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Guiding Principle 2

States should set out clearly the expectation that all business enterprises domiciled in their territory and/or jurisdiction respect human rights throughout their operations.

Commentary

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.

There are strong policy reasons for home States to set out clearly the expectation that businesses respect human rights abroad, especially where the State itself is involved in or supports those businesses. The reasons include ensuring predictability for business enterprises by providing coherent and consistent messages, and preserving the State’s own reputation.

States have adopted a range of approaches in this regard. Some are domestic measures with extraterritorial implications. Examples include requirements on “parent” companies to report on the global operations of the entire enterprise; multilateral soft-law instruments such as the Guidelines for Multinational Enterprises of the Organisation for Economic Co-operation and Development; and performance standards required by institutions that support overseas investments. 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.

What National Action Plans say on Guiding Principle 2

[accordion clicktoclose=true tag=h3] [accordion-item title="Belgium"]

STATUS IN BELGIUM/ACTIONS ENGAGED:

In Section 4 “Scope of the action plan” p.7:

In the introduction it is stated that “the NAP aims to stimulate companies (active in Belgium and abroad) and international companies active in Belgium to respect and promote human rights both within their own enterprise and in their sphere of influence.” And, “The second pillar, which concerns companies’ responsibility to respect human rights, is of paramount importance for the implementation of the UN Guiding Principles. Since this second pillar focuses exclusively on the initiatives of the companies themselves, the NAP does not deepen this issue. Through this NAP, Belgium wants to encourage and invite companies to organize the implementation of the second pillar in an ambitious and coherent way, and in consultation with stakeholders.”

PLANNED ACTIONS:

Several actions are focused on promoting human rights in the business community:

Action point 8, Encourager les accords-cadres internationaux [Encourage international framework agreements] states “in the course of 2017, the Federal Public Service of Employment, Labor and Social Dialogue will organize a seminar on international framework agreements to assess the issues and scope of these transnational collective negotiations. This seminar will be an opportunity to take stock of these framework agreements and their regulatory role alongside the law; of the observed trends; and the effectiveness of these instruments for enterprises and employees of multinationals companies.”

Action point 10, La Belgique s’engage à intégrer des critères « droits de l’Homme » et de Responsabilité sociétale des entreprises (RSE) dans la stratégie d’appui au développement du secteur privé local de la coopération belge [Belgium is committed to integrating human rights and corporate social responsibility (CSR) criteria into the local private sector development support strategy of Belgian cooperation] explains that both the management contract between the Belgian State and the Belgian Investment Company for Developing Countries (BIO) and the Convention 2014-2017 for the implementation of the Trade for Development Center, signed between the Belgian State and the Belgian Technical Cooperation, provide that all interventions aimed at development of the sector private sector must respect certain principles of intervention, among these the respect for social and environmental aspects as wells as good governance. These two legal tools also provide reporting obligations to monitor and evaluate compliance with the principles.

Action point 11, Assurer une meilleure coordination entre les autorités fédérales et régionales afin d’intégrer des critères relatifs aux droits de l’Homme et à l’ entrepreneuriat socialement responsable dans les aides publiques [Ensure better coordination between federal and regional authorities in order to integrate criteria relating to human rights and socially responsible entrepreneurship in public aid] aims at bringing together the various public services that work with Belgian companies on trade and foreign investment in order for them to exchange information at regular intervals. In this context, the government will examine a common method to integrate into the evaluation of applications the promotion of human rights and other aspects of social responsibility.

Action point 14, Evaluer le label belge visant à promouvoir la production socialement responsible [Evaluate the Belgian label to promote socially responsible production], presents “the Belgian label” that was a product label created in 2002 and promulgated by law to promote socially responsible production. Companies able to demonstrate that core labor standards were respected throughout their production chain for their products and services, can apply the “Belgian social label” to these products and services. The Minister for Economic Affairs grants the label on the basis of a binding opinion by a stakeholder committee.

While the Belgian social label guarantees consumers the respect for human rights, and labor rights in particular, throughout the entire supply chain, a series of limitations seem to have held back its success. The planned action includes drawing up these limitations, so that solutions can be formulated for the relaunch of a new upgraded label.

On Action point 17, Plaider au niveau de la Belgique pour le renforcement de l’intégration du développement durable (y compris des droits de l’Homme) dans les accords de libre échange [Advocate for strengthening the integration of sustainable development (including human rights) in free trade agreements] the federal government states that during negotiations at the European level, Belgium will advocate for the respect and inclusion of fundamental labour rights and international environmental standards – including in cases of development cooperation – in investment agreements and free trade agreements.

The issue is also covered in: Action point 13, Renforcer et contrôler le respect des droits de l’Homme dans les marchés publics [Strengthen and monitor the respect for human rights in public procurement]; Action point 16, Promouvoir les rapports sociétaux, droits de l’Homme inclus [Promote social reporting, including human rights]; Action point 22, Encourager la gestion responsable des chaînes d’approvisionnement avec une approche sectorielle [Encourage responsible supply chain management with a sector-wide approach]; and Action point 24, Accorder une attention particulière à la question des droits de l’enfant dans la sensibilisation des entreprises [Pay special attention to the issue of children’s rights in awareness raising of enterprises].

Pillar II. The Corporate Responsibility to Respect

BOX – What does the Government expect from business enterprises? [page 31]

That they comply with and respect the existing legislation.
That they know and get acquainted with the international instruments on social responsibility, such as the UN Guiding Principles on Business and Human Rights, OECD Guidelines, and ILO Tripartite Statement.
That they apply due diligence in the field of human rights with the purpose of identifying the potential risks of impacts on human rights by their operations.
That they create operational mechanisms for remedy allowing them to identify potential impacts and establish remedial actions in case this happens.

VI. Culture of Human Rights and peace-building in the business sector

Two political agendas working together [page 18]

6.1 The Council to the President for Human Rights, within the following year of this Plan being launched, will encourage business to define and publicly disclose their political commitment to respect human rights.

Pillar I. The State Duty to Protect Human Rights

Publication and dissemination of existing documents, education and awareness-raising [pages 9-11]

Implements Principles 2, 3c and 8

Increasing attention is paid to the theme of business and human rights in recent years. Many countries, international organisations and universities have produced numerous documents, model professional and theme-based codes of conduct, examples of good practice, recommendations and guidelines. Examples include recommendations and model codes published by the OECD, EU bodies, the Council of Europe and the ILO, as well as examples of good practice from the business community. However, these documents have not been gathered in one place. Businesses wishing to guard against human rights risks in their operations, perhaps by introducing new internal control mechanisms, adopting a code of conduct or incorporating human rights clauses into their contracts, may find it difficult to look up information.

A sound of response would be to find these documents, collect them in one place, classify them and, where necessary, translate them into Czech so that texts on business and human rights are made available to the general public. When new materials are drawn up, they should be written in plain language that a layman can easily understand.

The world’s universities are also aware of how important this subject is. The “Teach BHR” platform, grouping together those who teach business and human rights at universities, currently has 240 members from 140 institutions in 32 countries. It also offers ready-made study materials, workshops and experience-sharing forums. When it comes to Czech higher-education institutions, the University of Economics, Prague, runs a specialised course called “Business and Human Rights”, and other colleges cover this topic, for example, as part of their business ethics courses.

Current state of play:

The Quality Council of the Czech Republic runs the National CSR Information Portal.
The supreme judicial bodies publish summaries of key rulings, especially those relevant to human rights.
Every year, the Government publishes a Report on the State of Human Rights and numerous other reports and documents analysing respect for human rights in the Czech Republic. Reports in the same vein are also published by other institutions, including the Ombudsman.
The National Contact Point for the implementation of the OECD Guidelines for Multinational Enterprises is responsible for promoting the Guidelines and their instruments (seminars, training, promotional materials, etc.).
The Ministry of Industry and Trade, in cooperation with the Czech Trade Inspection Authority has launched the “Consumer Protection” project to provide information on the latest developments in consumer law.

Tasks:

Propose changes to the website of the National CSR Information Portal.

Coordinator: Ministry of Trade and Industry

Co-coordinator: Ministry for Human Rights

Deadline: 30 June 2018

On the National CSR Information Portal, post documents and materials of business associations (the Czech Chamber of Commerce, the Confederation of Industry, the Confederation of Employers’ and Business Associations of the Czech Republic, industry associations, and others), trade unions and NGOs active in corporate social responsibility for those businesses that take the voluntary decision to subscribe to human rights commitments.

Coordinators: Ministry for Human Rights, Ministry of Industry and Trade

Deadline: Running, following the completion of the previous task

Translate the UN Guiding Principles and other key documents into Czech.

Coordinator: Ministry for Human Rights

Deadline: 31 December 2017

Provide the National Portal administrator with business and human rights documents that the ministries have at their disposal and that concern their scope of responsibilities.

Coordinators: All ministries

Deadline: Running

Assess the vehicles in place to provide businesses with information on human rights risks in countries or regions where they are planning to set up operations.

Coordinator: Ministry of Foreign Affairs

Deadline: 31 December 2020

Pillar II. The Corporate Responsibility to Respect [page 29]

The Government of the Czech Republic expects Czech businesses, whether they operate in the Czech Republic or abroad, to respect – now and in the future – human rights in all of their activities, at least to the basic extent described below. They should not directly cause, contribute to or otherwise be associated in any way with human rights abuses. They should make reasonable efforts to guard against violations of human rights, and should strive to prevent human rights abuses in situations in which they are involved and over which they exercise influence.

The Government of the Czech Republic expects businesses operating in high-risk sectors and areas to take reasonable measures – beyond the scope of their legal obligations – to minimise the risk of human rights abuses.

Commitment [pages 32-40]

A business faced with risks of human rights violations in its operations should make it publicly clear, in the first place, that it is aware of those risks and is ready to tackle them. This respect for human rights is expressed outwardly by a publicly communicated business commitment.

The Government of the Czech Republic recommends that businesses adopt internal commitments in accordance with the recommendations below. It recommends, in the formation of commitments and codes of conduct, drawing on the aforementioned international conventions and Guiding Principles of the UN or other internationally acknowledged standards (such as the Global Compact or the sectoral recommendations of the OECD). The adoption of such commitments should not be reduced to a formal declaration, but should be followed up by specific steps for their implementation. Companies actively subscribing to human rights responsibility set a good example for the entire sector and help to spread the Czech Republic’s good reputation abroad.

What should a commitment encompass?

A definition of whose human rights are affected by the commitment.
Conformity with national law and fundamental international legal standards: If national law is at odds with internationally acknowledged human rights requirements, businesses must find ways of respecting international standards that will not bring them into conflict with national law.
Human rights as a legal compliance issue: Even if the host state’s law does not enforce human rights standards, approach them within the framework of internal decision-making as though they were legal requirements.
Handling of borderline situations: What to do if a commitment cannot be pursued completely, e.g. due to a conflict with the host state’s law or the monopoly supplier’s requirements.
Control, evaluation and implementation mechanisms.
Frameworks for consultation with the groups of the public affected or their representatives (this matter is covered by a separate section below).
Relations with partners: Although an internal document cannot dictate how business partners are to conduct themselves, it can influence them indirectly. In this respect, businesses should specify – as part of their commitment – what standard of care they expect from their partners and suppliers and, status permitting, they should implement that standard in the form of tender conditions of contractual clauses or by other means.
Protection of whistleblowers: This includes, on the one hand, instructions for employees on how to proceed if they detect unlawful conduct and, on the other, protection from retaliation.
Reasonable training, education and awareness-raising
Mechanisms of redress and the resolution of disputes between a business and any victims within the business.
Transparency, provisions on public information.

For a commitment to be effective, it should also comply with the following formal and procedural criteria:

Approval by the highest echelons of management: Board of directors, chief executive officer, etc.
Professional production: For small businesses, it is enough to adopt any of the model documents. Multinational corporations with complex business dealings should devise a built-to-suit commitment.
Specific expectations of specific persons: The commitment should not be a general declaration, but should have specific implications for employees and management alike, including a designation of liability for implementation and checks. It is essential for employees to be acquainted with the commitment and the consequences of breaching it.
Implementation: Other internal policies, directives and instructions should be brought into compliance with the commitment, or new ones should be drawn up. Enforcement within the scope of internal processes is absolutely crucial.
Group-wide scope: If a business as a de facto influence on the functioning of other businesses, stemming in particular from the controlling relations within a group, the commitment should also apply to them.
Updates: The commitment should be regularly revised and updated.

Businesses may – and are encouraged to – modify tenets of the Guiding Principles and tailor them to their operations, provided that there is no loss of substance or purpose as a result. One example of this sort is the sectoral Electric Industry Code of Conduct, which fleshes out and applies the Guiding Principles to the specific needs of the electrical engineering industry. This Code was drawn up by the Electronic Industry Citizenship Coalition and has also been adopted by several companies in the Czech Republic.

A commitment is not merely an internal document. It is a statement by a business that it is aware of and serious about its human rights responsibility. Besides being posted on the corporate website, the commitment should also be incorporated into communications with suppliers, investors, business partners and other groupings. These communications should encompass the following information:

How did the commitment come about?
What target groups (right-holders) does it concern?
How will it be disseminated among those it concerns?
- Among those who are to implement it (employees, suppliers)?
- Among the right-holders who are to protect it?

Due Diligence

The Government of the Czech Republic recommends that businesses consider introducing an internal due diligence mechanism to spot and eliminate human rights risks, or incorporate human rights risks – as another evaluation criterion – into their existing due diligence mechanisms.

The term “due diligence” is broadly known in the business community and denotes in-depth reviews into businesses and or the transactions they are preparing. The UN Working Group on Business and Human Rights defines human rights due diligence as a process to identify and evaluate human rights risks, a series of steps to understand how a company’s activities can affect human rights. It must also include appropriate responses to the findings. A fundamental difference between financial risk and human rights risk is that, while financial audits and financial due diligence explore the ramifications for the business itself, human rights due diligence examines the effects on third parties – the holders of human rights (customers and people living in the vicinity of a business or who are affected by its operations).

The search for and eradication of human rights risks should form part of all major commercial operations, not just because any violations of human rights that are exposed could lead to hefty financial losses (compensation, loss of customers, a tarnished reputation), but mainly because – unlike economic loss – human rights loss cannot be fixed so easily.

An effective due diligence mechanism should meet the following criteria:

Consider the internal risks (stemming from the business’s own operations) and external risks (particularly in relation to business partners and other entities with which the business works).
Identify existing risks (with a view to eliminating them) and potential risks (with a view to preventing any loss or damage).
Adapt the mechanism to the size of the business, the nature of its operations and specific local factors.
Implement the mechanism in the internal management system.
Regularly update the mechanism to reflect evolving conditions.
Leverage the experience and knowledge of independent experts who operate externally or maintain a high degree of personal independence.
Engage employees, as they should have the opportunity to draw attention to risks and provide assistance in the removal thereof.
Engage the public directly concerned, stakeholders in the community and vulnerable groups in the formation of the mechanism.

Public engagement can take many forms. First of all, this may entail consultations with those affected by businesses’ operations (holders of human rights) because these people are best placed to highlight the problems looming over them. Likewise, employees should be involved as they need to know how to deal with the knowledge they accrue in their work. Finally, public engagement may comprise external expert opinions, opposing views, etc.

Most companies have already introduced control mechanisms that can be tweaked so that they also apply to human rights risks. These tend to be compliance mechanisms, used by businesses to keep track of requirements imposed by legislation, regulators, investors and capital markets (the conditions for participating on the stock exchange etc.). Businesses should view the obligation to respect human rights as a legal compliance matter. Even if the duty to comply with human rights in the course of business operations may not derive directly from a particular country’s legal system, businesses should act as though this were the case and attribute the weight of the law to moral and ethical rules in their internal decision-making. This will enable them to incorporate human rights protection into existing mechanisms used to run checks on legal obligations. As a result, businesses will comply with their duty to respect human rights and take due care at minimum extra cost, thereby making big savings.

Human rights auditing should extend beyond the actual business to some extent and touch on the activities of external entities, such as those in the supply chains. Businesses could have a hand in violations of human rights through their own negligence, including via their subsidiaries and suppliers. Such conduct, despite not being wilful or intentional, does not relieve a business of liability as it could be viewed – by the courts and the public – as a form of negligence or failure to engage in appropriate supervision.

Although it is impossible for a business to carry out due diligence at an external entity to the same extent as internal due diligence, those areas that are most at risk should be identified, someone should be singled out as liable for infringements of rights and, where possible and feasible, specific steps to eliminate these risks should be demanded. If external risks identified, businesses should exercise any influence they have to stave off those risks, for example by sharing good practices and their own experience. Businesses lacking such influence should leverage their links with other entities (customers, suppliers, business associations, trade unions and bodies of public administration). If they have no way of influencing such conduct, they should weigh up the option of terminating cooperation.

Businesses who decide to publish the results of due diligence should:

Choose a form that the general public can readily understand. Besides conventional reports, they might consider personal meetings, online discussions and public hearings.
Choose a scope and frequency that enables them to pass on all necessary information without overwhelming the reader.
Publish not only the risks that have been identified, but also the steps to tackle them.
Withhold information that could encroach on the privacy or other legitimate interests of employees and other persons, and refrain from disclosing business secrets.

Removing the effects of loss or damage

The Government of the Czech Republic recommends that businesses who, even if only hypothetically, could encounter human rights risk should have procedures in place in case their operations cause human rights loss. The aim should be to find a peaceful solution to disputes and to provide a remedy.

Although everyone is entitled to take their dispute to a state body, i.e. an authority or a court, for an authoritative decision, judicial proceedings are not always the most appropriate way forward for all types of disputes. What is more, litigation could generate negative publicity for a business. Where the extent and nature of an infringement allow, it is advisable to seek an out-of-court settlement. While this is not suitable for all types of dispute, it can often be faster, less costly and more readily accepted by the victims.

Alternative dispute resolution can take the form of structured dialogue, mediation or arbitration. A wide panoply of remedies is available. Besides cash satisfaction, non-financial remedies should also be offered, in particular a public apology, the restoration of what has been damaged to its previous condition, the commissioning and payment of professional services (e.g. medical services, the clean-up of a water source), and the provision of non-monetary assets (e.g. replacement land, goods). The victims’ wishes and interests are of particular importance when deciding how to proceed. Safeguards to prevent a recurrence of the infringement are integral to this mechanism.

Remedial mechanisms may be applied in cooperation with other (external) entities. For example, it is possible to draw on the services of certain state bodies providing services for the out-of-court settlement of consumer disputes (the Czech Trade Inspection Authority, the Czech Telecommunication Office, the Financial Arbitrator, and the Energy Regulatory Office).

If a dispute does end up in court, businesses should not back themselves into a defensive corner. In many cases, it may be more appropriate to admit to certain individual errors that cannot be disputed and then make an attempt at reaching an agreement or conciliation.

The logical end result is the adoption of measures preventing a recurrence of any such incident in the future.

Transparency

The Guiding Principles set great store by openness and transparency, which in practice means communication with the public, with employees and with other stakeholders. Businesses should make public the fact that they are mindful of their responsibility, that they are not just assuming this responsibility for show, and that they accept it as part of their business ethics. This ongoing communication could include not only the public, but also investors, business partners and potential employees, for whom the business, by following this path, has become a more attractive partner or place to work. Communication may be one way (e.g. various forms of non-financial reporting) or bidirectional (e.g. public hearings on matters of general interest).

The Government of the Czech Republic recommends that businesses where the activities, products, services or business relationships are associated with risks of serious human rights violations formally provide information on how they are dealing with those risks, even in situations where the law does not require them to do so. The government recommends all companies reporting on human rights to take account of the Reporting Framework for the UN Guiding Principles on Business and Human Rights. Reporting should provide information of relevance without overwhelming the reader. The Government also recommends that large-scale projects with a potential major impact be publicly presented and consulted.

Voluntary non-financial reporting

In the European Union, large companies are required to publish certain non-financial information, including information on human rights matters. Small businesses, however, may report voluntarily, especially if they are active in sectors or in countries where there is a heightened risk of encroachment on human rights. Transparency is highly self-regulatory and makes it easier to appoint a responsible person in complex corporate structures. It enables a business to evaluate and map out risks, while making it clear to the public that the company does not underestimate them.

What should be included in a report? Human rights standards, as opposed to financial reporting, which is governed by sophisticated and internationally reputed respected standards, are still inchoate. Even so, the following information should not be left out of a report:

Whether a human rights commitment has been made, how it has been devised, whose rights it affects, how it is communicated, and whether and how responsibility for compliance is addressed within the business.
A specification of key issues, i.e. areas viewed by the company as operationally risky, or in which it is most involved. Information about how such issues have been identified and, if the company has operations in multiple countries, information as to which countries are affected.
Information on how these risks are addressed and what measures have been taken.
Significant events that have occurred in the past year.

A business may publish periodic non-financial reports in numerous forms, either as part of the annual report or entirely separately. In any case, they should be posted online on the business’s website. The non-financial report should not be drawn up just for show, but should shed light on significant information relevant to an impact assessment of the business’s operations. On the other hand, it should remain brief and concentrate on matters of relevance. Parent companies should include information on the activities of their subsidiaries.

Human rights commitments cannot always be assessed with precision. Businesses should retain the option of evaluating commitments according to their own internal schemes and criteria. Nevertheless, where possible standardised indicators, including historical developments, should be used. The application of internationally acknowledged standards for non-financial reporting is recommended. These include:

Non-financial reporting standards based on the Guiding Principles on Business and Human Rights
Global Reporting Initiative, an independent international organisation specialising in the reporting of the impacts of business operations in the fields of human rights, the environment and corruption
Integrated Reporting (IR)

Transparent consultation of matters of general interest

If a business is preparing a major project that could be linked – even if only potentially – with human rights risks, open communication with all stakeholder groups is recommended. Negotiations should be guided by the following principles:

They should take place sufficiently early on.
The top management, or at least those with enough decision-making powers, should be involved.
The form taken by the negotiations should reflect the seriousness of the risks, the scale of the project, and the addressees’ abilities and capacities (an online form, public meetings, personal visits).
Plain language should be used in the negotiations. Complex legal or economic language may not be understood by the uninitiated and could be misinterpreted as an effort to conceal something.
If the direct participation of a particular group is impossible, communication with their representatives or with experts familiar with the situation is an option.

Cooperation

Businesses in the same industry or in the same geographical area are exposed to similar problems, so it is more efficient for them to tackle them together. Cooperation could result in the exchange of good experience and practical examples, and in the creation of new instruments (in particular the conclusion of sectoral agreements or the adoption of sectoral standards). Not only will businesses save money and leverage economies of scale, but will also be in a position to combat unfair competition from businesses that have forgone basic standards.

Chambers of commerce, industrial associations, professional organisations and voluntary initiatives facilitating the sharing of good practice and the exercise of informal influence over other businesses in the sector are ideal platforms for human rights issues. However, projects involving not only businesses, but also other stakeholders are best suited and the most effective here.

The Government of the Czech Republic recommends that industry associations and voluntary business associations raise awareness of the Guiding Principles in their activities and urge their members to incorporate these Guiding Principles into their internal corporate documents.

Documents and sources of information

The Office of the Government of the Czech Republic collects model documents, guidelines and materials intended for businesses to improve the performance of tasks in this chapter, and posts them on the National Corporate Social Responsibility Portal: http://narodniportal.cz/

Preface [page 6]

“Companies must integrate social responsibility in their core business.”

2. State Duty to Protect Human Rights

2.3 Actions taken [pages 11 and 13]

Danish Government’s expectations to companies

“In the National Action plan for CSR, the Danish Government sets out clear expectations to Danish companies that they must take responsibility to respect human rights when operating abroad- especially in developing countries where there can be an increased risk of having an adverse impact on human rights (GP 2).

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).”

Companies that receive substantial support and services from State agencies

“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.”

22.4 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.”

3. Corporate Responsibility to respect human rights

3.3. Actions taken [page 18]

Expectations to companies and other stakeholders to respect human rights

“The National Action Plan for CSR (March 2012) contains a number of expectations, based on UNGPs recommendations, that companies are expected to follow (GP 2). The government has reiterated its expectations in the preface to this National Action Plan on the implementation of the UNGPs.

In order to fulfill their requirements companies need to be able to know and show that they respect human rights. The Government therefore wants to create more transparency about the CSR efforts of both private companies and public authorities. It is only through increased transparency that CSR can become a key parameter for consumer choices. Danish legislation thus requires major Danish companies to report on social responsibility in their annual reports including what specific measures they have taking to respect human rights and reduce their adverse impact on the climate (GP 3d). For more information on the legal reporting requirement on human rights see section 2.3.

The transparency framework for the major private and public companies is supported by the new non-judicial remediation mechanism where cases involving potential adverse impacts by Danish companies on international CSR principles, including adverse impacts on human rights,

can be investigated (GP 4 and GP 27). For more information on the implementation of access to remedy see section 4. In 2013, a number of Danish organisations were granted support to promoting CSR and Fair Trade.

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

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

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.
In 2008 the Danish Government published its first national action plan on CSR which encourages Danish companies and investors with international business activities to follow the UN Global Compact and Principles for Responsible Investment (PRI). Since 2007 the number of Danish companies that have joined the UN Global Compact has risen from 26 to 248.
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.

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

In the national action plan for CSR the government encourages Danish companies to demonstrate responsible business conduct and apply internationally recognised guidelines for corporate responsibility such as the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and ISO 26000 (National action plan on CSR page 6).
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 penal 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.
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.

GP 2 Continued

State Duty to Protect

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

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.
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
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)

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.

3. Expectations towards companies and support services [page 23]

The central objective of the UN principles is to promote companies’ voluntary commitment to following international human rights norms. Human rights are universally recognised, which means that following them in business activities does not depend on the ability and/or willingness of states to meet their human rights obligations. On the other hand, this does not decrease the importance of state obligations, since states are expected to follow international conventions. However, as stated before, the operation of states in implementing human rights conventions varies on an international level. If the national laws and the legislative acts of the company’s target country are in conflict with internationally recognised human rights, the company should find ways to respect human rights. However, companies are not expected to violate the national legislation of the target country.

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.

II. Business’s responsibility to respect human rights

Proposal for Action No.8 [page 38]

Actions Underway

France encourages and enhances the commitments made by businesses to respect internationally recognised human rights standards.
-Frances encourages businesses to adhere to the UN Global Compact or other voluntary initiatives such as ISO 26000 or the Voluntary Principles on Security and Human Rights, which help spread the UN Guiding Principles

III. Federal Government expectations regarding corporate due diligence in respecting human rights [pages 7-8]

With regard to corporate respect for human rights, the Federal Government expects all enterprises to introduce the process of corporate due diligence described below in a manner commensurate with their size, the sector in which they operate, and their position in supply and value chains. This applies especially when they operate in countries where the rule of law is not enforced or is only partly enforced. Such expectations are without prejudice to the fundamental duty of a state to guarantee the protection of human rights within its territory.

Scope and practical structuring of due diligence in the field of human rights

The responsibility to exercise due diligence applies in principle to all enterprises, regardless of their size, the sector in which they operate, or their operational context within a supply or value chain with an international dimension. The nature and exercise of due diligence for any given enterprise should be commensurate with these factors; it should be possible for the enterprise to incorporate its due diligence obligations into its existing processes in an appropriate manner without the creation of undue bureaucratic burdens.

Enterprises should prevent and mitigate any adverse impact of their business activity on human rights. When due diligence in the realm of human rights is defined and exercised, consideration should be given to the beneficial effects of corporate activity and to the diverse perspectives of the company’s own employees, the relevant stakeholders and others who may be affected. Within large enterprises, these include the staff of the human resources, purchasing, compliance and sales divisions. From outside the enterprise, suppliers, customers and trade unions but also bodies from civil society, business organisations and governments should be involved. Particular attention should be given to the rights of their respective employees and to those of local populations who may be affected.

Depending on the size of the enterprise, the nature of its products or services, the potential risk of particularly adverse impacts on human rights and the operating context, the measures to be taken are likely to vary in scope. It may be appropriate to conduct certain elements of the process in combination with other enterprises within an association or industry, subject to compliance with antitrust legislation. Small and medium-sized enterprises in particular should make use of the advisory and support services to be offered by the Federal Government and business associations under the National Action Plan. The expertise of organisations within civil society and trade unions should also be brought to bear. The elements of human rights due diligence described in binding form in the following paragraphs are not to be understood as a rigid sequence. On the contrary, findings relating to one element should be used continually for the revision and development of the other elements so that learning processes can take place. There must be scope for the incorporation of present and future legal requirements for the exercise of human rights due diligence.

Measures

The Federal Government expects all enterprises to introduce the processes described above in a manner commensurate with their size, the sector in which they operate and their position in supply and value chains. Their compliance will be reviewed annually from 2018. In the absence of adequate compliance, the Federal Government will consider further action, which may culminate in legislative measures and in a widening of the circle of enterprises to be reviewed (see chapter VI below).
The National Corporate Social Responsibility (CSR) Forum of the Federal Government, comprising representatives of the political and business communities, trade unions, civil society and academic professions will draw up an intersectoral “CSR consensus” paper on corporate responsibility in value and supply chains and present it to the Federal Government as a recommendation. One element of that paper, among other things, is to reinforce the expectation of a responsible management of due diligence in the realm of human rights as described in the present chapter. Further information is made publicly accessible online at www.csr-in-deutschland.de. The possibility to join the “CSR consensus” is open to all enterprises that operate in Germany. The list of companies that have joined will be updated continuously and made publicly available at www.csr-in-deutschland.de.
The aim is that at least 50% of all enterprises based in Germany with more than 500 employees will have incorporated the elements of human rights due diligence described in this chapter into their corporate processes by 2020. Enterprises which have not adopted particular procedures and measures should be able to explain why they have not done so (the ‘comply or explain’ mechanism). If fewer than 50% of the enterprises defined above have incorporated the elements of human rights due diligence described in chapter III into their corporate processes by 2020 and the target is thus missed, the Federal Government will consider further action, which may culminate in legislative measures. In this context, the Federal Government will also examine, in consultation with the National Regulatory Control Council, the necessity of the corporate compliance costs arising from this plan and will consider a widening of the number of enterprises to be reviewed, in order to potentially include enterprises with fewer employees in future assessments and subsequent additional.

Annex 1 – list of additional and ongoing actions to be carried out across government

Trade and Investment [page 20]

Encourage Irish companies operating abroad to adopt good practice with regards to consultation with human rights defenders and civil society in local communities, particularly on environmental and labour conditions.

Provide advice to business enterprises of the possible risks of human rights situations when operating in conflict-affected areas.

I. Statement of Commitment [page 5]

(…)Encourage companies, also in view of the updating of the National Strategy for Sustainable Development, in line with the commitments undertaken with the Agenda 2030 and the role that the private sector will be called to play in its implementation, to voluntarily commit themselves at national, regional and international level to prevent and redress potential human rights adverse impacts; and to realise the goal of a decent work for all, as set out in SDG 8 (decent work and economic growth); and to enhance the use of indicators of quality, sustainable development, equality and gender.

III. Government expectation towards business [page 9]

The Italian Government recognises the importance of supporting voluntary approaches of human rights respect and promotion by business as fundamental ways towards the growing of new corporate cultures and strategies inspired by social values and sustainable principles. This is particularly true with reference to Agenda 2030 and to the role that business is called to play in the SDGs implementation.

In line with the principles set out in the II Pillar of the UNGPs, and as recalled by the CoE Recommendation (2016/3), enterprises are called to respect human rights by conducting their economic activities both within national borders and abroad in a manner to prevent and avoid any potential direct or indirect human rights negative impact, internally (both to direct employees and to those involved in the supply chains) and externally (environment, community members, consumers). According to the ‘Responsibility to Respect’, in order to prevent and avoid negative human rights impacts enterprises have to conduct processes aimed at preventing the risk of causing (or contributing to) adverse human rights impact and at adopting specific measures able to mitigate eventual harmful consequences.

Companies are thus expected to: i) establish a human rights policy; ii) set up and implement due diligence processes to identify, assess and prevent any potential human rights risks which could be incurred in across their operations and activities (or business partners or suppliers’); iii) provide for mechanisms of grievance allowing reparation to victims of abuses they may have caused or contributed to, or with which they are directly linked to. In conducting this activity, which allows to foresee and avoid potential negative human right impact on individuals and communities, companies should refer at a minimum to internationally recognized human rights, as expressed in the International Bill of Human Rights and those set out in the International Labour Organization’s Declaration on Fundamental Principles and Right at Work and the ILO Tripartite Declaration on Principles concerning Multinational Enterprises and Social Policy. Furthermore, depending on circumstances, companies may want to consider additional international instruments and standards (such as the international humanitarian law in case of conflicts or other UN human rights treaties).

To this framework, it is important to add the need of disclosure of non-financial information (in this regard, Italy is also intervening with the transposition of the EU 95/2014) and the existence of remarkable standards such as the UNGP Reporting Framework, the OECD Guidelines on Multinational Enterprises and the Tripartite ILO Declaration, as well as other recognized European and International frameworks and standards such as Eco-Management and Audit Scheme (EMAS), the UN Global Compact, ISO26000 and the Global Reporting Initiative.

IV. Government responses

Current Activities and Future Commitments [page 11]

A. Foundational Principles

Guiding Principle 2

Enterprises domiciled and/or operating in Italy must respect human rights throughout all their activities: the respect of fundamental human rights is a cornerstone of the economic activities as well, carried out either by public or private companies. Art. 41 of the Italian Constitution, which guarantees the freedom of economic activity, states indeed that it may not be carried out against the fulfilment of social purposes or in a way that may jeopardise or harm fundamental rights and freedoms and human safety.

Italian Government expects then that business enterprises comply with all domestic legislation, which includes – among others – specific provisions regarding the right to form association and trade unions, the right to equal treatment and social security, the protection of the employees, consumers and environment. Economic activities should also be carried out in compliance with all recognized international instruments on human rights, such as the International Bill of Human Rights, the Fundamental ILO Conventions (in this regard, the Government supports projects in the framework of G7 and G20 meetings that are aimed at integrating ILO regulations within the fundamental rights at work), the UNGPs and the OECD Guidelines.

As to OECD, the Italian Government – through its OECD NCP – gives particular attention to due diligence and responsible supply chain management, also through multi-stakeholder initiatives. The Italian Government endorsed the G7 Declaration including the commitments related to sustainable supply chains. On the occasion of the Meeting of the G7 Employment and Development Ministers (Berlin, 12-13 October 2015) the “Action for Fair Production” initiative was approved by Ministers in order to foster sustainable global supply chain management in compliance with the internationally recognised labour, social, and environmental standards of the United Nations, the OECD and the ILO.

To this purpose, Italy will proactively support the NAP implementation by the private sector through the full development of the human rights dimension by engaging in an on-going dialogue with businesses, trade unions, non-governmental organisations, and representatives of civil society.

II. Objectives and Measures

Objective 2. Promoting corporate responsibility and respect in the field of business and human rights [pages 7-8]

B. Government measures encouraging business enterprises to secure respect for human rights

1. National Responsible Business Award– annual initiative lunched and implemented by the Ministry of Social Security and Labour together with the UN Development Programme in Lithuania and social partners from 2007 to 2012. The award honours business enterprises that have distinguished themselves and made the most progress in the area of corporate social responsibility. Since 2013, the contest for the National Responsible Business Award has been organised by the Ministry of Social Security and Labour together with Ministry of Economy and Ministry of Environment, and social partners. On 6 November 2013, the National Responsible Business Award was given out for the sixth time. It is planned to organise the National Responsible Business Award ceremony each year from 2015 to 2017. An annual international conference for dissemination of corporate social responsibility experiences is also panned to be held during this period.

2. Competition of business initiatives on anticorruption. With regard to the fact that in 2003 on the initiative of the UN 9th of December was declared the International Anti-Corruption Day, in order to support anti-corruption initiatives each year the Ministry of Economy announces the competition of business initiatives on anti-corruption and subsequently awards the initiators for the most effective business initiatives on anti-corruption.

3. Promotion of sustainable investment. Sustainable investment is investment into business, education, science, cultural and social initiatives and (or) business, cultural and social infrastructure that is oriented towards sustainable development, improvement of education, studying and science environment, creative progress and change of work methods in order to promote entrepreneurship and implement projects related to innovation development and cultural heritage. Foreign investors that applied for EU Structural Funds (hereinafter referred to as EUSF) according to the instrument INVEST LT+ administered by the Ministry of Economy for the period 2007-2013 had the opportunity to receive increased EUSF support if they made sustainable investments.

B. Planned measures

1. Promotion of social and socially responsible business. The National Progress Programme 2014-2020 approved by the Government of the Republic of Lithuania by Resolution No 1482 of 28 November 2012 (hereinatler referred to as National Progress Programme) establishes priorities for the implementation of Lithuanian progress strategy ‘Lithuania 2030’. Lithuanian Progress Strategy ‘Lithuania 2030’ defines smart economy as able to compete in the world, generating high added value and based on knowledge, integrity and social responsibility. Task 3.3 ‘Implementation of sustainable development principals in businesses’ of the Lithuanian Progress Strategy goal 3 ‘Promotion of business productivity and sustainable development’ presents measures related to promotion of CSR and social businesses:

-to promote social and socially responsible business perceiving it as modern business practice;

-to promote social business by establishing a centre for competencies and good practice, accelerators, work environments for social business, mobility incentives and implementing other measures.

-The National Progress Strategy also introduces horizontal principals related to sustainable development, gender equality and non-discrimination.

-Lithuanian Entrepreneurship 2014-2020 Action Plan shall include actions related to the promotion of CSR, including the environment that enables to develop CSR, through cooperation with economic, social and international partners, as well as CSR initiatives.

2.Innovation promotion. The Government of the Republic of Lithuania by Resolution No 1281 of 18 December 2013 approved the Lithuanian Innovation Development Programme 2014- 2020 (hereinafter referred to as Innovation Programme). The Innovation Programme defines the concept of social innovation as an application of new ideas (goods, services, methods) in order to more effectively satisfy the social needs and (or) to create new social connections, partnerships and networks. Task 3 of the Innovation Programme goal 2 foresees the promotion of cooperation of different sectors in creating innovation and highly effective innovation development. Task 2 of the Innovation Programme goal 4 states the need for creation of measures promoting innovation demand that would contribute to the solution of social, economic and environmental challenges. Innovation programme foresees that:

-it is important to promote innovation in all sectors, to involve the society, and to implement and promote non-technological, social, organisational and other innovation, not only the ones based on research;

-cooperation of different sectors in creating and providing innovative services can contribute to the solution of social challenges;

-it is important to promote the creation and development of social innovation in order to provide more effectively services for families, children, socially vulnerable groups by employing the public, private and civil society sectors as well as the potential for cooperation with education institutions;

-an action plan for the implementation of this Innovation Programme is being prepared.

Introduction [page 5]

The Netherlands encourages the business community to respect human rights. The aim is to prevent companies from abusing human rights either directly or within supply chains…The guiding principle is that businesses have a social responsibility to apply the same human rights norms both in the Netherlands and elsewhere.

Current policy [page 9]

…The government expects companies operating abroad, in particular in countries where legislation or enforcement falls short, to pursue the same standards for CSR and human rights as they would in the Netherlands.

(…) As the government pointed out in A World to Gain, its policy document on aid and trade, International Corporate Social Responsibility (ICSR) is a prerequisite for sustainable, inclusive growth. Companies bear a social responsibility for what goes on in their supply chains and for ensuring fair work under satisfactory conditions of employment. To prevent abuses in terms of working conditions, child labour, environment, corruption and human rights in their supply chains, the government expects companies to act in accordance with the OECD guidelines wherever possible. The government also holds them accountable for doing so.

The policy letter ‘Respect and Justice for All’ endorses the importance of integrated implementation of the Ruggie Framework and points to the responsibility of the business community in this respect. (…)

Human rights and trade missions [page 15]

(…) For the government, it is essential to encourage ICSR during trade missions, and it has now become a permanent feature of them. The government expects companies represented in a trade mission to look into the possible adverse effects of their operations on communities, including on human rights, in the country in question, and to pursue policies to mitigate them.

Legislation with extraterritorial application [page 38]

(…) The government would point out that extraterritorial application alone is not enough. A court judgment must also be enforceable, and it is not up to the Netherlands to decide for other countries whether this is possible. The government is therefore not convinced that legislation with extraterritorial impacts will contribute to preventing human rights abuses by foreign companies in the countries in which they are active. There is also too little international support for an international, legally-binding instrument.

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

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

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

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

In brief, the Government expects business enterprises to:

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

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

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

The Government expects all companies to:

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

Pillar II. The corporate responsibility to respect human rights [page 28]

(…)By preparing the National Action Plan for implementation of the United Nations Guiding Principles on Business and Human Rights, the government administration is sending a clear signal to entrepreneurs, pointing out that the obligation to apply the UN Guiding Principles is the best way to promote a responsible approach to conducting business activity and thus implementing other international standards, including the OECD Guidelines for Multinational Enterprises.

At the same time, the tasks included in the NAP help public administration:

– formulate expectations for entrepreneurs and support them in their fulfilment;

– support access to effective remedies for victims of human rights violations by business enterprises under Polish jurisdiction;

– promote understanding of the need to counter emerging risks and threats to business and human rights as an instrument contributing to a successful business;

– conduct a coherent policy and provide information about planned activities in the field of respecting human rights in business.

Pillar II. The corporate responsibility to respect human right

2. Dialogue and exchange of knowledge and experience in implementing CSR [page 30]

There are four categories of corporate activities that relate to corporate social responsibility: corporate governance, employees, the environment, and the product.

The activities conducted within these categories may include:

1) the shaping of an ethical organisational culture, codes of ethical conduct, risk management, communication of CSR/RBC activities through disclosure of non-financial data (social reporting, integrated reporting), anti-corruption measures;

2) dialogue with employees, concern for workplace safety, ensuring optimal working conditions, respect for human rights, recognition of the importance of diversity in the workplace, concern for the health of employees, and work-life balance;

3) responsible management of natural resources, reduction of gaseous emissions, responsible waste and sewage management, reduction of energy and water consumption;

4) responsible approach to supply chains, including the extraction and transport of raw materials, production and transport of intermediates, responsible investments, stakeholder dialogue, and consumer education.

The Polish government administration has been working intensively for years on the implementation of CSR principles. Following Poland’s accession to the OECD in 1996, a National Contact Point (OECD NCP) was established, the main task of which is to promote the OECD Guidelines for Multinational Enterprises, which provide an international standard for responsible business.

Responsible Business Conduct (RBC) is supported by public administration through dialogue with business and social stakeholders. This dialogue has so far been conducted by two corporate social responsibility advisory boards:

1) The CSR Advisory Board that was a subsidiary body to the Prime Minister in the years 2009-2013,

2) The CSR Advisory Board that was a subsidiary body to the Minister of Economy in the years 2014-2015.

In September 2016, the Minister of Economic Development and Finance established the Advisory Board for Sustainable Development and Corporate Social Responsibility (CSR Advisory Board) (Journal of the Minister of Economic Development of 22 September 2016, Item 49). The main task of this subsidiary body to the Minister of Economic Development and Finance is to conduct dialogue and exchange experiences between public administration, businesses, social partners, non-governmental organisations, and research and development institutions in order to develop recommendations and proposals for sustainable development and disseminate the principle of social solidarity and responsible business conduct.

The CSR Advisory Board convenes four times a year and continues in the following working groups between its meetings:

1) The working group for CSR strategy;

2) The working group for business ethics and responsible business conduct standards;

3) The working group for education and popularisation of CSR.

III. Areas of Actions and Measures

Pillar I. The State Duty to Protect Human Rights

Foundational Principles [pages 10-15]

Guiding Principle 2

The State expects from Spanish companies, in Spain and abroad, a behavior consistent with its responsibility to respect human rights, which implies that they must act with due diligence, depending on their size and circumstances, to avoid the violation of the rights of third parties and to deal with the adverse impacts of their activity. In this regard, in addition to recalling the obligation incumbent upon the State to protect human rights, which 11 includes abuses that may result from business activity, also the need to preserve the reputation of the State and to promote the Brand Spain should be noted. Ultimately, the State expects Spanish companies to exert their responsibility to respect human rights in accordance with the foundational and operational principles of the Pillar II of the Guiding Principles.

Measures:

The Government will transfer the expectations described regarding human rights by companies to the business sector in a clear and consistent manner.
The Government will develop awareness and training actions based on the United Nations Guiding Principles on Business and Human Rights, the National Plan for Business and Human Rights, and the expectations of the State in matters of business and human rights. These actions can be organized, among others, with the National Contact Point of the OECD Guidelines for multinational companies, business associations, networks of the United Nations Global Compact, and civil society organizations. This action will be directed as a priority to those companies in which the State has participation, or to which it provides financial, diplomatic, or other support; to companies that may affect vulnerable groups; as well as to those companies that have received the endorsement of 14 Brand Spain. The awareness actions will be directed to the personnel of the companies at different decision-making levels, including the boards of directors and governing bodies.
In particular, the Government will develop awareness-raising campaign on actions aimed to protect groups with greater risk of vulnerability. In this sense, and in collaboration with the Spanish and international organizations, the Government will disseminate the UNICEF document, Save the Children and the Global Compact “Children’s Rights and Business Principles” among the business sector and will specifically take into account General Comment No. 16 of 2013 of the Committee on the Rights of the Child.
The self-regulation codes will also be promoted, taking as an example relevant sector experiences, such as the Global Code of Ethics for Tourism of the World Tourism Organization (WTO) or the Code of Conduct for the protection of children and adolescents against sexual exploitation in the Tourism and Travel Industry, as well as the relevant labor conventions of the ILO.
Likewise, an awareness-raising strategy will be carried out on how to avoid discriminatory practices in public and private companies (by distinction, exclusion or preference) because of gender, age, ethnic origin, race, religion, disability, political affiliation or union, sexual orientation, nationality, marital status, socioeconomic origin or any other personal distinction.
Companies and vulnerable sectors will be informed about ILO Convention 169 on Indigenous and Tribal Peoples (1989), and the United Nations Declaration on the Rights of Indigenous Peoples (2007). This awareness-raising action will demonstrate the benefits that the respect for human rights can have for companies, as well as highlight examples of good practices.
The Government will establish networks among Spanish companies or that the ones that operate in Spain for the promotion of: measures, procedures or internal systems that can effectively contribute to the prevention and/or mitigation of the negative consequences of business activities on human rights; as well as for the dissemination of good practices aimed to avoid these consequences, or to influence their avoidance, reduction or remedy. The establishment of procedures for internal assessment and determination of action will be promoted in a manner that avoids other negative consequences on human rights.
The Monitoring Commission will design and submit to the Government the adoption of an incentive system that includes both large companies and Small and Medium Enterprises (SMEs) that carry out policies in the field of human rights. These incentives may be economic, commercial, visibility and image, or other nature, to encourage companies to have policies and reliably certify that they have implemented adequate procedures at a global level according to their size and circumstances, namely:

– A public commitment to assume its responsibility to respect human rights in accordance with the provisions of the Principle no. 16;

– A process of due diligence aligned with the sectorial guides regarding the OECD (due diligence guidance), and based on the dialogue with stakeholders that allows identification, prevention, mitigation, and accountability of how they address the impact of their own activities and those that are directly related to their business relationships in accordance with the provisions of Principles no. 17 to no. 21;

– Some processes that allow to remedy all the negative consequences on human rights that have caused or contributed to provoke according to what is established in Principles no. 22, no.29, no. 30, no. 31.3.

Foreword [page 3]

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

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

Introduction [page 6]

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

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

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

1. The corporate responsibility to respect [page 13]

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

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

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

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

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

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

Policy [page 14]

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

Procedure

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

Reporting

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

Annex: Measures planned

Corporate action [page 29]

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

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights

4.3 The position and expectations of the Federal Council

The UNGP distinguish between three types of adverse human rights impacts on the part of business enterprises:

Business enterprises may abuse human rights through their own activities.
Business enterprises may contribute to abuses of human rights through their activities.
Business enterprises may be involved in abuses of human rights via their business relationships, without contributing to those impacts themselves.

Business enterprises that are based and/or operating in Switzerland should duly fulfil their duty to uphold human rights. Here, they can draw guidance from Pillar 2 of the UNGP and from the ‘Human Rights’ chapter of the OECD Guidelines for Multinational Enterprises10. The UN’s guidance on implementing Pillar 2 The corporate responsibility to respect human rights11 as well as the relevant sector and topic-specific guidelines serve as a basis for this12. Business enterprises that are exposed to particularly high human rights risks should develop internal policies and procedures for their human rights due diligence for the business activities concerned. Their precise form will depend on factors such as the size of the enterprise and the nature of its business (sector, geographical scope, etc.). Attention should be paid to the specific circumstances of and options open to SMEs. The Federal Council will endeavour to support business enterprises and SMEs in particular, as they proceed with implementation, in order to keep the costs and administrative burden at a reasonable level. A number of different instruments are available depending on the business and nature of the enterprise:

– Human rights due diligence (Guiding Principles 17-21): (1) Identify potential and actual risks and impacts, (2) take precautions to minimise them, (3) review measures, and (4) report on activities and identified risks.

– Fundamental commitment (Guiding Principle 16): A clearly communicated independent undertaking from senior company management to respect human rights.

– Remediation (Guiding Principle 22): The creation of and cooperation in legitimate processes for remediation.

– Consultation with stakeholder groups (Guiding Principle 18): The use of instruments to consult affected stakeholder groups (e.g. vulnerable groups such as children).

The recommendations in this report and the National Action Plan are intended to serve business enterprises as a reference framework for their activities implementing the UNGP13.

In compliance with Pillar 2 of the UNGP and the ‘Human Rights’ chapter of the OECD Guidelines for Multinational Enterprises, business enterprises that are based and/or operate in Switzerland should respect human rights in all of their business activities, wherever they operate14. Accordingly they should seek to prevent adverse human rights impacts.

The corporate responsibility to respect human rights refers to internationally recognised human rights. (…).In addition, the Federal Council expects business enterprises in armed conflicts to abide by the standards of international humanitarian law20. Where local legislation does not correspond to international standards, the Federal Council recommends that business enterprises still comply with the international standards.

The activities of Swiss companies should not result in any adverse impacts on human rights. They should therefore seek to prevent any negative effects to which they are directly linked through their business relationships.

Business enterprises thus also have at least an indirect responsibility for business relationships via which they either themselves contribute to human rights abuses, or might otherwise become involved in. ‘Business relationships’ in the sense of the UNGP are understood to include relations with business partners (including entities in their value chains), and any other non-State or State entity linked to the company’s business operations, products or services.

5. National Action Plan on Business and Human Rights

5.5 Corporate responsibility [page 11]

The Federal Council expects business enterprises to fulfil their human rights responsibility in Switzerland and everywhere else they operate.

Under the UN Guiding Principles on Business and Human Rights, the corporate responsibility to respect human rights applies to all business enterprises, regardless of their size, the sector to which they belong, their operating environment, ownership or structure.

Consultations with stakeholder groups from business, civil society and the academic world showed that the greatest challenges faced by business enterprises based and/or operating in Switzerland are connected with their operations and business relationships abroad. For this reason, while it does not exclude domestic operations, the NAP is geared more closely to business activities abroad.

As determined in the UNGP, the time and expense attached to possible conditions should be in proportion to the human rights risks to which the business enterprise is exposed.

In view of their limited human and specialist resources, SMEs often face particular challenges in assessing and dealing with possible human rights risks. To ensure that measures are implementable, the NAP therefore pays particular attention to the needs of SMEs, with the aim of maintaining their scope for action. Unnecessary administrative burdens and costs, in particular, should be avoided.

5. National Action Plan on Business and Human Rights

5.7 Pillar 1: state duty to protect

5.7.1 Fundamental principles

Guiding Principle 2: Business enterprises’ foreign operations [page 13]

The Federal Council regards preventing human rights abuses by Swiss companies abroad, and ensuring access to effective remedy, as integral parts of its State duty to protect and its constitutional mandate to promote respect for human rights33. This is particularly true with regard to the foreign activities of companies that are based in Switzerland34.

However, in view of the political, legal and practical obstacles to the extraterritorial pursuit of policy and application and enforcement of law, the federal government is concentrating on domestic measures, the reach of which extends to partner States and the activities of business enterprises abroad. It also promotes international agreements and standards. As part of its international cooperation efforts, it supports States in the fulfilment of their duties under international law to protect.

UK’ companies responsibilities to respect human rights

Government expectations of business

Many companies have already made the link between their business activity and respect for human rights; many already have human rights policies woven into their objectives and operations. Other companies, which consider human rights unfamiliar territory, are already addressing some issues linked to human rights within their operations but calling them by different names, such as labour standards, health and safety, or non-discrimination.

The UNGPs guide the approach UK companies should take to respect human rights wherever they operate. The key principles of this approach are to:

comply with all applicable laws and respect internationally recognized human rights, wherever they operate;
seek ways to honour the principles of internationally recognized human rights when faced with conflicting requirements;
treat as a legal compliance issue the risk of causing or contributing to gross human rights abuses wherever they operate.
adopt appropriate due diligence policies to identify, prevent and mitigate human rights risks, and commit to monitoring and evaluating implementation;
consult people who may potentially be affected at all stages of project design and implementation, in a manner that ensures free and informed participation and takes into account language and other potential barriers to effective engagement, paying particular attention to indigenous peoples and other groups, including women and girls;
emphasise the importance of behaviour in line with the UNGPs to their supply chains in the UK and overseas. Appropriate measures could include contractual arrangements, training, monitoring and capacity-building;
adopt or participate in effective grievance mechanisms which are transparent, equitable and predictable, to enable the remediation of any adverse human rights impacts they cause or to which they contribute;
be transparent about policies, activities and impacts, and report on human rights issues and risks as appropriate as part of their annual reports.

The Government supports the approach set out in the UNGPs, and is determined to help companies implement it. This should be at the heart of a company’s core operations; it is not the same as philanthropy or social investment. The responsibility of businesses to respect human rights exists independently of States’ abilities and/or willingness to fulfil their own human rights obligations. We recognise that different businesses will need to take different approaches to embedding this approach; that implementation will be progressive; and in particular that implementation will need to be compatible with the resource limitations of small and medium-sized enterprises. We also recognise that companies need to act in accordance with local law, which may sometimes be a constraint on acting in compliance with human rights. In such situations, we expect companies to act in accordance with the second principle summarised above, and will respond to requests for help where companies are struggling with conflicting requirements.

The UK 2016 updated NAP

2. The State’s Duty to Protect Human Rights [page 6]

(…) 11. The UK is subject to international human rights obligations under customary international law and as a result of the international legal instruments we have signed and ratified. Human rights obligations generally apply only within a State’s territory and/or jurisdiction. Accordingly, there is no general requirement for States to regulate the extraterritorial activities of business enterprises domiciled in their jurisdiction, although there are limited exceptions to this, for instance under treaty regimes. The UK may also choose as a matter of policy in certain instances to regulate the overseas conduct of British businesses.

3. Government expectations of business [page 14]

19.The Government recognises the considerable efforts many companies are taking to ensure that they respect human rights. An increasing number of companies have human rights policies and processes to manage and avoid human rights risks embedded in their objectives and operations. UK companies are among those pioneering work on this agenda. The Government has supported important industry led initiatives that have gained ground over the last two years, including on reporting, benchmarking performance and practical sector guidance.

20.The Government welcomes further business-led initiatives on the corporate responsibility to respect human rights. We stand ready to support business, for example by leveraging the Government’s convening and facilitating power. It is for business to lead on the implementation of this part of the UNGPs and for Government to play a supporting role.

21. The UNGPs guide the approach UK companies should take to respect human rights wherever they operate. The key principles of this approach are to:

comply with all applicable laws and respect internationally recognized human rights, wherever they operate;
seek ways to honour the principles of internationally recognized human rights when faced with conflicting requirements;
treat as a legal compliance issue the risk of causing or contributing to gross human rights abuses wherever they operate;
adopt appropriate due diligence policies to identify, prevent and mitigate human rights risks, and commit to monitoring and evaluating implementation;
consult people who may potentially be affected at all stages of project design and implementation, in a manner that ensures free and informed participation and takes into account language and other potential barriers to effective engagement, paying particular attention to indigenous peoples and other groups, including women and girls;
emphasise the importance of behaviour in line with the UNGPs to their supply chains in the UK and overseas. Appropriate measures could include contractual arrangements, training, monitoring and capacity-building;
adopt or participate in effective grievance mechanisms which are transparent, equitable and predictable, to enable the remediation of any adverse human rights impacts they cause or to which they contribute;
-be transparent about policies, activities and impacts, and report on human rights issues and risks as appropriate as part of their annual reports.

22. Respect for human rights should be at the heart of a company’s core operations, it is not the same as philanthropy or social investment. The responsibility of businesses to respect human rights exists independently of States’ abilities and/or willingness to fulfil their own human rights obligations. Different businesses will need to take different approaches to embedding this approach. Implementation will be progressive and will need to be compatible with the resource limitations of small and medium-sized enterprises. Companies also need to act in accordance with local law, which may sometimes be a constraint on acting in compliance with human rights. In such situations, the Government expects companies to seek ways to honour the principles of internationally recognised human rights.

23.The Government encourages companies to review their existing grievance procedures to ensure they are fair, transparent, understandable, well-publicised and accessible by all, and provide for grievances to be resolved effectively without fear of victimisation. It is also important for businesses to require similar good practice of their supply chains, especially in areas where abuses of rights have been identified.

Facilitating RBC by Companies [page 17]

The U.S. government encourages businesses to treat tools like the OECD Guidelines and the UN Guiding Principles as a floor rather than a ceiling for implementing responsible business practices, and to recognise that implementing RBC should be a continuing process. The U.S. government is supportive of company efforts to voluntarily report on human rights impacts, anti-trafficking measures, transparency and anti-corruption efforts, and other related aspects of their global operations, including the opportunities and challenges they face. Given the heightened risk of serious human rights impacts in conflict-affected areas, the U.S. government particularly encourages corporate due diligence and reporting under such circumstances.

The U.S. government generates and vets relevant information that can be used to conduct appropriate due diligence and risk assessment. While the concept of due diligence is increasingly well understood and accepted among businesses, the tools and resources available to effectively conduct detailed and appropriate risk and impact assessments can be sparse, particularly in many of the complex environments where this type of data is most needed.

To help address those gaps, the U.S. government deploys significant resources to produce and disseminate a variety of reports that help describe the state of human rights, labor rights, commercial, and investment conditions across the world, and produces international company profiles to provide U.S. companies with information to help them vet potential business partners. In certain instances, the government also funds third-party reports that contain information useful to those seeking to promote and implement RBC. As part of the ongoing effort to facilitate RBC, the U.S. government will continue to enhance these resources, making them increasingly user-friendly and easier to find for the purposes of corporate human rights due diligence and social impact assessment.