Peru – Guidance to business

INTRODUCTION

It is also noteworthy that Peru has taken significant steps to implement due diligence standards. In this regard, in 2018 it adhered to the OECD Council Recommendation on Due Diligence Guidance for a RBC, which adds to previous accessions to the Council Recommendations on Due Diligence Guidance for the mining sector in 2011 and the textile and footwear sector in 2017.

In particular, the Due Diligence Guidance for a Responsible Business Conduct, published in 2018, in addition to having been agreed by governments, trade unions, companies, and civil society, seeks to promote a consensus on due diligence and also to help companies implement the due diligence recommendations contained in the Guiding Principles, as well as in the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy of the International Labour Organization (ILO) (cf. OECD, 2018). – page 8

Despite persistent problems such as the high level of informality and, recently, the global pandemic of Covid-19, the formal business sector has progressively adopted good practices guided by the Guiding Principles and other related international standards. – page 9

CHAPTER III DIAGNOSIS AND BASELINE: ACTION AREAS

3.2. Conclusions of the specific issues

Training needs

In general, the survey applied by OHCHR shows that the representatives of the NAP Multi-stakeholder Roundtable claim to have a medium level of knowledge about the business and human rights framework and RBC, and therefore consider it important to implement an adequate training strategy on the subject, in order to demystify preconceptions and further position the human rights approach in business management. Although there is familiarity with international instruments, as well as with the 2030 Agenda, the Guiding Principles, ILO studies on RBC in Peru, among others. In addition, there is still a need for training on corporate due diligence, both in business activities and supply chains. Likewise, there is an acceptable level of knowledge on the Guiding Principles, but this needs to be reinforced for the remediation pillar. – page 41

Due diligence mechanisms

The findings of the diagnostics show across the board that an important aspect that needs to be incorporated in companies is the adoption of due diligence measures. (…) Just over 50% do not apply due diligence processes to risks in the supply chain. This shows the need for a strategic articulation between the State, civil society, and the business sector so that an increasing number of companies incorporate these measures into their activities, as well as strengthen their practical application. In this regard, 57% mentioned the need to receive training on due diligence tools, so that training and advisory services are needed in this area to enable their practical implementation at the operational level. – page 42

Environmental Impact Assessment (EIA)

For its part, the formal business sector has generated good practices to be considered in the construction of a public policy on business and human rights and RBC. This should promote and guarantee corporate due diligence mechanisms from the formulation of the EIA, being strengthened by transparency mechanisms, training, multi-stakeholder dialogue, risk identification, complaints, among others, as recommended by the UN System, the Inter-American System, and the OECD. In addition to this, it is pertinent to mention that although the diagnosis corresponding to this NAP focuses on the problems related to EIAs, the provisions referred to the RBC are applicable to all environmental management instruments provided for in Peruvian environmental regulations. – page 49

Large-scale agriculture

Business associations in the sector, such as AGAP, have implemented good corporate practices, such as the adoption of codes of conduct, crime prevention policies, and measures against Covid-19, among others. However, there is no information from the public policy on their implementation, so it is necessary to generate public policy mechanisms to promote due diligence and reporting of these advances to the competent state sectors, as well as to strengthen the channels of complaint and internal human rights policies of the companies. – page 50

Table 8: NAP strategic guidelines and objectives, and alignment with the axes of the Peru Vision 2050

Strategic guideline No. 1: Promotion and dissemination of a culture of respect for human rights in the business environment in accordance with the framework of international standards of the guiding principles and other international instruments.

Objective No. 1: Officials, managers, and public servants incorporate the guiding principles and other related international instruments in public management, specifically in the service they provide.

2.

Action: To implement training on GP-RBC and other international standards, from the governing body of the corresponding entity, aimed at its officials, managers, and public servants.

Background: In order to guarantee a permanent state training and awareness-raising effort for officials, managers, and public servants at all levels, each entity of the Executive Branch will progressively implement training initiatives on GP-RBC that meet the particular institutional needs, taking into account, to the extent necessary, the context of the health emergency caused by Covid-19. For this purpose, the entities may coordinate with MINJUSDH, to articulate technical and/or financial support with international organizations and international cooperation. In these cases, each entity will articulate, coordinate or report such training to MINJUSDH, taking into account its role as the governing body in human rights matters.

Indicator: Annual progress report on the implementation of training initiatives.  – page 57

13.

Action: Create and implement a permanent training program on GP-RBC and other international standards, from the Justice and Human Rights sector, with special emphasis on meeting the specific needs of the business sector, both private and public, by company size and industry.

Background: In order to guarantee a permanent state training and awareness-raising of the business sector, both private and public, the MINJUSDH will create and implement a training program on GP-RBC and other international standards that will address, in coordination with companies and business associations, their particular needs, with special emphasis and attention to micro and small enterprises. These training activities will take into account, to the extent necessary, the context of the sanitary emergency caused by Covid-19.

Indicator: Number of training sessions for private and public companies and/or business associations on GP-RBC and other international standards, the role of human rights defenders, and the instruments for their protection (Action Indicator). – page 64

Objective 2: Organized civil society (members of civil society organizations, trade unions, and indigenous peoples) are aware of and promote the implementation of the guiding principles and other related international instruments in their activities.

12.

Action: Coordinate with the business sector to develop training plans on best practices in gender equality and non-discrimination in the workplace.

Background: It is necessary to promote training opportunities in the business sector on good practices in equality and non- discrimination in business management, in order to help close gender gaps and promote women’s participation in the labor market.

Indicator: Number of training plans on best practices in gender equality and non- discrimination in business management. – page 63

Strategic guideline No. 2: Design of public protection policies to prevent human rights violations in the business environment.

Objective No. 3: Review, design, and adoption of national plans and programs to guarantee human rights in the framework of business activities.

47.

Action: Evaluate the aspects of the GP-RBC approach that need to be integrated into the guidelines, manuals, and other documents of the National Environmental Impact Assessment System (SEIA), related to the role of the evaluating entities and project owners, to adopt the corresponding improvements, as the case may be.

Background/Indicator: Guides, manuals, and other documents for project evaluators and project owners within the framework of the National Environmental Impact Assessment System (SEIA) should incorporate the BHR-RBC approach. Although these documents do not constitute mandatory regulations, but rather have a guiding purpose, they would be very useful for disseminating good practices compatible with international standards. – page 87

 

Strategic guideline No. 3: Design of public policies that promote respect for human rights by companies through accountability, investigation, and sanction for the impacts of their activities.
Objective 1: Promote policies and/or standards that guarantee respect for human rights in business activities.

64.

Action: Implement the services of the “Formaliza Perú” Integrated Center, nationwide.

Background: The “Formaliza Perú” Integrated Center promotes and facilitates entry and permanence in labor formalization through access to guidance, training, and technical assistance services in matters related to labor formalization (R.M. 169-2018-TR), so within the framework of the NAP this measure is relevant, which is also part of the National Competitiveness and Productivity Plan (Policy Measure 5.4), approved by Supreme Decree No. 237- 2019-EF).

Indicator: Number of regions that have implemented the “Formaliza Perú” Integrated Center.  – page 104

Objective No. 2: Technical assistance to companies for the observance of human rights in their business activities

76.

Action: Establish a training program on the protection of human rights in the context of social conflict situations, in coordination with MINJUSDH.

Background: It is necessary to develop a culture of dialogue for social peace and respect for human rights within the framework of business activities, thus reconfiguring relations with social environments. To this end, it is important to implement a social conflict management program with a focus on the protection of human rights, so that these can be applied in the environments of investment projects.

Indicator: Training program. – page 113

77.

Action: Produce an instrument for use by the business sector, referring to the prevention of social conflict and RBC, within the framework of the National Action Plan on Business and Human Rights.

Background: Establish action guidelines to guide companies involved in situations of social conflict, in order to avoid human rights violations both by action and omission.

Indicator: Guide for good business practices in the area of GP-RBC that contribute to the prevention of social conflict (Action Indicator). – page 113

Strategic guideline No. 4: Promotion and design of due diligence procedures to ensure the respect of human rights by companies
Objective 1: Promote that companies have a human rights due diligence process.

86.

Action: Provide technical advice on the implementation of due diligence mechanisms within the framework of GP-RBC, with a focus on occupational safety and health.

Background: In order to promote the implementation of GP-RBC due diligence mechanisms,
the MINJUSDH will provide technical assistance to the business sector according to international standards, the national and international regulatory framework in force, and good practices in Peru and other countries that can be replicated
in the Peruvian context on issues of due diligence in occupational safety and health. This technical advice should consider the characteristics of small and medium enterprises, as well as the context of the Covid-19 pandemic.

Indicator: Number of orientations provided. – page 118