Netherlands

By Daniel Morris | 27. November 2017

3. Results of the consultations and government response

3.3 Clarifying due diligence [page 21]

In the 2011 update of the OECD Guidelines, the recommendation to apply due diligence was extended to the CSR domain. In all its communications with and conditions for the business community, the government uses the OECD Guidelines as its framework of reference for ICSR. Companies must take account of the potential social impact of their activities. Due diligence is thus the most important new element in the CSR policies of companies operating internationally and/or within international supply chains.

Corporate responsibility for applying due diligence is part of good business practice. But what the most effective due diligence process entails depends on the size of the company, the nature of its trade relations and the sectors and countries in which it operates.

Raising companies’ awareness [page 22]

The aim of the information strategy described in the policy letter ‘CSR Pays Off’ is to raise companies’ awareness of the need for due diligence. As an earlier study showed, SMEs operating internationally mainly need practical information. There are various aids for companies wishing to apply due diligence, and new ones are currently being developed, by the Social and Economic Council (SER), for instance. The government also has a role to play in making information and aids accessible. The knowledge centre CSR Netherlands plays an important role, while NL Agency and the embassies are major sources of information for companies operating at international level.

The government supports the SER with a grant for workshops to help companies shape the human rights component of their CSR policies, and to assist them in charting and prioritising the risks they face. These workshops are organised by SHIFT, a non-profit organisation set up with Professor Ruggie’s support to help companies and government authorities put the UN Guiding Principles into practice. The SER has also been given a grant to investigate whether the ISO 31000 risk management standard is applicable to CSR due diligence. It is essential for companies to have access to all available information on due diligence.

One of the suggestions made during the consultations was to involve educational institutions in transferring knowledge, so that on graduating future entrepreneurs and managers will be aware of business responsibility for social impacts. The government feels that this would provide added value, and is now investigating which courses should take knowledge of business ethics and CSR on board.

Box- CSR Risk Check [page 23]

Using a grant from the Minister for Foreign Trade and Development Cooperation, CSR Netherlands has developed the CSR Risk Check for companies wishing to apply due diligence. Based on the sector and country in which a company is operating, this internet tool provides an indication of possible social impacts. CSR Netherlands works with the agency responsible for carrying out Sector Risk Analyses to harmonise the information on which the two instruments are based. This information will be used in the course of 2014 to compile sectoral world maps on which colour coding will be used to indicate whether a certain theme (e.g. child labour, discrimination of women) plays a role in a given country or region.

Awareness-raising by embassies

Embassies are the spider in the web linking companies, government authorities and civil society organisations. They are thus in an excellent position to inform Dutch companies abroad about the OECD Guidelines and the UN Guiding Principles. In the past few years, many embassies have worked to promote human rights within the framework of international enterprise. In March 2012, the embassy in Astana (Kazakhstan) organised a roundtable meeting on CSR. It was a great success, not least because it was attended by delegations from many Kazakh companies and government agencies as well as by ministry representatives and members of parliament.

The embassies bring Dutch and local entrepeneurs and civil society organisations together and are active in providing information on CSR, human rights themes, the OECD Guidelines and National Contact Point (NCP) procedures. They can also identify country-specific risks. The CSR passport, a booklet for embassy staff with information on the OECD Guidelines, human rights and due diligence, is currently being updated.

4. Action Points

Clarifying due diligence [page 42]

  • The government will enter into dialogue with educational institutions providing courses in management-related studies on including business ethics and/or CSR in their curriculums.
  • The government supports the SER with a grant for workshops to help companies shape the human rights component of their CSR policies, and to assist them in identifying and prioritising the risks they face. The SER has also been given a grant to investigate whether the ISO 31000 risk management standard is applicable to CSR due diligence.
  • The government has entered into talks with Global Compact Netherlands on a follow-up to its publication ‘How to do Business with Respect for Human Rights’ (2010).
  • The Ministry of Foreign Affairs will shortly provide an interministerial training course for civil servants whose work calls for knowledge of the UN Guiding Principles, and a refresher or other course for implementing organisations on the significance of the OECD Guidelines for companies.
  • In 2014 an independent committee will investigate whether the obligations of Dutch companies in relation to CSR are adequately regulated in Dutch law, and in accordance with the UN Guiding Principles. The committee will take into account the relevant case law, the situation in neighbouring countries and the business climate.