The Methodist Church has adopted a new investment policy encouraging
the companies it invests in to promote human rights in the areas where
they operate.
The policy relates especially to companies operating in areas
affected by conflict and is designed to ensure that they do not do
anything that either exacerbates levels of conflict or involves them in
human rights abuses.
The Church's investment portfolio totals £1m and while it
acknowledges that governments hold ultimate responsibility for upholding
the human rights of citizens, it states that companies have obligations
in this respect too, including making sure that their own suppliers and
business partners are respecting human rights.
The new policy has been drawn up by the Central Finance Board of the
Methodist Church, which says there is a growing need to strengthen human
rights protections as capital investment expands into global markets
where current levels of protection are "inadequate".
The policy expects that the companies invested in by the Methodist
Church publish their human rights policies and an assessment of risk in
areas of poor human rights. Companies having an adverse impact on
conflict or at risk of being "too closely identified" with human rights
abuses should be prepared to suspend operations. They are also expected
to have policies in place that seek to remedy human rights abuses.
The board's chief executive Bill Seddon said the new policy would
help the Church "engage with companies operating in areas where human
rights are being ignored, often due to armed conflict".
"It will help us structure our ongoing human rights engagement with companies," he added.
Senior Fund Manager Stephen Beer added: "Companies have
responsibilities, not only to shareholders but also to their employees
and people in the societies in which they operate. Companies can often
face difficult dilemmas, which we recognise when we talk to them.
"Nevertheless, they should abide by clear standards and business
practice. Our new policy covers just one aspect of our work to integrate
human rights concerns with our investment approach. For example, we
also engage with companies on labour rights and health and safety
issues."
Steve Hucklesby, Policy Adviser for the Methodist Church, said: "In
many parts of the world, local communities feel that they have no
control over the immense power of big corporations. Meanwhile, companies
often tend to think of their responsibility to local communities only
in terms of charitable giving.
"You can still ask questions of senior executives about their
responsibility for human rights beyond the workforce and be met with a
blank stare. However, this is changing as people are increasingly aware
that a company's operations can have both negative and positive impacts
on human rights and conflict."