Five-Year Overview + Overview of In-Country Working Groups in Indonesia and Columbia
Introduction
Companies supporting the Voluntary Principles, together with their home and host governments, are encouraged to set up and/or participate in “in-country processes” to formally integrate the Voluntary Principles into host country policies and practices. Such initiatives—which have been initiated in Colombia and Indonesia — aim to facilitate dialog between the private, public and civil sectors around human rights and security practices.
Progress and Success
The Indonesian working group has successfully coordinated with regional Indonesian police: Launched in March 2002, the Indonesian working group is largely company-led. Five energy companies involved in the working group have already signed MOUs with BP Migas and the Area Police Command (Polda). BP Migas, which is the Indonesian government's oil and gas coordinating body, helped standardize the MOUs for each of the companies and the Polda in their respective areas of operation. The Indonesian working group has also invited Indonesian government officials to a special plenary session scheduled in 2006 where working group members intend to present the government representatives with an overview of the Voluntary Principles and the issues facing multinational corporations. Additionally, the U.S. government has expressed interest in taking a more active role in the Indonesian working group; specifically, the U.S. government can serve as a diplomatic channel for companies to gain greater access to the Indonesian government.
The Colombian working group has coordinated with the Colombian military, drafted a risk assessment template and continues to coordinate best practice sharing sessions: Initiated in October 2003, the Colombian working group, also known as the National Committee on the Voluntary Principles, involves several multinational energy companies; Ecopetrol, Colombia’s state-owned oil company; the Asociación Colombiana del Petróleo (ACP), Colombia’s oil industry association, and various members of the Colombian government. The group reached a milestone when the Colombian Ministry of Defense agreed to include language on human rights protection, including a commitment to the Voluntary Principles, in agreements that the state-owned oil company, Ecopetrol, signs with the Colombian armed Forces to provide protection for oil operations.
The working group has also drafted a set of best practice guidelines for risk assessment based on 11 regional workshops throughout Colombia hosted by the Office of the President and the Minister of Mines and Energy. The risk assessment workshops included 40 companies from the petroleum, mining, and electricity sectors, as well as a number of state institutions. In addition, the working group continues to coordinate a series of convenings designed to facilitate the exchange of best practices among companies. Additionally, in April 2005, ACP and International Alert jointly hosted a best practice workshop on risk assessment in Bogotá.
Lessons Learned
The Indonesian and Colombian processes offer some successful strategies and key learnings:
- Begin incorporating the Voluntary Principles before operating: Whenever possible, companies should attempt to incorporate the Voluntary Principles into contracts and agreements prior to starting an operation. The highest level of national focus, support and attention is mobilized when a corporation initially enters a region, so this is the ideal time to encourage senior officials to make declarations and sign commitments, and to infuse the Voluntary Principles into contracts. Additionally, the host government is likely to be more willing to negotiate and commit to the Voluntary Principles in advance of a project than after it has already begun.
- Convene a core group of committed companies with cross-functional support for the Voluntary Principles and designated champions: The in-country process itself is probably best served by identifying a core group of leading corporate members who recognize the importance of the Voluntary Principles and are willing to use their position to help influence host governments. It is also crucial that the process has a champion, and that each company has an internal champion to drive the process forward from within company, otherwise the process can become muddled and lose momentum. ACP has been credited as the real driving force behind the Colombian process and has coordinated most of the National Committee's efforts. Internally, company support for the Voluntary Principles should be cross-functional, from the CEO to line management.
- Gain buy-in from host government: Host government buy-in in the in-country process is crucial to achieving maximum participation among relevant stakeholders. A lack of host government buy-in can result in a process that does not accurately reflect the needs and concerns of all relevant stakeholders, thereby further complicating efforts to implement the Voluntary Principles. The success of the Colombian in-country process to date was catalyzed by support from Colombian Vice President Francisco Santos, who chairs the National Committee, and Human Rights Advisor Carlos Franco. Companies can leverage home governments as a diplomatic channel for accessing and engaging host governments on the Voluntary Principles.
On-Going Challenges
While both processes have enjoyed successes, participants have also encountered and continue to address a number of challenges that illustrate the need for a coordinated and sustained commitment to the Voluntary Principles by all stakeholders:
- Company hesitation to increase transparency efforts due to local NGO hostility: In Indonesia, it has been difficult to balance the movement toward increased reporting and transparency with significant local NGO hostility, such as that of separatist organizations. Companies often find it uncomfortable to adhere to the transparency and reporting requirements of the Voluntary Principles because they fear that local NGOs will distort any disclosed human rights information and use it to fuel their own agenda. The Indonesian government shares this concern of the companies.
- Lack of NGO involvement and disparate levels of support from home governments: NGO involvement in the in-country processes has been minimal to non-existent thus far, with the exception of the International Council of the Red Cross acting as an observer of the process. There have been a few local human rights NGOs in Indonesia, but they are largely unaware of the Voluntary Principles and their implications. NGO involvement is an area that requires more attention, particularly because NGOs can play a role in building synergies and in bringing police and military officials into the dialogue. Although all participating companies expressed a desire to engage NGOs, and most engage with the independent sector regularly about practices outside the Voluntary Principles, some may be hesitant to share information on human rights performance. In addition, while the U.S. embassy has been actively involved in the in-country processes, support from the Dutch, UK and Norwegian embassies have been limited.
- Vague language regarding engagement of public security: The Principles' vague language around engaging host governments and identifying alleged human rights abusers among public security providers emerged as a potential weakness and area of confusion for those involved in the in-country processes. Specifically, participants have expressed concern about how “deep” into the security force this responsibility extends. Does it begin and end with on-the-ground security personnel, or does it extend to the Chief of Police? If, for example, it extends to a Chief of Police with a record of human rights violations, how can a company practically address the issue? Note that this challenge is a common criticism of the Voluntary Principles—that the document is not prescriptive enough with regard to engaging host governments. The lack of prescription, however, is precisely what has allowed companies to address security and human rights issues in Colombia. Because the language is non-threatening, the Colombian government has been able to engage at a level in which it is comfortable. In this way, the Voluntary Principles can succeed as a global document that is adaptable to local circumstances.
- Company hesitation to engage host governments: Some companies feel that engaging host governments on human rights issues is not within their jurisdiction, arguing that governments may find it intrusive. Moreover, many non-Western governments are suspicious of American and/or European values/standards and are resentful of assertions that their own values and standards are somehow inferior or “wrong.” Additionally, regional public security forces often have a disparate understanding and level of acceptance of the Voluntary Principles. In some cases, this challenge can be overcome by utilizing home governments as a diplomatic channel for engaging host governments. A coordinated approach among companies, home governments, and even NGOs to engage host governments can reduce the exposure of any one company, and increase the likelihood of progress. Home governments and NGOs can extend their support, for example, by providing host country governments with technical assistance and capacity building.
Impact of the Voluntary Principles
The measurable impacts of incorporating the Voluntary Principles into country policies and practices in Indonesia and Colombia (both quantitative and qualitative) are difficult to measure. However, both working groups have developed promising security agreements with public police forces. Moreover, the engagements among companies, and the government in the case of Colombia, have been exceptional. The collaborations seem to have shifted company and country culture regarding human rights and security issues, and participants are more accustomed to thinking about, talking about, and addressing these issues than ever before. Despite the inevitable challenges faced by those involved in the in-country processes, the experiences in Indonesia and Colombia underscore the fact that the Voluntary Principles provide an effective model for talking about sensitive issues with governments.