Mongolia – Corporate Law and gov

By Daniel Morris | 22. February 2024

CHAPTER II. Actions to improve the duty of the state in protecting human rights

3. Strengthen the responsibilities of businesses of all forms of ownership to respect human rights.

Actions and measures to be implemented:

Define the responsibilities of the company’s shareholders, board of directors and senior management in relation to the prevention and elimination of human rights violations and adverse environmental and human rights impacts as a result of the company’s operations, and include them in relevant legislation.

  • Time frame: 2023-2025
  • Criteria: The law will be drafted and submitted for approval.
  • Implementing organisations: MoJHA [Ministry of Justice and Home Affairs], MED [Ministry of Economy and Development], PCSP [Agency for Policy Coordination on State Property]
  • Jointly implementing organisations: Secretariat of the NCHR [National Committee for Human Rights], MNCCI [Mongolian National Chamber of Commerce and Industry], CMTU [Confederation of Mongolian Trade Union]

Define and enshrine in the Law on Company the duty to prevent, identify, address, monitor and remedy adverse human rights impacts caused by the operations of subsidiaries and dependent enterprises of the parent company.

  • Time frame: 2023-2025
  • Criteria: The draft law will be developed and submitted for approval.
  • Implementing organisations: MoJHA
  • Jointly implementing organisations: PCSP, CMTU.

4. Create the legal framework for business enterprises of all forms of ownership to carry out human rights due diligence in its operations.

Actions and measures to be implemented:

Develop guidelines and methodologies for human rights due diligence, promote them and build capacity for their practical implementation Conduct pilot projects in state and locally owned enterprises and other companies and present human rights due diligence reports to the public

  • Time frame: 2023-2025
  • Criteria: The guidelines and methodology for human rights due diligence will be developed. Actions will be taken to promote the guidelines and methodology and to build capacity for conducting human rights due diligence. State and locally owned enterprises, as well as other companies, will be selected to conduct a human rights due diligence pilot project and the results will be presented.
  • Implementing organisations: MoJHA, PCSP, Secretariat of National Committee on Gender Equality (NCGE), NHRCM [National Human Rights Committee of Mongolia], Secretariat of the NCHR.
  • Jointly implementing organisations: MFA [Ministry of Foreign Affairs], Small and Medium Enterprise Agency (SMEA), CMTU, State and locally-owned enterprises, Non-governmental organisations (NGOs), International Organisations (IOs.

Conduct a study and develop conclusions and recommendations to establish the legal framework for companies to conduct human rights due diligence in their operations and supply chain based on certain criteria (e.g. through amendments and changes to the laws regulating the operation of companies, the Law on Company, the Law on Securities Market and other applicable laws, etc.).

  • Time frame: 2025 – 2027
  • Criteria: A study will be conducted and conclusions and proposals will be made. Actions to be implemented will be determined.
  • Implementing organisations: MoJHA, MLSP
  • Jointly implementing organisations: MNCCI [Mongolian National Chamber of Commerce and Industry], Professional associations, state and locally-owned enterprises, NGOs.

Implement a project to support human rights due diligence for business enterprises that provide basic social services (health, education, public transport, landscape management) and legislate the obligations of these companies to prevent, identify and address negative human rights impacts.

  • Time frame: 2025 – 2027
  • Criteria: A draft law will be developed and submitted for approval. A project to support human rights due diligence will be carried out.
  • Implementing organisations: Ministry of Construction and Urban Development (MCUD), Ministry of Education and Science (MES), Ministry of Health (MoH), Ministry of Road and Transport Development (MRTD), Secretariat of the NCHR, Secretariat of the Governor of the capital city, PCSP
  • Jointly implementing organisations: Relevant ministries and organisations, Government monitoring implementing Agency (GMIA), IOs, NGOs.