Why human rights just became more important - and why business matters more than ever

Earlier this year, the Global Risks Report delivered a sobering assessment. It identified intensifying geopolitical and geoeconomic tensions, societal fragmentation, and environmental risks as top threats. State-based armed conflict is now ranked as the top current risk, with concerns about further destabilizing consequences following conflicts in Ukraine, the Middle East, and Sudan. The rise of misinformation and disinformation, societal polarization, and environmental degradation are also significant concerns. 

Very recent events, including sweeping, and from all evidence, rushed revisions to the US foreign and trade policy stance, are contributing to these risks and enhancing destabilizing winds.  Rising nationalism and a global order under strain are not good news for business. Indeed, the recently released 2025 Fragile State Index suggest that diversions from soft power, economic and political disruption, and the rise of tech-enabled authoritarianism are significant challenges. 

Defence Dollars Up - Aid Dollars Down 

The emerging trend of a ramping up of Defence expenditure - seen in the UK, Europe, US, Australia, India and others - and the scaling back of humanitarian, development and peace expenditure - in Sweden, Netherlands, UK, Canada, the US - whilst an apparently appealing step in the face of rising conflict – is a concern. The humanitarian, development and peace building architecture is notoriously inefficient, yes, but also an essential part of conflict mitigation, de-escalation and prevention. The dismantling of USAID, more recently the United States Institute of Peace, and an apparent protectionist turn by the US appear to herald substantial risks, removing a key pillar of investment that may be hard to replicate.  

The cumulative effect could be a self-fulfilling turn to conflict over diplomacy. USAID has been a bastion of courageous humanitarian, peacebuilding and development efforts for decades - often daring to trend where others do not, opening opportunities for advancement across the UNSDGs as a result. Would a careful analysis be wise? Definitely. The organization provides contributions to global stability that are hard to quantify. The most recent announcement of a strategic alliance between TotalEnergies and the US in Africa potentially points to a doubling down on business as aid. #2 Where business steps in to replace foreign aid, it may bring benefits if done responsibly and in partnership with local communities and stakeholders. Done poorly, it can worsen conflict drivers, deepen inequality, and fuel human rights abuses, fanning the flames of discontent and conflict. 

From the perspective of those in the global south, some rightly welcome the opportunity to expand development on their own terms as part of a localisation agenda we can only support. Indeed, the colonial legacies and contemporary practices which do not return benefits to communities are profoundly at odds with the protection of human rights. The question is: Is there sufficient capital to rapidly replace the $90 billlion stabilization benefit generated by USAID?  

The staggeringly unfortunate public exchange between President Zelenski and Mr Trump and his team has had a twin effect of driving potentially closer cooperation in Europe and a revision of the reliability of US as an assumed and generous ally. That dance will continue to play out, as the US seeks to reduce its relative fiscal responsibility across multilateral forums and bilateral agreements. What we do know is that decades of lessons from peacebuilding make clear that how conflict ends is complex.  

Quick-win deals may become more common, yet peace deals which impoverish, ignore root causes, are struck behind closed doors, humiliate either party, or certainly those who reward the aggressor, are shaky at best. Peace might look like a business deal on the surface, and we have long argued for more attention to the economics of peacemaking, but, as much literature reveals, making a deal stick is harder than it looks.  

Backsliding on Human Rights?  

The apparent watering down of the hard won EUCSDDD is disheartening. Similarly, the comments of Indonesia - one of the world’s largest carbon emitters - questioning the relevance of the Paris Agreement and Rights erosion sentiment from the White House are also being felt. Firms across the spectrum from tech-bros to agriculture editing their public commitments on climate and DEI. In particular, the Trump Administration’s efforts to control the words utilized by research institutions, the apparent takeover of the United States Institute of Peace (a not-for-profit entity), and the passage of regulation to preclude opposition to policy making all point to the deliberate removal of fundamental human rights.  A client sought advice recently on “what does this mean for our business?” Well, the laws of the country prevail. We are required to adapt. We’re not required to agree. Indeed, in his book On Tyranny Timothy Snyder urges,
 

“When political leaders set a negative example, professional commitments to just practice become more important.”

— Timothy Snyder

We can hold to a higher, data-informed, standard that acknowledges that environmental protections and respect for human rights are profit-enhancing and smart business; that diverse teams are more productive, more creative, and achieve better results over the long run; and that peace negotiations that involve women last longer and are more likely to be implemented. In fact, Is it hard? Yes. Is rising conflict worse? Ask those stuck in seemingly intractable conflicts in Myanmar, Gaza and rising again in Sudan and the Sahel, or those who lived through conflicts in earlier times which came on the back of profound discrimination. If you haven’t seen his speech, we’d encourage you to listen to Illinois Governor JB Pritzker – to work, tyranny requires your fear, silence, and inaction.   

Implications for Business 

These changes potentially lay the pathway and permission for human rights to be curtailed and abused. But only if we choose to agree, and only if we choose to permit a race to the bottom which privileges the few at the expense of the many - and this, we know, is destabilizing. It’s a core tenet of the history of security, conflict and peacebuilding research - where there is inequality, where there is tyranny, there is conflict and prosperity and wellbeing for all decline.  For business, in many parts of the world, stakeholder expectations of responsible and ethical conduct haven’t changed. In fact, they continue to rise. The rules of International Humanitarian Law haven’t changed. Most importantly, however, the risks attached to human rights abuses by business - loss of production, lowering of social license to operate, community resistance and opposition, litigation, loss of reputation, rising costs of production and security - have not changed. There is now, then, an even more compelling reason for companies to be more proactive, to lean into conflict-sensitive business practices, to engage communities meaningfully and treat them fairly, and to ensure responsible business and human rights protections are firmly in place and resourced. 

In short, responsible business is risk management. It is also an investment in global stability - peace may literally depend on it. 

So, what can business do?  

• Hold the line. Continue to conduct human rights due diligence and heightened human rights due diligence across operations. Continue to advance the rights of women and groups who have suffered disadvantage in the past. Align your work with the UN Guiding Principles of Business and Human Rights and be alert to the intersection between rights and security in high-risk contexts.   

• Be aware. Learn the well documented lessons of history, that a backsliding on human rights and a spiral toward tyranny leads to less prosperity, less peace and ultimately less stability for all - including the privileged few who benefit in the short term. Inequality - whether defined by opportunity, access to resources, access to economic wellbeing, access to justice, access to services and education, or engagement in political decision making - is the precursor to conflict.   

• Take action. Control only thrives in the dark. Your consent, your silence, your inaction is needed for it to work.  

Specific Actions for Businesses in High-Risk Regions 

1. Strengthen Human Rights Due Diligence 
   Conduct comprehensive and ongoing human rights assessments, especially as tensions rise. Update risk mapping frequently and implement heightened due diligence in conflict-prone areas. 

2. Build Local Resilience & Partnerships 
   Engage community stakeholders and local organizations to understand on-the-ground realities. Invest in community development projects and support local governance where possible. This fosters trust and social license.  

3. Train & Empower Staff 
   Provide conflict-sensitive human rights training to all personnel, including security teams and supply chain partners. Ensure robust protocols for preventing, reporting, addressing and remedying abuses. 

4. Embed Ethical Standards in Contracts 
   Incorporate human rights clauses into contracts with suppliers, contractors, and local partners. Set clear, enforceable standards, and regularly audit to maintain accountability. 

5. Advocate for Responsible Policies 
   Use corporate influence to promote or protect human rights, especially in high-risk contexts. Collaborate with industry associations, NGOs, and governments to lobby for responsible legislation and uphold international best practices. 

6. Strike Good Deals 
   Short term gains at the expense of local communities and rights holders, and deals which advance the wealth of the few over the many, breed inequality. This sows the seeds of conflict. Good deals advance everyone’s interests. 

We stand at a pivotal moment. The choices businesses make now have profound implications for global stability, economic well-being, and the human rights of communities worldwide. Responsible business practices aren’t just ethical; they’re also smart risk management - and an investment in a more stable, prosperous future for all. 

Need help navigating these challenges? 

Ithaca Impact offers practical strategies, tools, and training to help businesses meet rising expectations and conduct operations responsibly. Reach out to us here to learn more.