Sweden

Foreword [page 3]

Its aim is to support Swedish businesses in transforming the UN Guiding Principles into concrete action. The plan sends a clear message about the Government’s expectations of modern business: successful and competitive companies of the future are those that make human rights and corporate social responsibility part of their core business. Consumers, investors and other stakeholders expect this. (…) The Government would like to urge and encourage all Swedish companies to use the international guidelines as a basis for their operations and to set a good example both at home and abroad.

The Government will act to support them in this effort. In addition, we will urge other countries to likewise adopt national action plans so that respect for human rights and corporate social responsibility can be strengthened around the world. Sustainable growth will benefit all of us.

Introduction [page 6]

The Government believes that business and respect for human rights go hand in hand and must be part of an active corporate social responsibility (CSR) policy.

UN Guiding Principles on Business and Human Rights [page 7]

(…) Corporate social responsibility applies in Sweden and abroad, and independently of States’ abilities and/or willingness to fulfil their own human rights obligations. The activities undertaken by enterprises must be adapted to their operating contexts and human rights impacts.

1. The corporate responsibility to respect [page 13]

“The Government’s clear expectation is that companies operating in Sweden or abroad respect human rights in all their activities. This means that their business activity should not cause, contribute or be linked to human rights abuses, not least in conflict-affected areas, and that they should act to prevent such abuses. Similarly, they should address adverse human rights impacts with which they are involved. Many companies are already aware of the risk that their business operations may contribute to human rights abuses, and are taking steps to manage these risks.

Internationally recognised instruments pro-vide guidance for companies in their human rights efforts.2 The UN Guiding Principles focus on businesses and human rights. The United Nations Global Compact, the OECD Guidelines for Multinational Enterprises and the Children’s Rights and Business Principles take a broader approach and address not only human rights but also other issues such as the environment, working conditions and anti-corruption.

For a company’s employees, human rights in the workplace are particularly important. The right to participate in collective bargaining and the right to form or join free trade unions are examples of such rights. Special measures should be taken to identify and prevent anti-union policies or actions. This applies both in Sweden and abroad. In some countries it may be difficult for employees to assert their human rights in the workplace.

The Government encourages companies to conduct a dialogue on these issues with stakeholders, trade unions and civil society organisations to identify problems and work constructively to find common solutions. It is particularly important to ensure that a dialogue is conducted with free trade unions. Investors and consumers are important stakeholders who can question, bolster and reward companies for their work. The media has an independent role as reviewer and can raise awareness about the influence that companies have on society.

The conditions for companies’ efforts to respect human rights vary depending on their size, the countries and regions they operate in and their line of business, but the common goal is to prevent the companies’ activities from leading to human rights abuses, including the exploitation of children. UNICEF, Save the Children and the UN Global Compact have developed the Children’s Rights and Business Principles, which provide guidance for companies in their work. Companies should also help to defend and strengthen women’s rights, including through access to the labour market and by combating discrimination in all its forms. Companies face different opportunities and challenges. For this reason, their human rights efforts need to be tailored to the occasion and situation. In some cases, it may be a matter of tailoring existing processes and systems, and in other cases of building completely new systems for monitoring and control.”

In keeping with the UN Guiding Principles, businesses’ human rights efforts are expected to include the following main points:

Policy [page 14]

• Compliance with all applicable legislation and respect for human rights wherever they operate
• Policy statement, approved at the highest level, on respect for internationally recognised human rights, including the ILO core conventions, in the company’s operations
• Establish a clear set of values as the basis for the company’s human rights work, which should permeate the company’s business culture and external relationships and be made publicly available
• Clearly demonstrate the participation, engagement and responsibility of the senior level in respect for human rights throughout the organisation in Sweden and abroad

Procedure 

• Identify and monitor the risks throughout the value chain (employees, business partners, suppliers, distribution and customer channels) and assess where responsibility for risks lies and how the company can have a positive impact
• Establish an integrated and ongoing process in the company to identify, prevent and manage human rights risks and opportunities, as appropriate to the size, nature and context of the operations, i.e. due diligence
• Conduct a structured, meaningful and regular dialogue with the company’s employees and trade unions, and with the company’s key stakeholders in the community
• Cooperate and consult with other relevant companies and organisations on common human rights challenges
• Operate strategically, set objectives and follow up the company’s own activities to ensure their effectiveness

Reporting 

• Be transparent, i.e. report on and communicate the risks and opportunities facing the company, as well as its impact on society, both favourable and adverse
• Introduce guidelines on internal whistleblowing
• Put in place processes to remediate adverse impacts.

Annex: Measures planned

Corporate action [page 29]

The Government’s clear expectation is that companies operating in Sweden or abroad comply with the UN Guiding Principles for Business and Human Rights and other relevant guidelines in this area, and review their due diligence and redress mechanisms. Companies operating in markets where human rights challenges are particularly serious should place special emphasis on work in the area.