Promoting responsible investment in Myanmar - Italian National Contact Point for the OECD Guidelines on Multinational Enterprises

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This presentation by the Italian NCP was made during the Promoting Responsible Investment in Myanmar Conference (4 March 2014, Yangon) at the session the opportunities for RBC in Myanmar.

Find out more at http://mneguidelines.oecd.org/2014-conference-promoting-responsible-investment-myanmar.htm

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  • <number>
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  • SMEs do represent the majority of the firms operating in Italy and in the global market.
    Yet, they are often overlooked by international standards.
    It is thus important to offer them a range of tools to support them in the relations with multinational enterprises in the global supply chain.
    Besides this, we find it is important to define suitable instruments to measure, evaluate and report their RBC performances.
    Therefore:
    we produced a Guidance for SMEs on due diligence in the supply chain;
    we are working on two sector-specific guides on the steel and jewelry sectors, based on the first one;
    and a similar task will be tackled in the textile sector.
    All these guides - elaborated in cooperation with the stakeholders - are coherent with the OECD Guidelines and the international standards and tools.
    Moreover, in cooperation with the branded goods producers, a web tool was created to help SMEs find out what they can do in practice to make the Guidelines effective.
    Finally, the NCP joined an inter-regional programme involving 15 Italian Regions, to coordinate, among other things, the development of a set of RBC indicators to be used both:
    as a guide for businesses and
    as a framework for Administrations to favour responsible enterprises in public procurement and incentives.
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  • As to the communication tools, the NCP felt it essential to strengthen them, to build an ever greater awareness of the Guidelines and reach a wider range of recipients.
    The NCP website - in Italian and English - was restyled and re-organised at the end of last year, and now, besides providing news and information on the Guidelines and the NCP, it also includes a toolkit, i.e. a session where information is organised in four paths, fitted for the four different categories: companies, institutions, stakeholders, citizens.
    All the above-mentioned tools for SMES are published on the website.
    3000 copies of the Italian version of the 2011 Guidelines and 5000 brochures on the NCP and the Guidelines have been printed and are distributed at seminars, meetings and workshops.
    Among all different promotional activities it is worth mentionnig the participation of the NCP to the Mediterraneum Exhibition on Shared Social Responsibility, that took place in Naples, last April, where the NCP had a promotional stand and organised one seminar on the Guidelines and the due diligence in the supply chain.
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  • recognize that States have the duty to protect human rights, and that enterprises, regardless of their size, sector, operational context, ownership and structure, should respect
    human rights wherever they operate. Respect for human rights is the
    global standard of expected conduct for enterprises independently of
    States’ abilities and/or willingness to fulfil their human rights
    obligations, and does not diminish those obligations.
    <number>
  • SMEs do represent the majority of the firms operating in Italy and in the global market.
    Yet, they are often overlooked by international standards.
    It is thus important to offer them a range of tools to support them in the relations with multinational enterprises in the global supply chain.
    Besides this, we find it is important to define suitable instruments to measure, evaluate and report their RBC performances.
    Therefore:
    we produced a Guidance for SMEs on due diligence in the supply chain;
    we are working on two sector-specific guides on the steel and jewelry sectors, based on the first one;
    and a similar task will be tackled in the textile sector.
    All these guides - elaborated in cooperation with the stakeholders - are coherent with the OECD Guidelines and the international standards and tools.
    Moreover, in cooperation with the branded goods producers, a web tool was created to help SMEs find out what they can do in practice to make the Guidelines effective.
    Finally, the NCP joined an inter-regional programme involving 15 Italian Regions, to coordinate, among other things, the development of a set of RBC indicators to be used both:
    as a guide for businesses and
    as a framework for Administrations to favour responsible enterprises in public procurement and incentives.
    <number>
  • SMEs do represent the majority of the firms operating in Italy and in the global market.
    Yet, they are often overlooked by international standards.
    It is thus important to offer them a range of tools to support them in the relations with multinational enterprises in the global supply chain.
    Besides this, we find it is important to define suitable instruments to measure, evaluate and report their RBC performances.
    Therefore:
    we produced a Guidance for SMEs on due diligence in the supply chain;
    we are working on two sector-specific guides on the steel and jewelry sectors, based on the first one;
    and a similar task will be tackled in the textile sector.
    All these guides - elaborated in cooperation with the stakeholders - are coherent with the OECD Guidelines and the international standards and tools.
    Moreover, in cooperation with the branded goods producers, a web tool was created to help SMEs find out what they can do in practice to make the Guidelines effective.
    Finally, the NCP joined an inter-regional programme involving 15 Italian Regions, to coordinate, among other things, the development of a set of RBC indicators to be used both:
    as a guide for businesses and
    as a framework for Administrations to favour responsible enterprises in public procurement and incentives.
    <number>
  • SMEs do represent the majority of the firms operating in Italy and in the global market.
    Yet, they are often overlooked by international standards.
    It is thus important to offer them a range of tools to support them in the relations with multinational enterprises in the global supply chain.
    Besides this, we find it is important to define suitable instruments to measure, evaluate and report their RBC performances.
    Therefore:
    we produced a Guidance for SMEs on due diligence in the supply chain;
    we are working on two sector-specific guides on the steel and jewelry sectors, based on the first one;
    and a similar task will be tackled in the textile sector.
    All these guides - elaborated in cooperation with the stakeholders - are coherent with the OECD Guidelines and the international standards and tools.
    Moreover, in cooperation with the branded goods producers, a web tool was created to help SMEs find out what they can do in practice to make the Guidelines effective.
    Finally, the NCP joined an inter-regional programme involving 15 Italian Regions, to coordinate, among other things, the development of a set of RBC indicators to be used both:
    as a guide for businesses and
    as a framework for Administrations to favour responsible enterprises in public procurement and incentives.
    <number>
  • <number>
  • Promoting responsible investment in Myanmar - Italian National Contact Point for the OECD Guidelines on Multinational Enterprises

    1. 1. . THE ITALIAN NCP AND THE IMPLEMENTATION OF THE OECD GUIDELINES
    2. 2. ITALIAN NATIONAL CONTACT POINT (NCP) The Italian NCP is a simple and streamlined structure, organised within the Ministry of Economic Development (MED): the General Director for the Industrial Policy and the Competitiveness The Secretariat, composed by one manager and civil servants the NCP Committee, composed by representatives of the interested Ministries and major national business associations, trade unions and stakeholders. Tasks: propose surveys and studied on relevant subject matters, analyse and discuss submitted specific instances and express opinions on the programme of the NCP
    3. 3. ITALIAN NCP’S PRIORITIES Outreach in non adhering Countries  Visibility of the NCP and awareness raising on the OECD Guidelines Due diligence in the global supply chain and focus SMEs Effective management of the specific instances
    4. 4. OUTREACH: oECD- italian NCP joint project on myanmar A major objective for the OECD and for adhering countries: spread responsible business conduct globally in order to favour inclusive growth, avoid negative impacts of irresponsible conducts and promote a level playing field at international level MYANMAR Project of the Italian NCP with the OECD Target To promote responsible business conduct and the Guidelines in Myanmar, raising awareness on the OECD Guidelines in the institutions and economic operators and supporting Burmese and foreign investors – and specifically Italian investors - in Myanmar
    5. 5. Outreach: oECD-Italian NCP joint project on myanmar Symposium: "Myanmar. The New Asian Frontier “ October 23, 2013 - IN COOPERATION WITH THE ITALIAN MINISTRY OF FOREIGN AFFAIRS     strengthened political and economic cooperation between  Italy and Myanmar    analyze the positive steps and  the challenges that   Myanmar faces to reintegrate fully into the international arena  and in the public perception    promote RBC and the Guidelines    review of the development scenarios of Myanmar Events in Myanmar: 1 and 4 March 2014
    6. 6. Visibility and awareness raising Strengthening of NCP’s communication instruments (website, paper booklets, events, meetings, workshops… ) In 2013… 10 seminars (organised) 2 international meetings (co-organsied) 1 national exhibition cofunded 15 meeetings/webinar (joined) On l RB ine to C a olk wit it b nd h Ital good the G ased ian o u Ind pract idelin n ice ust ry B s fo es ran r d .
    7. 7. due diligence in the global supply chaIn: WHY? 1 ) The e nte rp ris e s a re re q uire d to im p le m e nt a d ue d ilig e nc e s y s te m to p re ve nt / m itig a te the ir a d v e rs e im p a c ts o n the m a tte rs c o ve re d by the G uid e line s 2 ) The e nte rp ris e s a re re q uire d to re s p e c t inte rna tio na l re c o g nis e d hum a n rig hts whe re v e r the y o p e ra te 3 ) The d ue d ilig e nc e s ho uld inc lud e the e nte rp ris e ’s re la tio ns hip s with bus ine s s p a rtne rs , e ntitie s in the s up p ly c ha in a nd a ny o the r no n-Sta te o r Sta te e ntitie s d ire c tly linke d to its bus ine s s o p e ra tio ns , p ro d uc ts o r s e rvic e s
    8. 8. The global supply chain: conflict minerals . BACKGROUND  OECD Due Diligence Guidance for responsible Supply Chains of Minerals from  Conflict-Affected and High-Risk Areas -Supplement on Gold - Downstream supply  chain    Memorandum of Understanding among the Italian Ministry of Economic  Development, the Responsible Jewellery Council and Confindustria-Federorafi.  signed in May 2012, to collaborate in order to advance partners’ shared objectives  of improving social, environmental and labour practices and good governance in  the jewellery sector.  TARGET   Raise awareness among Italian jewellery companies (gold sector)     Foster  the implementation and management of due diligence  What we did   Survey on the level of knowledge and implementation of RBC within the jewellery sector  (es SMEs) and interviews to virtuous companies in order to codify the best practices   Awareness raising seminars addressed to actors in the gold industry and in technical  training schools    Building the capacity to conduct due diligence:  handbook aimed at SMEs  helping them  to implement guidance and standards (simplify the message with examples, suggestions  of practical actions  on how to assess the risk  etc.) 
    9. 9. The Global supply chain: NCP’s Actiion plan on BangladesH Rhana Plaza collapse (24 April 2013) OECD Secretary-General statement on events in Bangladesh(4 June 2013) Statement by the National Contact Points (25 June 2013) 1st OECD Global Forum on RBC (26-26 June 2013) NCP’s Action Plan on Bangladesh The NCP, with the approval of its Advisory Committee (17 July 2013), adopts an Action Plan on Bangladesh. target embark on a path on due diligence in the supply chain of the textile industry along with the Italian companies directly and / or indirectly – by a business relationship - involved in the tragedy of the collapse of the Rhana Plaza plant in Bangladesh and extend the experience to the textile sector operational lines: •Collection of experiences of the companies involved and experiences more in general in the textile sector •Identification of the difficulties in the supply chain of the textile industry •Selection of examples of problem-solving practice for risk management •Recommendations for the textile industry by the NCP and dissemination of best practices
    10. 10. NCP’S FOCUS AND TOOLS FOR SMEs . • The we ig ht o f the SM s e c to r in te rm s o f num be r E o f firm s , e m p lo y m e nt a nd v a lue -a d d e d is hig he r in I ly tha n in m o s t o the r O ECD ta c o untrie s • SM p la y a n im p o rta nt ro le in g lo ba l s up p ly c ha in Es • Fo re ig n inve s tm e nt by SM e nte rp ris e s ha s inc re a s e d a nd the s e e nte rp ris e s Es no w p la y a s ig nific a nt ro le o n the inte rna tio na l s c e ne • SM d o no t ha ve the s a m e re s o urc e s a nd c a p a c itie s a s la rg e c o m p a nie s Es Guidance for SMEs Key indicators GOLD SECTOR Guidance for SMEs on due diligence in the supply chain Guidance for SMEs on due diligence in the supply chain STEEL SECTOR Set of RBC indicators for businesses and as a criterion of preference in public procurement and incentives to SMEs - INTEREGIONAL PROJECT - 10
    11. 11. HOW WE MANAGE THE SPECIFIC INSTANCES: OVERALL VIEW Specific instance to the NCP The specific instance is admissible: the issue merits further examination Examination of the case Counterparties replies Investigating activities Conclusion of the examination of the case Committee’s advice Initial assessment Eventual contacts with the parties Impartiality, predictability, equity, compatibility with the Guidelines The consensual solution is constantly seek The specific instance is inadmissible: the issue doesn’t merit further examination The proceeding will not be carried on Publication of a statement Parties’ agreement Publication of a report Absence of agreement Publication of the NCP’s statement In calculating the terms of this procedure the initial day is not computed. The public holidays are computed in the term. If the expiration day is a public holiday, the deadline is extended to the following working day. When a term is calculated by months and years, the ordinary calendar is followed.
    12. 12. SPECIFIC INSTANCES: CONCLUSION Parties’ agreement Absence of agreement Normally within 12 months from the beginning of the examination of the case, after due consultation of the parties on the publication the General Director of the NCP issues: A report illustrating: The issues raised - The procedures the NCP initiated in assisting the parties - When the agreement • A statement that contains: The issues raised -- The eventual recommendations to the parties - The reasons for NCP’s decision was reached - Information on the content of the agreement insofar as the parties involved agree thereto.. taking into account the advice expressed by the Committee Agreed follow-up The parties may also agree to seek the assistance of the NCP in following-up on the implementation of the agreement and the NCP may do so on terms agreed between the parties and the NCP. Appropriate follow-up The NCP, when making recommendations to the parties, may hold as appropriate to follow-up with the parties on their response to these recommendations. In that case, the timeframe for doing so should be addressed in the statement. Transparency is a general principle of conduct of the NCP in dealing with the public. However, there are circumstances in which confidentiality must be protected. The NCP shall take appropriate measures to protect sensitive information of companies. Similarly, other information, such as the identity of the individuals involved in the proceedings, remain confidential. During the proceedings, the nature of the works, including the facts and arguments of the parties is kept confidential. However, their outcomes are, as a rule, transparent.
    13. 13. . THANK YOU National Contact Point General Directorate for Industrial Policy and Competitiveness Ministry of Economic Development Via Molise 2 00187 Rome Tel:(39-6) 47052561 Fax:(39-6) 47052109 Email:pcn1@mise.gov.it Web: http://pcnitalia.sviluppoeconomico.gov.it

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