The Philippine government promotes a competitive business climate with the goal to make the country a prime investment destination in Southeast Asia. With the growing global demand to incorporate human rights due diligence in business operations, fostering an enabling environment based on sound industrial, social, and labor policies are some strategies to attract more investment. To better understand how enforcing labor laws to promote decent work affect investments in the country, the study benchmarked practices of both exporting-local and investing-multinational companies in terms of their labor standards compliance and labor-management relations. The study noted that companies in the Philippines, including Philippine Economic Zone Authority (PEZA) locators with foreign equity have been generally compliant with the national labor laws and have innovative supply chain practices to address child and forced labor issues; to promote gender equality, diversity and inclusion in the workplace; to mitigate occupational safety and health risks; and to institutionalize grievance machinery to resolve workplace issues. There are companies that also adopted internationally recognized frameworks and guidance like UNGP BHR and Human Rights Due Diligence framework and OECD Due Diligence Guidance for Responsible Business Conduct to ensure that the company’s business operations exercise due diligence.
The practices of these exporting-local and investing-multinational companies can be emulated by local establishments to promote a competitive business climate. Hence, while the country is yet to develop its National Action Plan on Business and Human Rights, the researchers recommend a strategic framework that embodies the principles of human rights due diligence to promote responsible business conduct and reinforce social dialogue mechanism through DOLE programs such as labor inspection and FOA roadmap.
Keywords: labor standards, labor management relations, decent work, sustainable development, responsible business conduct, business, human rights
RESEARCHERS: Castillo, Franchesca Rose S. | Comillo, Joan N. | Bondad, Jan Danielle R.