Amnesty International and The Prince of Wales International Business Forum Unveil New Study Linking Human Rights to Business Risk.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 14, 2002

"Having a strong human rights policy and a sound implementation

strategy is about risk management and reputation assurance. Human

rights is a bottom-line issue"

Mary Robinson, UN High Commissioner for Human Rights

Corporate policy makers from blue-chip companies will be meeting today in New York City with human rights advocates and fund managers to discuss the potential business risks associated with human rights abuses in the countries where they operate.

Amnesty International UK and The Prince of Wales International Business Leaders Forum are organising international business briefings in London (Feb 12), New York (Feb 14), Brussels (Feb 18) and Stockholm (Feb 19) to launch the results of new research. The findings are presented in a series of seven detailed world maps illustrating the links between human rights and significant business risk. This is the first study of its kind.

This publication, Business and Human Rights: A Geography of Corporate Risk, aims to raise business awareness of the human rights context of their activities. It also aims to support companies and investors in achieving high levels of ethical conduct in their global operations.

The maps indicate where companies are vulnerable to the costs and reputational damage associated with human rights violations. The sectors covered include extractive, food and beverage, pharmaceutical and chemical, infrastructure and utilities, heavy manufacturing and defence, IT hardware and telecommunications. The nature of the business risks varies from sector to sector and includes human rights demands such as how companies manage relationships with security forces, issues surrounding the relocation of indigenous communities, allegations of employing forced labour, or disputes over working conditions. The maps use the example of 129 major companies that have significant investments in 34 countries where poor human rights records present risks to business.

Chris Marsden OBE, Chairman of Amnesty International's UK Business group says:

"This publication will alert business, consultancies and investors to the risks to any company of being associated with human rights abuses. These risks are increasing because the social impact of companies is coming under greater scrutiny than ever before, and because victims of human rights violations have better means of seeking redress through litigation, through their relationships with campaigning organisations and through the media."

A Geography of Corporate Risk reflects the consequences of the huge growth in foreign direct investment during the last decade, coupled with the growth in intra-state conflict. This means that companies are much more likely now, than in the past, to have a presence in conflict zones where their relationships with security forces might come under scrutiny. Companies may also find themselves at loggerheads with communities over access to resources such as land, water, forestation which are essential for even subsistence livelihoods. The research undertaken also reflects the extent to which the supply chains of businesses have come under scrutiny with regard to the labour conditions in which a company's products, components and raw materials are produced.

Robert Davies, Chief Executive of The Prince of Wales International Business Leaders Forum says:

"The growing threat of violent conflict and international terrorism highlight the unfamiliar challenges business now faces in a fragile world. As an extension of its Business and Human Rights programme, IBLF has collaborated with Amnesty International on this project to alert companies to the tangible risks they face from links with human rights violations around the globe and to help them navigate the challenges. This first ever series of maps should help progressive companies to recognise, assess, manage and minimise the risk and create opportunities to be seen positively to uphold human rights standards wherever they do business."

Shareholders, particularly institutional investors, are becoming increasingly sensitive to these risks, seeking reassurance from companies that they are being addressed effectively. UK based fund manager, Friends Ivory & Sime remarked: "As a shareholder we work actively to promote the adoption of prudent risk management practices. This research lays the groundwork for companies to develop practical management tools that will address human rights-related risks and ultimately enhance financial performance."

The maps offer a starting point for companies seeking to address these issues by referring to relevant international initiatives and standards. Associated with every risk is an opportunity for companies to gain a better understanding of how they can contribute to the protection of human rights having regard to internationally accepted standards and in line with societal expectations.

Both Amnesty International and The Prince of Wales International Business Leaders Forum believe that the most effective way for a company to minimise the risk of contributing to human rights violations is to have appropriate human rights policies and practices in place, which are both transparent and properly enforced right across the company's global functions and operations. They say companies that respond to this challenge will be in a much better position to protect their brands and reputations in the longer term, while protecting and promoting the human rights of employees and the wider community.

The business briefings are being hosted by Edelman Worldwide, in association with financial institutions, Friends Ivory and Sime and Clerical Medical Investment Management (the asset management arm of HBOS plc.)

Notes to Editors

The maps are available electronically on request from the Edelman press contact, or may be downloaded from the following URL: www.humanrightsrisk.org

Amnesty International and The Prince of Wales International Business Leaders Forum (IBLF) have collaborated on business and human rights for over four years. In 2000 they jointly published a management primer Human rights - is it any of your business? A Geography of Corporate Risk marks an extension of their existing partnership in this area of corporate social responsibility.

IBLF and fund managers, Friends Ivory & Sime (FIS) have co-hosted 7 seminars on business and human rights since September 2000 to help companies implement human rights strategies.

IBLF works strategically with leaders in business, civil society and the public sector, in transition and emerging economies in order to achieve social, economic and environmentally sustained development. For more information, visit IBLF's website at: www.iblf.org/humanrights

Amnesty International's vision is of a world in which every person enjoys all the rights enshrined in the Universal Declaration of Human Rights and other international human rights standards. Amnesty International's Business group exists for the purpose of encouraging companies to:

-- Be aware of the human rights impact of all aspects of their operations;

-- Use their legitimate influence in support of human rights in all countries
in which they operate;

-- Give effect to the Universal declaration of Human Rights;

-- Include a commitment to international human rights standards in statements
of business principles and codes of conduct;

-- Develop explicit human rights policies, ensuring that these are integrated
across all functions, monitored and audited.

Amnesty International country reports, outlining human rights violations in all the locations shown on the maps are available from the Amnesty website: www.amnesty.org/ailib