84On 31 Jan. 1999, UN Secretary-General Kofi Annan proposed a global compact between bus<strong>in</strong>ess leadersand <strong>the</strong> UN. (UN “Press Release: Secretary-General Proposes Global Compact on Human Rights, Labour,Environment, <strong>in</strong> Address <strong>to</strong> World Economic Forum <strong>in</strong> Davos” (SG/SM/6881). 1 Feb. 1999. 1.) Annan calledon bus<strong>in</strong>esses “… <strong>in</strong>dividually through [<strong>the</strong>ir] firms, and collectively through [<strong>the</strong>ir] bus<strong>in</strong>ess associations […] <strong>to</strong>embrace, support and enact a set of core values <strong>in</strong> <strong>the</strong> areas of human rights, labour standards, and environmentalpractices” (UN 2.). In exchange, <strong>the</strong> United Nations agreed <strong>to</strong> assist bus<strong>in</strong>ess and social groups <strong>to</strong> developsolutions for concerns <strong>in</strong> <strong>the</strong>se areas (UN 3.). A year later, an <strong>in</strong>teractive website was established <strong>to</strong> provideresource <strong>in</strong><strong>format</strong>ion on corporate citizenship. Then on July 26 2000, <strong>the</strong> Compact was formally launched(UN Global Compact. Global Compact Homepage. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org); <strong>to</strong> date, over 4300 bus<strong>in</strong>esses from 120 countries participate <strong>in</strong> <strong>the</strong> Compact (UN Global Compact.“Global Compact Participants.” 19 June 2008. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org/ParticipantsAndStakeholders/<strong>in</strong>dex.html). Initially <strong>the</strong> Global Compact <strong>in</strong>cluded only n<strong>in</strong>e pr<strong>in</strong>ciples <strong>in</strong> <strong>the</strong>sethree areas, but a tenth pr<strong>in</strong>ciple <strong>in</strong> <strong>the</strong> area of anti-corruption was added at <strong>the</strong> Global Compact LeadersSummit <strong>in</strong> June 2004 (UN Global Compact. “Corporate Leaders at Global Compact Summit Pledge <strong>to</strong> BattleCorruption.” 25 June 2004. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org).85There are six UN agencies <strong>in</strong>volved <strong>in</strong> <strong>the</strong> Global Compact: <strong>the</strong> Office of <strong>the</strong> High Commissioner for HumanRights (OHCHR); United Nations Environment Programme (UNEP); International Labour Organisation(ILO); United Nations Office on Drugs and Crime (UNODC); United Nations Development Programme(UNDP); and United Nations Industrial Development Organisation (UNIDO). The six agencies share resourcesand expertise and periodically meet <strong>to</strong> coord<strong>in</strong>ate activities between <strong>the</strong>mselves and <strong>the</strong> Global CompactOffice.86The ten pr<strong>in</strong>ciples are drawn from <strong>the</strong> Universal Declaration on Human Rights, <strong>the</strong> ILO 1998 FundamentalPr<strong>in</strong>ciples on Rights at work, <strong>the</strong> Rio Declaration on Environment and Development and <strong>the</strong> United NationsConvention aga<strong>in</strong>st Corruption (UN Global Compact. The Ten Pr<strong>in</strong>ciples. Accessed on 14 Oct. 2008 from:www.unglobalcompact.org).87It should be noted, this does not suggest <strong>the</strong> collective barga<strong>in</strong><strong>in</strong>g and discrim<strong>in</strong>ation pr<strong>in</strong>ciples are irrelevant<strong>to</strong> a discussion of CSEC. The argument could be made that collective barga<strong>in</strong><strong>in</strong>g enables workers <strong>to</strong> negotiatefare wages and a higher standard of liv<strong>in</strong>g, mean<strong>in</strong>g parents need not rely on <strong>the</strong>ir children <strong>to</strong> contribute <strong>to</strong> <strong>the</strong>family wage. Similarly, it could be argued that <strong>the</strong> discrim<strong>in</strong>ation pr<strong>in</strong>ciple protects children raised by s<strong>in</strong>glemo<strong>the</strong>rs,a disabled parent, or <strong>in</strong> families of a m<strong>in</strong>ority group.88For example, a company us<strong>in</strong>g ‘a restricted legalistic <strong>in</strong>terpretation,’ may limit those considered with<strong>in</strong> its sphereof <strong>in</strong>fluence <strong>to</strong> employees and shareholders s<strong>in</strong>ce <strong>the</strong>y have a direct relationship <strong>to</strong> <strong>the</strong>se parties. On <strong>the</strong> o<strong>the</strong>rhand, a company us<strong>in</strong>g ‘a more contemporary view’ may expand its sphere of <strong>in</strong>fluence <strong>to</strong> <strong>in</strong>clude parties withwhom <strong>the</strong> company has political, economic, geographical or contractual relationships.89Four k<strong>in</strong>ds of participat<strong>in</strong>g firms have been noted <strong>in</strong> <strong>the</strong> academic literature: First, companies forced <strong>to</strong>adopt corporate social responsibility because of pressure from activists; second, companies from develop<strong>in</strong>gcountries who wish <strong>to</strong> learn about potential private-public <strong>in</strong>itiatives; third, companies <strong>in</strong>terested <strong>in</strong> explor<strong>in</strong>gfuture public-private <strong>in</strong>itiatives and how <strong>in</strong>ternational organisations may assist <strong>the</strong>m; f<strong>in</strong>ally, benevolent firms<strong>in</strong>terested <strong>in</strong> “mak<strong>in</strong>g <strong>the</strong> world a better place”.90“Blue-wash” is a term co<strong>in</strong>ed by activists for companies tak<strong>in</strong>g part <strong>in</strong> <strong>the</strong> UN-sponsored Global Compact (thus,drap<strong>in</strong>g <strong>the</strong>mselves <strong>in</strong> UN-blue) <strong>in</strong> order <strong>to</strong> cover up <strong>the</strong>ir own corporate misdeeds.91In 1998, <strong>the</strong> Sub-Commission on <strong>the</strong> Promotion and Protection of Human Rights (“Sub-Commission”)established a Work<strong>in</strong>g Group on Transnational Corporations (“Work<strong>in</strong>g Group”). The Work<strong>in</strong>g Group wasestablished for three years <strong>to</strong> research <strong>the</strong> effects of TNCs on human rights (UN Sub-Commission on <strong>the</strong>Promotion and Protection of Human Rights. The relationship between <strong>the</strong> enjoyment of economic, social and culturalrights and <strong>the</strong> right <strong>to</strong> development, and <strong>the</strong> work<strong>in</strong>g methods and activities of transnational corporations (E/CN.4/SUB.2/RES/1998/8). 8 Aug. 1998); its mandate was extended <strong>in</strong> 2001 and 2004 for three years, respectively(Sub-Commission. The effects of <strong>the</strong> work<strong>in</strong>g methods and activities of transnational corporations on <strong>the</strong> enjoymen<strong>to</strong>f human rights (E/CN.4/SUB.2/RES/2001/3). 31 July 2001). Initially, <strong>the</strong> group’s mandate did not <strong>in</strong>cludedraft<strong>in</strong>g a code of conduct, but David Weissbrodt began this task <strong>in</strong> 1999; <strong>in</strong> 2001, <strong>the</strong> Work<strong>in</strong>g Group’smandate officially <strong>in</strong>cluded activities related <strong>to</strong> draft<strong>in</strong>g a code (Sub-Commission 2001). In March 2003, <strong>the</strong>work<strong>in</strong>g group presented a draft <strong>to</strong> <strong>the</strong> sub-commission, which was unanimously approved <strong>in</strong> August and112|Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren
transmitted <strong>to</strong> <strong>the</strong> Commission on Human Rights (“Commission”) (UN Sub-Commission on <strong>the</strong> Promotionand Protection of Human rights. Responsibilities of transnational corporations and o<strong>the</strong>r bus<strong>in</strong>ess enterprises withregard <strong>to</strong> human rights (E/CN.4/SUB.2/RES/2003/16). 20 Oct. 2003). In 2004 <strong>the</strong> Commission did threeth<strong>in</strong>gs: first, confirmed <strong>the</strong> importance of TNCs responsibilities regard<strong>in</strong>g human rights; second, requested<strong>the</strong> Office of <strong>the</strong> High Commissioner on Human Rights (OHCHR) <strong>to</strong> report on <strong>the</strong> legal status of current<strong>in</strong>itiatives; and third, affirmed <strong>the</strong> norms have no legal stand<strong>in</strong>g, and ordered <strong>the</strong> Sub-Commission not <strong>to</strong> beg<strong>in</strong>moni<strong>to</strong>r<strong>in</strong>g functions (Sub-Commission. The effects of <strong>the</strong> work<strong>in</strong>g methods and activities of transnationalcorporations on <strong>the</strong> enjoyment of human rights (E/CN.4/SUB.2/RES/2004/16). 9 Aug. 2004).92The Norms will have an effect <strong>in</strong> both <strong>the</strong> short and long term. In <strong>the</strong> short term, <strong>the</strong> Norms will become <strong>the</strong><strong>in</strong>ternational standard for corporate human rights responsibilities. In <strong>the</strong> long term, <strong>the</strong> Norms may serve as abluepr<strong>in</strong>t for future <strong>in</strong>ternational standards. It is also <strong>in</strong>terest<strong>in</strong>g <strong>to</strong> note that human rights treaties usually growout of declarations or o<strong>the</strong>r “soft-law” <strong>in</strong>struments as a necessary step <strong>in</strong> consensus build<strong>in</strong>g required for treatydraft<strong>in</strong>g.93UN Sub-Commission on <strong>the</strong> Promotion and Protection of Human Rights. “Preamble.” Norms on <strong>the</strong> responsibilitiesof transnational corporations and o<strong>the</strong>r bus<strong>in</strong>ess enterprises with regard <strong>to</strong> human rights (E/CN.4/Sub.2/2003/12/Rev.2). 26 Aug. 2003. TNCs are fur<strong>the</strong>r obligated <strong>to</strong> “… respect generally recognised responsibilities and normsconta<strong>in</strong>ed <strong>in</strong> United Nations treaties and o<strong>the</strong>r <strong>in</strong>ternational <strong>in</strong>struments…” some of which are listed <strong>in</strong> <strong>the</strong>preamble.94Ibid.95UN Sub-Commission on <strong>the</strong> Promotion and Protection of Human Rights. Commentary on <strong>the</strong> Norms andresponsibilities of transnational corporations and o<strong>the</strong>r bus<strong>in</strong>ess enterprises with regard <strong>to</strong> human rights (E/CN.4/Sub.2/2003/38/Rev.2). 26 Aug. 2003. ). [Here<strong>in</strong>after referred <strong>to</strong> as UN Commentary.]96As with <strong>the</strong> discrim<strong>in</strong>ation provision conta<strong>in</strong>ed <strong>in</strong> <strong>the</strong> Global Compact, its exclusion does not mean it isirrelevant <strong>to</strong> <strong>the</strong> discussion on CSEC. It is worth not<strong>in</strong>g, that <strong>the</strong> provision enumerates age as grounds fordiscrim<strong>in</strong>ation, and <strong>the</strong>n specifically states that children may be given greater protection.97UN Sub-Commission on <strong>the</strong> Promotion and Protection of Human Rights. Norms on <strong>the</strong> responsibilities oftransnational corporations and o<strong>the</strong>r bus<strong>in</strong>ess enterprises with regard <strong>to</strong> human rights (E/CN.4/Sub.2/2003/12/Rev.2). 26 Aug. 2003. Po<strong>in</strong>t 20. [Here<strong>in</strong>after referred <strong>to</strong> as UN Norms.]98Ibid., po<strong>in</strong>t 21.99Ibid., po<strong>in</strong>t 22.100Ibid., po<strong>in</strong>t 23.101UN Sub-Commission on <strong>the</strong> Promotion and Protection of Human Rights. “Preamble.” Norms on <strong>the</strong> responsibilitiesof transnational corporations and o<strong>the</strong>r bus<strong>in</strong>ess enterprises with regard <strong>to</strong> human rights (E/CN.4/Sub.2/2003/12/Rev.2). 26 Aug. 2003. The list of <strong>document</strong>s is extensive. Some notable examples are: <strong>the</strong> Slavery Convention and<strong>the</strong> Supplementary Convention on <strong>the</strong> Abolition of Slavery, <strong>the</strong> Slave Trade, and Institutions and Practices Similar<strong>to</strong> Slavery; <strong>the</strong> Convention on <strong>the</strong> Rights of <strong>the</strong> <strong>Child</strong>; <strong>the</strong> United Nations Convention aga<strong>in</strong>st TransnationalOrganised Crime; and conventions and recommendations of <strong>the</strong> International Labour Organisation.102Ibid. Includ<strong>in</strong>g: <strong>the</strong> Tripartite Declaration of Pr<strong>in</strong>ciples Concern<strong>in</strong>g Mult<strong>in</strong>ational Enterprises and Social Policy; <strong>the</strong>Declaration on Fundamental Pr<strong>in</strong>ciples and Rights at Work; <strong>the</strong> Guidel<strong>in</strong>es for Mult<strong>in</strong>ational Enterprises; and <strong>the</strong>United Nations Global Compact <strong>in</strong>itiative).103Ibid.104UN Commentary. 1(a).105Ibid., 1(b). (TNCs have an obligation <strong>to</strong> exercise ‘due diligence’ <strong>to</strong> ensure <strong>the</strong>y do not contribute <strong>to</strong>, or benefitfrom, human rights abuses; refra<strong>in</strong> from activities that underm<strong>in</strong>e <strong>the</strong> rule of law and o<strong>the</strong>rs efforts <strong>to</strong> promoteand ensure respect of human rights; and help promote and ensure respect for human rights).106UN Norms, C. Norms po<strong>in</strong>t 3 (specifically: war crimes, crimes aga<strong>in</strong>st humanity, genocide, <strong>to</strong>rture, forceddisappearance, forced or compulsory labour, hostage-tak<strong>in</strong>g, extrajudicial, summary or arbitrary executions,o<strong>the</strong>r violations of humanitarian law and o<strong>the</strong>r <strong>in</strong>ternational crimes aga<strong>in</strong>st <strong>the</strong> human person as def<strong>in</strong>ed by<strong>in</strong>ternational law, <strong>in</strong> particular human rights and humanitarian law).107Commentary, 3(a), 3(b).108Norms, po<strong>in</strong>t 4. See also Commentary 4(a) (lists relevant <strong>in</strong>ternational Norms).109Commentary, 4(b), 4(d)Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren|113
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Executive SummarySince the First an
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