This post examines the situation of Business and human rights in Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia) through the implementation of the United Nations Guiding Principles on Business and Human Rights. So far, little attention has been paid to business and human rights in the Western Balkans. The issues have not been at the center of discussion in the field. Accordingly, not much has been written on business and human rights, challenges, and possibilities for reform in the Western Balkans. This post discusses some recent business and human rights developments in the region. 

The region differs from the rest of the European states based on its shared history, traditions, culture, and customs, as most states spent decades behind the Iron Curtain and most countries, except for Albania, being part of former Yugoslavia. The consequences of inter-ethnic wars still affect political and socio-economic livelihoods. The region has been embedded mainly in the European market, with many EU-based companies having subsidiaries, suppliers, and other business partners. On the other hand, some countries, such as Serbia, have received substantial Chinese and Russian investments. Business-related human rights concerns in the regions are plentiful, from human trafficking, modern slavery, and poor health and safety conditions to failure to provide a living wage. In recent decades, large portions of the population have emigrated to North European Countries and North America. Currently, five countries from the region have achieved the status of candidate countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia) for the EU.

In the past, Western Balkans countries introduced formal standards of the rule of law, constitutional democracy, and pluralism. They have introduced modern concepts and created current state institutions based on the rule of law and constitutional democracy. Nonetheless, a coherence gap exists between formal standards and their implementation in practice. Accordingly, business and human rights development in Western Balkans countries has lagged. However, state authorities in Western Balkans have not created state institutions nor adopted laws to ensure that state-owned enterprises comply with Business and Human Rights standards and guidelines. None of the countries in the region have developed National Action Plans on Business and Human Rights to implement the United Nations Guiding Principles on Business and Human Rights. Some countries, such as Bosnia and Herzegovina, North Macedonia, and Serbia, have developed National Baseline Assessments on Business and Human Rights. Even though the OECD Guidelines on Multinational Enterprises on the Responsible Business Conduct apply in the region for those companies based in the OECD member states; only a few cases from Western Balkans have been brought to National Contact Points.

UNGPs on Business and Human Rights in Western Balkans

Accordingly, the capacity and willingness to implement the United Nations Guiding Principles on Business and Human Rights in Western Balkans countries has been lukewarm in the past. Nonetheless, recent developments in the region in past years have been promising. The government of Bosnia and Herzegovina has been working towards developing a draft National Action Plan on Business and Human Rights. However, the process has stalled due to political tensions. In contrast, the Serbian government announced at the 2023 UN Business and Human Rights Forum that it will adopt the National Action Plan on  Business and Human Rights. Other governments (Albania, Kosovo, North Macedonia, Montenegro) have yet to pay much attention to developing national strategies or action plans for business and human rights. Civil society, international organisations (such as the Organisation for Security and Cooperation in Europe – OSCE, the Council of Europe and the European Union), and private companies have tried to engineer momentum for more discussion and attention to business and human rights. 

Building Business and Human Rights Capacity in the Region

Several policy and academic events on business and human rights have been recently organized, connecting individuals working on business and human rights in the region. For instance, Sustineri Partners, a think tank, has organized a well-attended Adria ESG Summit in the broader business and human rights field. Private companies and chambers of commerce have promoted business and human rights standards in much of the region by advising and organizing events. International organizations such as OSCE have regularly organized events on business and human rights. As such, businesses in the region have been gradually introducing business and human rights standards throughout the supply chain. Regional business associations have been educating their members concerning human rights due diligence in their supply chain. For instance, the Chamber of Commerce and Industry of Serbia established a Responsible Business Hubwhose experts aim to build capacity through training and workshops on responsible business conduct and supporting companies.

Way forward

One can notice among different stakeholders in the region the awareness and willingness to adopt novel business and human rights and implement and strengthen existing standards. Nonetheless, there are four steps that all stakeholders should employ to strengthen their capacity for business and human rights. First, professional networks on Business and human rights in the Western Balkans countries and regions are helpful ways to collaborate with stakeholders in the business community, government, civil society, and beyond to share knowledge and create incentives for improving Business and human rights in Western Balkans. Second, the rule of law in the public and private sectors should be strengthened by ensuring that state institutions and private state-owned companies lead by example in introducing business and human rights and that the private and public sectors share good practices. As such, and thirdly, the governments should aim to develop the capacity of governments and civil society in the region to develop national strategies and action plans on business and human rights. The national plans are declaratory commitments. However, they can create short- and long-term impacts and incentives for streamlining commitment to business and human rights throughout public and state institutions. Fourth, international organizations, particularly the EU, should leverage state institutions to show and internalize a more significant commitment to business and human rights in the region. Once the newly adopted EU Corporate Sustainability Due Diligence Directive starts to apply, it can be expected that the EU investors will continue to impact responsible business practices in the region, which hosts suppliers and other businesses of many of the EU-based corporations. As such, it is also indispensable that the region’s governments lead by example, setting out their expectations for responsible business conduct concerning human rights and the environment.