Norway

1.3 CSR in the Norwegian business sector [page 13]

The Norwegian Corporate Governance Board (NUES) has published recommendations that have to be followed by all companies listed on the Oslo Stock Exchange. Another initiative is the Business for Peace Foundation, which promotes business practices that contribute to sustainable development. The social partners have played an active role in the development of decent working conditions, and NGOs have mobilised both business and the public sector to give priority to CSR. There are an increasing number of partnerships between civil society and business, such as the Ethical Trading Initiative Norway (ETI-Norway), which was set up in 2000 by the Norwegian Confederation of Trade Unions (LO), Virke, COOP and Norwegian Church Aid.

2. The State duty to protect human rights

2.1 The state as legislator [pages 18-19]

The Norwegian Human Rights Act states that certain key human rights conventions have the force of Norwegian law and take precedence over any other legislative provisions that are in conflict with them. In 2014, a number of human rights were also enshrined in the Norwegian Constitution. The duty of business enterprises to respect human rights is set out in Norwegian legislation, for example in the Working Environment Act, the Gender Equality Act and the Environmental Information Act. In addition there are acts regulating other areas that may have consequences for human rights, such as the Nature Diversity Act, the Pollution Control Act and the Greenhouse Gas Emission Trading Act. These are intended to contribute to a stable climate and a healthy environment, and to help safeguard the right to health. Generally speaking, Norwegian legislation safeguards human rights in Norway, so that companies that operate only in Norway are in little danger of violating these rights as long as they comply with the legislation.

However, although Norway already has in place sound legislation that applies to business, it may be necessary to consider amending certain acts in the light of the Guiding Principles and other international developments. It is often relevant to follow EU action in this field. The action plan therefore provides for review at regular intervals to ensure that legislation keeps pace with international decisions affecting human rights and CSR. Coherent follow-up of principle 8 (see section 2.7 below) should also be ensured. The Government will therefore appoint an interministerial working group headed by the Ministry of Foreign Affairs to ensure that such reviews are conducted. The aim of the working group is described in section 2.7.

The following are examples of relevant legislation.

The Accounting Act

Under the Accounting Act, large enterprises have been required to submit reports on CSR since 2013. The provision stipulating that enterprises must take account of human rights is considered to be in line with the Guiding Principles concerning the independent responsibility of enterprises to ensure that they respect human rights.

Amendments to EEA legislation

Small amendments to Norwegian legislation may be necessary in order to implement the expected new EEA rules corresponding to the new EU Directive (2014/95/EU) on disclosure of non-financial and diversity information by certain large companies and groups, which includes CSR. In this context it will be appropriate to look to other international developments, such the new UN Guiding Principles Reporting Framework.

Regulations on country-by-country reporting

Under the country-by-country reporting regulations, large enterprises that are required to submit accounts, and issuers of financial instruments listed on the stock exchange, in the extractive industry and/or forestry and logging, are required to prepare and publish an annual report on their activities by country and by project. The regulations entered into force on 1 January 2014, and will be reviewed after three years.

The Minerals Act

In Norway as in other countries, conflicts may arise between commercial activity and indigenous peoples’ rights. Protection of Sami rights is laid down in the Constitution and other legislation, and obligations towards the Sami people follow from international conventions, particularly Article 27 of the International Covenant on Civil and Political Rights and ILO Convention 169 concerning Indigenous and Tribal Peoples in Independent Countries. In Norway, Sami rights are also enshrined in special legislation and through consultation procedures between the public authorities and Sámediggi (the Sami Parliament). As part of its follow-up of ILO Convention 169, Norway is conducting a dialogue with ILO on how the convention is being implemented in Norwegian law, including in the area of mineral resources. In the Official Norwegian Report 2007:13 on legislation pertaining to the Sami, the Sami Rights Commission reviewed measures relating to mineral resources and in legislation that regulates mineral extraction. Some of the commission’s proposals were evaluated in connection with the preparatory work on the Minerals Act. The Act, which replaced five existing acts, entered into force on 1 January 2010. As part of the Government’s follow-up of the report from the Sami Rights Commission, the Ministry of Trade, Industry and Fisheries will evaluate proposals for amendments to the Minerals Act.

 Legislation governing the export of arms, ammunition and other military equipment

Norwegian legislation governing the export of arms, ammunition and other military equipment, associated technology and services for military purposes is strict and comprehensive. It is based on the principle that Norway does not permit such exports to areas where there is war, a threat of war, or countries where there is civil war. The Foreign Ministry’s guidelines recommend that such applications should be rejected in cases where, for example, there is considered to be an unacceptable risk that the equipment to be exported is intended to be used for internal oppression or serious human rights violations. The Arms Trade Treaty (ATT), signed in April 2013, provides guidelines for the regulation of export control by states. The guidelines provide for the possibility that states may have more restrictive practices than those that follow from the ATT, and Norway will continue with its restrictive legislation. At the same time, the Government wishes to continue to provide Norwegian business enterprises with clear, predictable framework conditions for their export operations, for example by providing unambiguous, long-term guidelines for the Foreign Ministry’s processing of applications to export defence materiel. An annual report is submitted to the Storting on the Ministry’s implementation of legislation and guidelines, and on the scale of Norwegian exports of goods and related technology controlled by the EU Munition List.

Measures [page 20]

• appoint an interministerial working group to assess the need for follow-up of international decisions and to ensure coordinated implementation of this action plan (see section 2.7 for a more detailed description of the group’s objective and tasks). Each relevant ministry will continue to be responsible for assessing the need for legislative amendments and other measures in its area of expertise;
• review the country-by-country reporting regulations for the extractive industry and forestry in 2016–17;
• evaluate the amendments to the Minerals Act proposed by the Sami Rights Commission in their report;
• continue to practise a strict and predictable control regime for arms exports.

2. The State duty to protect human rights

2.2 The state as adviser [page 20]

A large number of public or officially supported institutions that work with business internationalisation provide guidance on CSR and human rights. Among them are the Foreign Service, Norad, the Ministry of Trade, Industry and Fisheries, and Innovation Norway. Norway’s OECD National Contact Point also provides information and guidance.

Although the advice given by these bodies often needs to be adapted to the context and situation of the individual company, the question of whether the various bodies’ advice is consistent should be examined. The Government’s goal is that Norwegian enterprises should encounter the same expectations regardless of which public authority they come in contact with, and the business sector expressed a desire for coherence in this respect in its input to the action plan. Such a review would also satisfy the terms of the white paper Human Rights in Opportunities for All: Human Rights in Norway’s Foreign Policy and Development Cooperation (Meld. St. 10 (2014–2015)).

The Government will therefore consider establishing a centre where the resources of several advisory bodies would be co-located. Such a centre would help to ensure coherence and best practice, and serve as a direct resource for companies. The secretariat of Norway’s OECD Contact Point, which is an important source of information, would be co-located in this centre.

There is also a need to raise the level of competence on international decisions in the public administration, and especially in public bodies that offer courses and training in business internationalisation.

Many Norwegian enterprises operate in new markets in weak states with poorly developed legislation or a poor capacity to enforce human rights legislation. Such companies are requesting advice and cooperation on CSR and related subjects such as security, risks and corruption. The diplomatic and consular missions and Innovation Norway in particular will be strengthening their capacity for advice and dialogue on such subjects.

In order to ensure that advice and guidance on CSR and human rights are relevant and up to date, the Government will continue the dialogue with the social partners and civil society, especially in KOMpakt, the Government’s Consultative body on matters relating ro CSR.

Under the UN Guiding Principles, the state has a particular responsibility for advising business enterprises in conflict-affected areas. This is described in more detail in section 2.6.

Measures

• consider establishing a centre for co-locating the resources of a number of public bodies that provide advice on CSR;14
• improve the level of competence on the UN Guiding Principles and the OECD Guidelines among the public bodies that offer guidance on CSR;
• strengthen guidance and dialogue with companies on human rights, business ethics, security and corruption in especially demanding markets;
• continue the work on CSR by KOMpakt, the Government’s Consultative body on matters relating ro CSR

3.2 Responsible business conduct [page 32]

“Norwegian companies should be aware that the UN Guiding Principles also include a responsibility to seek to prevent or reduce activities by their business relationships that have adverse human rights impacts. Examples of business relationships are subcontractors, enterprises the company has invested in, and business partners. However, the principles also emphasise that this does not mean that the company is complicit in the detrimental activities of its business relationships. They encourage companies to use their influence to mitigate the adverse impacts of such activities.