Denmark

Introduction [page 9]:

“Denmark has a long political tradition of supporting and addressing human rights. Changing governments have concentrated on special focus areas such as … children’s rights …”

Appendix 1, GP 3b

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 26]:

“Large parts of Danish national law support compliance with the UNGPs such as legislation on labour issues, the environment, child labour etc. This type of protective legislative framework of Denmark enables business respect for human rights.”

Read more about Children’s rights

Appendix 1, GP 7

State Duty to Protect  [page 30]

“Supporting business respect for human rights in conflict-affected areas.

Because the risk of gross human rights abuses is heightened in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by:

a) Engaging at the earliest stage possible with business enterprises to help them identify, prevent and mitigate the human rights-related risks of their activities and business relationships;

b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence;

c) Denying access to public support and services for a business enterprise that is involved with gross human rights abuses and refuses to cooperate in addressing the situation;

d) Ensuring that their current policies, legislation, regulations and enforcement measures are effective in addressing the risk of business involvement in gross human rights abuses.”

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 30]

“The Danish development assistance generally contributes to the promotion of human rights in conflict areas. In conflict areas it is often difficult to work closely with the host country, because local authorities do not always have sufficient capacity to monitor and legislate. The Danish efforts in fragile states include support for building institutional framework.” …

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 30]

“The Danish Government has provided financial assistance to the OECD Proactive Agenda work which has a specific focus on conflict-affected areas. For more information see http://mneguidelines.oecd.org/proactiveagenda.htm.”

Read more about Conflict-affected areas

The state duty to protect human rights

2.4 Planned action

Increasing the use of labour and social clauses in public contracts [page 16]

“The current labour clause threshold value of approximately DK K 37.5 million for public construction projects included by the labour clause requirement will be abolished. In the future, governmental contracting authorities (including companies that are fully owned by governmental authorities and not in competition) must use labour clauses in all public tender calls for construction projects.”

Read more about Construction sector

While there is no explicit reference to corporate law and corporate governance in the Danish NAP, it is possible to read elements of it.

Appendix 1, GP3b

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 26]

“all new legislation is evaluated in terms of human rights consequences. Large parts of Danish national law support compliance with the UNGPs such as legislation on labour issues, the environment, child labour etc. This type of protective legislative framework of Denmark enables business respect for human rights.”

This implies that Denmark undertakes efforts to ensure that all legislation, including corporate law, is evaluated in terms of human rights consequences.

Appendix 1, GP 4

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“[The Danish Investment Fund for Developing Countries (IFU)]’s overall objective is to promote sustainable economic growth, economic development and a more equitable distribution of income by co-financing private sector investment in developing countries. IFU’s investments in projects should contribute to job creation, good governance, respect for the environmental, higher social standards and community development.”

Read more about Corporate law & corporate governance

2. The state duty to protect human rights

2.3 Actions taken

Protection of human rights through state regulation and policy [page 12]

“Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of worker’s rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementation of the UN Guiding Principles on Business and Human Rights.” …

Companies owned or controlled by the state [page 13]

“When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.” …

Providing effective guidance on how to respect human rights [page 14]

“The revised Global Compact Self-Assessment Tool works as a self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights, worker’s rights, environment and anti-corruption and including a template for a follow-up action plan.” …

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

“Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights, workers’ rights, environment and anti-corruption and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.”

Appendix 1, GP 4

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Read more about Corruption

2. The State Duty to Protect Human Rights

2.3 Actions Taken

Protection of human rights in the business sphere in Danish legislation [page 12]

The Danish Data Protection Act helps to uphold the right to respect for private life.

Read more about Data protection & privacy

Appendix 1: Overview of the implementation of the state duty to protect

GP10 State Duty to Protect

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 32] 

… Denmark has been instrumental in the establishment of the World Bank’s Nordic Trust Fund, which aims to promote the application of the human rights framework in World Bank policies and operations. Denmark has also been active in promoting that The International Finance Cooperation (IFC) actively supports its clients in addressing human rights risks and impacts.

Read more about Development finance institutions

The Danish NAP makes no explicit reference to ICT.

Read more about Digital technology & electronics sector

Read more about Energy sector

2. The State Duty to Protect Human Rights

2.3 Actions Taken

Protection of human rights through state regulation and policy [page 12]

Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of … environment … within the framework of ILO conventions, UN Global Compact, the OECD Guidelines for multinational enterprises and work towards implementation of the UN Guiding Principles on Business and Human Rights.

Protection of human rights in the business sphere in Danish legislation

…the Working Environment Act contributes to protecting the right to a safe and healthy working environment, the act protects, among other things, individuals against adverse impacts on health due to environmental pollution from business sources and contributes to protecting the right to the highest attainable standard of health through regulating access to health services.

Providing effective guidance on how to respect human rights [page 13]

…To ensure that companies have the right tools and the necessary guidance to handle the new due diligence requirements, the Government has updated the existing web tool, the CSR Compass and the Global Compact Self-Assessment Tool in accordance with the due diligence requirements of the UNGPs. ..The revised Global Compact Self-Assessment Tool works as a Self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights,.. environment… and including a template for a follow up action plan.

Annex 1: Overview of the implementation of the state duty to protect

GP1 State Duty to Protect

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 24]

In 2011 the Danish government published it second national action plan for CSR “Responsible Growth” 2012–2015. The national action plan contains several initiatives which translate the UNGPs into practice, among other: …A reporting requirement on human rights and climate

GP3c State Duty to Protect

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 26]

Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights,… environment…and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.

Read more about Environment & climate change

2. The State Duty to Protect Human Rights

2.3 Actions Taken

Protection of human rights in the business sphere in Danish legislation [page 12]

General Danish law contributes to fulfilling Denmark’s duty under human rights treaties to which it is a party against human rights abuses by private actors, including businesses. For example, the Danish parliamentary act prohibits differential treatment in the labour market from 1996 protecting against discrimination based on race, gender, skin colour, religion, political opinion, sexual orientation or national, social or ethnic origin. It is also an offense to refuse to serve a person on the same terms as others involved in commercial or non-profit company because of his/hers race, colour, national or ethnic origin, religion or sexual orientation. The Working Environment Act of 2005 and the Act on the Work of Young Persons from 2005 implement the EU Directive 94/33/EC from 1994 on the protection of young workers.

Appendix 2: Overview of the implementation of the access to remedy

GP 27 Access to remedy

State-based non-judicial grievance mechanisms

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 34]

…Denmark has mechanisms for dealing with cases of race, gender, disability, age, religious discrimination in employment or services, etc.

Read more about Equality & non-discrimination

State Duty to Protect

2.3 Actions Taken

Companies that receive susbstantial support and services from State agencies [page 13]

“The Environmental & Social Due Diligence Policy of the Danish Export Credit Agency (EKF) states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights (GP 4).

Since 2007 Denmark has worked actively in the OECD to ensure that export credit agencies have a common approach for evaluating human and labour rights as well as the protection of the environment (GP 10). …

When Danida under the Ministry of Foreign Affairs signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Promoting shared understanding and international cooperation on UNGPs [page 15]

“Denmark continues to work actively to ensure consistency between the different policies in the OECD including in the area of export credits.”

Appendix 1, GP 2 continued

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 25]

“Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of workers’ rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementing the UN Guiding Principles on Business and Human Rights.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 25]

“Together with other OECD members, Denmark has worked to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, and also that relevant elements from the UNGPs and Human Rights become part of the way export credit agencies demonstrate due diligence. Furthermore, the revised Common Approaches now ensure policy coherence with the OECD Multinational Guidelines.”

Appendix 1, GP 4

State Duty to Protect [page 28]

“States should take additional steps to protect against human rights abuses by business enterprises that are owned or controlled by the State, or that receive substantial support and  services from State agencies such as export credit agencies and official investment insurance or guarantee agencies, including, where appropriate, by requiring human rights due diligence.”

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles for Responsible Investment (PRI). The Export Credit Agency (EKF), the Investment Fund for Developing Countries (IFU) and Investment Fund for Central and Eastern Europe) (IØ) has committed to join the UN Global Compact.

EKF’s Environmental & Social Due Diligence Policy states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights. EKF has also committed to the Equator Principles. These are binding international standards and frameworks for project funding. This ensures that private institutions and banks assess the environmental and social responsibility through a common set of guidelines. EKF works to promote the Equator Principles internationally, especially to institutions in the BRIC countries (Brazil, Russia, India and China). EKF uses International Finance Corporations (IFC) Performances Standards when rating a project which EKF participates in. The IFC Performances Standards mainly covers labor rights but human rights are also covered.

IFU’s overall objective is to promote sustainable economic growth, economic development and a more equitable distribution of income by co-financing private sector investment in developing countries. IFU’s investments in projects should contribute to job creation, good governance, respect for the environmental, higher social standards and community development. IFU has joined the UN Global Compact and is committed to promoting these principles in its investments. Furthermore, IFU’s CSR policy is based on UN, ILO and OECD international conventions and declarations. By promoting these, IFU wishes to contribute to the achievement of the UN 2015 Millennium Development Goals. When conducting due diligence IFU uses the Global Compact SelfAssessment tool, which contains a robust assessment of human rights conditions.

As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 28]

“The Danish Export Credit Agency (EKF) has a CSR policy which includes taking into account social, economic and environmental issues.

Companies involved in Danida Business Partnerships are required to integrate CSR strategically in their business operations and to demonstrate CSR due diligence in order to prevent and mitigate adverse impact of business activities.”

Appendix 1, GP 7

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“Danida Business Partnerships provides financial support for the implementation of CSR partnerships and CSR initiatives in a range of Denmark’s partner countries. As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights.

Besides following the government regulations with respect to export promotion, trade policy and political imposed trade sanctions and export controls, the EKF has initiated the development of a model that provides an overview of the business risks that could potentially be related to human rights, labour rights, environment and climate in the countries where EKF is investing. EKF is screening the companies involved in the EKF’s transactions. There has not been any cases involving human rights issues.”

Read more about Export credit

The Danish NAP makes no direct reference to extractives.

Read more about Extractives sector

2. The state duty to protect human rights

2.1 UNGPs on the state duty to protect [page 10]

“The state can protect human rights by (not exhaustive):

• Enforcing laws (including law with extraterritorial implications) that enable rather than constrain businesses to respect human rights. …”

2.3 Actions taken 

Extraterritorial legislation [page 15]

“Direct extraterritorial legislation and enforcement includes criminal regimes that allow for prosecutions based on the nationality of the perpetrator no matter where the offence occurs. The Danish Government wishes to engage in the discussion on extraterritorial legislation as proclaimed in the UNGPs and as recommended by the Danish Council for CSR. Acknowledging the complexity of the issue, the Government has taken the following initiatives:

• At an international level the Danish Government actively promotes the discussion on extraterritorial legislation, in particular the need for joint solutions. The Government has recommended that the Council of Europe should take the lead on the issue of extraterritoriality. The Council of Europe would be an excellent point of departure for this discussion as it covers virtually the entire European continent and focuses on the protection of human rights. Furthermore the Council of Europe is already working on these issues through its Steering Committee for Human Rights.
• The Government has recommended that the second annual UN Forum on Business and Human Rights could focus on the issues of extraterritoriality as this is a challenge for every country to implement.”

2.4 Planned actions 

Extraterritorial legislation [page 16]

“To further engage in the issue of extraterritorial legislation, the Danish Government has planned the following initiative:

• At national level the Government will put together an inter-ministerial working group which will discuss the need for and feasibility of legislation with extraterritorial effect in areas of particular relevance. The group will look at what other countries have done and are doing in this area with the purpose of learning what works and what does not work. Finally, the group will examine the need for judicial prosecution of severe human rights impacts as recommended by the Danish Council for CSR.”

4. Access to remedy

4.2 Recommendations from the Council for CSR on access to judicial and nonjudicial remedy

Recommendations on judicial remedy [page 20]

“In terms of legislation with extraterritorial effect, the Council recommended that the Danish government, in addition to the international work, consider introducing relevant national legislation for particularly gross violations. A balance should be established between, on the one hand, the need to prosecute particularly gross violations and maintain an overwhelming sense of justice, and, on the other, the possibilities of examinating violations in practice.”

Appendix 1, GP 2 continued 

State Duty to Protect, Extraterritorial legislation [page 24]

“At present States are not generally required under international human rights law to regulate the extraterritorial activities of businesses domiciled in their territory and/or jurisdiction. Nor are they generally prohibited from doing so, provided there is a recognized jurisdictional basis. Within these parameters some human rights treaty bodies recommend that home States take steps to prevent abuse abroad by business enterprises within their jurisdiction….. Other approaches amount to direct extraterritorial legislation and enforcement. This includes criminal regimes that allow for prosecutions based on the nationality of the perpetrator no matter where the offence occurs. Various factors may contribute to the perceived and actual reasonableness of States’ actions, for example whether they are grounded in multilateral agreement.”

Status in Denmark, (initiatives implemented before the UN ratification of the Guiding Principles) [page 24-25]

“According to the Criminal Code, acts committed outside the Danish territory are subject to Danish criminal jurisdiction in certain specified cases. Criminal liability presupposes that the Danish pe-nal provision that may be violated also applies to acts committed abroad (extraterritorial applicability). The question of whether a penal provision has extraterritorial applicability is not generally regulated by law. Instead, the question depends on interpretation in each case of the particular penal provision. Generally, the penal provisions in the Criminal Code have extraterritorial applicability. Conversely, other penal provisions generally only apply to acts committed within the Danish territory.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 25]

“The Government has recommended to the Council of Europe that Drafting Group on the Human Rights and Business under the Council of Europe should take the lead on the issue of extraterritoriality. The Council of Europe would be an excellent point of departure for this discussion as it covers virtually the entire European continent and focuses on the protection of human rights. Furthermore, the Council of Europe is already working on these issues through its steering committee for human rights.

The Government has recommended that the second annual forum on Business and Human Rights could focus on the issues of extraterritoriality as this is a challenge for every country to implement individually.

The Government has put together an interministerial working group which will discuss the need for and feasibility of legislation with extraterritorial effect in areas of particular relevance. The group will look at what other countries have done and are doing in this area with the purpose of learning what works and what does not work. Finally, the group will examine the need for judicial prosecution of severe human rights impacts as recommended by the Danish Council for CSR.”

Appendix 1, GP 26

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 34]

“At international level the Danish Government actively promotes the discussion of legislation with extraterritorial application, in particular the need for joint solutions (see UNGPs 2).”

Read more about Extraterritorial jurisdiction

Appendix 1, GP 4

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles for Responsible Investment (PRI). The Export Credit Agency (EKF), the Investment Fund for Developing Countries (IFU) and Investment Fund for Central and Eastern Europe) (IØ) has committed to join the UN Global Compact.

[The Export Credit Agency (EFK)]’s Environmental & Social Due Diligence Policy states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights. EKF has also committed to the Equator Principles. These are binding international standards and frameworks for project funding. This ensures that private institutions and banks assess the environmental and social responsibility through a common set of guidelines. EKF works to promote the Equator Principles internationally, especially to institutions in the BRIC countries (Brazil, Russia, India and China). EKF uses International Finance Corporations (IFC) Performances Standards when rating a project which EKF participates in. The IFC Performances Standards mainly covers labor rights but human rights are also covered. …

As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Appendix 1, GP 7

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 30]

“Danida Business Partnerships provides financial support for the implementation of CSR partnerships and CSR initiatives in a range of Denmark’s partner countries. As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights.”

Appendix 1, GP 9

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 31]

“The EU adheres to principles and standards on responsible business conduct such as the OECD Guidelines for Multinational Enterprises, which is also reflected in negotiations for free trade agreements that includes the area of investment. The guidelines are considered the reference document on Corporate Social Responsibility, including human rights, intended to balance the rights and obligations between investors and host states. Furthermore, it is common practice to reference in the mandate the right of the parties to adopt and enforce measures necessary to pursue legitimate public policy objectives such as social, environmental, human rights, security, public health and stability of the financial systems in a non-discriminatory manner”

Appendix 1, GP 10

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 33]

“… Denmark has been instrumental in the establishment of the World Bank’s Nordic Trust Fund which aims to promote the application of the human rights framework in World Bank policies and operations. Denmark has also been active in promoting that The International Finance Cooperation (IFC) actively supports its clients in addressing human rights risks and impacts. Furthermore, human rights are reflected in trade agreements.”

Read more about Finance & banking sector

2. The state duty to protect human rights
2.3 Actions Taken

Ensuring policy coherence across governmental departments and agencies [page 11]

“Ensuring policy coherence across governmental departments and agencies: The Government’s CSR efforts are coordinated by an inter-ministerial working group with representatives from departments and agencies who work with CSR and human rights related areas. These include Ministry of Business and Growth, Ministry of Foreign Affairs, Ministry of Employment, Ministry of Environment, Ministry of Finance, Ministry for Food, Agriculture and Fisheries, Ministry for Climate, Energy and Building and the Investment Fund for Developing Countries (IFU) (GP 8).”

Read more about Fisheries and aquaculture sectors

2.0 The state duty to protect human rights

2.3 Actions taken [page 13]

Protection of human rights in the business sphere in Danish legislation

“Denmark’s Criminal Code protects the right to life and human rights against torture, slavery, while proscribing a range of activities connected with human trafficking, for example.”

2.4 Planned actions [page 16]

Increasing the use of labour and social clauses in public contracts

“Part of the foundation of the Danish labour market model is that work performed in Denmark must be performed on Danish pay and working conditions. In this, the authorities hold an important role in ensuring that underpaid foreign labour does not occur in public projects.”

Appendix 1, GP 3b

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 26]

“Large parts of Danish national law support compliance with the UNGPs such as legislation on labour issues, the environment, child labour etc. This type of protective legislative framework of Denmark enables business respect for human rights.”

Read more about Forced labour & modern slavery

2.0 The state duty to protect human rights

2.3 Actions taken [page 12-13]

Protection of human rights in the business sphere in Danish legislation

“The Working Environment Act of 2005 and the Act on the Work of Young Persons from 2005 implement the EU Directive 94 /33/EC from 1994 on the protection of young workers, and the 1956 Constitutional Act of Denmark covers freedom of association and assembly.”

Read more about Freedom of association

Preface:

The disaster in Bangladesh in April 2013 where a collapse of an eight-story building caused the death of more than 1.100 workers sewing clothes for western manufacturing companies was a dark reminder that huge challenges still remain. – page 6

2. The state duty to protect human rights

2.3 Actions taken

The Guiding Principles have proved to be an excellent instrument in rallying stakeholders for joint action. Using the Guiding Principles as the basis for a new Partnership for Responsible Garments Production in Bangladesh, the Danish government, business associations and enterprises have agreed on a number of detailed commitments to improve conditions within their sphere of influence. The partnership, which was agreed within the framework of the Danish Ethical Trading Initiative (DIEH), will be implemented in close co-ordination with international partners as well and stakeholders in Bangladesh. – page 11

Appendix 1: Overview of the implementation of the state duty to protect

GP3c: Whenever necessary, the government also initiates and drives multi-stakeholder partnerships based on the Guiding Principles. This year the government established the partnership for Responsible Garments Production in Bangladesh, gathering all the major Danish stakeholders with- in the industry and linking the partnership up with international public and private partners to achieve joint action. – page 27

Read more about Garment, Textile and Footwear Sector

The Danish NAP makes no reference to women or equality. Reference is made to gender in the following sections.

2.0 The state duty to protect human rights

2.3 Actions taken [page 12]

Protection of human rights in the business sphere in Danish legislation

“Protection of human rights in the business sphere in Danish legislation General Danish law contributes to fulfilling Denmark’s duty under human rights treaties to which it is a party against human rights abuses by private actors, including businesses. For example, the Danish parliamentary act prohibits differential treatment in the labour market from 1996 protecting against discrimination based on … gender …”

Appendix 1, GP 7

State Duty to Protect [page 30]

“Supporting business respect for human rights in conflict-affected areas.

Because the risk of gross human rights abuses is heightened in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by: …

b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence;”

Read more about Gender & women’s rights

2. State duty to protect human rights

2.3 Actions taken

Danish Government’s expectations to companies [page 11]

“As part of the promotional activities among Danish companies the government has committed to providing courses and guidance on responsible business conduct. The Government has launched an information campaign specifically aimed at companies and NGOs on compliance with the Guiding Principles in connection with the establishment of the mediation and grievance mechanism (for more information see section 4.3).

The Trade Council under the Ministry of Foreign Affairs advises Danish companies and their local partners on how they should handle their social responsibility in a number of export markets. The advisory services include human rights due diligence. The advisory services are demand-driven and offered to companies on the same terms as the other business services of the Trade Council, i.e. chargeable by the hour in accordance with Danish legislation (UNGPs 3c).

In addition, at Danish embassies in emerging markets, the Trade Council in co-operation with the Danish Business Authority holds workshops in responsible supply chain management, especially focusing on small and medium sized companies and their local business partners (GP 3c). The courses are held on an annual basis. They include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist Danish companies in emerging markets, the embassies are also conducting CSR reviews of local business partners. The reviews include a due diligence component (UNGPs 3c).

The Guiding Principles have proved to be an excellent instrument in rallying stakeholders for joint action. Using the Guiding Principles as the basis for a new Partnership for Responsible Garments Production in Bangladesh, the Danish government, business associations and enterprises have agreed on a number of detailed commitments to improve conditions within their sphere of influence. The partnership, which was agreed within the framework of the Danish Ethical Trading Initiative (DIEH), will be implemented in close co-ordination with international partners as well and stakeholders in Bangladesh.”

Providing effective guidance on how to respect human rights [page 13-14]

Since 2005, the Danish Government has worked directly with promoting CSR among Danish companies. The efforts have focused on providing companies with tools and guidance to implement CSR policies in a manner which is both strategic and manageable (GP 3c). Examples of relevant tools include:

• The CSR Compass – which is a free online tool that helps companies implement responsible supply chain management. http://www.csrcompass.com/
• The Global Compact Self-Assessment Tool – which helps companies to test their performance on all ten UN Global Compact principles, and how well these issues are managed: http://www.globalcompactselfassessment.org/

The tools have been developed in collaboration with the UN Global Compact and other partners from Danish civil society and industry organisatons.

The Danish Government is committed to continuously improving and promoting guidance provided to companies on how to work with CSR in general and human rights in particular. To ensure that companies have the right tools and the necessary guidance to handle the new due diligence requirements, the Government has updated the existing web tool, the CSR Compass and the Global Compact Self-Assessment Tool in accordance with the due diligence requirements of the UNGPs. The revised Compass includes a guide for small and medium-sized companies on how to exercise due diligence (GP 17) and also gives guidance on ways to solve company conflicts by actively engaging in a dialogue with the company’s stakeholders (GP 29). The revised Global Compact Self-Assessment Tool works as a self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights, worker’s rights, environment and anti-corruption and including a template for a follow up action plan.”

3. The corporate responsibility to respect human rights

3.2 Recommendations from the Council for CSR on the corporate responsibility to respect [page 17-18]

Since its creation in 2008, the Danish Council for CSR followed the work of the SRSG John Ruggie closely. In 2009, the Government asked the Council to produce a set of guidelines for responsible supply chain management to help companies meet international social and environmental requirements and expectations in their supply chain.

In June 2010, the Council published a set of guidelines for responsible supply chain management based on the Protect, Respect, Remedy Framework. The Council also made sure that the guidelines were aligned with recognised international principles like the UN Global Compact, ISO 26000 etc. The guidelines were meant as a supplement to the Protect, Respect, Remedy-Framework, intended to provide greater clarity about responsible supply chain management by offering a practical, easy-to-read guide and online tool. The guidelines are supplemented by a checklist of self-help questions intended to help the individual company find the solutions that address their specific challenges. For the guidelines in its entirety,  see: www.csrcouncil.dk/guidelines.

While the guidelines are focused on assisting companies with the implementation of the UNGPs with regard to supply chain management, implementation of the corporate responsibility to respect continues to be a very important part of the council’s agenda.

4. Access to remedy

4.3 Actions taken [pager 20-21]

Access to non-judicial remedy

“In the second national action plan for CSR from March 2012, the Danish Government announced the establishment of a Mediation and Complaints-Handling Institution for Responsible Business Conduct. … So far the promotional activities have included among other: …

• Survey among Danish companies on the knowledge of the institution and of the OECD Guidelines in order to be able to measure the progress in the coming years;
• Information leaflet in Danish, English, French and Spanish; the leaflet has been distributed through 112 Danish embassies for audiences abroad;
• Translation of the OECD Guidelines for Multinational Enterprises into Danish;
• Briefings, presentations and dialogue with interest groups, NGOs, etc. in order to raise awareness of the institution and the OECD guidelines for multinational enterprises and the UN Guiding Principles;
• Development of guidance on due diligence in the supply chain and company-based conflict resolution;”

Appendix 1, GP 3c

State Duty to Protect [page 26]

“(c) Provide effective guidance to business enterprises on how to respect human rights throughout their operations;”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 26]

• “To make sure companies have the right tools and the necessary guidance to handle the new reporting requirements, the Government will continue to improve and promote the guidance provided to companies via a revision of an existing web-based tool.
• To promote responsible business conduct among Danish businesses, the government has also committed to providing courses and guidance on responsible business conduct.
  In connection with the establishment of the Mediation and Complaints-Handling Institution for Responsible Business Conduct the Government has therefore launched an information campaign on compliance with the UN Guiding Principles.
• The Trade Council under the Ministry of Foreign Affairs advises Danish companies and their local partners on how they should handle their social responsibility in a number of export markets. The advisory services include human rights due diligence. The advisory services are demand-driven and offered to companies on the same terms as the other business services of the Trade Council, i.e. chargeable by the hour in accordance with Danish legislation.
• The Trade Council in co-operation with the Danish Business Authority holds workshops in Responsible Supply Chain management, especially focusing on small and medium-sized enterprises and their local business partners (GP 3c). The courses are held on an annual basis. They will include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist the Danish companies in emerging markets, the embassies are also conducting free CSR reviews of local business partners. The reviews include a due diligence component.
• Whenever necessary, the government also initiates and drives multi-stakeholder partnerships based on the Guiding Principles. This year the government established the partnership for Responsible Garments Production in Bangladesh, gathering all the major Danish stakeholders within the industry and linking the partnership up with international public and private partners to achieve joint action.
• Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights, workers’ rights, environment and anti-corruption and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.
• The ministry of Foreign Affairs is also working on competence development courses within UNGPs and CSR for embassy staff, including e-bites, guidance on how to perform CSR due diligence and workshops for Danish companies operating abroad and local companies in new growth markets.
• In 2013, a number of Danish organisations have been granted support by Danida for initiatives focusing on the promotion of ethical trading initiatives and supply chain management, CSR and Fair Trade.”

Appendix 1, GP 7

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 30]

“The Danish Institute of Human Rights will launch a Business Guide to Human Rights in December 2013. The Guide to Human Rights is a free website for companies to identify, assess and address their human rights impacts around the world. It provides country- and sector-specific information about the human rights impacts of businesses, alongside concrete recommendations for preventing and mitigating adverse impacts, as well as maximising positive ones. The Guide to Human Rights emphasises multi-stakeholder engagement and dialogue, and seeks to build the capacity of local Portal partners on human rights and business.”

Appendix 1, GP 8

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“The Government has updated the CSR Compass which is an online tool that helps companies exercise due diligence in the supply chain. The guide has been updated in accordance with the UNGPs and the OECD Guidelines for Multinational Enterprises. This online tool will also be promoted to governmental departments, agencies and other State-based institutions.”

Appendix 1, GP 28

Initiatives taken or planned as a dedicated measure to implement the UNGPs [page 35]

“An initiative dedicated to implementing the UNGPs which has been implemented recently is the development of a guide for small and medium-sized companies on ways to solve company conflicts by actively involving and engaging in a dialogue with the company’s stakeholders.”

Appendix 1, GP 29

Initiatives taken or planned as a dedicated measure to implement the UNGPs [page 35]

“The two online tools which help companies to integrate due diligence into their own company and into the businesses of their sub-suppliers, the CSR Compass and the UN Global Compact SelfAssessment tool, both include guidance on company level grievance mechanisms.”

Appendix 1, GP 30

Initiatives taken or planned as a dedicated measure to implement the UNGPs [page 35]

“The guide on company conflicts resolution in the CSR Compass promotes the active involvement and engagement of the company’s stakeholders.”

Read more about Guidance to business

2. The state duty to protect human rights

2.3 Actions taken [page 11]

The Working Environment Act contributes to protecting the right to a safe and healthy working environment, the act protects, among other things, individuals against adverse impacts on health due to environmental pollution from business sources and contributes to protecting the right to the highest attainable standard of health through regulating access to health services.

Read more about Health and social care

No specific mention of whistleblowers in the NAP. Whistleblowers are mentioned in the introduction only.

1. Introduction [page 9]

“Denmark has a long political tradition of supporting and addressing human rights. Changing governments have concentrated on special focus areas such as … human rights defenders”

Read more about Human rights defenders & whistle-blowers

The Danish NAP highlights human rights impacts, reporting on these impacts, and due diligence requirements across all chapters. However the NAP makes no explicit reference to a ‘human rights impact assessment’. This can be seen in the three examples highlighted below.

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

“The Trade Council in co-operation with the Danish Business Authority holds workshops in Responsible Supply Chain management, especially focusing on small and medium-sized enterprises and their local business partners (GP 3c). The courses are held on an annual basis. They will include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights.”

Appendix 1, GP 7

State Duty to Protect [page 30]

“Because the risk of gross human rights abuses is heightened in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by: …

b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence; …”

Appendix 1, GP 10

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 32]

“Denmark has also been active in promoting that The International Finance Cooperation (IFC) actively supports its clients in addressing human rights risks and impacts.”

Read more about Human rights impact assessments

The Danish NAP does not make an explicit reference to Indigenous Peoples.

Read more about Indigenous peoples

2. The state duty to protect human rights

2.3 Actions taken

Protection of human rights through state regulation and policy [page 12]

“Together with more than 40 countries Denmark adheres to the OECD Declaration on International Investment and Multinational Enterprises.”

Appendix 1, GP 4

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles for Responsible Investment (PRI). The Export Credit Agency (EKF), the Investment Fund for Developing Countries (IFU) and Investment Fund for Central and Eastern Europe) (IØ) has committed to join the UN Global Compact.”

Appendix 1, GP 9

State Duty to Protect [page 31]

“States should maintain adequate domestic policy space to meet their human rights obligations when pursuing business-related policy objectives with other States or business enterprises, for instance through investment treaties or contracts.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.

The EU adheres to principles and standards on responsible business conduct such a s the OECD Guidelines for Multinational Enterprises, which is also reflected in negotiations for free trade agreements that includes the a rea of investment. The guidelines are considered the reference document on Corporate Social Responsibility, including human rights, intended to balance the rights and obligations between investors and host states. Furthermore, it is common practice to reference in the mandate the right of the parties to adopt and enforce measures necessary to pursue legitimate public policy objectives such a s social, environmental, human rights, security, public health and stability of the financial systems in a non-discriminatory manner.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“The Government actively supports substantial Trade and Development chapters in the EU’s bilateral free trade agreements as well as human rights suspension clauses in the same agreements. The new free trade agreement between the EU and Peru /Colombia is an important case in point, being substantially more ambitious in this a rea than earlier agreements.”

Read more about Investment treaties & investor-state dispute settlements

2. The state duty to protect human rights

2.3 Actions taken

Protection of human rights in the business sphere in Danish legislation [page 12]

“Protection of human rights in the business sphere in Danish legislation General Danish law contributes to fulfilling Denmark’s duty under human rights treaties to which it is a  party against human rights abuses by private actors, including businesses. For example, the Danish parliamentary act prohibits differential treatment in the labour market from 1996 protecting against discrimination based on race, gender, skin colour, religion, political opinion, sexual orientation or national, social or ethnic origin. It is also an offense to refuse to serve a person on the same terms as others involved in commercial or non-profit company because of his/hers race, colour, national or ethnic origin, religion or sexual orientation. The Working Environment Act of 2005 and the Act on the Work of Young Persons from 2005 implement the EU Directive 94/33/EC from 1994 on the protection of young workers, and the 1956 Constitutional Act of Denmark covers freedom of association and assembly.

Similarly, the Danish Data Protection Act helps to uphold the right to respect for private life; the Working Environment Act contributes to protecting the right to a safe and healthy working environment, the act protects, among other things, individuals against adverse impacts on health due to environmental pollution from business sources and contributes to protecting the right to the highest attainable standard of health through regulating access to health services. Denmark’s Criminal Code protects the right to life and human rights against torture, slavery, while proscribing a range of activities connected with human trafficking, for example. The Criminal Code further provides that companies and company representatives can be punished under the Act while other criminal laws contain provisions in similar terms.”

2.4 Planned actions

Extraterritorial legislation [page 16]

“To further engage in the issue of extraterritorial legislation, the Danish Government has planned the following initiative:

At national level the Government will put together an inter-ministerial working group which will discuss the need for and feasibility of legislation with extraterritorial effect in areas of particular relevance … the group will examine the need for judicial prosecution of severe human rights impacts as recommended by the Danish Council for CSR.”

4. Access to remedy

4.1 UNGPs on access to remedy [page 19]

“As part of their duty to protect against business-related human rights abuse, States must take appropriate steps to ensure, through judicial, administrative, legislative or other appropriate means, that when such abuses occur within their territory and/or jurisdiction those affected have access to effective remedy (GP 25).

This includes providing effective and appropriate judicial and non-judicial grievance mechanisms, alongside judicial mechanisms, as part of a comprehensive Statebased system for the remedy of business-related human rights abuse.”

4.2 Recommendations from the Council for CSR on access to judicial and non-judicial remedy [page 20]

“In November 2010, the Council for CSR established a working group who would be able to work intensively on the recommendations for implementing remedy as described in the UN Protect, Respect, and Remedy-framework. The working group was composed by a representative from the Confederation of Danish Industry, the Danish Confederation of Trade Unions, the Danish 92 Group, the Danish Shipowners’ Association and the chair of the Council.

The working group followed closely the final work of the SRSG John Ruggie on the development of the Guiding Principles for the implementation of the Protect, Respect and Remedy framework as well as the work of the OECD Investment Committee on the revision of the OECD guidelines for multinational enterprises.”

Recommendations on judicial remedy

“The Danish Council for CSR acknowledges that this is an extremely difficult issue that is best handled at an international level. The Council therefore recommended that the Danish Government works to find a solution to gross violations covered by the revised OECD guidelines at an international level (under the EU umbrella), for example via a UN agency.

In terms of legislation with extraterritorial effect, the Council recommended that the Danish government, in addition to the international work, consider introducing relevant national legislation for particularly gross violations. A balance should be established between, on the one hand, the need to prosecute particularly gross violations and maintain an overwhelming sense of justice, and, on the other, the possibilities of examinating violations in practice.

In addition to criminal law consequences, the Council recommended that the government consider the possibilities of civil law measures against companies committing gross human rights violations abroad, cf. UNGPs.”

4.3 Actions taken [page 20]

Access to judicial remedy 

“The provisions laid down in the Danish Administration of Justice Act (Consolidation Act 2012-10-24 No. 1008) form an essential and important part of the framework on access to judicial remedies in cases regarding human rights issues in business. Denmark keeps these provisions under constant review in order to fulfill international obligations and to ensure that the provisions are adequately applied.”

Read more about Judicial remedy

The Danish NAP does not make an explicit reference to Land.

Read more about Land

2. The state duty to protect human rights

2.2 Recommendations from the Council for CSR on the state duty to protect [page 10-11]

“In November 2011, the Danish Council for CSR started working on recommendations to the Government on how the UNGPs on the state duty to protect could be implemented. The council finished its work in January 2012 where the recommendations were handed over to the Government.

Among other initiatives, the Council for CSR recommended that the Danish Government:

• Expands the existing Danish corporate non-financial reporting requirement to include mandatory reporting on human rights;
• Encourages responsible public procurement by requiring government contractors to perform due diligence on human rights in relation to the products or services covered by the contract, including regularly supervising the contractual requirements;
• Requires state-owned companies and governments agencies which distribute significant government funds to incorporate due diligence in their business activities; …”

2.3 Actions taken

Danish Government’s expectations to companies [page 11]

“… at Danish embassies in emerging markets, the Trade Council in co-operation with the Danish Business Authority holds workshops in responsible supply chain management, especially focusing on small and mediumsized companies and their local business partners (GP 3c). The courses are held on an annual basis. They include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights.”

Protection of human rights through state regulation and policy [page 12]

“Companies involved in Danida Business Partnerships – an instrument that facilitates and provides economic support to develop commercial partnerships between Danish companies and partners from developing countries – are now required to integrate CSR strategically in their business operations and to demonstrate due diligence, including human rights, in order to mitigate adverse impact.”

Companies that receive substantial support and services from State agencies [page 13]

“The Environmental & Social Due Diligence Policy of the Danish Export Credit Agency (EKF) states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights (GP 4).”

Providing effective guidance on how to respect human rights [page 13-14]

“…To ensure that companies have the right tools and the necessary guidance to handle the new due diligence requirements, the Government has updated the existing web tool, the CSR Compass and the Global Compact Self-Assessment Tool in accordance with the due diligence requirements of the UNGPs. The revised Compass includes a guide for small and medium-sized companies on how to exercise due diligence (GP 17) and also gives guidance on ways to solve company conflicts by actively engaging in a dialogue with the company’s stakeholders (GP 29). The revised Global Compact SelfAssessment Tool works as a self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights, worker’s rights, environment and anti-corruption and including a template for a followup action plan.”

3. The corporate responsibility to respect human rights

Introduction [page 17]

“While, the Danish Government has an important role in promoting the UNGPs by clarifying and communicating expectations towards companies, the Government acknowledges that in the short term it can be a significant challenge for companies to implement due diligence in their business operations – especially if the company has a complex supply chain or if the company is an SME. Thus, the Government supports the implementation of the corporate responsibility to respect by carrying out initiatives which are aimed at supporting and assisting companies with this effort.”

3.1 UNGPs on the corporate responsibility to respect human rights [page 17]

“In order to meet their responsibility to respect human rights, business enterprises should have in place policies and processes appropriate to their size and circumstances, including: …

b) A human rights due-diligence process to identify, prevent, mitigate and account for how they address their adverse impacts on human rights; …”

4. Access to remedy

4.3 Actions taken

Access to non-judicial remedy [page 20-21]

In the second national action plan for CSR from March 2012, the Danish Government announced the establishment of a Mediation and Complaints-Handling Institution for Responsible Business Conduct. …

The institution will base its assessments on the OECD Guidelines for Multinational Enterprises, which incorporate the UN Guiding Principles on Business and Human
Rights, including in particular the due diligence concept as described in the UN Guiding Principles, when looking at a complaint. …

So far the promotional activities have included among other:

• Development of guidance on due diligence in the supply chain and company-based conflict resolution;”

Appendix 1, GP 2

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 24]

“In 2004 the Ministry for Business and Growth in collaboration with the Confederation of Danish Industry developed the CSR Compass. The CSR Compass is an online tool which Danish companies can use when requiring customers and suppliers to respect human rights and perform due diligence.”

Appendix 1, GP 2 continued

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 25]

“Together with other OECD members, Denmark has worked and will continue to work to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, including that relevant elements from the UNGP and Human Rights become part of the way export credit agencies undertake their due diligence”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 25]

“Denmark has contributed actively to the discussions in OECD on how to embrace Human Rights in the ”Recommendation of the Council on the Common Approaches for Officially supported Export Credits and Environmental and Social Due Diligence (Common Approaches)”. Together with other OECD members, Denmark has worked to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, and also that relevant elements from the UNGPs and Human Rights become part of the way export credit agencies demonstrate due diligence. Furthermore, the revised Common Approaches now ensure policy coherence with the OECD Multinational Guidelines.”

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

• “…The Trade Council under the Ministry of Foreign Affairs advises Danish companies and their local partners on how they should handle their social responsibility in a number of export markets. The advisory services include human rights due diligence.
• The Trade Council in co-operation with the Danish Business Authority holds workshops in Responsible Supply Chain management, especially focusing on small and medium-sized enterprises and their local business partners (GP 3c). The courses are held on an annual basis. They will include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist the Danish companies in emerging markets, the embassies are also conducting free CSR reviews of local business partners. The reviews include a due diligence component. …
• Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights, workers’ rights, environment and anti-corruption and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.
• The ministry of Foreign Affairs is also working on competence development courses within UNGPs and CSR for embassy staff, including e-bites, guidance on how to perform CSR due diligence and workshops for Danish companies operating abroad and local companies in new growth markets. …”

Appendix 1, GP 4

State Duty to Protect [page 28]

“States should take additional steps to protect against human rights abuses by business enterprises that are owned or controlled by the State, or that receive substantial support and services from State agencies such as export credit agencies and official investment insurance or guarantee agencies, including, where appropriate, by requiring human rights due diligence.”

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

• “EKF’s Environmental & Social Due Diligence Policy states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights.
• When conducting due diligence IFU uses the Global Compact SelfAssessment tool, which contains a robust assessment of human rights conditions.”

Read more about Mandatory human rights due diligence

2. The state duty to protect human rights

2.4 Planned actions

Increasing the use of labour and social clauses in public contracts [page 16]

“Part of the foundation of the Danish labour market model is that work performed in Denmark must be performed on Danish pay and working conditions. In this, the authorities hold an important role in ensuring that underpaid foreign labour does not occur in public projects. The Government wants to ensure fair and reasonable pay and working conditions in accordance with ILO Convention 94 by increasing the use and better enforcement of labour clauses in public contracts (GP 5).

The following initiatives are planned:

• The current labour clause threshold value of approximately DKK 37.5 million for public construction projects included by the labour clause requirement will be abolished. In the future, governmental contracting authorities (including companies that are fully owned by governmental authorities and not in competition) must use labour clauses in all public tender calls for construction projects.
• Furthermore, it has been agreed that Danish municipalities and regions in the future will use labour clauses to a further extent in the same manner as governmental contractors.
• Finally, more and better information on the use of labour clauses will soon be available in written form and on the internet.

The Government also wants to increase the voluntary use of social clauses in connection with public tenders. Many public authorities already use or are considering using social clauses. To assist with this work, a number of cases will be prepared to demonstrate how companies and municipalities work with social clauses in practice (GP 5).”

Read more about Migrant workers

4. Access to remedy

4.3 Actions taken

Access to non-judicial remedy [page 21]

“Other examples of non-judicial institutions which contribute to remedy for victims of business-related human rights abuses, include Employment Tribunals, national Ombudsman, and Consumer tribunal.”

Appendix 1, GP 7

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 30]

“The Danish Institute of Human Rights will launch a Business Guide to Human Rights in December 2013. The Guide to Human Rights is a free website for companies to identify, assess and address their human rights impacts around the world. It provides country- and sector-specific information about the human rights impacts of businesses, alongside concrete recommendations for preventing and mitigating adverse impacts, as well as maximising positive ones. The Guide to Human Rights emphasises multi-stakeholder engagement and dialogue, and seeks to build the capacity of local Portal partners on human rights and business.”

Read more about National Human Rights Institutions/ Ombudspersons

2. The state duty to protect human rights

2.2 Recommendations from the Council for CSR on the state duty to protect [page 10]

“In November 2011, the Danish Council for CSR started working on recommendations to the Government on how the UNGPs on the state duty to protect could be implemented. The council finished its work in January 2012 where the recommendations were handed over to the Government. Among other initiatives, the Council for CSR recommended that the Danish Government:
– Expands the existing Danish corporate non-financial reporting requirement to include mandatory reporting on human rights; …”

2.3 Actions taken

Companies owned or controlled by the state [page 13]

“In 2008 the Danish Government introduced a statutory CSR reporting requirement which obligates all state-owned public limited companies irrespective of their sizes to report on CSR in the management’s review in their annual reports (GP 4)…”

Reporting requirement on human rights impact [page 14]

“Another priority for the Danish Government has been to strengthen the existing legal reporting requirement for the largest Danish companies and all state-owned companies (GP 3d).

Since 2009, large companies including all state-owned companies and institutional investors in Denmark have been required to report on their work on corporate social responsibility. This means that while Danish businesses are free to choose whether or not they wish to have a CSR policy there is a statutory requirement that they must take a position on CSR in their annual reports.

If the company has a CSR policy, the company must account for this policy in their annual reports, including any CSR standards, guidelines or principles the company employs. Secondly, the company must report how these policies are translated into action, including any systems or procedures used. Thirdly, the company must evaluate what has been achieved through the CSR initiatives during the financial year, and any expectations it has regarding future initiatives. If the company does not have any social responsibility policies, this must be reported.

In June 2012, this reporting requirement was expanded so that the largest Danish companies from 2013 expressly must state in their reports what measures they are taking to respect human rights and to reduce their impact on the climate. This means that if a company has a policy on human rights or climate issues, it must report according to the existing structure; what is the policy, how has the policy been translated into action and what has been achieved through the initiatives. If the company does not have policies for human rights or climate issues, this must also be disclosed. The purpose is to further strengthen Danish companies’ activities in relation to human rights and climate change which will be beneficial to society overall, but also to the individual company.

Three years after the reporting requirement was introduced, analyses show that companies generally appear to have been encouraged to report on CSR. In the course of the first three years of the legal requirement’s existence, nearly 50% of the companies reported on CSR for the first time. Secondly, there have been significant improvements in reporting practices in a number of areas. There is, nevertheless, still room for improvement as regards reporting consistency and reporting on the results of the CSR work. For information on Danish companies reporting on human rights see section 3.3.”

3. The corporate responsibility to respect human rights

3.3 Actions taken

Evaluation of CSR reporting in large and listed Danish companies [page 18]

“In 2008, Danish Government introduced a legal requirement for large companies in the Danish Financial Statements Act (see section 2.3 page 6 for more on the reporting requirement). Since the statutory CSR reporting was introduced a survey on the effects of the legal requirement has been conducted in three consecutive years. The surveys were based on a rolling group of participants, meaning that the same group of companies has been surveyed the previous years. Since the group has been subject to the reporting requirement for three years it includes – in the last survey – very few companies reporting for the first time. As expected, there have also been few changes in the choice of topics and content in the reports.

In the financial year 2010, a significant increase in the number of companies reporting actions relating to human rights (38% compared to 16% in 2009) and labour rights (35% compared to 16% in 2009) was noted. In the 2011 financial year, these reporting topics were as common as in 2010. Due to recent developments in international CSR principles (in particular the development of the UN Guiding Principles on Business and Human Rights), an increased focus on human rights, in particular, can be expected in the future. Following the latest amendment of Section 99a of the Danish Financial Statements Act, companies thus have to report on the topics of human rights and climate with effect from the 2013 financial year.”

Award for Best Non-financial Report [page 19]

“The Danish trade organization of auditing, accounting, tax and corporate finance, “FSR – Danish Auditors” annually announces the company with the best CSR report both for large companies and SMEs. The reports are judged by a panel of selected representatives from Danish businesses, organization, financial sector, educational institutions, etc. As part of the evaluation the judges look at whether companies also report on difficult subjects such as adverse human rights impacts.”

Further on, in the section Recommendations from the Council for CSR on the State Duty to Protect [page 10], the NAP states:

“Among other initiatives, the Council for CSR recommended that the Danish Government:

• Expands the existing Danish corporate non-financial reporting requirement to include mandatory reporting on human rights.”

Appendix 1, GP 3d

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 27]

“Mandatory CSR reporting

As part of the first national action plan for CSR, the Danish Government introduced a reporting requirement to ensure that major businesses, institutional investors and unit trusts report on their CSR work in the management review of the annual reports. The duty to report for major businesses, institutional investors and unit trusts has entailed an obligation to report on their CSR policies and how they implement the policies in practice. Businesses and investors must also report if they have yet to set up policies for the area. This fact must appear from the management review of the businesses’ annual reports.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

“Reporting on human rights and climate 

From 2013 the 1,100 largest Danish companies and all state-owned limited liability companies must report on CSR in their annual reports. The Government will introduce a bill proposing that the largest Danish companies and state-owned limited liability companies in future must expressly state in their reports what measures they are taking to respect human rights and reduce their impact on the climate.”

Appendix 1, GP 10 continued

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 32]

“The Government has pro-actively supported the European Commission’s proposal for an EU Directive as regards disclosure of non-financial and diversity information. The Danish government finds that the expected European regulation is a timely opportunity for Europe and European companies to further strengthening reporting practices with regard to human rights. In addition it sends an important signal globally that while transparency is important in itself, a leveling playing field is needed.”

Read more about Non-financial reporting

2. The state duty to protect human rights

2.3 Actions taken

Companies owned or controlled by the state [page 13]

“The Danish Government believes that public authorities, including companies owned or controlled by the state, should live up to the same requirements that private companies are expected to fulfill. Therefore, the non-judicial remedy mechanism can also examine complaints involving public authorities (GP 4).”

4. Access to remedy

4.1 UNGPs on access to remedy [page 19]

As part of their duty to protect against business-related human rights abuse, States must take appropriate steps to ensure, through judicial, administrative, legislative or other appropriate means, that when such abuses occur within their territory and/or jurisdiction those affected have access to effective remedy (GP 25).

This includes providing effective and appropriate judicial and non-judicial grievance mechanisms, alongside judicial mechanisms, as part of a comprehensive State-based system for the remedy of business-related human rights abuse.

In order to ensure their effectiveness, non-judicial grievance mechanisms, both State based and non-State-based, should be:

a) Legitimate: enabling trust from the stakeholder groups for whose use they are intended, and being accountable for the fair conduct of grievance processes;

b) Accessible: being known to all stakeholder groups for whose use they are intended, and providing adequate assistance for those who may face particular barriers to access;

c) Predictable: providing a clear and known procedure with an indicative timeframe for each stage, and clarity on the types of process and outcome available and means of monitoring implementation;

d) Equitable: seeking to ensure that aggrieved parties have reasonable access to sources of information, advice and expertise necessary to engage in a grievance process on fair, informed and respectful terms;

e) Transparent: keeping parties to a grievance informed about its progress, and providing sufficient information about the mechanism’s performance to build confidence in its effectiveness and meet any public interest at stake;

f) Rights-compatible: ensuring that outcomes and remedies accord with internationally recognized human rights;

g) A source of continuous learning: drawing on relevant measures to identify lessons for improving the mechanism and preventing future grievances and harms;

The effectiveness criteria in the UNGPs largely coincide with those recommended in the OECD guidelines for the national contact points, which also stress visibility and accountability.

4.2 Recommendations from the Council for CSR on access to judicial and nonjudicial remedy [page 20]

“In November 2010, the Council for CSR established a working group who would be able to work intensively on the recommendations for implementing remedy as described in the UN Protect, Respect, and Remedy-framework. The working group was composed by a representative from the Confederation of Danish Industry, the Danish Confederation of Trade Unions, the Danish 92 Group, the Danish Shipowners’ Association and the chair of the Council.

The working group followed closely the final work of the SRSG John Ruggie on the development of the Guiding Principles for the implementation of the Protect, Respect and Remedy framework as well as the work of the OECD Investment Committee on the revision of the OECD guidelines for multinational enterprises. …”

Recommendations on non-judicial remedy

“The Council recommended that a Danish non-judicial mediation and grievance mechanism for responsible business conduct should be based on the OECD Guidelines on Responsible Business Conduct, which incorporate the UN’s recommendations on business and human rights. The mechanism should also be established in accordance with the UN and OECD criteria for non-judicial mediation and grievance mechanisms, including legitimacy, accessibility, transparency and predictability. Furthermore, the Council’s recommendations included the following unique features:

• The institution should be established by Danish law;
• The institution should be able to take up cases on its own initiative;
• The institution should be able to handle cases involving not only private companies but also public authorities and private organisation, like NGO’s;
• The company which is subject to a complaint should be given a period of two months to solve the conflict with the complainant without the involvement of the national institution.

The recommendations on non-judicial remedy from the Council for CSR was for the most part implemented by the Danish Government (see section 4.4).

The recommendations from the council on a Danish mediation and grievance mechanism can be found here: http://www.csrcouncil.dk/documents”

4.3 Actions taken [page 20-21]

Access to non-judicial remedy

“In the second national action plan for CSR from March 2012, the Danish Government announced the establishment of a Mediation and Complaints-Handling Institution for Responsible Business Conduct. The institution was established by Danish law, which was passed through parliament and approved on June 12, 2012. The Danish Government wanted to ensure that a non-judicial remedy has a maximum of legitimacy and authority. The purpose of the institution is to investigate cases involving potential adverse impacts by Danish companies on international CSR guidelines as described in the OECD Guidelines for Multinational Enterprises. The mediation and complaints-handling institution is established in accordance with the international effectiveness criteria for non-judicial mediation and grievance mechanisms as described in the UNGPs and the OECD Guidelines for Multinational Enterprises (GP 31). The institution will base its assessments on the OECD Guidelines for Multinational Enterprises, which incorporate the UN Guiding Principles on Business and Human Rights, including in particular the due diligence concept as described in the UN Guiding Principles, when looking at a complaint.

The institution focuses on mediation to solve complaints – both on company level and if that is not possible, assisted by the Mediation and Complaints-Handling Institution. If mediation is not possible, the institution can initiate an investigation of the matter and based on the result, make a public statement. The institution can examine complaints involving not only Danish private companies but also public authorities and private organisation, like NGO’s. It can also take up cases on its own initiative, which will allow the institution to be proactive in cases of substantive importance. As a first step in the case handling procedure the institution gives the company two months to solve the conflict with the complainant without the involvement of the institution itself. If the company does not solve the matter on its own, the institution undertakes an initial assessment and based on the result the institution can offer mediation or investigation. The institution which has existed since November 1^st, 2012 is composed of five members – one chairman, one expert and three members appointed on the recommendation of the following organisations; Confederations of Danish Industries, the Danish Confederation of Trade Unions and the Danish 92 Group which is an association of 23 different Danish NGO’s. For more information on the member of the institution see: www.businessconduct.dk.

The institution is also working to promote the respect for the OECD Guidelines and the knowledge of the institution. So far the promotional activities have included among other:

• Homepage in Danish and English; www.businessconduct.dk;
• Survey among Danish companies on the knowledge of the institution and of the OECD Guidelines in order to be able to measure the progress in the coming years;
• Information leaflet in Danish, English, French and Spanish; the leaflet has been distributed through 112 Danish embassies for audiences abroad;
• Translation of the OECD Guidelines for Multinational Enterprises into Danish;
• Briefings, presentations and dialogue with interest groups, NGOs, etc. in order to raise awareness of the institution and the OECD guidelines for multinational enterprises and the UN Guiding Principles;
• Development of guidance on due diligence in the supply chain and company-based conflict resolution;
• Instruction for Danish Embassies encouraging them to raise awareness about the Danish National Contact Point to local stakeholders.

Other examples of non-judicial institutions which contribute to remedy for victims of business-related human rights abuses, include Employment Tribunals, national Ombudsman, and Consumer tribunal. Furthermore, Denmark has mechanisms for dealing with cases of race, gender, disability, age, religious discrimination in employment or services, etc.”

Appendix 2, GP 29

Access to remedy [page 35]

“To make it possible for grievances to be addressed early and remediated directly, business enterprises should establish or participate in effective operational-level grievance mechanisms for individuals and communities who may be adversely impacted.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs [page 35]

“The state-based grievance mechanism includes the operational-level as part of its complaintshandling process. When a complaint is approved for further consideration, the Mediation and
Grievance Mechanism for Responsible Business Conduct encourages the parties (petitioner and respondent) to resolve the matter themselves. This serves to create the basis for a dialogue between the parties. If the parties succeed in resolving the matter on their own, the Institution has no further involvement. The parties must simply notify the Mediation and Complaints-Handling Institution for Responsible Business Conduct within three months from submission of the complaint to indicate whether or not they have found a solution. Matters resolved between the parties are not subject to any form of publication by the Institution.”

Appendix 2, GP 31

Access to remedy [page 35]

Effectiveness criteria for non-judicial grievance mechanisms

In order to ensure their effectiveness, non-judicial grievance mechanisms, both State based and non-State-based, should be:
a) Legitimate:
b) Accessible:
c) Predictable:
d) Equitable:
e) Transparent:
f) Rights-compatible:
g) A source of continuous learning:

Operational-level mechanisms should also be:
h) Based on engagement and dialogue:

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles)  [page 36]

The Danish Mediation and Complaint Handling Institution has been established in accordance with the international criteria for non-judicial mediation and grievance mechanisms (UNGPs) as well as the criteria for national contact points as stated in the OECD Guidelines for Multinational Enterprises (Visibility, Accessibility, Transparency, Accountability):

a) To ensure legitimacy the institution has been established in Danish law

b) Anyone can submit a complaint to the Mediation and Complaints-Handling Institution

c) A description of the complaint handling procedure has been made public along with an indicative timeframe for each step in the process

d) The chairman shall assist the weaker party that may require special support, but also assist companies, for example, so that the chairman can help to conclude a case quickly and in a way that also takes the company’s situation into account. The Mediation and Complaints Handling Institution for Responsible Business Conduct may allocate advisers to one or both
parties. The purpose is to ensure that the mediation outcome is in the interests of both parties.

e) The institution will inform the public of the cases the institution is handling. For every step in the case handling the institution will make a statement which will be made publicly available on the institution’s website. Information from a case is subject to the access to information act once the case has been concluded. Finally, the Institution will prepare an annual report that is published and also discussed with the Council forCorporate Social Responsibility and the OECD’s Investment Committee, in order to improve the work of the Institution.
f) The purpose of the institution is to help solve conflicts in accordance with the OECD Guidelines for Multinational Enterprises.

g) In addition to considering concrete incidences of infringement, the Mediation and ComplaintsHandling Institution also has the object of promoting the implementation of the OECD Guidelines for Multinational Enterprises, and compliance by Danish companies, authorities and organisations. The Mediation and Complaints-Handling Institution will also conduct activities that support the CSR efforts of Danish companies, authorities and organisations, for example as guidance in relation to the consideration of concrete cases, or in information and education activities. The institution will also work with other national contact points and the OECD Investment Committee in terms of concrete complaint handling as well as promotional activities.

h) Dialogue and mediation play a central role in the complaint handling.

Read more about Non-judicial grievance mechanisms

2. The state duty to protect human rights

2.3 Actions taken

Protection of Human Rights through State Regulation and Policy [page 13]

“Together with more than 40 countries Denmark adheres to the OECD Declaration on International Investment and Multinational Enterprises. The OECD Guidelines for Multinational Enterprises are the only multilaterally agreed and comprehensive code of responsible business conduct that governments have committed to promoting. The Guidelines are supported by a unique implementation mechanism of National Contact Points (NCPs), agencies established by adhering governments to promote and implement the Guidelines. Denmark is one of the only countries in the world which has established the OECD National Contact Point by Danish law. The purpose is to ensure that the Danish NCP has a maximum of legitimacy and authority.”

4. Access to remedy

4.3 Actions taken

Access to non-judicial remedy [page 20-21]

“In the second national action plan for CSR from March 2012, the Danish Government announced the establishment of a Mediation and Complaints-Handling Institution for Responsible Business Conduct. … So far the promotional activities have included among other:

• Instruction for Danish Embassies encouraging them to raise awareness about the Danish National contact Point to local stakeholders.”

Appendix 2, GP 31

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 36]

“The Danish Mediation and Complaint Handling Institution has been established in accordance with the international criteria for non-judicial mediation and grievance mechanisms (UNGPs) as well as the criteria for national contact points as stated in the OECD Guidelines for Multinational Enterprises (Visibility, Accessibility, Transparency, Accountability) … [and] will … work with other national contact points and the OECD Investment Committee in terms of concrete complaint handling as well as promotional activities.”

Read more about OECD National Contact Points

The Danish NAP does not make an explicit reference to Persons with Disabilities.

Read more about Persons with disabilities

2. The state duty to protect human rights

2.3 Actions Taken

Ensuring policy coherence across governmental departments and agencies [page 11]

“Ensuring policy coherence across governmental departments and agencies: The Government’s CSR efforts are coordinated by an inter-ministerial working group with representatives from departments and agencies who work with CSR and human rights related areas. These include Ministry of Business and Growth, Ministry of Foreign Affairs, Ministry of Employment, Ministry of Environment, Ministry of Finance, Ministry for Food, Agriculture and Fisheries, Ministry for Climate, Energy and Building and the Investment Fund for Developing Countries (IFU) (GP 8).”

Appendix 1, GP 8

State Duty to Protect [page 31]

“Ensuring policy coherence

States should ensure that governmental departments, agencies and other State-based institutions that shape business practices are aware of and observe the State’s human rights obligations when fulfilling their respective mandates, including by providing them with relevant information, training and support.”

Read more about Policy coherence

The Danish NAP does not make an explicit reference to privatisation.

Read more about Privatisation

2. The state duty to protect human rights

2.2 Recommendations from the Council for CSR on the state duty to protect [page 10]

“In November 2011, the Danish Council for CSR started working on recommendations to the Government on how the UNGPs on the state duty to protect could be implemented. The council finished its work in January 2012 where the recommendations were handed over to the Government. Among other initiatives, the Council for CSR recommended that the Danish Government: …

• Encourages responsible public procurement by requiring government contractors to perform due diligence on human rights in relation to the products or services covered by the contract, including regularly supervising the contractual requirements;”

2.3 Actions taken

Promotion of human rights in commercial transactions [page 13]

“The Government has committed itself to promoting responsibility in public procurement through several initiatives among other:

• By publishing a set of common guidelines for responsible procurement in the public sector in collaboration with municipalities and other relevant parties. The guidelines will serve as a practical tool to determine when and how the UNGPs can be applied in connection with public procurement (GP 6). The tool is available in Danish: www.csr-indkob.dk.”

Appendix 1, GP 6

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles [page 29]

“As part of the 2008 national action plan, a requirement that all future joint state supply contracts systematically should embed social responsibility as articulated in the conventions that provide the foundation for the UN Global Compact.

All state procurement officers have access to guidelines for embedding social responsibility.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 29]

“To promote responsibility in public procurement, the Government has developed common public sector guidelines for responsible procurement in collaboration with municipalities and other relevant parties. The guidelines are a practical tool to determine when and how Corporate Social Responsibility ca n be applied in connection with public procurement. The tool is available in Danish: www.csr-indkob.dk.”

Read more about Public procurement

The Danish NAP does not make an explicit reference to the security sector. The provisions on conflict-affected areas refer to all businesses opearting in these environments.

Read more about Security sector

2. The state duty to protect human rights

2.3 Actions taken

Danish Government’s expectations to companies [page 11]

“… at Danish embassies in emerging markets, the Trade Council in co-operation with the Danish Business Authority holds workshops in responsible supply chain management, especially focusing on small and mediumsized companies and their local business partners (GP 3c). The courses are held on an annual basis. They include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist Danish companies in emerging markets, the embassies are also conducting CSR reviews of local business partners. The reviews include a due diligence component (UNGPs 3c).”

Providing effective guidance on how to respect human rights [page 14]

“The Danish Government is committed to continuously improving and promoting guidance provided to companies on how to work with CSR in general and human rights in particular. To ensure that companies have the right tools and the necessary guidance to handle the new due diligence requirements, the Government has updated the existing web tool, the CSR Compass and the Global Compact Self-Assessment Tool in accordance with the due diligence requirements of the UNGPs. The revised Compass includes a guide for small and medium-sized companies on how to exercise due diligence (GP 17) and also gives guidance on ways to solve company conflicts by actively engaging in a dialogue with the company’s stakeholders (GP 29).”

3. The corporate responsibility to respect human rights

3.3 Actions taken

Award for best non-financial report [page 18]

In the section: Award for best non-financial report, the NAP states [page 18]: “The Danish trade organisation of auditing, accounting, tax and corporate finance, “FSR – Danish Auditors” annually announces the company with the best CSR report both for large companies and SMEs. The reports are judged by a panel of selected representatives from Danish businesses, organisations, financial sector, educational institutions, etc. As part of the evaluation the judges look at whether companies also report on difficult subjects such as adverse human rights impacts.

For more best practice cases on reporting on non-financial issues, see: http://csrgov.dk/communication_and_reporting.”

Read more about Small & medium-sized enterprises

2. The State Duty to Protect Human Rights

2.2 Recommendations from the Council for CSR on the state duty to protect [page 11]

Among other initiatives, the Council for CSR recommended that the Danish Government:…

Requires state-owned companies and governments agencies which distribute significant government funds to incorporate due diligence in their business activities;…

2.3 Actions Taken

Companies owned or controlled by the state [page 13]

In 2008 the Danish Government introduced a statutory CSR reporting requirement which obligates all stateowned public limited companies irrespective of their sizes to report on CSR in the management’s review in their annual reports (GP 4). The same year state owned companies were required to join the UN Global Compact principles and the Principles for Responsible Investment (PRI). Businesses must accede to the Global Compact as a group, in which the parent company accedes. The parent company then reports on the group’s observance of the principles on behalf of the subsidiaries (GP 4). The Danish Government believes that public authorities, including companies owned or controlled by the state, should live up to the same requirements that private companies are expected to fulfill. Therefore, the non-judicial remedy mechanism can also examine complaints involving public authorities (GP 4).

Reporting requirement on human rights impact [page 14]

Another priority for the Danish Government has been to strengthen the existing legal reporting requirement for the largest Danish companies and all state-owned companies (GP 3d). Since 2009, large companies including all state-owned companies and institutional investors in Denmark have been required to report on their work on corporate social responsibility. This means that while Danish businesses are free to choose whether or not they wish to have a CSR policy there is a statutory requirement that they must take a position on CSR in their annual reports. If the company has a CSR policy, the company must account for this policy in their annual reports, including any CSR standards, guidelines or principles the company employs. Secondly, the company must report how these policies are translated into action, including any systems or procedures used. Thirdly, the company must evaluate what has been achieved through the CSR initiatives during the financial year, and any expectations it has regarding future initiatives. If the company does not have any social responsibility policies, this must be reported.

In June 2012, this reporting requirement was expanded so that the largest Danish companies from 2013 expressly must state in their reports what measures they are taking to respect human rights and to reduce their impact on the climate. This means that if a company has a policy on human rights or climate issues, it must report according to the existing structure; what is the policy, how has the policy been translated into action and what has been achieved through the initiatives. If the company does not have policies for human rights or climate issues, this must also be disclosed. The purpose is to further strengthen Danish companies’ activities in relation to human rights and climate change which will be beneficial to society overall, but also to the individual company. Three years after the reporting requirement was introduced, analyses show that companies generally appear to have been encouraged to report on CSR. In the course of the first three years of the legal requirement’s existence, nearly 50% of the companies reported on CSR for the first time. Secondly, there have been significant improvements in reporting practices in a number of areas. There is, nevertheless, still room for improvement as regards reporting consistency and reporting on the results of the CSR work. For information on Danish companies reporting on human rights see section 3.3.

Annex 1: Overview of the implementation of the state duty to protect

GP4 State Duty to Protect [page 28]

States should take additional steps to protect against human rights abuses by business enterprises that are owned or controlled by the State, or that receive substantial support and services from State agencies such as export credit agencies and official investment insurance or guarantee agencies, including, where appropriate, by requiring human rights due diligence.

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles)

In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles for Responsible Investment (PRI)…

With the 2008 national action plan for CSR a number of state owned companies were committed to join the UN Global Compact, among other DONG Energy, DSB, and Post Denmark. The national action plan also introduced a CSR reporting requirement for all state owned companies (see GP 3d). Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles)..

Read more about State Owned Enterprises/ Public Private Partnerships

2. The state duty to protect human rights

2.3 Actions taken

Danish Government’s Expectations to Companies section [page 11]

“In addition, at Danish embassies in emerging markets, the Trade Council in co-operation with the Danish Business Authority holds workshops in responsible supply chain management, especially focusing on small and medium-sized companies and their local business partners (GP 3c). The courses are held on an annual basis. They include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights.”

Providing effective guidance on how to respect human rights

Since 2005, the Danish Government has worked directly with promoting CSR among Danish companies. The efforts have focused on providing companies with tools and guidance to implement CSR policies in a manner which is both strategic and manageable (GP 3c).

Examples of relevant tools include:

• The CSR Compass – which is a free online tool that helps companies implement responsible supply chain management. http://www.csrcompass.com/“

3. The corporate responsibility to respect human rights

Introduction [page 17]

“While, the Danish Government has an important role in promoting the UNGPs by clarifying and communicating expectations towards companies, the Government acknowledges that in the short term it can be a significant challenge for companies to implement due diligence in their business operations – especially if the company has a complex supply chain or if the company is an SME.”

3.2 Recommendations from the Council for CSR on the corporate responsibility to respect [page 17]

“Since its creation in 2008, the Danish Council for CSR followed the work of the SR SG John Ruggie closely. In 2009, the Government asked the Council to produce a set of guidelines for responsible supply chain management to help companies meet international social and environmental requirements and expectations in their supply chain.

In June 2010, the Council published a set of guidelines for responsible supply chain management based on the Protect, Respect, Remedy Framework. The Council also made sure that the guidelines were aligned with recognised international principles like the UN Global Compact, ISO 26000 etc. The guidelines were meant as a supplement to the Protect, Respect, Remedy-Framework, intended to provide greater clarity about responsible supply chain management by offering a practical, easy-to-read guide and online tool.”

Appendix 1, GP 2

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 24]

“…In 2010, the Government asked the Council for CSR to develop guidelines for Responsible Supply Chain Management based on the UN Protect, Respect and Remedy framework”.

Appendix 1, GP 2 continued

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 25]

“The Danish Ethical Trading Initiative is an example of a soft law initiative. It is the first Danish multi-stakeholder initiative for Ethical Trading and Responsible Supply Chain Management. The initiative is co-financed by Danida.”

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

“The Trade Council in co-operation with the Danish Business Authority holds workshops in Responsible Supply Chain management, especially focusing on small and medium-sized enterprises and their local business partners (GP 3c). The courses are held on a n annual basis. They will include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist the Danish companies in emerging markets, the embassies are also conducting free CSR reviews of local business partners. The reviews include a due diligence component. (…) In 2013, a number of Danish organisations have been granted support by Danida for initiatives focusing on the promotion of ethical trading initiatives and supply chain management, CSR and Fair Trade …

In 2013, a number of Danish organisations have been granted support by Danida for initiatives focusing on the promotion of ethical trading initiatives and supply chain management, CSR and Fair Trade.”

Appendix 1, GP 8

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“The Government has updated the CSR Compass which is an online tool that helps companies exercise due diligence in the supply chain. The guide has been updated in accordance with the UNGPs and the OECD Guidelines for Multinational Enterprises. This online tool will also be promoted to governmental departments, agencies and other State-based institutions.”

Read more about Supply chains

The Danish NAP makes no explicit reference to tax.

Read more about Taxation

Annex 1: Overview of the implementation of the state duty to protect

GP10 State Duty to Protect [page 32]

States, when acting as members of multilateral institutions that deal with business related issues, should: Seek to ensure that those institutions neither restrain the ability of their member States to meet their duty to protect nor hinder business enterprises from respecting human rights..

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles)

… The government supports that the post-2015 development agenda is firmly anchored in human rights and universally accepted values and principles, including those encapsulated in the Charter, the Universal Declaration of Human Rights and the Millennium Declaration…

Read more about The 2030 Agenda for Sustainable Development

The Danish NAP does not make an explicit reference to the tourism sector.

Read more about Tourism sector

Appendix 1, GP 7

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 30]

“Besides following the government regulations with respect to export promotion, trade policy and political imposed trade sanctions and export controls, the EKF has initiated the development of a model that provides an over view of the business risk s that could potentially be related to human rights, labour rights, environment and climate in the countries where EKF is investing. EKF is screening the companies involved in the EKF’s transactions. There has not been any cases involving human rights issues.”

Appendix 1, GP 9

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 31]

“The EU adheres to principles and standards on responsible business conduct such as the OECD Guidelines for Multinational Enterprises, which is also reflected in negotiations for free trade agreements that includes the area of investment.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“The Government actively supports substantial Trade and Development chapters in the EU’s bilateral free trade agreements as well as human rights suspension clauses in the same agreements. The new free trade agreement between the EU and Peru /Colombia is an important case in point, being substantially more ambitious in this area than earlier agreements. The new free trade agreement between the EU and Peru/Colombia is an important case in point, being substantially more ambitious in this area than earlier agreements.”

Read more about Trade

2. The state duty to protect human rights

2.3 Actions taken

Protection of human rights through state regulation and policy [page 12]

“Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of worker’s rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementation of the UN Guiding Principles on Business and Human Rights.”

Protection of human rights in the business sphere in Danish legislation [page 12-13]

“General Danish law contributes to fulfilling Denmark’s duty under human rights treaties to which it is a party against human rights abuses by private actors, including businesses. For example, the Danish parliamentary act prohibits differential treatment in the labour market from 1996 protecting against discrimination based on race, gender, skin colour, religion, political opinion, sexual orientation or national, social or ethnic origin. It is also an offense to refuse to serve a person on the same terms as others involved in commercial or non-profit company because of his/hers race, colour, national or ethnic origin, religion or sexual orientation. The Working Environment Act of 2005 and the Act on the Work of Young Persons from 2005 implement the EU Directive 94/33/EC from 1994 on the protection of young workers, and the 1956 Constitutional Act of Denmark covers freedom of association and assembly.”

Providing effective guidance on how to respect human rights [page 14]

“The revised Global Compact Self-Assessment Tool works as a self-Assessment guide to a CSR due diligence going through a questionnaire covering aspects of human rights, worker’s rights, environment and anti-corruption and including a template for a follow-up action plan.”

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 26]

“Companies involved under Danida Business Partnerships are required and guided to undertake a CSR due diligence covering human rights, workers’ rights, environment and anti-corruption and to follow-up with an action plan in order to mitigate adverse impacts of business activities on employees and society at large.”

Appendix 1, GP 4

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights.”

Read more about Workers’ rights