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potential human rights impact has low probability but high severity, the former
does not offset the latter. The severity of the impact, understood as its “scale,
scope and irremediable character”, is paramount (see Guiding Principle
14). Equally, human rights risks cannot be the subject of a simple cost-benefit
analysis, whereby the costs to the enterprise of preventing or mitigating an
adverse impact on human rights are weighed against the costs to the enterprise
of being held to account for that harm.
As the commentary to Guiding Principle 18 explains, the process of assessing
actual and potential adverse human rights impact typically includes “assessing
the human rights context prior to a proposed business activity, where possible;
identifying who may be affected; cataloguing the relevant human rights standards
and issues; and projecting how the proposed activity and associated business
relationships could have adverse human rights impacts on those identified”.
An enterprise may choose to do self-standing assessments of its human rights
impact or to integrate human rights considerations into its wider social and
environmental impact assessments. It may be necessary to do a stand-alone
assessment of human rights impact if the enterprise’s activities or operating
context pose a heightened risk to human rights. A number of tools and
methodologies for human rights impact assessments have been and will
continue to be developed. However, as noted, this Principle does not aim at a
single such assessment, but at an ongoing process of assessing impact that will
draw on various sources.
Besides the formal assessments initiated by the enterprise itself, other sources
may contribute too. For example, a grievance mechanism through which affected
stakeholders can raise concerns may provide indications of actual or potential
human rights impact. News or expert reports on particular operating contexts
or industry developments will likely be another source. Campaigns by nongovernmental organizations (NGOs) or other third parties may well be another.
All these sources can feed into an ongoing process of assessing impact.
When assessing their actual or potential human rights impact, companies
should pay particular attention to marginalized or vulnerable groups. In
some societies, inherent patterns of discrimination can be pervasive (but not
necessarily apparent to outsiders). While companies are not responsible
for such wider discriminatory practices, they should pay particular attention
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