AMNESTY INTERNATIONAL
World Economic Forum/Media Briefing: Doing business in the Russian Federation:
the human rights approach
This document is a summary of Amnesty International's report which focuses on
the economic and business climate in which companies operate in the Russian Federation
and their responsibilities towards human rights. The report will be launched by
Amnesty International's Secretary General Irene Khan at the World Economic
Forum in Davos where the organization is calling on corporations to be held accountable
for human rights in a globalised world.
Amnesty International takes no position on doing business in, or with, the Russian
Federation. Amnesty International neither supports businesses operating there,
nor calls for their withdrawal. The decision to invest or trade in the Russian
Federation is that of the business alone. Amnesty International asks companies
to include human rights in their framework when they assess the risks of operating
in the Russian Federation, and to consider the impact of their activities on human
rights. In the past, Amnesty International has produced similar documents on China
and Saudi Arabia. We believe the tools of good corporate conduct are universal,
and apply to every country.
Our aim is to increase awareness among business executives of some of the human
rights issues in the Russian Federation and what their companies can do to promote
human rights. We are reminding companies on doing business in the Russian Federation,
bearing in mind the human rights responsibilities.
Doing business in the Russian Federation: the human rights approach
The Russian Federation faces numerous economic and social problems.
Widening disparities of income and widening gap between rich and poor regions.
Widespread human rights violations with victims from the most vulnerable sectors
in society who have little chance of getting justice and redress; torture or ill-treated
in police custody; disease-ridden and overcrowded pretrial detention centres.
Conflict in the Chechen Republic, where Russian federal forces have reportedly
killed, tortured and raped civilians without fear of punishment. Chechen forces
have also committed abuses.Businesses in the Russian Federation are not insulated
from the human rights environment - they operate in an environment where
corruption and crime are rife and lack of respect for the rule of law hits companies
as well as individuals.
Amnesty International believes that companies' problems are closely intertwined
with the way the Russian Federation functions as a society, and that unless fundamental
changes are made to enhance respect for human rights and the rule of law, the
business environment will not significantly improve. Human rights standards, which
aim to protect the individual from unfair treatment and abuse from states, should
be the basis of the rule of law.
Company conduct and human rights standards
International human rights standards are universal. They set out the human rights
framework that companies should respect and take into account in their operations
all over the world, including the Russian Federation. Human rights standards and
principles to guide good practice can be found in treaties, in principles
and statements adopted by the international community and in voluntary codes.
Some of the most important are: The Universal Declaration of Human Rights. The
International Covenant on Civil and Political Rights. The International
Covenant on Economic, Social and Cultural Rights. The Declaration on Fundamental
Principles and Rights at Work of the International Labour Organization. Governments
implement international treaties through their domestic laws. Companies are governed
by these laws, and should adhere as well to non-treaty standards. Amnesty
International believes that the business community also has a wider responsibility
to use its influence to promote respect for human rights.
The Russian economy today
Russian oil is identified as the driving force as energy accounts for two-fifths
of Russian exports and more than 10 per cent of the country's real Gross
Domestic Product.
The vast Russian oil and mineral resources should be of enormous benefit
to the local population. However, experience in Africa, Asia and other parts of
the world shows clearly that extractive industries often end up in dispute with
indigenous communities. Moreover, when companies explore for oil in areas
of conflict, some have become targets of armed opposition groups.
The business climate
After a major economic decline since the collapse of the USSR in 1991, the Russian
Federation has achieved a certain degree of political and economic stability in
the last five years. Foreign direct investment remains relatively low: The existing
legal framework that governs business conduct in the Russian Federation allows
for unwritten, arbitrary and frequently changing rules. Disputes are often settled
informally, by bribes, using personal connections or force, not by going to the
courts. Businesses have told Amnesty International that many companies are forced
to pay protection money to organized criminal gangs in order to function. Such
acts foster corruption and, with few institutional or legal restrictions on such
activity, many officials behave as if they have limitless scope for kormlenie,
a slang term for "the abuse of public office for private gain".
Corruption: a human rights issue
Corruption occurs at many different levels: At the national and international
level, the decisions and policies of senior officials are sometimes influenced
by bribes and inducements. At the local level, the poor are sometimes unable to
gain access to public goods and services because they cannot afford to pay a bribe.
At the intermediate level is the grey area of practices that may or may not be
corrupt, such as facilitation payments, industry commissions, rewards. Amnesty
International believes that any society where corruption is widespread is likely
to suffer from arbitrary and unfair decisions which undermine the rule of
law and adversely affect the human rights situation. Companies have an important
role to play in any country in countering corruption; they can take steps to avoid
corrupt practices by devising and implementing policies consistent with
the growing international consensus against corruption.
Human rights violations in the Russian Federation
Amnesty International's worldwide membership launched a campaign in October 2002
to promote respect for human rights in the Russian Federation, focusing on specific
and serious violations of international human rights and humanitarian law
by Russian law enforcement and security forces: Torture and ill-treatment by law
enforcement officials. The victims include children and women. Lack of accountability
for the perpetrators of these abuses and obstacles faced by victims - particularly
women, children and members of ethnic or national minorities - in obtaining redress.
In the context of the conflict in Chechnya, there have been widespread and credible
reports of attacks against civilians, rape and other forms of torture, "disappearances"
and extrajudicial executions by Russian forces. Chechen forces are also reported
to have committed gross human rights violations, including taking hostages.
The campaign seeks to highlight the discrepancy between the human rights
protection which those living in the Russian Federation have in international
and national law, and the reality of widespread human rights abuses committed
in a climate of impunity. Amnesty International members around the world will
be urging the government to live up to its obligations to protect and promote
human rights so that there is justice for everybody.
What companies can do
Companies operating in the Russian Federation should ensure that their operations
will not contribute, either directly or indirectly, to human rights violations.
It is their responsibility to ensure that international standards are followed
within the sphere of business practice. Amnesty International gives a list of
recommendations to companies operating in the Russian Federation, such as: Write
your own code of conduct.Avoid corrupt practices.Ensure respect for human rights.Make
information public.Use your influence to promote human rights. Amnesty International
calls upon companies doing business in the Russian Federation to implement
Amnesty International's Human Rights Principles for Companies and to apply them
to their specific cases and industries.
For more information, to arrange an interview with a member of the Amnesty International
delegations, please contact: World Economic Forum in Davos -- Judit Arenas on
+ 44 7778 472 188.
For regular information updates and other materials please visit
Public Document
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For more information please call Amnesty International's press office in
London, UK, on +44 20 7413 5566
Amnesty International, 1 Easton St., London WC1X 0DW.