@Risk

The global risk analyst Maplecroft has released two new reports focusing on human rights in emerging markets.

Maplecroft’s Human Rights Risk Reports for the BRICS (Brazil, Russia, India, China and South Africa) and N-11 countries (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Viet Nam), offer in depth analysis of human rights risks and cover several key areas, including human security, labor rights, civil and political rights, and access to remedy.

About 70% of the Fortune 500 use suppliers located in BRICS and N-11 countries, where tens of millions of the world’s poor live on less than a dollar a day. Even though these emerging markets may have legislation in place to protect workers, local regulatory and enforcement activity are sporadic, at best. That means companies have no choice but to be proactive, working to ensure that human rights are respected and labor standards are protected.

Companies that chose to simply ignore these issues are putting their operations –and their reputations –at risk.

“Unless these risks are identified, assessed, understood and mitigated the BRICS and N – 11 countries pose significant operational and reputational risk to global companies and international organizations through their business engagements with suppliers, joint venture partners or in their own operations,” says Dr Kevin Franklin, Director of Research and Strategy at Maplecroft.

According to Maplecroft’s Human Rights Risk Index, which ranks 196 countries, Pakistan (4), Bangladesh (13), India (14), Russia (15), Iran (16), China (17), Nigeria (18) and Philippines (21) are all rated “extreme risk.”

Offshoring and outsourcing are now standard fare on the global corporate agenda, and therefore international companies are in a unique position to change the status quo in these emerging economies. By improving standards in their supply chains and engaging policymakers and other key stakeholders, corporations can help create safe, rights-based conditions for workers –conditions that, ultimately, are mutually beneficial to both workers and the businesses that hire them.

For further reading related to workforce human rights issues, I also suggest an excellent report from BSR, titled “International Labor Migration: A Responsible Role for Business.”