Christopher L. Avery
361 Lauderdale Tower, Barbican, London EC2Y 8NA,
United Kingdom
E-mail: [email protected]
__________________________________________________________________________________________
November 1997
CHINA: Recommendations to a company doing business in China
The following recommendations suggest some practical steps a company doing
business in China could take to promote the rule of law and human rights. The
recommendations, assembled by me in my personal capacity, are drawn in part from
recommendations put forward by various international human rights organizations.
This is an informal draft, intended to encourage discussion.
1. Ensure that the company's working practices in China
set an example to others by respecting the fundamental human rights of employees
and those with whom you do business.
- Create an environment within your company where human rights are
understood and respected.
- In particular, encourage freedom of expression and association in the
workplace, as required by ILO conventions and permitted under China's
Constitution (Article 35) and the Chinese government's human rights white
paper of August 1992.
- Publicly adopt and implement a non-discriminatory employment policy which
is in line with ILO and other international human rights standards, and
which includes protection for political beliefs and a statement of company
support in principle for the Universal Declaration of Human Rights.
- Put the highest value on health and safety standards, and enforce minimum
wage and hours of work rules.
- Provide active oversight to ensure these standards are implemented in
practice, and if any government official infringes these rights the company
should protest to the highest levels of the government.
- When Chinese legislation or the actual practice of any public agency
violates fundamental international human rights, the company should do
everything in its power to maintain respect for those fundamental rights in
its own operations, and should seek to use its influence to contribute to
the respect of such rights in China.
2. Ban the purchase of goods made with child labour, forced labour or
prison labour.
- Be rigorous in checking the complete chain of origin of supplies,
components and raw materials.
- Incorporate in all contracts with subcontractors language prohibiting the
use of child labour, forced labour or prison labour.
- Make unannounced visits to supplier sites.
3. Ensure that your security personnel adhere to international standards
on the use of force and respect the rights of the local community.
4. Require your contractors and partners to observe the same human rights
standards that you do.
- When negotiating joint ventures and contracts, look into the human rights
record of the other parties, including their record on freedom of
association, freedom of expression, health/safety/wages, child labour,
forced labour.
- Ask questions about these issues during negotiations.
- Be rigorous in checking.
- Be aware that the Chinese police and security agencies are involved in
many joint ventures.
5. If an employee of the company is arbitrarily arrested, strong protests
should be made to the highest levels of government, and the company should
actively pursue the employee's release.
6. Discuss whenever possible with the Chinese authorities at local,
provincial and national levels:
a) specific cases of human rights violations;
b) the need to introduce safeguards to protect human rights;
c) the need to end the arbitrary exercise of power by officials.
- Express concern about infringements of the rule of law and human rights
violations which do not accord with the international standards China has
endorsed. These issues could be raised with government authorities by your
company or collectively by a chamber of commerce or business association.
- Let Chinese officials at all levels know about concern/criticism being
expressed to your company (for example by shareholders, employees, the media
or human rights groups in your home country) about particular human rights
issues or cases in China, and indicate your concern for the effect this
pressure may have on a mutually beneficial business relationship.
- Ask government officials whether there is any information which could help
you respond to the public concern/criticism, for example positive law reform
or institutional reform which is being considered, or cases of prisoners
which are being reviewed, or other steps being considered to promote the
rule of law and to deter the arbitrary exercise of power.
7. Engage in dialogue about the rule of law and human rights issues.
- Engage in dialogue (formally or informally) with members of the Chinese
Academy of Social Sciences on the rule of law and human rights issues they
are discussing.
- Engage in discussions about human rights and the rule of law (and their
relation to business) with other business people (both Chinese and
international), chambers of commerce, business associations and business
schools.
- Engage in dialogue (formally or informally) with those Chinese academics
and lawyers who are involved in the active national debates on law reform,
institutional reform, stopping abuses by the police, etc.
8. Raise awareness about internationally-accepted human rights standards.
- Make available basic international human rights instruments (including
those UN standards which China has adopted) to business people and others.
- Promote effective business codes of ethics.
- Support human rights education initiatives.
- Make available to employees information about the rule of law and human
rights issues, for example in a reading room or library in the factory or
office.
9. Maintain regular dialogue with international human rights organizations
working on China, so that views can be shared and concerns can be freely
discussed.
10. Adopt and enforce a company policy on human rights.
- Rigorously monitor implementation of the policy at the international,
national and local levels, to ensure it is implemented in practice.
- Include in each of the company's Annual Reports a progress report on how
the policy has been implemented in practice.
11. Train your company's managers and staff about international human
rights standards and about how to apply the company's policy on human rights.
12. Your company's senior managers in China and at international
headquarters should regularly review:
a) the human rights record of all your operations in China;
b) concerns about respect for the rule of law and human rights in China.
- Regarding (a), discussion should focus on any shortcomings, and how
improvements could be made.
- Regarding (b), consideration should be given as to how best to raise
specific concerns with the Chinese authorities - formally or informally, by
your company itself or through a business association, etc. If human rights
violations are so pervasive in China that your company's continued operation
in the country may require the company to engage in or condone conduct
incompatible with fundamental internationally-recognized human rights
standards, your company should re-examine its presence in the country and
whether an investment is appropriate and justifiable.