Chile

Pillar I. The State Duty to Protect Human Rights

Strand 1: Training in the Field of Business and Human Rights [pages 29-33]

The need to provide training in business and human rights was stated repeatedly during the different stages of the process. Both during the study of the baseline and at the seminars, dialogues and other opportunities to get involved in the process, the importance of raising understanding around business and human rights was stressed. Therefore, the following measures were committed:

1.1 The Ministry of Foreign Affairs will:

o Create alliances with different institutions to train interested actors. Material developed in this process will serve as a basis for other training actions included in this Plan.

o Work to build capabilities in the staff working at the Ministry of Foreign Affairs, through the development of an e-learning course on business and human rights.

o Strengthen the diplomats’ capabilities in the field of business and human rights, with the purpose that they have the right tools to support Chilean businesses abroad – through the development of an annual Module on Business and Human Rights taught at the Diplomatic Academy. It will promote, among the Chilean embassies posted abroad, tools allowing to guide Chilean businesses operating in those countries about risks in the fields of business and human rights.

o Develop projects of cooperation and exchange of experiences about business and human rights with Chilean embassies posted in countries showing more progress in this field, through its Programme of Activities Abroad (PAAE).31

o The General Directorate of International Economic Relations (DIRECON), will carry out internal actions to promote knowledge around business and human rights with the purpose that staff working in this Directorate take these criteria into account when developing their activities.

DIRECON will periodically report to the Trade Offices and Regional Offices of the Exports Promotion Directorate (ProChile) about business and human rights. o DIRECON will raise awareness and further knowledge concerning other relevant international instruments and their link with the United National Guiding Principles on Business and Human Rights, such as the Tripartite Statement of Principles on Multinational Business Enterprises and ILO’s Social Policy, and ISO 26,000. The above will be carried out through presentations, seminars, dialogues, briefings and publications in the website, as relevant.

1.2 The Under-Secretariat of Human Rights of the Ministry of Justice and Human Rights will:

o In the context of its mandate to design, foster and coordinate education and training actions concerning human rights for staff working for State bodies, promote the introduction of contents covering business enterprises and human rights in trainings and courses that come to its attention in its articulating role.

o Promote the introduction of contents covering business enterprises and human rights in training sessions for people joining State work through the Senior Public Management System led by the Civil Service.

o Promote the introduction of contents about business enterprises and human rights in training sessions held by the Armed Forces and the Order and Security Forces, when relevant, according to the trainees’ profiles.

o Introduce subjects concerning business enterprises and human rights in a future Handbook about the focus on human rights of public policies.

1.3 The Ministry of Labour will:

o Train workers about their rights and the Guiding Principles through the introduction of subjects related with business enterprises and human rights in the programmes of study of the Union School, with emphasis, inter alia, on labour rights and child labour.

o Train businesses (guilds, confederations, associations and SMEs), unions and civil servants in the field of business and human rights, emphasising labour rights. o Inform users about this Action Plan through a banner uploaded in the ministry’s website portal -aimed at providing additional information in this area, and showing the measures that the ministry is carrying out in the relevant field.

1.4 The Ministry of Energy will: o Through the Division of Social Involvement and Dialogue, within the implementation framework of the Indigenous Chapter of the 2050 Energy Policy will perform the following actions:

• Develop training sessions in renewable energy for indigenous leaders with focus on business and human rights.
• Perform activities to transfer experiences and knowledge to companies, so that they have information available for the development of energy projects in indigenous contexts.
• Develop actions to train business enterprises about human rights and corporate activity, focusing on indigenous rights and cosmovision.
• Train indigenous peoples about business and human rights. This initiative will be performed in conjunction with the Indigenous Affairs Unit of the Ministry of Social Development, which will facilitate coordination between initiatives carried out by both institutions within the context of the Action Plan.

1.5 The Ministry of Social Development will:

o Through the Indigenous Affairs Coordination Unit, carry out a Training Plan including indigenous peoples related subjects for businesses operating in the North and South macro-zones, including the focus introduced by United Nations Guiding Principles on

Business and Human Rights. Contents of these training sessions will include relevant international standards, which will be discussed with indigenous representatives and have the involvement of business enterprises. Through the Indigenous Affairs Coordination Unit, it will publish a Participatory Guide concerning Indigenous Rights and Cosmovision of Indigenous Peoples, allowing to advise and train business enterprises about these peoples and the respect for their rights.

o Train staff on the Guiding Principles, including professionals from the Division of Social Policies and the Division of Social Assessment and Investment.

o Through the Division of Public-Private Cooperation, include the focus on business, human rights and sustainable development in training activities about Public Incentives to Benefit Social Development by means of:

• Workshop-seminars about Public Incentives to Benefit Social Development for Business Enterprises and public-private cooperation in accordance with the Guiding Principles and the 2030 Agenda, thus strengthening the State-Business nexus and promoting due diligence in human rights.
• Introduction of a module about the “Guiding Principles on Business and Human Rights and their connection with the 2030 Agenda for Sustainable Development” in a workshop-seminar organised by business senior and executive staff. o Through the National Disability Service, will:
• Train public and private business enterprises to include inclusive for disabled people in inductions and training programmes.
• Organise seminars to public services and bodies, business enterprises and the civil society to address subject concerning disability. Also, a course about Human Rights and Disability will be given at universities, and outreach actions will be carried out involving public services and bodies, business enterprises and the civil society

1.6 The Ministry for the Environment will:

o With the support of expert organisations, coordinate internal training at a national and international level, and at a macro-zone level in the Ministry of the Environment, the Superintendence of the Environment (SMA) and the Environmental Assessment Service (EAS).

o In coordination with the Environmental Assessment Service, expand the training carried out in technical-environmental matters to representatives of the civil society and indigenous peoples to facilitate their involvement and the exercise of their rights during the process of citizens’ involvement.

o Upon creation of the Biodiversity and Protected Areas Service and of the Protected Areas National Service, carry out an outreach and training process including an analysis about their relationship with business and human rights.

1.7 The National Human Rights Institute will: o Train staff working in regions about business, human rights and sustainable development, in line with the 2030 Agenda.

o Update the booklet of emerging issues and the business and human rights card. o Introduce the Guiding Principles on Business and Human Rights in the recommendations they submit to the State about cases documented by this institution. These recommendations, and those coming from the international human rights system will be considered in training sessions given to public officers about companies and human rights.

1.8 The Ministry of Mining will organise talks and/or seminars about the introduction of human rights standards in the development of mining projects.

Strand 3: Inclusion and Non-Discrimination [pages 35-39]

The Country Guide on Business and Human Rights identifies groups at risk of suffering different infringements of their rights about corporate operations such as women, indigenous peoples, migrants, LGBTI individuals and people suffering from disabilities. Potential negative impacts on these groups may take place both inside the business enterprise (hiring, firing or discrimination) and outside the business for situations derived from corporate activity.

3.1 The Ministry of Labour will:

o Perform a series of actions aimed at the protection and defence of human and labour rights of migrants through:

• The identification of migrants that may benefit from State programmes on labour matters.
• Training and awareness actions regarding the rights of migrants in the labour market for civil servants, unions and migrant associations.

o Seek to increase the incorporation and participation of women in the labour market through programmes benefiting this group such as: Bonus to Reward the Work of Women; Programme to Develop Labour Competences for Women, Chile Solidario. o Promote and ensure the participation of women workers in unions.

o Foster parental responsibility through the development of Special Covenants where unions may agree with the employer upon certain covenants aimed at offering workers with parental responsibilities the chance to access to labour schemes combining time at the workplace with time out of the workplace, as set out by article 376 of Law No. 20,940.

3.2 The Ministry of Social Development will:

o Create a board, integrated by representatives of the public and private sector, civil society organizations and academia, to address the work and family conciliation and its impact in children and their carers. The aim is to raise awareness on the impacts of the work and family conciliation in the development of children and adolescents and disseminate best practices on this issue, on the private and public sector.

o Constitute a local board of employability, as a space of local and community network. The board is integrated by the Ministry of Social Development, the Chilean Chamber of Construction, the Labor Union and representatives of the local Government and employers of the area that it will executed.

o Organise, through the Indigenous Affairs Coordination Unit, a Coordination Board including the participation of indigenous peoples and relevant organisations with the purpose of proposing non-discrimination and inclusion measures in the labour market. This Board will take into consideration the international standards set out in Covenant 169, as well as the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the recommendations gathered from the citizens’ dialogues held within the framework of the National Action Plan about the subject

o Prepare, through the Division of Social Policy of the Under-Secretariat of Social Evaluation, a statistical report about the socio-economic situation of risk groups including migrants, youngsters, disabled people, women and indigenous peoples, based on the Socio-Economic Qualification (SEQ) including income generated by work, capital and pensions, contained in the Household Social Register, divided by territory (regional division). This has the purpose of having available information regarding vulnerable groups within certain territory.

o Promote, through the National Disability Service, the labour insertion of people with disabilities by taking the following specific steps:

• The Programme +Capaz en Línea Especializada para Personas con Discapacidad, will be executed and adapted in conjunction with the National Training and Employment Service (Sence).
• An initiative to strengthen the work of Municipal Offices for Labour Intermediation (OMIL) will be carried out to attend people with disabilities – through a Local Development Strategy.
• Create an Inter-Sectoral Board aimed at urging mass media, including digital media, to be accessible to people with disabilities (by using sign language, captions, making reading easier, access to information or images for people with sight disabilities.)

3.3 The Ministry of Mining will generate the conditions for transiting to an inclusive organisational structure that includes the acknowledgement of respect and diversity in their practices. They will do this carrying out the following actions:

o Talks about business and human rights addressed at key actors in the small, medium and large-scale mining industry.

o Through the participation in Regional Boards and in the National Board for Women and Mining, the development of an action plan will be supported to raise awareness and motivate the different public and private actors involved in the mining industry in subjects such as gender equality. Likewise, the implementation of conditions for women to stay and develop a career in the mining industry and get equal pay will be fostered, as well as the creation of good labour practices and the balance between work, family and personal life.

3.4 The Ministry of Economy, Development and Tourism, through the Division of Associativity and Social Economy will:

o Create incubators of inclusive cooperatives in conjunction with SENADIS, the Ministry for Women and Gender Equality and local governments, in five districts -through training sessions in four different regions about the programme of female leadership in cooperatives.

o Encourage the organisation of training and support for the effective exercise of gender parity at democratic representation bodies within cooperatives.

3.5 The General Directorate of International Economic Relations of the Ministry of Foreign Affairs will carry out activities concerning best practices for SMEs, with the purpose of making progress in the application of best practices in the areas of inclusion, leadership and family balance.

3.6 The Ministry for Women and Gender Equality will:

o Carry out activities in conjunction with the Danish Embassy to encourage the respect of human rights in women regarding corporate activity. The activities will be performed within the framework of the Memorandum of Understanding about “Gender Equality and Sustainability, including Business and Human Rights.”

o Organise training sessions for union leaders of State business enterprises about the union’s challenges regarding gender-focused demands.

o Organise training sessions for human resource staff working in State business enterprises and other businesses about the balance between work and family life.

o Disseminate Chilean Regulation No. 3262 to civil servants and business enterprises. o Encourage gender equality in business enterprises through the Iguala Seal.

o Train civil servants about the balance between work and family life.

3.7 The Ministry of Energy will promote the respect of human rights of indigenous peoples concerning the development of energy projects. It will do this through the implementation of the indigenous chapter the energy policy in the long-term, developing consultation and participation processes pursuant to ILO Covenant 169, and drafting a guide for indigenous participation in the development of energy projects. Likewise, the Ministry will promote the development of a “gender and energy agenda” seeking to enhance the role of women in the development of a national energy industry, from strengthening their capacity and knowledge in energy subjects to developing startups linked to the industry, and promoting the participation of women in the design and implementation of the Energy Policy

Strand 8: Legislation, Policies and Incentives [pages 48-49]

The independent baseline developed for this process carries out an analysis of the legislation gaps existing in different sectors in business and human rights matters. Although legislation changes require long debate, the Plan is committed to carry out the following relevant measures:

8.1. The Ministry of Economy will support the legal provision committed in the Agenda for Productivity, Innovation and Growth seeking to create a legal framework for social business enterprises, by encouraging the incorporation of business and human rights criteria.

8.2. The Ministry of Energy will identify, promote and design the necessary mechanisms to implement the local development policy concerning energy projects. Among other things, the policy includes measures to support the assessment of impacts on the human rights of communities, and mechanisms to resolve the disputes that may arise between communities and business enterprises, within the context of the development of energy projects.

8.3. The Ministry of Labour and the Ministry of Social Development will continue promoting labour inclusion through the creation of the regulation supporting the Labour Inclusion Law, thus fostering inclusion from a human rights perspective.

Pillar II. The Corporate Responsibility to Respect Human Rights

Strand 1: Contextual issues: Development of texts allowing business enterprises to understand the local context and the risks of potential negative impacts on human rights [pages 52-57]

It is of utmost importance that business enterprises find ways to respect internationally recognised human rights, even if they lack continuous specialised advice or when the national context and/or circumstances where they operate may hinder or limit the full performance of their duties. In this sense, the measures contained in this heading focus on facilitating and updating the tools helping business enterprises to access to the necessary information about the applicable legislation and context so that they can:

– Comply with all applicable laws and respect internationally recognised human rights, wherever they operate.

– Look for ways helping them to respect human rights when they need to comply with conflicting demands.

– Take into consideration the risks involved in causing or helping to cause serious human rights violations, as a matter of law enforcement, wherever they operate.

1.1. The Ministry of Foreign Affairs will streamline they webpage on business and human rights to include tools, guides, guidelines and news, as well as the progress made by the National Action Plan. For this, it will seek the support of international institutions.

1.2. The National Institute of Human Rights will: o Disseminate and update the Country Guide on Business and Human Rights with support from business enterprises, the civil society, unions and academia.

1.3. The National Health Institute will coordinate, with expert support, the preparation of a study about the impact of the pharmaceutical industry.

1.4. The Ministry of the Environment will prepare a study about the links between the Law creating the Actual Right of Conservation (DRC) and the Guiding Principles.

1.5. The Ministry of Energy will keep updated the standard guide for participating in the development of energy projects, and will prepare a guide for indigenous participation in the development of energy projects. It will also prepare the guide for local development of the localities where such projects are settled, which will drive the actions of business enterprises and communities about the contribution to development that can be offered by these institutions. 1.6. The Environmental Assessment Service will prepare the Guide for Describing the Human Environment with Gender Focus for the Assessment of Environmental Impact. Such Guide is meant for the owners of projects submitted to the SEIA.

Strand 2: Promotion of corporate due diligence in the field of human rights

The need for the State to generate an understanding among business enterprises about due diligence in human rights was often mentioned in the citizens’ dialogues, as well as the creation of spaces allowing to clarify how to develop these processes at a local level.

2.1. The Ministry of Foreign Affairs, through the General Directorate of International Economic Relations, will: o Promote human rights in the management of public funds to promote exports carried out by ProChile, through the progressive incorporation of analysis mechanisms helping to ensure that business enterprises having access to the tools offered by this entity respect human rights. Likewise, it will establish, if relevant, requirements about sustainability and respect for human rights, as criteria to choose the business enterprises participating in programmes to promote exports and corporate activities, including SMEs and micro SMEs. o Disclose to business enterprises who are members of ProChile the United Nations Guiding Principles, thus helping, in this was and as far as possible, to incorporate them in their activities. It will do this through information available in the website, talks or sets of tools to strengthen their capabilities, and/or through the publication of handbooks containing the Guiding Principles or another suitable instrument, with special focus on information and training provided to SMEs.

2.2. The Ministry of Economy, Development and Tourism will:

o Hold a working group at least once each semester with the Division of Social Economy and Associativity and the Division of Smaller Business Enterprises with the purpose of identifying the impact of human rights in the management of businesses such as cooperatives and SMEs, and of incorporating the vision of human rights and business enterprises within this type of economic associations. Based on the activities of thee working groups, sector guides will be developed to evaluate compliance with human rights issues, with special emphasis on the management of supply chains.

o Create working groups in conjunction with the Under-Secretariat of Fisheries and Aquaculture and the Under-Secretariat of Tourism, which will have the duty to analyse and create mechanisms allowing to monitor these sectors regarding their respect for human rights. It will encourage and work with SEP for the adoption of an audit system in the field of human rights.

o Support the Ministry of Energy in the development of a Guide about the impact of projects on local communities, seeing to the integration of business and human rights standards into the development of projects within communities and, particularly, containing best practices about due diligence in human rights-related issues.

Agree, with business enterprises represented in the Social Responsibility Council for Sustainable Development, upon the development of memorandums of understanding, guides, handbooks and guidelines containing best practices, so that they can become an integral part of business and human rights standards in the following subject matters: labour practices, impact on communities, corporate practices and supply chain management.

Propose guidelines for business enterprises to have remedial mechanisms available. o Coordinate technical meetings with SEP, CORFO, SERNAC and SERCOTEC to agree on the incorporation of targets and indicators of compliance with human rights standards in these services. o Look to generate strategic alliances with banking institutions to facilitate access to financial services to cooperatives -which projects integrate an actual and potential analysis of the contribution and impact that the business may have on human rights. o Subscribe in 2017 an agreement with a technical specialised body to develop a system to diagnose and measure the impact of small and medium size enterprises on human rights, through a digital tool of public access.

Strand 3: Report in the field of human rights

The Guiding Principles stress the importance of the State in terms of encouraging business enterprises to communicate the way they address the risks of adverse impacts on human rights -through reports or other means. Sustainability reports may contain information about the way the business enterprise had identified and addressed risks in the field of human rights.

3.1. The Ministry of Economy will: o Encourage the development of a Guide about the duty of public enterprises regarding human rights. o Foster the use of reporting mechanisms about human rights between public business enterprises.

Promote, through the Division of Associativity and Social Economy, strategies and mechanisms of accountability and non-financial reporting for cooperatives, which will include the potential risks of their businesses on human rights. To encourage the use of this practice, an electronic template will be developed in 2017, free of charge and freely available, for these bodies to report to the State and their different target audiences.