Malaysia- 1st- Supply chains

THEMATIC PRIORITY 1: GOVERNANCE

UNGP PILLAR 1

FOUNDATIONAL

No.: G1.8

Action: Study the need for a Supply Chain Act in Malaysia

Output Indicator(s):

• Completion of a baseline  study  on existing supply chain regulations in Malaysia.
• Identification of legal and policy gaps in current Malaysian laws related to supply chain transparency   and accountability.
• Inter-agency working group or task force established    to coordinate the study.

Collaborative Partner(s): BHEUU; KPDN, MITI; NRES

UNGP PILLAR 2

No.: G2.11

Action: Set targets and increase training among the board of directors, management, and employees of the company on the responsibility to respect human rights (including labour and children’s rights) and support awareness-raising programmes for consumers, contractors, suppliers and communities.

THEMATIC PRIORITY 2: LABOUR

UNGP PILLAR 2

No.: L2.2

Action: Conduct regular, genuine, effective, gender-responsive and transparent due diligence assessments to identify, prevent and mitigate the negative impacts of exploitative labour practices related to recruitment and employment, business operations, and supply chains. Businesses should ensure that a comprehensive management approach is developed to mainstream the practice of due diligence and human rights-based risk assessments within the company.

No.: L2.3

Action: Collaborate with partners and suppliers to demonstrate adherence to international human rights standards. Businesses should establish contractual obligations with suppliers and business partners on human rights matters, and if they are found to have violated such standards, remedial or punitive actions should be taken. There must be a hierarchy of responses from the least to harshest actions, depending on the severity of the violations and facts of each case. Only as a last resort should businesses cut ties and contractual relationships with suppliers or business partners, in order to limit isolating small businesses that lack sufficient resources to operationalise these frameworks in the first place.

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THEMATIC PRIORITY 3: ENVIRONMENT

UNGP PILLAR 2

FOUNDATIONAL

No.: E2.9

Action: Investors should require the companies they invest in to conduct and act on due diligence assessments. Where this is not the case, engage with their clients to adopt and implement due diligence and obligate that impacted communities be kept informed on any progress or developments in all phases and over the entire cycle from start to end.