Importance of Human Rights in Business and the Role of BiH Companies

Human rights are fundamental rights and freedoms inherent to every individual from birth, irrespective of race, gender, religion, political affiliation, or social status. Defined and protected by international conventions, human rights encompass a range of fundamental principles, including the right to life, freedom of expression, protection from discrimination, and the right to work under fair conditions. The meaning and essence of human rights are reflected in equal opportunities, dignity, respect, and freedom for each individual, which fosters social cohesion and the overall well-being of society.

“Everyone has the right to work, to free choice of employment, to just and favorable conditions of work…” – UN Universal Declaration of Human Rights (1948)

The rights of every individual in Bosnia and Herzegovina are regulated by the Constitution of Bosnia and Herzegovina, international treaties or conventions signed by BiH, and relevant laws. Article II of the Constitution of Bosnia and Herzegovina states that BiH and both entities shall ensure the highest standard of internationally recognized human rights and fundamental freedoms. It also states that the rights and freedoms outlined in the European Convention on Human Rights and its Protocols are directly applicable in BiH and take precedence over all other legislation. The same article proclaims that all individuals within the territory of BiH are guaranteed the enjoyment of human rights and fundamental freedoms without discrimination based on gender, race, skin color, language, religion, political or other affiliation, national or social origin, membership in a national minority, property, birth, or any other status[1].

Human rights in the business sector

Industrialization and globalization have amplified the business sector’s influence on society, positioning corporations as key players and indispensable actors in the protection of human rights. Their activities impact not only employees but also entire communities, natural resources, and the overall development of countries. Global business development has created a need to establish universal standards to ensure that business practices uphold human rights worldwide.

Following the adoption of the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work in 1998 in Geneva, the key document in this regard is the United Nations Guiding Principles on Business and Human Rights (UNGP). These principles provide countries and companies with a framework for protecting and promoting human rights.

The 31 UNGP principles contain three pillars:

1. the state duty to respect and protect human rights and fundamental freedoms;
2. the corporate responsibility to respect all human rights obligations and relevant legislation;
3. establishing effective grievance and remediation mechanisms for adversely impacted individuals.

In Bosnia and Herzegovina, the UN’s Guiding Principles on Business and Human Rights came into the spotlight and on the political agenda during the implementation of the project “Improving Human Rights in the Business Sector” implemented by the Institute for Youth Development KULT. As part of the project at that time, the document BiH Framework Guidelines for the Implementation of the UN Guiding Principles on Business and Human Rights 2021–2025 was developed. The Ministry of Human Rights and Refugees of BiH, the Delegation of the European Union, the Association of Employers of FBiH, the Association of Employers of Brčko District, the Confederation of Trade Unions of Bosnia and Herzegovina, and the Confederation of Associations of Employers of Republika Srpska all contributed to its creation. The guidelines outline key steps the business sector should take to ensure respect for human rights in line with international standards. Their implementation was formalized through adoption by the Council of Ministers of Bosnia and Herzegovina in November 2022.

Charter on Business and Human Rights as a guide for BiH companies

Alongside the activities related to drafting the Guidelines, public consultations were held in several cities in cooperation with the Employers’ Association of FBiH. These consultations informed the analysis and, subsequently, the methodology for developing the “Charter on Business and Human Rights.”  The Charter comprises 15 articles detailing the companies’ commitment to preventing human rights violations, involving stakeholders and allowing them to voice their needs, providing equal rights to all, fostering a safe work environment, forbidding forced labor and involvement in human trafficking and upholding the right to a confidential communication channel employees can use to report any violations.

The charter was signed by more than 100 companies, including leaders in their industry such as Coca-Cola, Violeta, DM, Bingo, Konzum, ASA Group and others. The new project, Improving Corporate Responsibility for Human Rights in BiH, funded by the European Union, continues the positive trend of signing, endorsing, and applying the Charter. This initiative further enhances visibility and draws public attention to human rights in business.

By integrating UNGP principles through the Charter into their operations, BiH companies not only reduce legal and reputational risks but also foster trust with employees, partners, communities, and consumers.

The importance of human rights for responsible and sustainable business

The integration of human rights in business is crucial for promoting sustainable development and ensuring a stable and supportive business environment. The business sector directly influences employees’ rights through working conditions, hours, and workplace safety measures. Amid the current labor market disruptions in BiH and the region, respecting human rights contributes to corporate image and strengthens employer branding. This is essential for attracting, motivating, and retaining human potential—the most valuable resource of any company. Socially responsible companies often perform better in the market, as consumers increasingly prefer brands that uphold ethical values, embrace diversity, and respect universal human rights.

The business sector can significantly contribute to improving and protecting human rights through compliance with legal and ethical standards. These activities align the company’s internal processes and procedures with international markets and standards, increasing its competitive advantage, particularly for export-oriented businesses. By adopting the Charter on Business and Human Rights, BiH business entities demonstrate their commitment to making responsible business practices the foundation of their development, fostering a business environment where human rights are respected and protected.

The project “Improving Corporate Responsibility for Human Rights in BiH” is funded by the European Union and implemented by the  Institute for Youth Development KULT in partnership with the  Commerce Trade and Services Trade Union and the  Association “Dajte nam šansu.”

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[1] Excerpt from the primary regulatory framework for the subject area, published on the official website of the Ministry of Foreign Affairs of Bosnia and Herzegovina.