On 27 April, Oxfam and MCRB hosted a multistakeholder discussion on ‘Responsible investment in plantation agriculture' in Yangon. The workshop, which discussed examples of good and bad practice in Myanmar relating to oil palm, bananas and rubber, focussed on the Myanmar legal framework for investment, including land acquisition and regulation of environmental impacts. Read more: http://www.myanmar-responsiblebusiness.org/news/responsible-investment-in-plantation-agriculture.html

1. Responsible investment in large-scale
agriculture
Vicky Bowman
Director, Myanmar Centre for Responsible Business
Workshop on Responsible investment in plantation agriculture,
with a focus on land (Novotel Yangon Max, 27 April 2018)

2. Overview
• Introduction to MCRB
• Introduction to Responsible Business Conduct (RBC) - and is it the same as
‘CSR’ (corporate social responsibility)?
• Key challenges for RBC in Myanmar
• Why should companies invest responsibly?
• (After lunch) – recap of the legal frameworks

3. About me
❑ Director of Myanmar Centre for Responsible Business
(MCRB) since July 2013
❑ Mining company Rio Tinto: HQ lead on transparency,
human rights and resource nationalism/resource curse
issues
❑ Civil servant/Diplomat:
• Director of Global & Economic Issues
• UK ambassador to Myanmar 2002-2006 (and 2nd
Secretary 1990-1993)
• European Commission, Cabinet of Commission Chris
Patten, External Relations
• Press spokeswoman

4. Founders:
Current core funders:
• UK
• Norway
• Switzerland
• Netherlands
• Ireland
[previously also
Denmark]
www.myanmar-responsiblebusiness.org
and www.mcrb.org.mm
No. 6.A Shin Saw Pu Road, Sanchaung, Yangon
Tel/Fax: 01 01-512613
Set up in 2013 in Yangon , MCRB aims to provide a
trusted and impartial platform for the creation of
knowledge, building of capacity, undertaking of
advocacy and promotion of dialogue amongst
businesses, civil society, governments, experts and
other stakeholders with the objective of encouraging
responsible business conduct throughout Myanmar.
Responsible business means business conduct that
works for the long-term interests of Myanmar and its
people, based on responsible social and
environmental performance within the context of
international standards.
myanmar.responsible.business

5. Briefing papers for Business (in
Burmese and English)
www.mcrb.org.mm

6. MCRB’s work related to agriculture
Knowledge
▪ Oil Palm Sector-Wide Impact Assessment (SWIA) (Consultations – July / Publication – October 2018)
▪ Briefing Paper on Indigenous Peoples Rights (2016), Updating Briefing 2015 Paper on Land in 2018
▪ Draft Paper (together with Oxfam) on Plantation Agriculture – Open for comments/consultation in May 2018
Advocacy
▪ Recommendations and feedback on draft laws (land, ethnic nationalities, investment, etc)
▪ Advice to agriculture companies, EIA consultants and other stakeholders
Capacity building
▪ Training for companies, CSOs and Government (e.g. Tanintharyi Regional Hluttaw in April 2018)
Dialogue
▪ Workshop on ‘Towards food Safety and Responsible Sourcing Initiative’ 2016 with Prime-Agri)
▪ Workshop on ‘Responsible investment in plantation agriculture, with a focus on land’ (with Oxfam)

7. Responsible business and human rights
UN Guiding Principles on
Business and Human
Rights (2011)
1. State duty to protect human right
2. Corporate responsibility to
respect human rights
▪ Act with due diligence to
avoid infringement
▪ Address negative impacts
3. (Both business and government
must provide) Access to remedy
Professor John
Ruggie, Special
Representative to
the United
Nations
Secretary
General, 2005-
2011
What does a responsible business do?
✓ Obeys the law
✓ Doesn’t pay bribes or tea money
✓ Respects its employees
✓ Respects the environment
✓ Treats other businesses responsibly
✓ Treats its customers responsibly
✓ Pays its taxes
✓ Is transparent
✓ Responds to and engages with
stakeholders
✓ Respects human rights

8. • Organisation for Economic Cooperation and
Development (Paris)
• Most comprehensive set of guidelines for
Responsible Business Conduct (RBC)
• Companies from OECD countries e.g. US,
EU, Australia, Japan, Korea, should adhere to
guidelines
• Myanmar is not OECD member, but OECD is
about to conduct second Investment Policy
Review of Myanmar
Guidelines for Multinational Enterprises (MNEs) on
Responsible Business Conduct
1. Concepts and
Principles
2. General policies
3. Disclosure
4. Human Rights
5. Employment and
industrial relations
6. Environment
7. Combating bribery
8. Consumer interests
9. Science and technology
10. Competition
11. Taxation

9. Increasing focus on responsible business
conduct in Myanmar law
✓Art.3(a) Objective of 2016 Myanmar Investment Law : to develop responsible
investment in the interest of the Union and its citizens which does not harm the
natural or social environment
✓Art.24(d) Myanmar Investment Commission (MIC) Duty: advise Myanmar
government on policies to develop responsible business;
✓MIL applies to Myanmar and foreign investment
✓Investor obligations:
• Obey law and operate responsibly
• Pay compensation
• Regulate employee behaviour
• Obtain all necessary permits under other laws (may include EIA)
✓Transparency:
• publication of investment proposals before MIC decision
• Annual sustainability report (Rule 196) for MIC permitted projects

10. Responsible business or ‘corporate social
responsibility’ (CSR)?
10
Compliance i.e. obeying
the law
Respect for human rights
Responsible Business Conduct
Connected to
business activity
Creating Shared Value
Sustainability
Inclusive Business
Philanthropy
Sponsorship
Disaster relief
Voluntary
Compulsory

11. Why invest responsibly?
A company that invests
responsibly avoids:
▪ Losing land
▪ Losing permits
▪ Legal action, prosecution
or fines
▪ Community protest or
loss of ‘social licence to
operate’
▪ Damage to reputation
What is important
is HOW the company does
business, not HOW MUCH it
donates
The company can choose voluntarily to ‘go beyond’ the legal
requirements and ‘create shared value’ to strengthen its ‘social licence to
operate’ through
▪ Introducing best practices
▪ Supporting the local community
▪ Sponsorship and philanthropy
▪ Such activities many cost money but they are voluntary. Companies
should not be asked to include them in contracts
▪ They may be reflected in a Community Development Agreement
It is compulsory for a company to
▪ Obey laws, contracts and permit requirements
▪ Address the adverse impacts identified in the IEE/EIA/EMPs

12. Main challenges for responsible business in Myanmar
▪ Labour conditions and safety:
Laws are unclear, businesses unaware, government not
enforcing effectively, little understanding of freedom of
association/trade unions
▪ Environmental impact
Lack of regulation or enforcement, lack of e.g. water pricing,
▪ Land acquisition
Ongoing land disputes , lack of accurate documentation,
‘squatters’, little government understanding of international
practice when acquiring land/resettling
▪ Corruption/Business Integrity
▪ Conflict and security-associated human rights abuses

13. Main challenges for responsible agriculture in Myanmar
Land
▪ No comprehensive land registry or land use map
▪ Land policy and current set of land laws are not coherent
▪ No legal recognition of customary lands rights
▪ Lack of protection of local farmers creates uncertainty for farmers and investors
▪ Contested areas of control between central government and ethnic armed groups
Other
▪ Lack of awareness of and experience in sustainable agriculture
▪ Environmental pollution
▪ Labour rights violations
▪ Gaps, overlaps and consistency in laws

14. Legal process for investment in plantation agriculture
Myanmar Companies Act (2017)
Myanmar Investment Law (2016)
and Rules (2017)
Myanmar Environmental Conservation
Law (2016), Rules (2014), Standards
(2015) and EIA Procedure (2015)
And many other laws and byelaws and
notifications on labour, disability,
ethnic nationalities, land, pesticides,
water, safety, wildlife conservation,
cultural protection etc etc……. !

15. Thank You !
www.mcrb.org.mm
myanmar.responsible.business