Denmark

Preface [page 6]

“Companies must integrate social responsibility in their core business.”

2. State Duty to Protect Human Rights

2.3 Actions taken [pages 11 and 13]

Danish Government’s expectations to companies

“In the National Action plan for CSR, the Danish Government sets out clear expectations to Danish companies that they must take responsibility to respect human rights when operating abroad- especially in developing countries where there can be an increased risk of having an adverse impact on human rights (GP 2).

As part of the promotional activities among Danish companies the government has committed to providing courses and guidance on responsible business conduct. The Government has launched an information campaign specifically aimed at companies and NGOs on compliance with the Guiding Principles in connection with the establishment of the mediation and grievance mechanism (for more information see section 4.3).”

Companies that receive substantial support and services from State agencies

“When Danida under the Ministry of Foreign Affairs signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

22.4 Planned actions

Extraterritorial legislation [page 16]

To further engage in the issue of extraterritorial legislation, the Danish Government has planned the following initiative:

– At national level the Government will put together an inter-ministerial working group which will discuss the need for and feasibility of legislation with extraterritorial effect in areas of particular relevance. The group will look at what other countries have done and are doing in this area with the purpose of learning what works and what does not work. Finally, the group will examine the need for judicial prosecution of severe human rights impacts as recommended by the Danish Council for CSR.”

3. Corporate Responsibility to respect human rights

3.3. Actions taken [page 18]

Expectations to companies and other stakeholders to respect human rights

“The National Action Plan for CSR (March 2012) contains a number of expectations, based on UNGPs recommendations, that companies are expected to follow (GP 2). The government has reiterated its expectations in the preface to this National Action Plan on the implementation of the UNGPs.

In order to fulfill their requirements companies need to be able to know and show that they respect human rights. The Government therefore wants to create more transparency about the CSR efforts of both private companies and public authorities. It is only through increased transparency that CSR can become a key parameter for consumer choices. Danish legislation thus requires major Danish companies to report on social responsibility in their annual reports including what specific measures they have taking to respect human rights and reduce their adverse impact on the climate (GP 3d). For more information on the legal reporting requirement on human rights see section 2.3.

The transparency framework for the major private and public companies is supported by the new non-judicial remediation mechanism where cases involving potential adverse impacts by Danish companies on international CSR principles, including adverse impacts on human rights,

can be investigated (GP 4 and GP 27). For more information on the implementation of access to remedy see section 4.  In 2013, a number of Danish organisations were granted support to promoting CSR and Fair Trade.

Appendix 1. Overview of the implementation of the state duty to protect

 Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [pages 24-25]

• In 2004 the Ministry for Business and Growth in collaboration with the Confederation of Danish Industry developed the CSR Compass. The CSR Compass is an online tool which Danish companies can use when requiring customers and suppliers to respect human rights and perform due diligence.
• In 2008 the Danish Government published its first national action plan on CSR which encourages Danish companies and investors with international business activities to follow the UN Global Compact and Principles for Responsible Investment (PRI). Since 2007 the number of Danish companies that have joined the UN Global Compact has risen from 26 to 248.
• In 2010, the Government asked the Council for CSR to develop guidelines for Responsible Supply Chain Management based on the UN Protect, Respect and Remedy framework.

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles)

• In the national action plan for CSR the government encourages Danish companies to demonstrate responsible business conduct and apply internationally recognised guidelines for corporate responsibility such as the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and ISO 26000 (National action plan on CSR page 6).
• According to the Criminal Code, acts committed outside the Danish territory are subject to Danish criminal jurisdiction in certain specified cases. Criminal liability presupposes that the Danish penal provision that may be violated also applies to acts committed abroad (extraterritorial applicability). The question of whether a penal provision has extraterritorial applicability is not generally regulated by law. Instead, the question depends on interpretation in each case of the particular penal provision. Generally, the penal provisions in the Criminal Code have extraterritorial applicability. Conversely, other penal provisions generally only apply to acts committed within the Danish territory.
• The Government has recommended to the Council of Europe that Drafting Group on the Human Rights and Business under the Council of Europe should take the lead on the issue of extraterritoriality. The Council of Europe would be an excellent point of departure for this discussion as it covers virtually the entire European continent and focuses on the protection of human rights. Furthermore, the Council of Europe is already working on these issues through its steering committee for human rights.
• The Government has recommended that the second annual forum on Business and Human Rights could focus on the issues of extraterritoriality as this is a challenge for every country to implement individually.
• The Government has put together an interministerial working group which will discuss the need for and feasibility of legislation with extraterritorial effect in areas of particular relevance. The group will look at what other countries have done and are doing in this area with the purpose of learning what works and what does not work. Finally, the group will examine the need for judicial prosecution of severe human rights impacts as recommended by the Danish Council for CSR.

GP 2 Continued

State Duty to Protect

States have adopted a range of approaches in this regard. Some are domestic measures with extraterritorial implications. Examples include requirements on “parent” companies to report on the global operations of the entire enterprise; multilateral soft-law instruments such as the Guidelines for Multinational Enterprises of the Organization for Economic Cooperation and Development; and performance standards required by institutions that support overseas investments.

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles)

• The Danish Ethical Trading Initiative is an example of a soft law initiative. It is the first Danish multi-stakeholder initiative for Ethical Trading and Responsible Supply Chain Management. The initiative is co- financed by Danida.
• Together with other OECD members, Denmark has worked and will continue to work to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, including that relevant elements from the UNGP and Human Rights become part of the way export credit agencies undertake their due diligence
• Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of workers’ rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementing the UN Guiding Principles on Business and Human Rights.

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles)

Denmark has contributed actively to the discussions in OECD on how to embrace Human Rights in the ”Recommendation of the Council on the Common Approaches for Officially supported Export Credits and Environmental and Social Due Diligence (Common Approaches)”. Together with other OECD members, Denmark has worked to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, and also that relevant elements from the UNGPs and Human Rights become part of the way export credit agencies demonstrate due diligence. Furthermore, the revised Common Approaches now ensure policy coherence with the OECD Multinational Guidelines.