.M. was one of the largest corporations in the United States and also the largest employer of blacks in South Africa. The state-sanctioned racial segregation and discrimination targeting the country's indigenous black population provoked the Reverend to begin a campaign to influence the governing body of South Africa. He actually threatened the government that in two years Mandela would have to be freed, apartheid must end, and blacks must vote or else every American company he could influence would come out of South Africa.[2]

The pastor wrote up 10 principles for businesses who traded internationally that have now been revised over the last 30 years. The Sullivan Principles were formally adopted by more than 125 U.S. corporations that had operations in South Africa and of those companies at least 100 completely withdrew their existing operations from South Africa.[2]

The Global Sullivan Principles
The Principles:

As a company which endorses the Global Sullivan Principles we will respect the law, and as a responsible member of society we will apply these Principles with integrity consistent with the legitimate role of business. We will develop and implement company policies, procedures, training and internal reporting structures to ensure commitment to these principles throughout our organization. We believe the application of these Principles will achieve greater tolerance and better understanding among peoples, and advance the culture of peace.
Accordingly, we will:
Express our support for universal human rights and, particularly, those of our employees, the communities within which we operate, and parties with whom we do business.
Promote equal opportunity for our employees at all levels of the company with respect to issues such as color, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse.
Respect our employees' voluntary freedom of association.
Compensate our employees to enable them to meet at least their basic needs and provide the opportunity to improve their skill and capability in order to raise their social and economic opportunities.
Provide a safe and healthy workplace; protect human health and the environment; and promote sustainable development.
Promote fair competition including respect for intellectual and other property rights, and not offer, pay or accept bribes.
Work with governments and communities in which we do business to improve the quality of life in those communities their educational, cultural, economic and social well-being and seek to provide training and opportunities for workers from disadvantaged backgrounds. Promote the application of these principles by those with whom we do business.
We will be transparent in our implementation of these principles and provide information which demonstrates publicly our commitment to them. (2)

(1) Business Ethics: Critical Perspectives on Business and Management", edited by Alan R. Malachowski, Published 2001 Routledge, ISBN:0415184614
(2) http://en.wikipedia.org/wiki/Sullivan_Principles