IV Obligations of companies 56. While States are the primary obligation bearers under the African Charter, it is also legally recognized that corporations, particularly multinational ones, have obligations towards right holders.23 This obligation arises from the recognition that lack of such obligations may result in the creation of a human rights vacuum in which such entities operate without observing human rights. Under the African Charter, obligations of such entities towards rights holders have a clear legislative basis. Article 27 of the African Charter provides for the duties of individuals and its sub-provision 2 lays down the obligation to exercise rights ‘with due regard to the rights of others’. Clearly, if this obligation can be imposed on individuals, there is an even stronger moral and legal basis for attributing these obligations to corporations and companies. 57. The first of these obligations is a direct negative obligation based on the principle of do no harm or in its positive formulation the principle of due care. This entails that companies and corporations should ensure that their actions or operations do not result in or trigger the occurrence of harm or the curtailment or deprivation of the rights guaranteed under the African Charter.24 They should not only refrain from deliberate acts that constitute or result in such violations but also ensure continuously that their acts or operations are in full compliance with internationally accepted human and peoples’ rights, labour and environmental standards to avoid any incident producing harm or curtailment of rights of people, including in conflict situations.25 58. In applying the duties in the African Charter to companies, and on account of the huge extent of power that companies, particularly multinational ones, exercise in comparison to individual persons, they have a resultant and corresponding higher level of duty of both due diligence and care.26 They should be vigilant in having a clear understanding of the nature and impact of their activities, take the required measures for preventing their activities from having adverse human rights impacts and put in place mechanisms for rectifying any negative human rights impacts arising from their activities or actions. In this regard they should also ensure responsible supply chain management to ensure that their actions and decisions do not have negative repercussions further down the supply chain. In order to ascertain the extent State Reporting Guidelines and Principles  | 37

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