Finland

2. The state obligation to protect human rights 

2.1 Human rights in Finnish legislation [page 13]

Finland is strongly committed to the protection and promotion of human rights through national legislation and international cooperation. Our reinforced Constitution protects the inviolability of human dignity as well as the freedom and rights of individuals, and promotes justice in society. Fundamental rights (such as equality, freedom of movement, protection of privacy, freedom of association, freedom of speech and the right to social security and judicial protection) have been included in the Constitution.

According to the equality provision of the Constitution, no one may be treated differently based on sex, age, origin, language, religion, conviction, opinion, health, handicap or other reason related to the individual. In addition, the Constitution states that children should be treated equally as individuals and that it should be possible for them to be involved in matters relating to them in accordance with their development. The current public authority, municipality or other body exercising public authority must ensure the realization of fundamental and human rights.

The generał principle of Finnish legislation is that it is based on fundamental and human rights. Human rights under the Constitution are ensured in all legislation.

According to treaty law, Finland is obliged to implement international conventions, including human rights conventions to which it is bound. National legislation should be in harmony with the obligations of international and regional human rights conventions, and it should be applied and interpreted favorably with regard to human rights.

However, on an international level states implement human rights conventions differently. This affects international business activities and their regulation. The international preparation and development of the UN principles deal with the legal regulation of cross-border business activities. The concept of human rights is very extensive, and the creation of mare binding regulation for non-state actors (such as companies) would require specifying their obligations in relation to the obligations of states. The challenges of such regulation are related to features such as the generał definition of the criminal liability of legal entities, the territorial application of criminal legislation, protection of the accused, definition of the civil liability for damages, functionality of legal redress, and territorial limitations of jurisdictions. Due to these challenges, the matter requires that further examination and analyses be made on both the national and international level.

For continuing both the national and international discussion, it would be essential to further clarify features such as the applicability of national legislation to international business activities. For this reason, the working group proposes that as a follow-up measure, a report be commissioned on Finnish legislation in relation to the regulation and guidance of  international  business  activities,  particularly  to  prevent serious human rights violations and to remedy any existing violations. Principal responsible party: Ministry of Justice, Ministry of Employment and the Economy and Ministry for Foreign Affairs, schedule by mid-2015.

2.2 The State and the protection of privacy [page 23]

The protection of privacy that is particularly related to electronic communications has received plenty of attention in recent public discussion. The right to privacy, the protection of personal data and the protection of confidential messages are fundamental human rights. The extent of data collection related to electronic communications has led to public discussion. Privacy questions related to electronic communications are particularly important in Finland, where the ICT infrastructure enjoys a strong position. This strength has played a significant role in the fact that Finland has been able to attract international ICT investments.

As a fellow-up measure, the working group proposes that

• a roundtable discussion be organised on how to ensure the protection of privacy in Finland with the authorities, ICT companies and the civil society. Principal responsible party: Ministry of Transport and Communications, autumn  2014.

3. Expectations towards companies and support services

3.1. Clarification of due diligence [page 23]

The OECD Guidelines for Multinational Enterprises were updated in 2011. In the same connection, the UN Guiding Principles on Business and Human Rights were included in the Guidelines along with due diligence. In the OECD Guidelines, due diligence is seen as an examination process with which companies identify and prevent the actual and potential adverse impacts of their activities in their decision­ making and risk management. This means that due diligence is not a single action. lnstead, it is an ongoing process where the human rights impacts of business activities are assessed with appropriate and sufficient care.

Due diligence also includes the mitigation of adverse impacts and communication on how companies deal with these adverse impacts. Potential effects are dealt with by preventing or mitigating them, whereas actual impacts will be dealt with by remedying them.

By following due diligence, an attempt is made to prevent the adverse impacts which a company will either cause itself, to which it will considerably contribute towards, or which are directly related to the company’s activities, products or services through a business relationship.

The contribution refers to a situation where that contributing impact is substantial. This means activities resulting in indirect adverse impacts caused, promoted or encouraged by another party. This does not cover minor or insignificant contributions. If a company contributes to a detrimental effect on human rights, it should take the necessary measures and use its influence to prevent or alleviate the adverse impact.

In the Guidelines, business relationships cover relations with business partners, supply chain operators and other operators independent of the state and governmental operators that are directly related to the company’s business activities, products or services. If the company has a lot of suppliers, it should identify the areas where the risk of adverse impacts is highest and contribute to the prevention of these risks.

 What it sufficient?

At the consultation events organised by the working group, it was suggested that a new statutory obligation on due diligence should be established for companies when implementing the UN principles on a national level.

Transforming the due diligence described above into a legally binding obligation is difficult to envisage. The problem with statutory due diligence for respecting human rights is the difficulty of defining the obligation included therein. On a national level, respecting human rights is defined in appropriate legislation, and careful actions may be important for assessing company responsibilities. Extending national legislation to international activities is even more challenging. The special questions related to the regulation of international business activities have been described above in Section 1.1.

According to the international guidelines, the sufficiency of following due diligence and the possibilities of making a difference are always weighed on a case­ by-case basis. The issues mentioned above (such as the size of the company, branch of activity, operating conditions, ownership and business structure) are taken into consideration. The seriousness of the adverse impacts caused is important as well. Since both the UN principles and the OECD Guidelines emphasise prevention, a retrospective assessment on sufficiency will cause challenges of its own for preparatory  actions.

The discussion on the content of due diligence and the ways it is applied also continues in international organisations.

Though there is no binding regulation on due diligence, it is a central concept in

managing human rights risks related to international business activities. For these reasons, more discussion and information is required on the types of risks an possibilities related to each branch of activity, on the types of risk management needed, and on the expectations for observing due diligence in various branches of activities.

As a follow-up measure, the working group proposes that

• companies, non-governmental organisations and other key stakeholders are invited to a roundtable discussion by branch of activity. For example, the discussion could begin with the forest industry, the consumer goods trade and the textile industry.With the discussions, an attempt shall be made to create a dialogue amongst various stakeholders and to establish the essential risks for each branch of activity as well as sufficient risk management and due diligence.
• In co-operation with the business sector, the collective industrial organisations and non-governmental organisations, sharing of due diligence best practices is promoted in order for companies to apply them.

Principal responsible parties: Ministry for Foreign Affairs and Ministry of Employment and the Economy, schedule by the end of 2015.”

3.2 Reporting on corporate social responsibility [page 25]

Reporting on corporate social responsibility may be a significant factor in monitoring the human rights impacts and risks of companies. In the Resolution on Corporate Social Responsibility, the Finnish Government encourages companies to publish the non-financial data on the social and environmental impact of their activities. The Ministry of Employment and the Economy and the Ministry of the Environment are involved in organising the annual competition for reporting on corporate social responsibility. The competitions have been organised since 1996 with a view to encourage companies to report on CSR. When reporting becomes mandatory for some of the companies (cf. Section i.3 on non-financial reporting), the question of reforming the competition must be addressed.

International information on the content of companies’ responsibility reports is available in a database maintained by the Global Reporting Initiative (GRI). In Finland, Corporate Responsibility Network FIBS acts as a partner for GRI for all Finnish companies and organisations to register their responsibility reports in the database. By means of the database, companies’ responsibility reports can be compared by branch of activity and by geographical area. The database also provides useful information concerning the international corporate social responsibility standard to which each report refers.

As a follow-up measure, the working group proposes that

• human rights be adopted as the annual theme of the reporting competition. Principal responsible party: Ministry of Employment and the Economy, schedule before the end of 2015.”

3.4 Team Finland cooperation

The Team Finland network was established in 2012 to promote the Finnish cause abroad. This entity includes Finland’s financial foreign relations, the internationalisation of Finnish companies, the foreign investments made in Finland and the image of Finland as a country. The objective is to create a clear and customer­orientedoperating model where the central domestic and foreign operators are invited to sit down to a discussion at the same table. The activities of Team Finland are guided by common objectives that are confirmed by the government each year. The core of the Team Finland network consists of the Ministry of Employment and the Economy, the Ministry for Foreign Affairs, the Ministry of Education and Culture, and the publicly funded organisations and foreign offices operating under these ministries (such as Finnish foreign services, the Finpro and Tekes offices, and cultural and scientific institutes). Cooperation with companies, organisations and institutions of higher education is also extremely important in matters related to business and human rights. As an existing forum, Team Finland may operate as an excellent platform for bringing forward human rights factors related to business activities.

As a follow-up measure, the working group proposes that

• the Team Finland network provide interactive training on the theme of business and human rights;
• in connection with travel for export promotion, questions related to human rights and CSR are taken into For instance, by including a concise overview of the human rights situation of the target country in the background materials.
• Questions related to human rights and corporate social responsibility shall be included in the service selection by the Team Finland network provided by Finnish foreign Ministry for Foreign Affairs and Ministry of Employment and the Economy shall provide the support materials required for counselling.

     Principal responsible party: Ministry for Foreign Affairs and Ministry of Employment and the Economy, continuous activities.

3.5   Support for Finnish and international organisations promoting the subject [page 27]

Defenders of human rights, trade unions and other civil society operators can play an important role in the assessment of the impact of business activities on human rights, the availability of legal remedies and national and international discussion. Finland has a strong tradition of mutual interaction between the authorities and civil society operators. The collaboration between labour market parties is part of the Finnish social contract. Ministries support the business and human rights activities of Finnish and international non-governmental organisations in various ways.

The Ministry for Foreign Affairs uses development cooperation funds to support international organisations, programmes and initiatives which promote the theme of business and human rights. For instance, the Ministry for Foreign Affairs has supported the following projects:

The UN Global Compact CSR initiative for EUR 350,000 in 2013 and its Business for Peace initiative for EUR 200,000 between 2013 and 2014. The activities focus on features such as human rights, gender equality, good governance and environmental affairs.

In 2014, approximately EUR 17 million were spent to support the projects of the International Labour Organisation (ILO). The projects are related to matters such as rights at work, green workplaces for the construction sector, the inclusion of women in the labour market, and decent work.

Employment and the Economy, continuous activities.

The OECD Policy Framework for Investment is being modernised to face the challenges of sustainable development, such as equality, CSR and human rights.

Each year, the Ministry for Foreign Affairs also supports the development cooperation projects for Finnish non-governmental organisations as well as communications and global education projects. Support is also provided for projects promoting the theme of human rights and business.

As a follow-up measure, the working group proposes that

• the possibilities of funding new programmes or initiatives be examined. These programmes or initiatives should be related to business
• and human rights, particularly trade, business activities and rights at work, and they may have significantly positive effects on development.

Principal responsible party: Ministry for Foreign Affairs, schedule 2014 to 2015.