Grievance Redress Mechanisms

Abstract

This note provides guidance on how investors can provide effective remedies to affected parties who perceive that their rights have been adversely affected by business activities. A grievance redress mechanism (GRM) is a set of arrangements that enable local communities, employees, out growers, and other affected stakeholders to raise grievances with the investor and seek redress when they perceive a negative impact arising from the investor’s activities. It is a key way to mitigate, manage, and resolve potential or realized negative impacts, as well as fulfill obligations under international human rights law and contribute to positive relations with communities and employees. GRMs have been operated with varying degrees of success. This noteprovides guidance and examples on how to improve the design and implementation of mechanisms for mutual benefit.