Mia Folkesson, Impaktly: Reflections from the United Nations Forum on Business and Human Rights: Moving Toward Respectful and Sustainable Business Practices

Happy Human Rights Day!

Impaktly had the pleasure of attending the recent United Nations Forum on Business and Human Rights as part of the Finnish delegation, organized by UN Global Compact Finland. This was an incredible opportunity to delve into the global discourse on creating a smart mix of measures to embed respect for human rights into business practices. The discussions centered on addressing challenges, lessons learned, and emerging opportunities as we move from soft law frameworks to enforceable hard laws like the Corporate Sustainability Due Diligence Directive (CSDDD).

Despite some debates about deregulation, the forum’s overarching message was clear and Heidi Hautala said it best “the global trend is moving toward greater respect for human rights in business”. This is not a question of "if" but "how" companies will adapt to meet these expectations.

The Transition from Soft to Hard Law: Progress or Complexity?

The forum highlighted the ongoing shift from voluntary soft law approaches, like the UN Guiding Principles on Business and Human Rights, to binding regulations like the CSDDD. While this transition holds the promise of driving accountability and leveling the playing field, concerns remain about added complexity, especially for small and medium-sized enterprises (SMEs).

Norway’s Transparency Act served as a pivotal case study, demonstrating how hard laws can be implemented effectively when paired with clear guidelines, capacity-building, and stakeholder collaboration. However, participants stressed the need to avoid turning these frameworks into a burdensome checklist, which risks diluting their transformative potential. Instead, the focus should remain on fostering genuine impact rather than mere compliance.

Collaboration and Two-Way Dialogue: A Smart Mix of Measures

A recurring theme was the need for collaboration and a balanced "smart mix" of tools to ensure effective human rights due diligence. Companies cannot achieve this alone; partnerships with unions, workers, and communities are essential. Two-way dialogues with rights-holders were highlighted as a cornerstone of successful implementation.

Listening to the voices of those directly impacted—workers, unions, and local communities—builds trust and ensures that measures are not only effective but also equitable. Incentivizing all players in the value chain to align with shared goals can drive systemic change, creating a ripple effect across industries.

Avoiding Pitfalls: Lessons Learned

A critical takeaway from the forum was the importance of learning from past missteps. The risk of transforming human rights due diligence into a "tick-the-box" exercise looms large. To truly drive change, businesses must embrace these frameworks as opportunities to do the right thing, not just to fulfill regulatory requirements.

Moreover, the need to protect SMEs from excessive burdens was repeatedly emphasized. Creative solutions, such as capacity-building programs and shared resources, can help smaller players contribute meaningfully without being overwhelmed.

The Power of Networking

Beyond the panel discussions and workshops, one of the forum’s greatest strengths was the opportunity to connect with like-minded professionals from around the world. Sharing insights, challenges, and success stories reinforced the shared commitment to making respect for human rights a fundamental part of business operations. And one must never underestimate the importance of sharing thoughts outside the conference over cocktails and dinner. The Finnish delegation had the opportunity to do so at the Permanent Mission of Finland. Thank you H.E. Ambassador Schroderus-Fox for hosting us.

Looking Ahead: A Call to Action

As we navigate this transformative journey, it’s crucial to remember that this is not just a compliance exercise—it’s about creating lasting change. By fostering genuine partnerships, listening to rights-holders, ensuring true integration into business processes and decision-making, as well as building incentives for value chain collaboration, we can ensure that the shift to hard law becomes a powerful driver of progress rather than a source of complexity.

The forum reaffirmed that businesses have a vital role to play in shaping a world where human rights are respected and upheld. With the CSDDD and similar initiatives paving the way, now is the time to act—not just because it’s required, but because it’s the right thing to do.