Finland
Finland’s adopted its first NAP in September 2014 covering the period 2014-2016. There have been no recent reports on implementation or moves to update the NAP, hence it is classified as ‘Other’.
Available NAPs
Finland: 1st NAP (2014-2016)
Status
Finland’s National Action Plan (NAP) ‘Työryhmän ehdotus YK:nyrityksiä ja ihmisoikeuksia koskevien ohjaavien periaatteiden kansalliseksi toimeenpanoksi‘ (National Action Plan for the implementation of the UN Guiding Principles on Business and Human Rights) was adopted on 17th September 2014.
Process
The decision to develop a NAP was announced by the Finnish Government in its Resolution on Corporate Social Responsibility in November 22, 2012.
Subsequently, The Ministry of Employment and the Economy established an inter-ministerial working group (WG) chaired by the Government Counsellor from Ministry of Employment and Economy, and also comprising representatives of:
- The Ministry of Foreign Affairs,
- The Ministry of Education and Culture,
- The Ministry of Agriculture and Forestry,
- The Ministry of Justice,
- The Ministry of Transport and Communications,
- The Ministry of Finance,
- The Ministry of Social Affairs and Health,
- The Prime Minister’s Office,
- The Ministry of the Interior.
The WG was tasked to prepare a proposal for a plan to implement the United Nations Guiding Principles on Business and Human Rights (UNGPs) for the state and worked on it between May 28, 2013 – March 30, 2014.
A background memorandum concerning Finnish legislation, provisions on fundamental rights and international conventions, and other measures and practices of the authorities in relation to the UNGPs was drafted as a basis for the working group proposals.
The NAP’s drafting process was also discussed in the Committee for Corporate Social Responsibility – a permanent multi-stakeholder body acting under the Ministry of Employment and the Economy, that brings together individuals from government ministries, business, trade unions and NGOs. Once the WG finalized work on the joint draft proposal for the NAP, the Ministry of Employment and the Economy submitted its report to the Government Session on September 17, 2014.
The NAP was approved by the Government based on the WG’s proposal and a separate political statement in an informal meeting of the ministers. In its statement, the government underlined its priorities for the NAP’s implementation, concretized some of the commitments and partly improved the level of ambition compared to the WG’s original proposal.
Stakeholder Participation
Three stakeholder events were held in Helsinki.
While preparing its memorandum and draft NAP, the WG consulted stakeholders in writing and through two rounds of public consultations held in January and May 2014. Information about the dates of stakeholder hearings (consultations) was published in advance on the NAP website.
The first round of hearings consisted of separate consultation meetings with each group of stakeholders (CSOs and businesses). The second round of hearings (held after the WG had published the draft NAP proposal) included multi-stakeholder consultation meetings, and multiple NGOs and companies were invited partake in these stakeholder hearings. The WG also accepted comments sent by stakeholders in writing.
The NAP’s drafting process was also discussed in the Committee for Corporate Social Responsibility – a permanent multi-stakeholder body acting under the Ministry of Employment and the Economy, which brings together individuals from government ministries, business, trade unions and NGOs.
According to the Ministry of Economic Affairs and Employment, steps were taken to involve various stakeholders in the NAP drafting process, as they wanted to hear from as many as possible. For example invitations were sent to various organisations representing persons with disabilities. However, according to civil society, the Finnish government did not take any special steps to facilitate the participation of disempowered stakeholders such as migrants, indigenous people in northern Finland or other minorities.
Interested parties were invited to submit formal responses and comment on a draft during each consultation. The comments were not published online, but they are public material that anyone can request from the Government.
Initially an indicative timeline guiding the drafting process was shared with stakeholders. However, when the working group’s proposal was published in April 2014, parliament was to discuss it and the Ministry of Economic Affairs and Employment was not able to give stakeholders a set timeframe on when the final NAP would be published.
Transparency
After the draft NAP was published by the WG, there was no information on the status of the document or the political process necessary to adopt and implement it. This lack of information made it unclear as to what the second round of consultations was supposed to influence.
National Baseline Assessment (NBA)
No National Baseline Assessment (NBA) was conducted.
Ministries carried out and published a background memorandum, which included information about Finnish legislation, international conventions and other standards of relevance to human rights, and other measures and practices of the authorities in the relation to the UNGPs. A memorandum was created for use by the WG and was made publically available. The memorandum was assessed by stakeholders as not providing much added value to the process of the NAP development. Following the release of the first draft memorandum, two discussion forums were arranged and stakeholders were encouraged to submit written comments. The responsible ministries received numerous comments and the memorandum was revised to reflect their feedback.
Follow-up, monitoring, reporting and review
The NAP states that it contains actions that are meant to be achieved in years 2014-2016 and also provides a foundation to which new actions may be added.
Individual ministries will monitor the progress in their respective areas of responsibility, while the Committee for Corporate Social Responsibility is responsible for annual monitoring (reports) of the implementation of the NAP.
According to the NAP, the principal responsible parties are all ministries involved in the implementation process.
There is no discussion however of whether the ministries or the Committee for Corporate Social Responsibility will have to report to anyone on the implementation of the NAP based on monitoring activities.
As part of the national implementation of the UNGPs, the Ministry of Employment and the Economy and the Ministry for Foreign Affairs organize sector-specific round-table discussions, which aim to foster dialogue between different stakeholder groups in order to establish the key risks for each sector, as well as determine a sufficient degree of risk management and due diligence.
The grocery trade round-table group convened six times during November 2014 to June 2015. As a result, the group reached a common view on the practical implementation of the Guiding Principles across the supply chains of the grocery trade, which resulted in the adoption of a document “A Shared Vision for Respecting the UN Guiding Principles on Business and Human Rights in Grocery Trade Supply Chains”.
The Committee for Corporate Social Responsibility, who all the ministries report to, meets twice a year, unless there is a pending OECD Guidelines case, in which case the Committee meets more frequently. The Committee represents Finnish society, i.e. it has representatives from ministries, employers’ organisations, business, labour organisations, and NGOs (see the current composition here). The minutes of the Committee’s meetings are publicly available online (in Finnish). Ministries have reported on progress since the NAP was approved (approximately eight times). Information on progress is shared with stakeholders at various events organised by the Government. Social media is also used to keep stakeholders informed.
Stakeholders views and analysis on the NAP
- Silvia Avellaneda San Antonio, Role of Human Rights Indicators in National Action Plans on Business and Human Rights: Comparative analysis of Finland and Spain, The Age of Human Rights Journal, 2023-04-11
- International Corporate Accountability Roundtable (ICAR), European Coalition for corporate Justice (ECCJ): Assessments of Existing National Action Plans (NAPS) on Business and Human Rights, November; 2015
Additional resources
- Finnish Government: National Action Plan For The Implementation Of The UN Guiding Principles On Business And Human Rights, available in
- Finnish Government: Response to the Survey on the implementation of the Guiding Principles on Business and Human Rights: National Action Plans on Business and Human Rights, (2016)
- De Felice, Damiano, Graf, Andreas: The Potential Of National Action Plans To Implement Human Rights Norms – An Early Assessment With Respect To The UN Guiding Principles On Business And Human Rights. (2015)
Children’s rights
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13]
“According to the equality provision of the Constitution, no one may be treated differently based on sex, age, origin, language, religion, conviction, opinion, health, handicap or other reason related to the individual. In addition, the Constitution states that children should be treated equally as individuals and that it should be possible for them to be involved in matters relating to them in accordance with their development.”
1.2 Activities in international organizations [page 15]
“Finland shall report to the UN Committee on the Rights of the Child on the implementation of the recommendation by the Committee on Business. In addition, the UN Committee on the Rights of the Child General Comment No. 16 on State obligations regarding the impact of the business sector on children’s rights shall be translated into Finnish and Swedish, and a summarised introduction to its contents shall be made for distribution to entities such as companies.”
Conflict-affected areas
The Finnish NAP makes reference to conflict-affected areas in terms of conflict minerals and supply chains.
1 The state obligation to protect human rights
1.3 Activities in the EU [page 17]
RAW MATERIALS
“The international interest in raw materials is increasing. Whilst the materials may be used as a resource supporting development, there is also a risk of ambiguities related to the funds received from raw materials and/or the funds being used to support conflicts. The European Commission has made a proposal to establish a due diligence system for the union based on a spontaneous declaration by the responsible importers of certain minerals originating in conflict zones and high-risk areas.
The Commission proposal has taken into consideration both the OECD Guidance for mineral purchasing in conflict zones as well as the OECD and UN guidelines more generally related to responsible supply chain management. The proposal is currently being discussed on the national level. Finland actively participates in the discussion of the proposal in the Council working group. …
As a follow-up measure, the working group proposes that
- Finland actively participate in the discussion of the proposal for a regulation on conflict minerals and in the discussion for the development of practices for responsible supply chains in the raw material sectors.
Principal responsible party: Ministry for Foreign Affairs, continuous activities.”
Construction sector
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 29]
“In 2014, approximately EUR 17 million were spent to support the projects of the International Labour Organisation (ILO). The projects are related to matters such as rights at work, green workplaces for the construction sector, the inclusion of women in the labour market, and decent work.”
Corporate law & corporate governance
2 The state and companies
2.1 The state as an economic operator [page 22-23]
CORPORATE GOVERNANCE
“The Ownership Steering Department in the Prime Minister’s Office has set a CSR reporting requirement for unlisted companies that are either majority-owned by the state or entirely state-owned. This also includes human rights. The obligation requires that companies submit reports in accordance with the best practices in the branch of activity concerned and, at minimum, adopting the standards corresponding to those of their central competitors.
As an owner, the state expects that the administration and management of state-owned companies take human rights into consideration in a responsible and transparent manner, both in their own organisation and in their subcontracting chains.
As a follow-up measure, the working group proposes that
- the importance of human rights to the state when serving as a company owner will continue to be emphasised in preparing the next decision in principle on ownership policy.
- When the amended OECD Guidelines on Corporate Governance of State-Owned Enterprises enter into force around the end of 2015, the new definitions of policy will be included in the ownership guidance practices of the Finnish state.
Principal responsible party: Prime Minister’s Office, schedule before the end of 2016.”
Corruption
1 The state obligation to protect human rights
1.3 Activities in the EU [page 16]
NON-FINANCIAL REPORTING
“On 18 April 2013, the European Commission made a proposal to amend the accounting directive for the disclosure of so-called non-financial information of certain large companies.
The proposal shall be applied to companies of significant public interest with more than 500 employees on average on the account closing date. According to the proposal, such companies should include in their annual report a declaration stating material data related to the environment, social affairs, employees, human rights, and the prevention of corruption and bribery.”
4 Access of victims of human rights violations to legal remedies [page 30]
“Finland cooperates in various ways with human rights defenders and non-governmental organisations exposing corruption. Mainly within the framework of EU cooperation, Finnish representatives are involved in the monitoring of legal processes on a case-by-case basis when monitoring is believed to have a positive impact on the protection of the rule of law.”
Data protection & privacy
1. The State Obligation to Protect Human Rights
1.3 Activities in the EU [page 14]
Finland is involved in international work in UN decision-making bodies related to communication technologies (such as WSIS and the World Summit on the Information Society) as well as in other central international organisations (such as the Internet Governance Forum, IGF). The objective of Finland is to reinforce the administrative system of an open and inclusive network so that freedom of speech is ensured in the development of the international information society.
2. The State and Companies
2.2 The State and the protection of privacy [page 23]
The protection of privacy that is particularly related to electronic communications has received plenty of attention in recent public discussion. The right to privacy, the protection of personal data and the protection of confidential messages are fundamental human rights. The extent of data collection related to electronic communications has led to public discussion. Privacy questions related to electronic communications are particularly important in Finland, where the ICT infrastructure enjoys a strong position. This strength has played a significant role in the fact that Finland has been able to attract international ICT investments.
As a follow-up measure, the working group proposes that:
- a roundtable discussion be organised on how to ensure the protection of privacy in Finland with the authorities, ICT companies and the civil society. Principal responsible party: Ministry of Transport and Communications, autumn 2014.
Development finance institutions
1. The State Obligation to Protect Human Rights
1.2 Activities in international organisations [page 14]
Finland shall bring forward questions related to human rights in international trade and development organisations and direct its support to programs related to business and human rights as part of Finland’s support to international trade and development organisations.
Digital technology & electronics sector
2 The state and companies
2.2 The State and the protection of privacy [page 23]
“As a follow-up measure, the working group proposes that
- a roundtable discussion be organised on how to ensure the protection of privacy in Finland with the authorities, ICT companies and the civil society.
Principal responsible party: Ministry of Transport and Communications, autumn 2014.”
Energy sector
Environment & climate change
The Finnish NAP does not make an explicit reference to Environment and Climate Change.
Equality & non-discrimination
Introduction [page 11]
The Finnish social contract is based on interaction and on an aspiration to consensus. The desire to include everyone is also part of the open interaction. In Finland, there has been a desire to construct a society based on equality and to develop methods and a culture is sensitive to the impact of equality and gender. Equal treatment is taken into consideration in all the legislation and preparation of the national budget, various central government programmes and projects, and personnel policies.
1. The State Obligation to Protect Human Rights [page 13]
According to the equality provision of the Constitution, no one may be treated differently based on sex, age, origin, language, religion, conviction, opinion, health, handicap or other reason related to the individual. In addition, the Constitution states that children should be treated equally as individuals and that it should be possible for them to be involved in matters relating to them in accordance with their development. The current public authority, municipality or other body exercising public authority must ensure the realisation of fundamental and human rights.
Export credit
1 The state obligation to protect human rights
1.3 Activities in the EU [page 21-22]
PUBLIC FINANCIAL INSTITUTIONS AND FINANCIAL INSTRUMENTS RELATED TO DEVELOPMENT COOPERATION
“The publication of the UN principles and the update of the OECD Guidelines for Multinational Enterprises in 2011 have had the effect in public export credits of increasing the amount of attention being paid to the impact on human rights in the projects guaranteed. Finland’s official export guarantee company, Finnvera, uses policies updated on 1 January 2013 for evaluating the environmental and social effects of projects. When granting export credit guarantees and confirming export credit guarantee conditions, the environmental and social impacts of the project in question are taken into consideration as part of the project’s total risk assessment. The development of Finnvera’s environmental and social impact assessment is continuing in accordance with the OECD Common Approaches agreement. As with other public export credit companies, Finnvera also reports on its progress at the expert meetings related to the OECD agreement.
In autumn 2011, Finnfund and twenty-four other providers of development funds signed the principles of good governance and guidelines on how the providers of development funds attempt to promote good governance in the companies funded and thereby support the sustainable economic development of developing countries. In addition, the activities of Finnfund itself and of the companies it funds should be both environmentally and socially sustainable. The same principles of responsibility apply to the activities of both Finnfund and Finnpartnership alike.
In its final report in February 2014, a development group established by the Ministry for Foreign Affairs and the Ministry of Employment and the Economy suggested that a development innovation programme be established alongside the current financial instruments and support services. The programme is intended to compile the monitoring services for know-how and markets both in Finland and in developing countries; to produce support and development services for operators; and to enable a programme of flexible funding through the programme’s own fund. The programme will be launched in 2014.
As a follow-up measure, the working group proposes that
- a regular dialogue be maintained with public financial institutions on the UN principles, the OECD Guidelines and other guidelines.
Principal responsible parties: Ministry for Foreign Affairs and Ministry of Employment and the Economy, continuous activities. - in conjunction with companies and non-governmental organisations, the potential for new cooperation initiatives in the field of development cooperation funding be examined. The work carried out in the framework of the development group is used and human rights are emphasised in the new programme for business activities in developing countries that is currently being prepared, and similarly, in the Finnpartnership programme.
Principal responsible party: Ministry for Foreign Affairs, schedule 2014 to 2016.”
Extractives sector
1 The state obligation to protect human rights
1.3 Activities in the EU [page 17]
RAW MATERIALS
“The international interest in raw materials is increasing. Whilst the materials may be used as a resource supporting development, there is also a risk of ambiguities related to the funds received from raw materials and/or the funds being used to support conflicts. The European Commission has made a proposal to establish a due diligence system for the union based on a spontaneous declaration by the responsible importers of certain minerals originating in conflict zones and high-risk areas.
The Commission proposal has taken into consideration both the OECD Guidance for mineral purchasing in conflict zones as well as the OECD and UN guidelines more generally related to responsible supply chain management. The proposal is currently being discussed on the national level. Finland actively participates in the discussion of the proposal in the Council working group.
As for the more general responsible acquisition of raw materials, the new EU accounting directive obliges companies operating in oil, gas, extractive industry and loggers of primary forests to report on the fees paid to governments in connection with the financial statement8. The directive is currently being implemented in Finland.
As a follow-up measure, the working group proposes that
Finland actively participate in the discussion of the proposal for a regulation on conflict minerals and in the discussion for the development of practices for responsible supply chains in the raw material sectors.
Principal responsible party: Ministry for Foreign Affairs, continuous activities.”
3 Expectations towards companies and support services
3.1 Clarification of due diligence [page 26]
WHAT IS SUFFICIENT?
“As a follow-up measure, the working group proposes that • companies, non-governmental organisations and other key stakeholders are invited to a roundtable discussion by branch of activity. For example, the discussion could begin with the forest industry, the consumer goods trade and the textile industry. With the discussions, an attempt shall be made to create a dialogue amongst various stakeholders and to establish the essential risks for each branch of activity as well as sufficient risk management and due diligence.”
Extraterritorial jurisdiction
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13-14]
“…on an international level states implement human rights conventions differently. This affects international business activities and their regulation. The international preparation and development of the UN principles deal with the legal regulation of cross-border business activities. The concept of human rights is very extensive, and the creation of more binding regulation for non-state actors (such as companies) would require specifying their obligations in relation to the obligations of states. The challenges of such regulation are related to features such as the general definition of the criminal liability of legal entities, the territorial application of criminal legislation, protection of the accused, definition of the civil liability for damages, functionality of legal redress, and territorial limitations of jurisdictions. Due to these challenges, the matter requires that further examination and analyses be made on both the national and international level.
For continuing both the national and international discussion, it would be essential to further clarify features such as the applicability of national legislation to international business activities. For this reason, the working group proposes that as a follow-up measure,
- a report be commissioned on Finnish legislation in relation to the regulation and guidance of international business activities, particularly to prevent serious human rights violations and to remedy any existing violations.
Principal responsible party: Ministry of Justice, Ministry of Employment and the Economy and Ministry for Foreign Affairs, schedule by mid-2015.”
Finance & banking sector
The Finnish NAP makes no direct reference to the finance or banking sector.
Fisheries and aquaculture sectors
The Finnish NAP does not make a direct or explicit reference to the Fisheries and Aquaculture sectors.
Forced labour & modern slavery
The Finnish NAP makes reference to the prohibition on slavery generally [Introduction, page 11] and references forced labour only in terms of provisions in public procurement.
2 The state and companies
2.1 The state as an economic operator [page 20]
SOCIALLY RESPONSIBLE PUBLIC PROCUREMENT
“In connection with the consultations organised by the working group, the idea of a statutory obligation to take social aspects into consideration in public procurement was presented. For instance, there is a federal obligation in the United States to include terms on the prohibition of the worst forms of forced labour and child labour in public procurement. In Finland, procurement legislation is procedural in nature, and it makes no statement on what is procured or on what terms.”
Freedom of association
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13]
“Our reinforced Constitution protects the inviolability of human dignity as well as the freedom and rights of individuals, and promotes justice in society. Fundamental rights (such as equality, freedom of movement, protection of privacy, freedom of association, freedom of speech and the right to social security and judicial protection) have been included in the Constitution”
Garment, Textile and Footwear Sector
3. Expectations towards companies and support services
3.2 Clarification of due diligence
As the consultation events organized by the working group, it was suggested that a new statutory obligation on due diligence should be established for companies when implementing the UN principles on a national level.
As a follow-up measure, the working group proposes that:
Companies, NGOs and other key stakeholders are invited to a roundtable discussion by branch of activity. For example, the discussion could begin with the forest industry, the consumer goods trade and textile industry. With the discussions, an attempt shall be made to create a dialogue amongst various stakeholders and to establish the essential risks for each branch of activity. – page 26
Gender & women’s rights
Introduction [page 11]
“In Finland, there has been a desire to construct a society based on equality and to develop methods and a culture is sensitive to the impact of equality and gender. Equal treatment is taken into consideration in all the legislation and preparation of the national budget, various central government programmes and projects, and personnel policies.”
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13]
“According to the equality provision of the Constitution, no one may be treated differently based on sex…”
1.2 Activities in international organizations [page 14]
“Generally, Finland supports the mutual dialogue between international organisations and their cooperation on human rights issues to increase coherence. The Ministry for Foreign Affairs has used development cooperation funds to finance actions related to features such as rights at work, the economic empowerment of women, and decent work.”
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 28]
“The Ministry for Foreign Affairs uses development cooperation funds to support international organisations, programmes and initiatives which promote the theme of business and human rights. For instance, the Ministry for Foreign Affairs has supported the following projects:
The UN Global Compact CSR initiative for EUR 350,000 in 2013 and its Business for Peace initiative for EUR 200,000 between 2013 and 2014. The activities focus on features such as human rights, gender equality, good governance and environmental affairs.
In 2014, approximately EUR 17 million were spent to support the projects of the International Labour Organisation (ILO). The projects are related to matters such as rights at work, green workplaces for the construction sector, the inclusion of women in the labour market, and decent work.”
Guidance to business
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13-14]
“For continuing both the national and international discussion, it would be essential to further clarify features such as the applicability of national legislation to international business activities. For this reason, the working group proposes that as a follow-up measure,
- a report be commissioned on Finnish legislation in relation to the regulation and guidance of international business activities, particularly to prevent serious human rights violations and to remedy any existing violations.
Principal responsible party: Ministry of Justice, Ministry of Employment and the Economy and Ministry for Foreign Affairs, schedule by mid-2015.”
2 The state and companies
2.1 The state as an economic operator [page 20-23]
SOCIALLY RESPONSIBLE PUBLIC PROCUREMENT
“The Ministry of Employment and the Economy has published a guide to socially responsible procurement9, with practical examples gathered from procurement units, explaining how social aspects can be taken into consideration in each stage of the procurement process. In addition, the Ministry maintains the CSRkompassi.fi website (available in Finnish and Swedish, some material also in English), with information and material for taking social aspects into consideration in long production chains related to public procurement. …
As a follow-up measure, the working group proposes that
- references to Section 49 of the Act on Public Contracts and to the Guide to socially responsible procurement be added to the procurement guidelines for ministries; and
- the responsibility themes in the state procurement manual be updated; …
- A report will be made on the product groups that pose the highest risk for human rights violations. The report would increase the awareness related to responsible procurement and help target the consideration of the social aspect for the product groups that pose the highest risk. …”
CORPORATE GOVERNANCE
“As an owner, the state expects that the administration and management of state-owned companies take human rights into consideration in a responsible and transparent manner, both in their own organisation and in their subcontracting chains.
As a follow-up measure, the working group proposes that …
- When the amended OECD Guidelines on Corporate Governance of State-Owned Enterprises enter into force around the end of 2015, the new definitions of policy will be included in the ownership guidance practices of the Finnish state.
Principal responsible party: Prime Minister’s Office, schedule before the end of 2016.”
3 Expectations towards companies and support services
3.3 Training and counselling [page 27]
“Training plays a crucial role in the promotion of human rights related to business activities. As a party protecting human rights, the state also has the obligation to promote training, communications and counselling related to them. They may target companies, the authorities, and other operators. The Team Finland network (cf. next paragraph) may be used as one of the training channels. Companies may also independently acquire information and training related to human rights from various experts and consultants. However, compared to large companies, SMEs have limited resources for acquiring training related to human rights. For this reason, it is important to provide targeted training for SMEs.
As a follow-up measure, the working group proposes that
- the distribution of information on the UN principles and on the related interpretive guide published by the UN be ensured14.
- the need for training and information related to the impact of business on human rights and the responsibilities of Finnish companies with regards to international business activities be examined.
- training related to the theme of business and human rights be provided to companies. The special emphasis is on SMEs operating in branches of activity that pose a high risk for human rights.
Principal responsible parties: Ministry for Foreign Affairs and Ministry of Employment and the Economy in conjunction with business sector organisations, schedule 2014 to 2016.
3.4 Team Finland cooperation [page 28]
“The Team Finland network was established in 2012 to promote the Finnish cause abroad. This entity includes Finland’s financial foreign relations, the internationalisation of Finnish companies, the foreign investments made in Finland and the image of Finland as a country. …
As a follow-up measure, the working group proposes that
- the Team Finland network provide interactive training on the theme of business and human rights;”
Health and social care
The Finnish NAP does not make an explicit reference to health and social care.
Human rights defenders & whistle-blowers
The Finnish NAP makes reference to human rights defenders in general terms. It makes no reference to whistle-blowers.
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 28]
“Defenders of human rights, trade unions and other civil society operators can play an important role in the assessment of the impact of business activities on human rights, the availability of legal remedies and national and international discussion. Finland has a strong tradition of mutual interaction between the authorities and civil society operators. The collaboration between labour market parties is part of the Finnish social contract. Ministries support the business and human rights activities of Finnish and international non-governmental organisations in various ways.”
4 Access of victims of human rights violations to legal remedies [page 30]
“Trade unions and non-governmental organisations play an important role in securing human rights and rights at work. Finland cooperates in various ways with human rights defenders and non-governmental organisations exposing corruption. Mainly within the framework of EU cooperation, Finnish representatives are involved in the monitoring of legal processes on a case-by-case basis when monitoring is believed to have a positive impact on the protection of the rule of law.”
Human rights impact assessments
Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan
“The identification and management of human rights problems has been recognised as a challenge in companies operating at the international level. As a rule, Finnish companies deal responsibly with human rights issues and support their implementation. Despite this fact, the possibilities for a single company to identify human rights risks and rectify them are limited. This is why international co-operation, more efficient distribution of information, more effective enforcement of existing legislation and existing human rights conventions (e.g. ILO core conventions), transparency and the proper promotion of regulation for various actors should be emphasised in the promotion of human rights. The Team Finland network should also be more effectively developed to assist companies in understanding, taking notice of and managing human rights issues, particularly in areas where human rights risks are considerably high. The work of NGOs should be supported in accordance with the action plan drafted by the working group.”
Ownership policy and social responsibility
“Companies with a controlling interest held by the State assess the human rights risks of their own operations and those of their subcontractor chains, reporting on them and their own tax procedures.”
1 The state obligation to protect human rights
1.3 Activities in the EU [page 18-22]
TRADE POLICY
“As a follow-up measure, the working group suggests that in order to reinforce the human rights aspect in the EU trade policy:
- Finland will support the strengthening of human rights assessments in third countries during EU trade or investment agreement negotiations and when monitoring their implementation. Finland shall make use of the human rights assessments in forming its own opinions related to trade policy positions. Finland supports that human rights will be taken in to account in the EU investment agreements or in potential new bilateral agreements made by Finland.”
PUBLIC FINANCIAL INSTITUTIONS AND FINANCIAL INSTRUMENTS RELATED TO DEVELOPMENT COOPERATION
“Finland’s official export guarantee company, Finnvera, uses policies updated on 1 January 2013 for evaluating the environmental and social effects of projects. When granting export credit guarantees and confirming export credit guarantee conditions, the environmental and social impacts of the project in question are taken into consideration as part of the project’s total risk assessment. The development of Finnvera’s environmental and social impact assessment is continuing in accordance with the OECD Common Approaches agreement. As with other public export credit companies, Finnvera also reports on its progress at the expert meetings related to the OECD agreement.”
3 Expectations towards companies and support services [page 24]
“The Finnish state is committed to promoting the OECD Guidelines for Multinational Enterprises. Although following the guidelines is voluntary for companies, the Finnish government expects companies to observe them. Companies’ obligation to respect human rights includes various actions to proactively mitigate the risk of human rights violations. This may be done for instance by including a human rights assessment in the company’s risk management system or by carrying out various special measures.
A careful human rights risk assessment and careful prevention has favourable long-term effects on the company’s own business activities.”
3.1 Clarification of due diligence [page 25]
“If the company has a lot of suppliers, it should identify the areas where the risk of adverse impacts is highest and contribute to the prevention of these risks.”
3.5 Support for Finnish and international organisations promoting the subject [page 28]
“Defenders of human rights, trade unions and other civil society operators can play an important role in the assessment of the impact of business activities on human rights, the availability of legal remedies and national and international discussion.”
Indigenous Peoples
1. The State Obligation to Protect Human Rights
1.2 Activities in international organisations [page 14]
Finland will continue the dialogue related to the human rights impacts of business activities with the UN bodies for indigenous peoples and ensure that the effects of business activities on the realisation of the rights of indigenous peoples will be brought forward in the World Conference on Indigenous Peoples in autumn 2014.
Investment treaties & investor-state dispute settlements
1 The state obligation to protect human rights
1.2 Activities in international organizations [page 14]
“As a follow-up measure, the working group proposes that …
Finland participates and actively influences the work related to human rights and CSR questions that is carried out in the OECD, for instance, by being involved in drafting and updating guidelines, templates and recommendations related to the subject. Finland shall support and participate in the update of the OECD Policy Framework for Investment.”
1.3 Activities in the EU [page 18-19]
TRADE POLICY
“As a follow-up measure, the working group suggests that in order to reinforce the human rights aspect in the EU trade policy:
- Finland will support the strengthening of human rights assessments in third countries during EU trade or investment agreement negotiations and when monitoring their implementation. Finland shall make use of the human rights assessments in forming its own opinions related to trade policy positions. Finland supports that human rights will be taken in to account in the EU investment agreements or in potential new bilateral agreements made by Finland.”
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 29]
“The OECD Policy Framework for Investment is being modernised to face the challenges of sustainable development, such as equality, CSR and human rights”
Read more about Investment treaties & investor-state dispute settlements
Judicial remedy
Introduction [page 11]
“The third important element [of the UNGPs] is the access of victims of human rights violations to effective legal and non-legal remedies.”
1 The state obligation to protect human rights
1.1 Human rights in Finnish legislation [page 13]
“Fundamental rights (such as equality, freedom of movement, protection of privacy, freedom of association, freedom of speech and the right to social security and judicial protection) have been included in the Constitution.”
4 Access of victims of human rights violations to legal remedies [page 30-31]
“The realisation of human rights requires that the victims of human rights violations may have their situation assessed and remedied. For this reason, the existence of sufficient legal remedies or other settlement or compensation proceedings is crucial. These procedures may be legally binding or optional.
The starting point is that the activities of the state and the national control of business activities are in harmony with international conventions and national legislation.
The autonomy of Finnish tribunals is guaranteed, legal expenses are small, and those without sufficient financial means for legal aid are entitled to free counselling. However, in order for the victims of human rights violations to have access to legal remedies, they must be aware of their rights. In addition to the authorities, labour market organisations and non-governmental organisations have been assigned the important task of helping employees – particularly employees in a vulnerable position – in defending their rights and using legal remedies. The organisations also distribute information on rights and provide counselling. Finland has a strong tradition of cooperation between the authorities, labour market organisations and non-governmental organisations. These strengths can also be used in activities carried on outside Finland’s borders.
Finland is actively involved in reinforcing the development of the rule of law on an international level and supports the development of the legal sector in developing countries. It is also involved in the cooperation for promoting international human rights obligations and the control of fundamental rights in working life.
It is important to emphasise the use of preventive measures (such as consultations and settlement proceedings) at a sufficiently early stage to prevent or decrease the adverse impacts on human rights that may be related to business activities. Companies are encouraged to increasingly use non-binding complaint mechanisms related to human rights and to cooperate with non-governmental organisations.
Trade unions and non-governmental organisations play an important role in securing human rights and rights at work. Finland cooperates in various ways with human rights defenders and non-governmental organisations exposing corruption. Mainly within the framework of EU cooperation, Finnish representatives are involved in the monitoring of legal processes on a case-by-case basis when monitoring is believed to have a positive impact on the protection of the rule of law.
As a follow-up measure, the working group proposes that
- Finland participate in the discussion on developing legal remedies carried out in the Office of the High Commissioner for Human Rights and the Human Rights Council.
- Finland support non-governmental organisations, which follow human rights issues related to business activities and support the victims of human rights violations.
Principal responsible party: Ministry for Foreign Affairs, continuous activities.”
Land
The Finnish NAP does not make an explicit reference to Land.
Mandatory human rights due diligence
Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan
Legislative report
“A report on legislation pertaining to national and international business and human rights is to be drafted based on the principles stated in the UN Guiding Principles. The objective is to examine whether legislation corresponds with the aims of the UN principles and determine the necessity of initiatives taken to otherwise improve corporate operating practices, particularly where due diligence, corporate reporting obligations and remedies for victims of human rights violations are concerned. It is also to propose concrete recommendations for change, wherever necessary.”
Due diligence
“With regard to the due diligence, the working group rightly emphasises in its report the need to identify best practices and the concept of more functional international specifications. At the same time, it is vital that the discussions be continued also at the national level. The aim of the round table discussions presented in the report should be to not only increase dialogue, but also to establish as broad a national understanding as possible on what due diligence means and how it can be properly implemented in various sectors and business areas. Stakeholders from different fields are invited to the round table discussions, whose final outcomes are addressed by the Committee on Corporate Social Responsibility.”
Introduction [page 11]
“…companies have the responsibility to respect human rights, regardless of the states’ obligation. Companies should therefore carry out due diligence …”
1 The state obligation to protect human rights
1.2 Activities in international organizations [page 14]
“In international human rights bodies, Finland has emphasised development related to due diligence.”
1.3 Activities in the EU [page 16]
NON-FINANCIAL REPORTING
“On 18 April 2013, the European Commission made a proposal to amend the accounting directive for the disclosure of so-called non-financial information of certain large companies.
The proposal shall be applied to companies of significant public interest with more than 500 employees on average on the account closing date. According to the proposal, such companies should include in their annual report a declaration stating material data related to the environment, social affairs, employees, human rights, and the prevention of corruption and bribery. The declaration should contain a short description of the business model, a description of the policies related to the areas mentioned above as well as the due diligence related to them, the results obtained in the policies, the main risks and risk management that apply as related to the areas mentioned above, and the non-financial performance indicators significant for company business. Instead of a declaration attached to the annual report, companies may also publish separate reports on certain conditions.”
3 Expectations towards companies and support services
3.1 Clarification of due diligence [page 24-26]
“The OECD Guidelines for Multinational Enterprises12 were updated in 2011. In the same connection, the UN Guiding Principles on Business and Human Rights were included in the Guidelines along with due diligence. In the OECD Guidelines, due diligence is seen as an examination process with which companies identify and prevent the actual and potential adverse impacts of their activities in their decision making and risk management. This means that due diligence is not a single action. Instead, it is an ongoing process where the human rights impacts of business activities are assessed with appropriate and sufficient care.
Due diligence also includes the mitigation of adverse impacts and communication on how companies deal with these adverse impacts. Potential effects are dealt with by preventing or mitigating them, whereas actual impacts will be dealt with by remedying them.
By following due diligence, an attempt is made to prevent the adverse impacts which a company will either cause itself, to which it will considerably contribute towards, or which are directly related to the company’s activities, products or services through a business relationship.
The contribution refers to a situation where that contributing impact is substantial. This means activities resulting in indirect adverse impacts caused, promoted or encouraged by another party. This does not cover minor or insignificant contributions. If a company contributes to a detrimental effect on human rights, it should take the necessary measures and use its influence to prevent or alleviate the adverse impact.
In the Guidelines, business relationships cover relations with business partners, supply chain operators and other operators independent of the state and governmental operators that are directly related to the company’s business activities, products or services. If the company has a lot of suppliers, it should identify the areas where the risk of adverse impacts is highest and contribute to the prevention of these risks.”
WHAT IS SUFFICIENT?
“At the consultation events organised by the working group, it was suggested that a new statutory obligation on due diligence should be established for companies when implementing the UN principles on a national level13. Transforming the due diligence described above into a legally binding obligation is difficult to envisage. The problem with statutory due diligence for respecting human rights is the difficulty of defining the obligation included therein. On a national level, respecting human rights is defined in appropriate legislation, and careful actions may be important for assessing company responsibilities. Extending national legislation to international activities is even more challenging. The special questions related to the regulation of international business activities have been described above in Section 1.1.
According to the international guidelines, the sufficiency of following due diligence and the possibilities of making a difference are always weighed on a case-by-case basis. The issues mentioned above (such as the size of the company, branch of activity, operating conditions, ownership and business structure) are taken into consideration. The seriousness of the adverse impacts caused is important as well. Since both the UN principles and the OECD Guidelines emphasise prevention, a retrospective assessment on sufficiency will cause challenges of its own for preparatory actions.
The discussion on the content of due diligence and the ways it is applied also continues in international organisations.
Though there is no binding regulation on due diligence, it is a central concept in managing human rights risks related to international business activities. For these reasons, more discussion and information is required on the types of risks and possibilities related to each branch of activity, on the types of risk management needed, and on the expectations for observing due diligence in various branches of activities.
As a follow-up measure, the working group proposes that
- companies, non-governmental organisations and other key stakeholders are invited to a roundtable discussion by branch of activity. For example, the discussion could begin with the forest industry, the consumer goods trade and the textile industry. With the discussions, an attempt shall be made to create a dialogue amongst various stakeholders and to establish the essential risks for each branch of activity as well as sufficient risk management and due diligence.
- In co-operation with the business sector, the collective industrial organisations and non-governmental organisations, sharing of due diligence best practices is promoted in order for companies to apply them.
Principal responsible parties: Ministry for Foreign Affairs and Ministry of Employment and the Economy, schedule by the end of 2015.”
Migrant workers
The Finnish NAP makes no reference to migrant workers.
National Human Rights Institutions/ Ombudspersons
The Finnish NAP makes no substantive reference to National Human Rights Institutions (NHRIs) or Ombudspersons. (Finland has both an NHRI and Ombuds offices)
Read more about National Human Rights Institutions/ Ombudspersons
Non-financial reporting
1 The state obligation to protect human rights
1.3 Activities in the EU [page 16-17]
NON-FINANCIAL REPORTING
“On 18 April 2013, the European Commission made a proposal to amend the accounting directive for the disclosure of so-called non-financial information of certain large companies.
The proposal shall be applied to companies of significant public interest with more than 500 employees on average on the account closing date. According to the proposal, such companies should include in their annual report a declaration stating material data related to the environment, social affairs, employees, human rights, and the prevention of corruption and bribery. The declaration should contain a short description of the business model, a description of the policies related to the areas mentioned above as well as the due diligence related to them, the results obtained in the policies, the main risks and risk management that apply as related to the areas mentioned above, and the non-financial performance indicators significant for company business. Instead of a declaration attached to the annual report, companies may also publish separate reports on certain conditions.
In February 2014, the negotiations between the Commission and the Parliament reached an agreement on the proposal, and the proposal is likely to be submitted to Parliament in April. After this, it will also be approved by the Council of the European Union. The proposal is due for approval before the end of the parliamentary term in May 2014. If the proposal is approved, it must enter into force in Finland in 2016. In this case, it is estimated that the reporting obligation would apply to the financial year 2017 at the earliest. On a national level, Finland will initiate the preparations to implement the directive as soon as possible.”
2 The state and companies
2.1 The state as an economic operator [page 22]
CORPORATE GOVERNANCE
“The Ownership Steering Department in the Prime Minister’s Office has set a CSR reporting requirement for unlisted companies that are either majority-owned by the state or entirely state-owned. This also includes human rights. The obligation requires that companies submit reports in accordance with the best practices in the branch of activity concerned and, at minimum, adopting the standards corresponding to those of their central competitors.
As an owner, the state expects that the administration and management of state-owned companies take human rights into consideration in a responsible and transparent manner, both in their own organisation and in their subcontracting chains. (…)”
3 Expectations towards companies and support services
3.2 Reporting on corporate social responsibility [page 26]
“Reporting on corporate social responsibility may be a significant factor in monitoring the human rights impacts and risks of companies. In the Resolution on Corporate Social Responsibility, the Finnish Government encourages companies to publish the non-financial data on the social and environmental impact of their activities. The Ministry of Employment and the Economy and the Ministry of the Environment are involved in organising the annual competition for reporting on corporate social responsibility. The competitions have been organised since 1996 with a view to encourage companies to report on CSR. When reporting becomes mandatory for some of the companies (cf. Section 1.3 on non-financial reporting), the question of reforming the competition must be addressed.
International information on the content of companies’ responsibility reports is available in a database maintained by the Global Reporting Initiative (GRI). In Finland, Corporate Responsibility Network FIBS acts as a partner for GRI for all Finnish companies and organisations to register their responsibility reports in the database. By means of the database, companies’ responsibility reports can be compared by branch of activity and by geographical area. The database also provides useful information concerning the international corporate social responsibility standard to which each report refers.
As a follow-up measure, the working group proposes that
- human rights be adopted as the annual theme of the reporting competition.
Principal responsible party: Ministry of Employment and the Economy, schedule before the end of 2015.”
Non-judicial grievance mechanisms
4 Access of victims of human rights violations to legal remedies [page 30-31]
“Companies are encouraged to increasingly use non-binding complaint mechanisms related to human rights and to cooperate with non-governmental organisations.”
4.1 Development of the OECD National Contact Point
“The OECD Guidelines include a monitoring mechanism referred to as the National Contact Points (NCPs), which are established by governments adhering to the Guidelines. NCPs promote the Guidelines and implement them.
The primary objective of the OECD procedure is to promote the resolution of conflicts between the parties. The NCP´s task is to act as a mediator in this process. Where necessary, in addition to the mediation duty, the NCP will make a statement on whether the company in question followed the OECD Guidelines. The statement of the NCP is not a legal remedy in the sense of obliging a company to change its operations or in the sense of resulting in potential compensation or other types of reimbursement for activities in violation of the guidelines.
The NCP in Finland is the Ministry of Employment and the Economy together with the Committee on Corporate Social Responsibility. The Committee states, by request of the Ministry, whether it sees that a company has followed the Guidelines. Finnish NCP’s procedures are described in more detail in the background memo and online15.
As a follow-up measure, the working group proposes that
- alternatives for the development of the NCP be mapped out. In the meantime, the procedures of the NCP shall be clarified and communications shall be made on them.
Principal responsible party: Ministry of Employment and the Economy, schedule before the end of 2015.”
OECD National Contact Points
4 Access of victims of human rights violations to legal remedies
4.1 Development of the OECD National Contact Point [page 31]
“The OECD Guidelines include a monitoring mechanism referred to as the National Contact Points (NCPs), which are established by governments adhering to the Guidelines. NCPs promote the Guidelines and implement them.
The primary objective of the OECD procedure is to promote the resolution of conflicts between the parties. The NCP´s task is to act as a mediator in this process. Where necessary, in addition to the mediation duty, the NCP will make a statement on whether the company in question followed the OECD Guidelines. The statement of the NCP is not a legal remedy in the sense of obliging a company to change its operations or in the sense of resulting in potential compensation or other types of reimbursement for activities in violation of the guidelines.
The NCP in Finland is the Ministry of Employment and the Economy together with the Committee on Corporate Social Responsibility. The Committee states, by request of the Ministry, whether it sees that a company has followed the Guidelines. Finnish NCP’s procedures are described in more detail in the background memo and online15.
As a follow-up measure, the working group proposes that
- alternatives for the development of the NCP be mapped out. In the meantime, the procedures of the NCP shall be clarified and communications shall be made on them.
Principal responsible party: Ministry of Employment and the Economy, schedule before the end of 2015.”
Persons with disabilities
The Finnish NAP does not make an explicit reference to Persons with Disabilities.
Policy coherence
Policy coherence is not explicitly addressed in the NAP, but is addressed at certain points.
Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan
“In order to ensure a balanced result, all further actions will be prepared in extensive co-operation with various stakeholders. This is supported by the working group proposal to assign responsibility for monitoring the implementation to the Committee on Corporate Social Responsibility. In addition, the ministries will monitor the progress of proposals in their respective areas of responsibility.”
1 The state obligation to protect human rights
1.2 Activities in international organizations [page 14-15]
“Generally, Finland supports the mutual dialogue between international organisations and their cooperation on human rights issues to increase coherence. …
As a follow-up measure, the working group proposes that
Finland supports the cooperation and discussion with the WTO and other essential international organisations such as ILO or WIPO (World Intellectual Property Organisation), carried out within the framework of the WTO Coherence Mandate.”
Privatisation
The Finnish NAP does not make an explicit reference to privatisation.
Public procurement
Abstract
“Key aims for the action plan are the legislative report, definition of the due diligence obligation, and the application of social criteria in public procurement.”
Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan
“Key aims for the action plan are the legislative report, definition of the due diligence obligation, and the application of social criteria in public procurement.”
Social criteria in public procurement
The EU Procurement Directive better allows social issues to be more effectively taken into consideration in public procurement. The possibilities for emphasising quality factors and social responsibility afforded by the Directive are being used in the comprehensive amendment of the Act on Public Contracts. Amendment of the Act on Public Contracts is being carried out under the Ministry of Employment and the Economy in cooperation with stakeholders.
Foreword
“As a state, Finland actively works to ensure that human rights are respected in international arenas. In Finland, the Constitution provides strong protection for the realisation of human rights. The working group has written down objectives for Finland’s international activities, but improvements are also proposed for the state’s operations as a public procurer …”
2 The state and companies
2.1 The state as an economic operator [page 20-21]
SOCIALLY RESPONSIBLE PUBLIC PROCUREMENT
“The value of public procurement in relation to EU gross domestic product is approximately 17 per cent. It is likely that such a large amount includes procurement that may have significant impacts on human rights. In its Resolution on Corporate Social Responsibility, the Finnish Government encourages public procurers to take social aspects into consideration. For the promotion of human rights, the procurement act allows consideration of aspects related to employment, working conditions, the position of vulnerable individuals and corporate social responsibility in connection with public procurement. The Ministry of Employment and the Economy has published a guide to socially responsible procurement, with practical examples gathered from procurement units, explaining how social aspects can be taken into consideration in each stage of the procurement process. In addition, the Ministry maintains the CSRkompassi.fi website (available in Finnish and Swedish, some material also in English), with information and material for taking social aspects into consideration in long production chains related to public procurement.
In connection with the consultations organised by the working group, the idea of a statutory obligation to take social aspects into consideration in public procurement was presented. For instance, there is a federal obligation in the United States to include terms on the prohibition of the worst forms of forced labour and child labour in public procurement. In Finland, procurement legislation is procedural in nature, and it makes no statement on what is procured or on what terms. It provides guidelines for the types of procedures that should be used in order for the procurement process to meet the legal principles related to transparency, non-discrimination and equality. There are approximately 30,000 to 40,000 procurement objects, which means that setting a categorical obligation for all procurement may lead to significant challenges in an individual procurement. A categorical obligation would produce the need to allocate monitoring resources to procurement with only a small risk related to human rights impacts. The third challenge related to the proposal is the functionality of the compelling guiding methods. Some of the state procurement is made through Hansel Ltd., and some directly from agencies and ministries. Except for procurement legislation, the state has no other power to guide municipal procurement.
The Act on Public Contracts is currently being amended on EU directives so that social aspects can be taken into consideration more easily in the future.
As a follow-up measure, the working group proposes that
- references to Section 49 of the Act on Public Contracts and to the Guide to socially responsible procurement be added to the procurement guidelines for ministries; and
- the responsibility themes in the state procurement manual be updated;
- in connection with the reform of the public procurement online notification service “Hilma”, a field be added to the sections containing procurement data to indicate whether social aspects have been taken into consideration in the procurement. This would improve statistics related to social procurement and encourage the consideration of social aspects in the future.
- A report will be made on the product groups that pose the highest risk for human rights violations. The report would increase the awareness related to responsible procurement and help target the consideration of the social aspect for the product groups that pose the highest risk.
- Finland promotes socially responsible public procurement in the EU by distributing information and experiences of Finnish practices.
Principal responsible parties: Ministry of Finance, Ministry of Employment and the Economy, schedule by the end of 2015.”
Security sector
The Finnish NAP makes no reference to security sector.
Small & medium-sized enterprises
3 Expectations towards companies and support services
3.3 Training and counselling [page 27]
“… compared to large companies, SMEs have limited resources for acquiring training related to human rights. For this reason, it is important to provide targeted training for SMEs.”
As a follow-up measure, the working group proposes that …
• training related to the theme of business and human rights be provided to companies. The special emphasis is on SMEs operating in branches of activity that pose a high risk for human rights.
Principal responsible parties: Ministry for Foreign Affairs and Ministry of Employment and the Economy in conjunction with business sector organisations, schedule 2014 to 2016.
State Owned Enterprises/ Public Private Partnerships
2. The State and Companies
2.1 The State as an economic operator
Corporate Governance [page 22]
The Ownership Steering Department in the Prime Minister’s Office has set a CSR reporting requirement for unlisted companies that are either majority-owned by the state or entirely state-owned. This also includes human rights. The obligation requires that companies submit reports in accordance with the best practices in the branch of activity concerned and, at minimum, adopting the standards corresponding to those of their central competitors. As an owner, the state expects that the administration and management of state-owned companies take human rights into consideration in a responsible and transparent manner, both in their own organisation and in their subcontracting chains. As a follow-up measure, the working group proposes that:
-the importance of human rights to the state when serving as a company owner will continue to be emphasised in preparing the next decision in principle on ownership policy.
– When the amended OECD Guidelines on Corporate Governance of State-Owned Enterprises enter into force around the end of 2015, the new definitions of policy will be included in the ownership guidance practices of the Finnish state. Principal responsible party: Prime Minister’s Office, schedule before the end of 2016.
Read more about State Owned Enterprises/ Public Private Partnerships
Supply chains
Introduction [page 11]
““Companies should also critically assess the activities of their contractual partners – for instance, in supply chains – and to react to the shortcomings detected.””
1 The state obligation to protect human rights
1.3 Activities in the EU [page 17]
RAW MATERIALS
“The Commission proposal has taken into consideration both the OECD Guidance for mineral purchasing in conflict zones as well as the OECD and UN guidelines more generally related to responsible supply chain management. The proposal is currently being discussed on the national level. Finland actively participates in the discussion of the proposal in the Council working group. …
As a follow-up measure, the working group proposes that
- Finland actively participate in the discussion of the proposal for a regulation on conflict minerals and in the discussion for the development of practices for responsible supply chains in the raw material sectors.
Principal responsible party: Ministry for Foreign Affairs, continuous activities.”
3 Expectations towards companies and support services
3.1 Clarification of due diligence [page 25]
“In the Guidelines, business relationships cover relations with business partners, supply chain operators and other operators independent of the state and governmental operators that are directly related to the company’s business activities, products or services. If the company has a lot of suppliers, it should identify the areas where the risk of adverse impacts is highest and contribute to the prevention of these risks.”
Taxation
Government covering note on the UN Guiding Principles on Business and Human Rights National Action Plan
Ownership policy and social responsibility
“Companies with a controlling interest held by the State assess the human rights risks of their own operations and those of their subcontractor chains, reporting on them and their own tax procedures. In doing follow-up work on the operating principles of social responsibility, consideration should be given together with companies and other stakeholders on how models developed in ownership steering could also be applied in other company functions.”
The 2030 Agenda for Sustainable Development
The Finland NAP does not make an explicit reference to the Sustainable Development Goals.
Tourism sector
The Finnish NAP does not make an explicit reference to the tourism sector.
Trade
1 The state obligation to protect human rights
1.2 Activities in international organizations [page 14]
“As a follow-up measure, the working group proposes that
- Finland shall bring forward questions related to human rights in international trade and development organisations and direct its support to programs related to business and human rights as part of Finland’s support to international trade and development organisations.
- Finland supports the cooperation and discussion with the WTO and other essential international organisations such as ILO or WIPO (World Intellectual Property Organisation), carried out within the framework of the WTO Coherence Mandate.”
1.3 Activities in the EU [page 16-19]
TRADE POLICY
“The promotion of the realisation of human rights is a central part of the EU’s foreign relations. The common EU trade policy is carried out in the framework of the EU foreign relations principles and objectives. The common trade policy applies to third countries outside of the internal market. Member States cannot enact trade policy norms or conclude agreements between each other or with countries outside of the EU. The competencies transferred to the EU are exercised by its institutions. The Commission uses the competence outwards, representing the EU and negotiating on behalf of the Union.
The provisions on competencies and decision-making create the legal framework for the conduct of the EU’s trade policy, but material objectives are not provided for. The objectives are created in the interaction between the Commission and the member states. For Finland, it is essential to get Finland’s own national objectives integrated into the EU objectives.
As a follow-up measure, the working group suggests that in order to reinforce the human rights aspect in the EU trade policy:
- Finland will support the strengthening of human rights assessments in third countries during EU trade or investment agreement negotiations and when monitoring their implementation. Finland shall make use of the human rights assessments in forming its own opinions related to trade policy positions. Finland supports that human rights will be taken in to account in the EU investment agreements or in potential new bilateral agreements made by Finland.
- Finland endorses the inclusion of human rights clauses to all EU political framework agreements and their consideration as essentials elements in trade agreements. In trade agreements, Finland shall also endorse clauses enabling an exemption from agreed provisions in cases where the other contracting party violates human rights.
- Finland shall monitor and influence human rights questions related to trade through the EU Generalised System of Preferences (GSP) by actively participating in the work of the Council of the European Union GSP Working Party and GSP Committee. The objective of Finland is for the system to promote the effective and efficient implementation of human rights in countries benefiting from the GSP. The system covers a special incentive mechanism for sustainable development and good governance (GSP+), a special arrangement for the least developed countries as well as a general arrangement.
- Finland promotes human rights issues in the framework of bilateral and interregional trade agreements by making use of the work of the monitoring groups for sustainable development of those agreements in matters related to trade and labour rights.
- Finland is involved in international work in UN decision-making bodies related to communication technologies (such as WSIS and the World Summit on the Information Society) as well as in other central international organisations (such as the Internet Governance Forum, IGF). The objective of Finland is to reinforce the administrative system of an open and inclusive network so that freedom of speech is ensured in the development of the international information society.
- A report shall be made on how trade and human rights as well as trade and labour rights have been taken into consideration in the free trade agreements of the EU, the United States and some other countries (such as regulation, monitoring mechanisms, dispute settlement and implementation).
Principal responsible party: Ministry for Foreign Affairs, continuous activities, report by mid-2015.”
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 28]
“As a follow-up measure, the working group proposes that
- the possibilities of funding new programmes or initiatives be examined. These programmes or initiatives should be related to business
- and human rights, particularly trade, business activities and rights at work, and they may have significantly positive effects on development.
Principal responsible party: Ministry for Foreign Affairs, schedule 2014 to 2015.”
Workers’ rights
The Finnish NAP makes reference to the ILO core Conventions which include workers’ rights protections. There are also some direct references to workers’ rights.
1 The state obligation to protect human rights
1.3 Activities in the EU [page 18-19]
TRADE POLICY
“As a follow-up measure, the working group suggests that in order to reinforce the human rights aspect in the EU trade policy:
- Finland promotes human rights issues in the framework of bilateral and interregional trade agreements by making use of the work of the monitoring groups for sustainable development of those agreements in matters related to trade and labour rights. …
- A report shall be made on how trade and human rights as well as trade and labour rights have been taken into consideration in the free trade agreements of the EU, the United States and some other countries (such as regulation, monitoring mechanisms, dispute settlement and implementation). Principal responsible party: Ministry for Foreign Affairs, continuous activities, report by mid-2015.”
3 Expectations towards companies and support services
3.5 Support for Finnish and international organisations promoting the subject [page 28]
“In 2014, approximately EUR 17 million were spent to support the projects of the International Labour Organisation (ILO). The projects are related to matters such as rights at work, green workplaces for the construction sector, the inclusion of women in the labour market, and decent work.”
