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Responsible Business Conduct
Myanmar

Prof. Dr. Roel Nieuwenkamp
• Chair of the OECD Working Party on
Responsible Business Conduct
RESPONSIBLE BUSINESS CONDUCT

TRADE & INVESTMENT
Contents
1. OECD Guidelines for Multinationals
2. Relevance for Myanmar
3. Specifics: Land
4. Specifics: Labor
5. Specifics: Reporting
1. OECD Guidelines for Multinationals
•

Most comprehensive set of guidelines for responsible business conduct

•

All areas of corporate responsibility (labour, human rights, environment,
corruption, taxation, etc)

•

Government backed, binding for governments, non binding for MNE’s

•

Unique grievance mechanism (Mediation by National Contact Points)

•

NCPs promote the Guidelines and deal with complaints about company
behaviour in specific instances.

•

46 Members, including non OECD members (Braz, Arg, Col, Tun., etc)

•

More non members process of adherence (Russia)

•

Most global supply chains and foreign direct investment covered
2. Adoption by the 2011 Ministerial Council Meeting

US Secretary of State, Ms. Hillary Clinton, at the adoption of the update:
“If you look at these guidelines, they will be helping us determine how
supply chains can be changed so that it can begin to prevent and
eliminate abuses and violence. We’re going to look at new strategies
that will seek to make our case to companies that due diligence, while
not always easy, is absolutely essential.”
2. Human Rights Chapter
• In line with the work of Professor John Ruggie
States have the duty to protect human rights. Enterprises should (…):
• Respect human rights, which means they should avoid infringing on the
human rights of others and should address adverse human rights impacts with
which they are involved.
• Within the context of their own activities, avoid causing or contributing to
adverse human rights impacts and address such impacts when they
occur.
• Seek ways to prevent or mitigate adverse human rights impacts that are
directly linked to their business operations, products or services by a
business relationship, even if they do not contribute to those impacts.
• Carry out human rights due diligence as appropriate to their size, the nature
and context of operations and the severity of the risks of adverse human rights
impacts.
2. Due Diligence and Supply Chain
• Scope of application of the Guidelines investment
& business relationships, including suppliers,
agents and franchises
• Enterprises should: due diligence main tool to prevent
Risk-based
• Carry out risk-based due diligence , (…), to identify, prevent and mitigate actual and
potential adverse impacts (…),
adverse impact. and account for how these impacts are addressed.
• Avoid causing or contributing to adverse impacts on matters covered by the
Guidelines, through their own activities, and address such impacts when they occur.
• Seek to prevent or mitigate an adverse impact where they have not contributed
to that impact, when the impact is nevertheless directly linked to their
operations, products or services by a business relationship.
3. Land: Stakeholder engagement

Enterprises should:
“(…) engage with relevant stakeholders in order to provide meaningful
opportunities for their views to be taken into account (…).”
- Planning and decision making
- Local communities
- ‘Free prior and informed consent’
4. Specifics: child labour & forced labour

Enterprises should:
Contribute to the effective abolition of child labor.
Contribute to the effective abolition of all forms of forced or compulsory
labour
5. Specifics: reporting

Enterprises should:
- Account for how the adverse impacts are addressed
- Communicate how impacts are addressed

NB: US Reporting requirement concerning Myanmar

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Promoting responsible investment in Myanmar - Prof. R Nieuwenkamp

  • 1. Responsible Business Conduct Myanmar Prof. Dr. Roel Nieuwenkamp • Chair of the OECD Working Party on Responsible Business Conduct
  • 3. Contents 1. OECD Guidelines for Multinationals 2. Relevance for Myanmar 3. Specifics: Land 4. Specifics: Labor 5. Specifics: Reporting
  • 4. 1. OECD Guidelines for Multinationals • Most comprehensive set of guidelines for responsible business conduct • All areas of corporate responsibility (labour, human rights, environment, corruption, taxation, etc) • Government backed, binding for governments, non binding for MNE’s • Unique grievance mechanism (Mediation by National Contact Points) • NCPs promote the Guidelines and deal with complaints about company behaviour in specific instances. • 46 Members, including non OECD members (Braz, Arg, Col, Tun., etc) • More non members process of adherence (Russia) • Most global supply chains and foreign direct investment covered
  • 5. 2. Adoption by the 2011 Ministerial Council Meeting US Secretary of State, Ms. Hillary Clinton, at the adoption of the update: “If you look at these guidelines, they will be helping us determine how supply chains can be changed so that it can begin to prevent and eliminate abuses and violence. We’re going to look at new strategies that will seek to make our case to companies that due diligence, while not always easy, is absolutely essential.”
  • 6. 2. Human Rights Chapter • In line with the work of Professor John Ruggie States have the duty to protect human rights. Enterprises should (…): • Respect human rights, which means they should avoid infringing on the human rights of others and should address adverse human rights impacts with which they are involved. • Within the context of their own activities, avoid causing or contributing to adverse human rights impacts and address such impacts when they occur. • Seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations, products or services by a business relationship, even if they do not contribute to those impacts. • Carry out human rights due diligence as appropriate to their size, the nature and context of operations and the severity of the risks of adverse human rights impacts.
  • 7. 2. Due Diligence and Supply Chain • Scope of application of the Guidelines investment & business relationships, including suppliers, agents and franchises • Enterprises should: due diligence main tool to prevent Risk-based • Carry out risk-based due diligence , (…), to identify, prevent and mitigate actual and potential adverse impacts (…), adverse impact. and account for how these impacts are addressed. • Avoid causing or contributing to adverse impacts on matters covered by the Guidelines, through their own activities, and address such impacts when they occur. • Seek to prevent or mitigate an adverse impact where they have not contributed to that impact, when the impact is nevertheless directly linked to their operations, products or services by a business relationship.
  • 8. 3. Land: Stakeholder engagement Enterprises should: “(…) engage with relevant stakeholders in order to provide meaningful opportunities for their views to be taken into account (…).” - Planning and decision making - Local communities - ‘Free prior and informed consent’
  • 9. 4. Specifics: child labour & forced labour Enterprises should: Contribute to the effective abolition of child labor. Contribute to the effective abolition of all forms of forced or compulsory labour
  • 10. 5. Specifics: reporting Enterprises should: - Account for how the adverse impacts are addressed - Communicate how impacts are addressed NB: US Reporting requirement concerning Myanmar

Editor's Notes

  1. On 25 May, the OECD Ministerial Council Meeting, chaired by the US Secretary of State Ms Hillary Clinton, adopted an update of the MNE Guidelines; How did it come about and what does it entail?
  2. Bolded text seems particularly relevant to institutional investors. <number>