Norway

By Daniel Morris | 27. November 2017

The Government’s expectations of business enterprises [page 9]

Business enterprises have an independent responsibility under the UN Guiding Principles to respect human rights by developing a public strategy or policy, exercising due diligence and helping to ensure a consultation and remediation process for individuals and communities affected by their activities.

The responsibility to respect human rights applies independently of where the enterprise operates, but is particularly important if it operates in states that do not themselves ensure respect for human rights. The Guiding Principles are norms and do not have the force of law. It is the duty of the enterprises themselves to decide how and to what extent the Guiding Principles apply to their operations. Such decisions must be based on risk assessments in which respect for human rights is evaluated in the context of the individual enterprise’s activities and resources and the challenges in the place where the enterprise operates. Two principles are relevant here: the “comply or explain” principle and the materiality principle.

2 The Government’s expectations of business enterprises are discussed in more detail in chapter 3.

In brief, the Government expects business enterprises to:

  • comply with the legislation in the country where it operates;
  • familiarise themselves with the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises;
  • follow the Guiding Principles or the OECD guidelines, where applicable, when developing strategies for responsible business conduct;
  • exercise due diligence and assess the human rights-related risks in the context of their operations. This applies particularly to enterprises that operate in demanding markets;
  • follow the “comply or explain” principle and the materiality principle.”

3. The Corporate responsibility to respect human rights [page 30]

“(…) As described in chapter 2, the Norwegian Government has set out clear expectations and in some cases requirements for the business sector in connection with all forms of state support or ownership. (…): The most important factor that a company should consider is whether there is a risk of its becoming implicated in situations where human rights are being violated as a result of its operations. Even small companies may find themselves in such a situation, depending on the nature of their operations. Thus all business enterprises should familiarise themselves with the Guiding Principles and assess the extent to which they are applicable. In cases where the principles do not apply, the government guidelines for enterprises in which the state has an ownership interest recommend that these enterprises should publish, in accordance with the “comply or explain” principle, a report stating why the Guiding Principles are not relevant to its activities. Private companies should do the same.

The Government expects all companies to:

  • follow the rules and regulations of the country where the company operates;
  • acquaint themselves with the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises;
  • make use where appropriate of the UN Guiding Principles or the OECD Guidelines in the development of their strategies for responsible business conduct;
  • exercise due diligence and assess the risks of human rights abuses in their area of operation. This applies particularly to companies that operate in demanding markets;
  • apply the “comply or explain” principle and the materiality principle.