• Protecting Brand Image and Corporate Reputation: A company that upholds human rights standards in regards to Indigenous peoples can withstand greater scrutiny whether by consumers, shareholders, activist organizations or domestic legislatures, precluding damaging campaigns.
• Enhanced Access to International Institutions: International organizations such as the International Finance Corporation and the Multilateral Investment Guarantee Agency, the United Nations, and regional financial institutions such as the Asian Development Bank and the Inter-American Development Bank all have specific guidelines regarding the long-term cultural and economic survival of Indigenous peoples which they either require or recommend companies follow. While such guidelines are becoming increasingly stringent, companies are continuing to enjoy good relations with these institutions – and continue to access their support – by adhering to their standards.
• Sustainable Access to Markets and Resources: In the past decade, certain companies in the extractive industry in Australia were increasingly precluded from access to new sites almost entirely through the “politics of shame.” Consumer/citizen campaigns, and even US-legislated sanctions, have been placed on international companies over human rights and Indigenous persons rights violations in a wide variety of countries, including Brazil, Nigeria, Burma, and Colombia. As such, a relationship has emerged between sanctions levied against companies for past poor performance and subsequent access to new markets and resources.
• Enjoying Preferred Business Partner Status: Given the opportunity to choose among several bidders for a potential project, some governments are more likely to choose a company with the best reputation with respect to Indigenous relations and human rights practices.
• Indigenous Preference and Social License: One of the most important reasons for engaging constructively with Indigenous communities is that the resulting relationship can give a company significant competitive benefits in terms of gaining a social license to operate from local communities, particularly in the resource sector with regard to gaining access to scarce reserves.
• Access to Investment Capital: Large institutional investors in the North, such as pension funds and investment banks, are increasingly adopting ethical screens with regards to projects affecting Indigenous peoples. Some countries are now requiring such investment organizations to report on corporate social responsibility issues. A company which demonstrates responsible engagement practices with Indigenous peoples can help protect their access to investment capital.

• Globalization: The substantially increased attention paid to the local impacts of the global economy have led to greater scrutiny of multinational companies' impacts on Indigenous peoples. The insufficient application of rule of law or adherence to international standards pertaining to Indigenous peoples may attract negative attention to a company's activities in a newly inter-connected world.
• Legal Rights: There is an existing, and growing, body of jurisprudence and customary law that specifically recognizes both the individual and collective rights of Indigenous peoples significantly beyond minority status. These rights stem from the legal concept that recognizes the rights of those who were known to occupy a given land first, known as aboriginal rights. Additionally, these rights may be recognized in state, provincial, national, and/or international law, or they may be recognized in international conventions. One international convention that is particularly prominent is Convention 169 of the International Labour Organization.
  These rights affect such things as:
  Environmental health of the lands, territories and resources traditionally occupied and used
  Protection of sites of cultural and religious significance
  Cultural and physical integrity of the Indigenous people
  Meaningful participation in decisions that affect them
  Maintenance and use of their own cultural, social and political institutions
  Freedom from discrimination and equal protection before the law
  Indigenous peoples also are protected by a number of national and international laws and conventions pertaining to minority rights.
• Rise of civil society and non-governmental organization (NGO) activism: Along with international human rights standards, many new and influential activist organizations have arisen on behalf of these standards. A number are devoted to Indigenous causes and have proved successful in mobilizing international and local opinion regarding the conduct of companies working in Indigenous areas. In tandem with the plethora of organizations has arisen the use of many new tactics that companies now face, from labeling to boycotts to private liability law. In a few instances, companies are also facing the rise of guerrilla activism by political organizations.
• Rise of Political Sophistication of National and International Indigenous Organizations: Indigenous peoples around the world are increasingly finding political expression through their own organizations. From Canada to Australia to Ecuador to Namibia, Indigenous organizations have come into being in scores of states to pressure for traditional rights around land, culture and informed consent. These groups are increasingly represented internationally through a number of organizations.
• Avoidance of lawsuits: Indigenous organizations in developing countries, often working in tandem with NGOs from Western countries in particular, have sought to use the courts to press claims for legal liability against multinationals alleged to have violated the rights of Indigenous populations, especially in the Americas and Oceania.
• Changing Legal Interpretations: In some countries such as Canada and Australia, the courts have reinterpreted laws to give more rights to Indigenous peoples. In particular, rights associated with adequate consultation, consent to proposed activities and land have been singled out. This trend is now moving into other countries and legal systems, with specific legal obligations in relation to Indigenous peoples being written into law.
• Increased Benefits and Value Associated with Biodiversity: In the wake of extensive environmental degradation and the permanent eradication of many species, companies are searching in more remote areas for new or rare materials which could be brought to market for a variety of diseases and other human needs. Indigenous populations often inhabit these more remote, undeveloped areas, and therefore are affected by companies engaged in both collecting and researching new species. The knowledge of, and access to, such species render these communities an important player that companies must increasingly take into account. Some legal protection for Indigenous rights in this area is found in national laws or in such international agreements as the United Nations Convention on Biological Diversity. From a positive standpoint, involving Indigenous peoples in company activities may contribute to the optimal management and preservation of these biologically and ecologically diverse lands, with attendant positive benefits for the company.
• Increased Attention Regarding the Patenting of Genetic Material: There has been heightened awareness and activism around the issue of patenting genetic material taken by international companies from Indigenous peoples that have proven resistant to certain diseases. A number of lawsuits have arisen as a result of this trend and in one such case, the Smithsonian Institute was forced by public pressure to renounce its patent rights for material taken from Indigenous peoples in Panama.
• Multilateral Agency Activity: Driven in part by controversy surrounding a number of their projects that impacted Indigenous peoples, the World Bank is presently revising its operational policies related to lending practices. It has welcomed the involvement of Indigenous organizations in this review process.

Legally Binding International Agreements

• International Labor Organization (ILO) Convention 107: Adopted in 1957 by the ILO, the Convention addresses “;the protection of the populations concerned, their progressive integration into their respective national communities and the improvement of their living and working conditions.” Ratified by close to three dozen states (mostly from the Americas though importantly, not by the US, Australia, or Canada), the convention's loose formulation for defining Indigenous peoples has given rise to widely varying interpretations of applicability. Important language is included in this convention on land rights: “The right of ownership, collective or individual, of the members of the populations concerned over the lands which these populations traditionally occupy shall be recognized” (Article 11). With some very broad exceptions aside, Article 12 goes on to provide that Indigenous populations “shall not be removed without their free consent from their habitual territories” unless they are, in effect, compensated either with other land or other means.
• International Labor Organization (ILO) Convention 169: Convention 169 supersedes 107 and therefore builds on many of the latter's strengths; language is rectified on integration and definition, now including self-definition as a criteria. The convention calls for greater participation by, and consultation with, Indigenous groups. For example, Article 7 provides for "participation in the formulation, implementation and evaluation of plans and programs for development. There are seven articles (Articles 13-19) devoted to land and resource rights. For example, Article 14 recognizes the land rights of Indigenous peoples, requiring states to consult with and benefit those Indigenous peoples affected by development programs. Land rights include all resources, and the convention prohibits involuntary dispossession without adequate consultation and/or compensation.
  ILO 169 is legally binding on its signatories, which include: Mexico, Norway, Costa Rica, Colombia, Denmark, Ecuador, Fiji, Guatemala, The Netherlands, Peru, Bolivia, Honduras, Venezuela, Argentina, Paraguay, Dominica, and Brazil. Other states currently reviewing 169 include Austria, Chile, the Philippines, Finland, El Salvador, the Russian Federation, Panama, and Sri Lanka.

• The Universal Declaration on Human Rights: The primary, international body of human rights standards established in 1945, the UDHR does not address Indigenous people directly, but has provisions for group rights and, therefore, protections available to Indigenous peoples under Article 27 (on minorities), as interpreted by the supervisory committees that monitor the declaration's conventions. In a follow-up Declaration adopted by the World Conference on Human Rights, held in June, 1993 in Vienna, States are requested "to take concerted positive steps to ensure respect for all human rights and fundamental freedoms of Indigenous people, on the basis of equality and non-discrimination, and to recognize the value and diversity of their distinct identities, cultures and social organization." The potential scheme of rights accorded to groups under both documents remains preliminary and does not address such fundamental issues as land, heritage, participation or autonomy.
• United Nations Draft Declaration on the Rights of Indigenous Peoples: Undertaken by a UN working group established in 1982 on Indigenous populations, and in consultation with a diverse number of Indigenous groups, the draft declaration has established provisions on ethnocide, cultural and physical genocide, protection from forcible land removal (displacement), cultural development, protection of cultural property, religious freedom and control of education. Arguably, the most significant right established under this regime is the right to self-determination (Article 3), which, broadly construed, encompasses the right to autonomous control over local territory and resources. Connected with this right, the draft declaration accords compensation to Indigenous groups that have been deprived of their traditional means of subsistence (Article 21) and/or restitution of lands previously occupied (Article 27). Finally, the realization of the bulk of rights accorded under this regime, including identity, maintenance of tradition, and intellectual and cultural property rights, is recognized to be dependent on the realization of territorial and resource rights.
• The UN Convention on Biological Diversity (CBD): Passed in 1992 and ratified by nearly all countries, the UN CBD recognizes “the close and traditional dependence of many Indigenous... communities... on biological resources, and the desirability of sharing equitably benefits arising from the use of traditional knowledge... relevant to the conservation of biological diversity and the sustainable use of its components.” Some Indigenous rights advocacy groups have also applied these principles toward the protection of Indigenous peoples’ rights.
• Agenda 21: The follow-up program of action for the Rio Conference on the Environment (1992), Agenda 21 includes important provisions which relate to recognizing and strengthening the role of Indigenous peoples, as well as the role of Indigenous people in land management and environmental protection. Chapter 26 in particular notes that “in view of the interrelationship between the natural environment and its sustainable development and the cultural, social, economic and physical well-being of Indigenous peoples, national and international efforts to implement environmentally sound and sustainable development should recognize, accommodate, promote and strengthen the role of Indigenous people and their communities...”
• Proposed American Declaration on the Rights of Indigenous Peoples: The Inter-American Commission on Human Rights of the Organization of the American States approved this draft in 1997 as a possible American instrument for the rights of Indigenous peoples. Highlighting the discrimination and poverty faced by Indigenous groups, the declaration identifies the right of Indigenous peoples to identify themselves as such, to participate in any development programs which affect them, to restitution or compensation for land and property, and the right to legal recognition of their traditional practices including protection of medicinal plants, animals and minerals in their traditional territories. Once approved, this agreement would be legally binding on signatory states in the Americas. Regional, national and professional bodies have issued declarations either directly or indirectly addressing Indigenous claims, such as the 1999 EU Standard for European Enterprises Operating in Developing Countries with industry codes on the rights of Indigenous workers.
• The Interfaith Center on Corporate Responsibility (ICCR) Principles for Global Corporate Responsibility: Updated in 1998, the principles are used by shareholders to assess company policies and practices. Section 1.4 of the principles focuses on respect of cultural, legal, and environmental rights of Indigenous communities and emphasizes that Indigenous populations “by virtue of their inherent rights, are entitled to full participation in the business decisions which pertain to their ancestral lands and their way of life.”
• National laws: In addition, an increasing number of countries have adopted laws that protect the economic, social, and cultural rights of Indigenous peoples, and provide legal mechanisms through which Indigenous populations may seek to assert these rights. In Canada and Australia, courts have found that governments have a number of legal obligations related to consulting with and obtaining the informed consent of aboriginal peoples in relation to activities on their lands. In 2001, the Inter-American Court for Human Rights declared the Nicaraguan government in violation of ILO 169, among others, for failing to obtain full consent for the granting of a logging concession on the traditional lands of the Sumo community. The government was ordered to pay compensation and legal costs and the foreign logging company lost its concession without compensation.

• Assess Impact of Operations on Indigenous Populations: An initial step is an assessment of how the company's operations and business relationships may impact the rights of Indigenous persons. In cases where substantial investments are being considered, this is of particular relevance. This assessment will be more effective, considered more credible, and help to avoid some of the entanglements identified above if it directly involves Indigenous communities.
• Consider Formal Policy Concerning Indigenous Rights: As many companies have adopted policies that directly address human rights issues, Indigenous peoples rights can be considered part of such policy. Policies on Indigenous peoples’ rights can include language on gaining consent for company activities, respect for land rights, natural resource rights, appropriate development models, cultural heritage of Indigenous communities and environmental protection. Policies may include guidelines in three broad categories: (1) avoidance of violations of Indigenous peoples’ rights; (2) support for Indigenous communities affected by and involved in company operations, and (3) the development of processes to include consideration of Indigenous communities' concerns in company decision making. Developing these company policies with Indigenous organizations will add greatly to their credibility and operational relevance.
• Make the Policy Operational: As with any aspect of a corporate policy, it is critical to ensure that broad principles are translated into practical guidelines and cross-cultural training programs that can be implemented by company staff. “Operationalizing” a policy on Indigenous persons may include application to investment decisions, employment policies, and land use policies. In particular, those with responsibility for decisions affecting Indigenous persons’ rights will benefit from a full understanding of the operational impact of the policy, and education and training is a key element in providing that understanding.
• Communicate the Policy Internally and Externally: It is important to design a mechanism for both internal and external communication of the company’s policies and programs with respect to Indigenous peoples. Internally, this serves to highlight for all employees the importance that senior management gives to this issue; externally, it can be a source of growing credibility with stakeholders and serve to forestall conflicts.
• Establish Internal Responsibility and Accountability: Several companies have coupled the adoption of Indigenous rights policies with structures for including the issue in corporate governance. Board-level responsibility and oversight of business unit leaders has tended to provide important support that enables company staff to implement the policy effectively. This is particularly important in industries where constructive engagement with Indigenous peoples is necessary for gaining a social license to operate, such as resource or biotechnology companies.
• Dedicated Staff Function: At an operational level, it is important to have a mechanism for on-going engagement with the Indigenous communities affected by the company operations. This might be a dedicated aboriginal relations department or a responsibility added to an existing department, such as community relations or public affairs. Whichever mechanism is finally chosen, it will be necessary to ensure that the staff have adequate cross-cultural training in order to engage effectively, as well as access to outside expertise as appropriate. Also, continuity of persons in this function is particularly important for Indigenous relations, as constantly changing staff result in a significant loss of confidence in the seriousness of the company to engage.
• Joint Engagement Mechanism: One of the most effective ways of proactively dealing with Indigenous issues is to create a mechanism that incorporates Indigenous perspectives into company decision-making. This might be a joint company-community liaison committee, a specialized reference group of Indigenous people or some other structure. The advantage lies in receiving input into company proposals before they reach a stage where they are clashing with Indigenous interests or values.
• Measurement and Verification: Policy effectiveness can be improved upon by implementing external audits that measure impacts and ensure compliance with legal requirements and internal policies. Rather than hire an outside person with little field experience, however, involving Indigenous communities themselves in the verification process may be even more effective for gaining the information that a company needs to assess its compliance with stated policies. Some companies are now using both practices.
• Support for Indigenous Communities’ Economic Development: Many companies have chosen to address their interaction with Indigenous communities in part through assistance with and support for community-driven development and environmental management plans. Such efforts need to be culturally appropriate models and not ones imported from other milieu. Increasingly, companies are exploring how to directly involve Indigenous communities in the design, implementation and administration of development programs, believing that such efforts will be more sustainable to the extent that the community can become the driver of its own development process.
• Outreach and Communication with Stakeholders: Work actively with government, industry and stakeholders, particularly Indigenous groups, to improve public policy, laws and regulations in support of company policies and legal responsibilities. Such consultations could lead to establishing corporate benchmarks for implementation of Indigenous rights policies. Stakeholders and governments too will benefit from this process, because companies will implement policy standards far more effectively if they have a strong hand in developing them.

Sample Policies

• Recognizing in all phases of Company activities the unique historical, linguistic and cultural status of Aboriginal peoples and their strong attachment to and respect for the land, the environment and traditional lifestyles;
• Consulting with local communities regarding programs proposed on mineral claims covering lands of mutual interest;
• Working with local communities to develop plans that will incorporate traditional knowledge and that will protect spiritual sites, traditional pursuits and the environment during exploration, mining and reclamation activities;
• Working with local communities and other parties, including government, to support social development in these communities;
• Working with interested local Aboriginal peoples and educational institutions to support their efforts to develop knowledge and upgrade skills that will prepare them for employment in the Company's projects;
• Ensuring participation of interested Aboriginal people by providing training and employment opportunities at all stages of mineral property activity and by creating a working environment that encourages the participation of qualified Aboriginal people at all levels of the Company;
• Working with local Aboriginal communities in the development of business opportunities created as a result of the Company's local activity; and
• Promoting positive relationships with Aboriginal communities through consultation and through providing cross-cultural training programs for Aboriginal and non-Aboriginal employees.”

BC Hydro will co-operate with Aboriginal peoples and educational institutions to develop initiatives that support Aboriginal peoples in acquiring knowledge and skills that will prepare them for employment with BC Hydro and its subsidiaries. BC Hydro will develop employment equity programs with a goal of increasing Aboriginal representation in the Hydro workforce to a level proportional to their working population in B.C.

First Nations Development Institute

Forest Peoples Programme

Tebtebba Foundation

Center for World Indigenous Studies

International Labor Organization (ILO)

Amnesty International

Business for Social Responsibility (BSR)

The Calvert Group

Cultural Survival

Human Rights Watch

Minority Rights Group

Oxfam America

Survival International