Peru – SMEs
|CHAPTER II: THE BUSINESS AND HUMAN RIGHTS SITUATION IN PERU
According to figures from the Ministry of Production (2019), which takes as its source the Single Registry of Taxpayers of the National Superintendence of Customs and Tax Administration (Sunat), in 2019, micro, small and medium-sized enterprises (MSMEs) accounted for 99.6% of Peruvian companies and employed 59% of the employed EAP. Furthermore, in the 2015-2019 period, the number of formal micro and small enterprises (MSEs) increased at an average annual rate of 8.4%. However, a high percentage of informality persists, as 36.9% of MSEs are not registered with Sunat. Furthermore, according to estimates by ComexPeru (2020), using the INEI’s National Household Survey (Enaho), in 2019, MSEs recorded annual sales, which would be equivalent to 19.3% of GDP.
Given the relevance in Peru of MSMEs to guarantee human rights, according to international standards, specialized technical assistance for this sector of the economy is vital, “simplifying requirements […] and offering capacity-building opportunities” and to ensure, in alliance with companies, transnational associations, trade unions, civil society organizations, academia, and other stakeholders, for the respect of human rights in all phases of business supply chains (UN. Working Group on the issue of human rights and transnational corporations and other business enterprises, 2017, §§ 73-77). – page 35
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 3: The business sector is aware of and promotes the implementation of the guiding principles on business and human rights and other related international instruments in its activities and responsible business conduct.
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 private and public companies trained in GP-RBC and other international standards, to the extent necessary, taking into account the emphasis on micro and small enterprises. – 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.
Action: To prepare a study that includes an analysis and situational status of child labor in the informal sector.
Background: According to the OECD Study on Public Policies on Responsible Business Conduct, “child labor is still widespread in Peru and is a predominant phenomenon in the informal sector”. In line with the above, it can be stated that one of the main unattended sectors is in the informal sector, which requires the responsible entities to design a comprehensive strategy that goes beyond regulation and should include micro and small enterprises.
Indicator: Study of the analysis and situational status of child labor in the informal sector and production chains. – page 89
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 No. 2: Technical assistance to companies for the observance of human rights in their business activities
Action: Produce, in coordination with the business sector, organized civil society and the competent state sector, a guide aimed at the micro and small business sector to promote their formalization and, progressively, a culture of due diligence.
Background: The guide will specifically address the principles of GP-RBC in order to promote the formalization of micro and small enterprises and progressively implement a culture of due diligence, taking into account their peculiarities. The guide will be developed with the business sector and civil society, and its implementation and follow-up will be promoted.
Indicator: Due diligence guide for micro and small companies prepared, presented, and implemented. Follow-up reports on the implementation of the guide. – page 107
Action: Provide information and raise awareness on collective labor rights due diligence throughout the supply chain.
Background: There is a need to provide information and raise awareness on the adoption of due diligence measures for the respect of collective labor rights throughout the supply chain. This information should include small and medium-sized enterprises, as well as the context of the Covid-19 pandemic.
Indicator: Information booklet on due diligence measures for respecting collective labor rights throughout the supply chain. – page 117