The Responsibilities of Banks, Sovereign Wealth Funds and Other Financial Institutions to Respect Human Rights: The Example of the Extractives Sector Financing (3-2017)
Extractive industries have been at center of CSR and environmental responsibilities debates at the national and international level. It has been noted that "The sector faces unique social and environmental challenges when operating in developing countries. Faced with these challenges, a number of Canadian companies are engaging in corporate social responsibility (CSR) initiatives, generally defined as the voluntary activities undertaken by a company to operate in an economically, socially and environmentally sustainable manner" (Building the Canadian Advantage: A Corporate Social Responsibility (CSR) Strategy for the Canadian International Extractive Sector). These generally involve direct compliance. Domestic law focuses on the law and regulatory frameworks of home and host states. Soft law focuses on national (to a small extent) and more generally in international framing mechanisms and indigenous law (national an international). In addition, private law also applies--to the extent that extractive enterprises build their own internal governance systems applicable through their production chains worldwide.
But increasing there is a need to think about indirect compliance: especially the responsibilities of financial institutions, suppliers, and upstream customers to gauge their conduct by the legal/normative compliance of the extractives enterprise itself.
This presentation focuses on financial institutions and their responsibilities with respect to the human rights responsibilities of their borrowers.
Financial Sector Responsibility for Human Rights Conduct of Borrowers: What W...Larry Catá Backer
The document discusses the responsibilities of financial institutions for the human rights conduct of their borrowers, using the extractives sector as an example. It provides context on debates around corporate social responsibility in the extractives sector. It then outlines several international norm structures that guide business and human rights conduct, such as the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, and third party standards. The document also examines case studies of financial institutions, including the Norwegian sovereign wealth fund's exclusions of certain companies from its investment portfolio due to human rights or environmental concerns. It concludes by looking at private standards adopted by banks like HSBC for their mining and metals sector clients and policies.
The Corporate Social Responsibilities of Financial Institutions for the Condu...Larry Catá Backer
Abstract: Corporate social responsibility (CSR) can be split along two distinct lines. The first touches on the nature of corporate personality and is rooted in domestic law regulating enterprises specifically and legal persons generally. The second touches on the nature of the rights of individuals and is rooted in international law (and sometimes domestic constitutional law) defining the scope of the human rights of individuals and the consequential obligations of states and legal persons. Both conversations intertwine though they tend to operate autonomously. In both cases, however, the traditional focus of corporate responsibility has focused on the relationship between an operating company and its direct effects on individuals, society and the environment. That discussion remains contentious, conflicted and unresolved. But it ignores a critical actor—the financial institutions which provide operating capital to enterprises. This paper considers the corporate social responsibilities of financial institutions, including sovereign wealth funds, for the conduct of their borrowers. The focus will be the extent of any duty or responsibility of lenders to ensure that their borrowers comply with CSR obligations (or alternatively conforms to international human rights standards) as a core aspect of their own CSR obligations (or alternatively) of their responsibility to respect human rights. Section II examines the general regulatory framework. There are two aspects that are relevant. The first is to understand the scope and character of the legal norms that may be applied to enterprises generally with respect to their operation’s that might be understood as CSR-human rights related in nature. The second is to consider the range of non-legal normative governance rules that might apply. In the process it will be important to distinguish between a CSR based regulatory approach and a human rights based approach. Section III considers the application of these norms to financial institutions. This requites distinguishing between those obligations that apply to the internal operations of financial institutions generally, and those obligations that apply to the financial institution’s obligations with respect to its lending activities, that is with respect to its relationship with its borrowers. The essay ends with a brief examination of recent cases in which financial institutions undertook such a responsibility, and the ways in which that obligation was undertaken. Three different types of institutions are considered—private banks, sovereign wealth funds and international financial institutions (IFIs). The paper ends with a preliminary consideration of the consequences of this movement for domestic CSR in the U.S.
This presentation by Prof. R Nieuwenkamp 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
Global Corporate Social Responsibility (GCSR) Standards With Cuban Characteri...Larry Catá Backer
This paper suggests the issues that may face Cuba and enterprises, including U.S. based enterprises, in the wake of normalization. After the introduction, Part II considers briefly the local legal and political context in which enterprises may operate in Cuba, with particular focus on Ley No. 118/2014 (De la Inversión Extranjera), and its contextualization within the legal structures of Cuban macro-economic policy. Part III then outlines two important standards systems for global CSR with effect in Cuba, the OECD’s Guidelines for Multinational Enterprises and the U.N. Guiding Principles for Business and Human Rights. Part IV then considers the ways in which MNEs may have to approach their investment activities in light of these standards, the pressures for change they might produce, and the adverse effects their adverse effects on MNE decisions to invest or operate in Cuba.
This document discusses case studies of CSO-business partnerships for development and identifies lessons learned and implications. It analyzes partnerships in four sectors: a dairy cooperative in Tanzania, dairy system improvements in Kenya, mining in Madagascar, and mining/oil palm in Ghana. Key findings include that the origins and contexts of partnerships matter greatly to their design and outcomes. Partnerships range from philanthropic to strategic, and activities from production focused to holistic system approaches. Governance structures varied from informal to formal, and degrees of engagement ranged from transactional to committed. The document concludes that partnerships require adaptive approaches that address power imbalances, trust, and equitable benefits over time.
Polycentricity in South Asian Human Rights Law: On the Strategic and Simultan...Larry Catá Backer
This document summarizes a presentation on polycentricity in human rights law in South Asia related to multinational corporations (MNCs). It discusses the rise of multiple governance systems beyond the state that implement human rights, including private supplier codes of conduct, sovereign wealth funds, and international soft law. It examines this emerging polycentric framework in India, noting the country's rights-based legal discourse but also limitations of the judicial system. Alternative governance structures are opening up due to issues like distrust in state institutions and problems of caste and gender rights. The talk aims to analyze how individuals and MNCs can protect rights in this complex landscape through strategic litigation, as shown in two case studies.
Making Infrastructure Deliver - Lessons from QuebecOECD Governance
Presentation make by Prof. Geneviève Cartier - Commission of Inquiry on the Awarding and Management of Public Contracts in the Construction Industry - at the 2nd OECD Forum on Governance of Infrastructure, Paris, 20th March 2017. For more information see www.oecd.org/gov/oecd-forum-on-governance-of-infrastructure-2017.htm
Crowding in private financing to support a public vision for infrastructureOECD Governance
Presentation make by Iain BEGG, European Institute at the 2nd OECD Forum on Governance of Infrastructure, Paris, 20th March 2017. For more information see www.oecd.org/gov/oecd-forum-on-governance-of-infrastructure-2017.htm
Financial Sector Responsibility for Human Rights Conduct of Borrowers: What W...Larry Catá Backer
The document discusses the responsibilities of financial institutions for the human rights conduct of their borrowers, using the extractives sector as an example. It provides context on debates around corporate social responsibility in the extractives sector. It then outlines several international norm structures that guide business and human rights conduct, such as the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, and third party standards. The document also examines case studies of financial institutions, including the Norwegian sovereign wealth fund's exclusions of certain companies from its investment portfolio due to human rights or environmental concerns. It concludes by looking at private standards adopted by banks like HSBC for their mining and metals sector clients and policies.
The Corporate Social Responsibilities of Financial Institutions for the Condu...Larry Catá Backer
Abstract: Corporate social responsibility (CSR) can be split along two distinct lines. The first touches on the nature of corporate personality and is rooted in domestic law regulating enterprises specifically and legal persons generally. The second touches on the nature of the rights of individuals and is rooted in international law (and sometimes domestic constitutional law) defining the scope of the human rights of individuals and the consequential obligations of states and legal persons. Both conversations intertwine though they tend to operate autonomously. In both cases, however, the traditional focus of corporate responsibility has focused on the relationship between an operating company and its direct effects on individuals, society and the environment. That discussion remains contentious, conflicted and unresolved. But it ignores a critical actor—the financial institutions which provide operating capital to enterprises. This paper considers the corporate social responsibilities of financial institutions, including sovereign wealth funds, for the conduct of their borrowers. The focus will be the extent of any duty or responsibility of lenders to ensure that their borrowers comply with CSR obligations (or alternatively conforms to international human rights standards) as a core aspect of their own CSR obligations (or alternatively) of their responsibility to respect human rights. Section II examines the general regulatory framework. There are two aspects that are relevant. The first is to understand the scope and character of the legal norms that may be applied to enterprises generally with respect to their operation’s that might be understood as CSR-human rights related in nature. The second is to consider the range of non-legal normative governance rules that might apply. In the process it will be important to distinguish between a CSR based regulatory approach and a human rights based approach. Section III considers the application of these norms to financial institutions. This requites distinguishing between those obligations that apply to the internal operations of financial institutions generally, and those obligations that apply to the financial institution’s obligations with respect to its lending activities, that is with respect to its relationship with its borrowers. The essay ends with a brief examination of recent cases in which financial institutions undertook such a responsibility, and the ways in which that obligation was undertaken. Three different types of institutions are considered—private banks, sovereign wealth funds and international financial institutions (IFIs). The paper ends with a preliminary consideration of the consequences of this movement for domestic CSR in the U.S.
This presentation by Prof. R Nieuwenkamp 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
Global Corporate Social Responsibility (GCSR) Standards With Cuban Characteri...Larry Catá Backer
This paper suggests the issues that may face Cuba and enterprises, including U.S. based enterprises, in the wake of normalization. After the introduction, Part II considers briefly the local legal and political context in which enterprises may operate in Cuba, with particular focus on Ley No. 118/2014 (De la Inversión Extranjera), and its contextualization within the legal structures of Cuban macro-economic policy. Part III then outlines two important standards systems for global CSR with effect in Cuba, the OECD’s Guidelines for Multinational Enterprises and the U.N. Guiding Principles for Business and Human Rights. Part IV then considers the ways in which MNEs may have to approach their investment activities in light of these standards, the pressures for change they might produce, and the adverse effects their adverse effects on MNE decisions to invest or operate in Cuba.
This document discusses case studies of CSO-business partnerships for development and identifies lessons learned and implications. It analyzes partnerships in four sectors: a dairy cooperative in Tanzania, dairy system improvements in Kenya, mining in Madagascar, and mining/oil palm in Ghana. Key findings include that the origins and contexts of partnerships matter greatly to their design and outcomes. Partnerships range from philanthropic to strategic, and activities from production focused to holistic system approaches. Governance structures varied from informal to formal, and degrees of engagement ranged from transactional to committed. The document concludes that partnerships require adaptive approaches that address power imbalances, trust, and equitable benefits over time.
Polycentricity in South Asian Human Rights Law: On the Strategic and Simultan...Larry Catá Backer
This document summarizes a presentation on polycentricity in human rights law in South Asia related to multinational corporations (MNCs). It discusses the rise of multiple governance systems beyond the state that implement human rights, including private supplier codes of conduct, sovereign wealth funds, and international soft law. It examines this emerging polycentric framework in India, noting the country's rights-based legal discourse but also limitations of the judicial system. Alternative governance structures are opening up due to issues like distrust in state institutions and problems of caste and gender rights. The talk aims to analyze how individuals and MNCs can protect rights in this complex landscape through strategic litigation, as shown in two case studies.
Making Infrastructure Deliver - Lessons from QuebecOECD Governance
Presentation make by Prof. Geneviève Cartier - Commission of Inquiry on the Awarding and Management of Public Contracts in the Construction Industry - at the 2nd OECD Forum on Governance of Infrastructure, Paris, 20th March 2017. For more information see www.oecd.org/gov/oecd-forum-on-governance-of-infrastructure-2017.htm
Crowding in private financing to support a public vision for infrastructureOECD Governance
Presentation make by Iain BEGG, European Institute at the 2nd OECD Forum on Governance of Infrastructure, Paris, 20th March 2017. For more information see www.oecd.org/gov/oecd-forum-on-governance-of-infrastructure-2017.htm
Economic growth in Africa remains strong with growth of 5% in 2013. At least a third of countries in the region are growing at 6% and more, and African countries are now routinely among the fastest-growing countries in the world. Yet for businesses seeking to expand into or operate on the Continent and their legal advisers, there remain serious challenges to success. So how can we all make the most of this continent of opportunity and challenges?
Focussing particularly on recent developments, legal harmonization, opportunities and day to day issues in the legal world in Africa, the session will provide an insight into the potential challenges that lawyers may find when working with clients or on transactions or litigations in Africa and suggest some ways to mitigate the risks. Covering a range of topics such political risk, corruption, the importance of trust and relationship-building and the different pace of working, the webinar will provide a unique insight into working in Africa and present our unique offering on the continent.
Can mining company - NGO partnerships make corporate social responsibility in...RCS Global
This document discusses mining company-NGO partnerships and their potential to make corporate social responsibility interventions more effective. It defines civil society and NGOs, noting they are distinct from but related to one another. The document also outlines some key criteria for effective partnerships, like being based on common interests and resulting in mutual benefits. Two case studies of partnerships are provided: one between Pact, TFM and local entrepreneurs in the DRC that initially improved community relations but faced sustainability questions, and another between Rio Tinto and Conservation International in Guinea that positively leveraged additional resources and expanded influence over decision making. The document concludes that partnership skills need strengthening on both sides to build trust, benefits must be clearly defined, and communication can be improved
Asian Financial Services Congress 2013 - The Challenge with RegulationsSam Gibbins 紀俊森
The document discusses the challenges of balancing business profits and regulatory compliance in the financial services industry. It notes that regulations aim to protect investors, ensure fair markets, reduce risk, and prevent financial crime. Regulations have increased in number and complexity due to factors like new technologies and globalization. Compliance is more difficult as products and criminal opportunities become more sophisticated. Firms must carefully manage risks and consider options like reducing, transferring, accepting, or avoiding risks. An effective compliance framework requires strong oversight, independence, training, and a culture of compliance from the top-down. There is no single solution, as what works for one firm may not work for another.
The document discusses building sustainability through public-private partnerships for environmental investments. It outlines that the public sector lacks funding and technical skills, private sector faces short-term profit pressures, and NGOs lack funding and capacity. Successful partnerships require the public sector to set standards, private sector to provide expertise, and NGOs to represent communities. Key challenges include political, regulatory, commercial and financial risks. Overcoming these requires capacity building, innovative financing, and delineating clear roles and responsibilities for partners.
Presentation by Frédérique Six at the OECD Workshop on “Joint Learning for an OECD Trust Strategy” on 14 October 2013. Mr. Six discusses effective regulation, the trust triangle, compliance and a trust regime.
15 april enabling environment ester asin [compatibility mode]Olga Kozhaeva
The document summarizes discussions from the Structured Dialogue process, which brought together CSO platforms, institutions, and local authorities to define minimum standards for an enabling environment for CSOs. Key recommendations included calls for governments to respect CSO rights and autonomy, institutionalize multi-stakeholder dialogue, and adopt policies supporting CSO involvement. However, some gaps and controversial issues remained, such as lack of participation from all stakeholders and ensuring funding follows supportive policies.
Exploring Synergies from Partnership: The Case of the EITI and Certified Trad...RCS Global
The document discusses potential partnerships between the Extractive Industries Transparency Initiative (EITI) and Certified Trading Chains (CTC) in mineral production. It notes that both initiatives aim to increase transparency and good governance in the natural resources sector. While their approaches and scopes differ, with CTC taking a broader value chain approach, there are opportunities for synergies. Standard 17 of the CTC requires companies to publish payments to governments in accordance with EITI standards, creating governance structures to support EITI implementation. Overall, the document explores how CTC and EITI concepts could work together to increase transparency throughout the mining value chain.
The document discusses the Extractive Industries Transparency Initiative (EITI), which aims to address issues related to natural resource governance. It provides an overview of EITI, including its history and goals. Key points include:
- EITI was established in 2002 to address the "resource curse" where countries rich in natural resources tend to have less economic growth than countries with fewer natural resources.
- EITI has 31 implementing countries and aims to improve transparency and accountability by reconciling company payments with government revenues in the oil, gas and mining industries.
- Studies show EITI is beginning to have some positive impacts like increased trust, but more evidence is still needed on its effectiveness in reducing corruption and improving living standards.
Political Economy Assessments can secure political licenses to operate and in...RCS Global
This document discusses how political economy assessments can help mining companies secure a "political license to operate" and increase the effectiveness of their corporate social responsibility programs. It provides examples of how Chinese investment in Zambia's mining sector led to resentment that was exploited by populist politicians, and how Rio Tinto's iron ore concession in politically unstable Guinea made it vulnerable to changes in the country's unstable elite politics. The document argues political economy assessments can help anticipate such challenges.
This document outlines a 5-year initiative led by Transparency International Australia to prevent corruption in the awarding of mining permits, licenses, and contracts in approximately 20 resource-rich countries. The initiative will conduct risk mapping and multi-stakeholder engagement to create transparency and accountability in the mining sector governance. This aims to ensure countries' wealth from minerals benefits local communities and leads to sustainable development. Transparency International's global network and experience in anti-corruption advocacy make it well-positioned to implement this initiative working with governments, companies, and civil society groups.
This presentation by Scott Hammond, Partner, Gibson Dunn, was made during the discussion “Challenges and co-ordination of leniency programmes” held at the 127th meeting of the OECD Working Party No. 3 on Co-operation and Enforcement on 5 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gt.
This document discusses various models for internet governance and cybersecurity regimes. It begins by outlining different public goods governance models including state regulation, cooperation, private self-regulation, co-regulation, and delegation. It then examines the "shadow of hierarchy" and its implications for governments and non-state actors. Next, it addresses issues with private self-regulation such as monopoly power and the potential for regulatory competition. It also discusses multistakeholder and multilateral models. The document concludes by posing questions about regional internet registry governance and outlining components of an effective national cybersecurity strategy model and power hierarchy principles.
Session 3:10 – SDG Towards Coherence
From PCD to PCSD
James Mackie PhD
Head of Learning & Quality Support, ECDPM
Visiting Professor, IRD Dept, College of Europe
University of Amsterdam, 29 June 2016
Maintaining the Business Case for Equality - Reducing Risk and Ensuring Compl...SWF
The document discusses the dismantling of individual rights and attacks on equality and human rights in the UK. It summarizes the findings of a review of the Public Sector Equality Duty (PSED) in Wales, which found that the PSED raised the profile of equality and provided a structure for equality work, but that organizations faced challenges from a lack of clear guidance. It also outlines budget savings from various welfare reforms in the UK totaling over £5 billion.
This presentation by Alexandre de Crombrugghe was made at the session "Investment policy reform and regional integration" during the 2nd ASEAN-OECD Investment Policy Conference held on 10-11 December 2014.
Find out more at: http://www.oecd.org/daf/inv/investment-policy/2014-asean-oecd-investment-policy-conference.htm
This presentation by Brent Snyder, Chief Executive Officer, Competition Commission of Hong Kong, was made during the discussion “Challenges and co-ordination of leniency programmes” held at the 127th meeting of the OECD Working Party No. 3 on Co-operation and Enforcement on 5 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gt.
This document discusses the political economy of regional integration in Africa. It analyzes the key drivers and constraints of regional organizations in promoting regional cooperation on the continent. It uses five lenses to examine these factors: foundational structures, institutions, actors and agencies, sectoral characteristics, and external factors. Some key observations are that member states may signal support for regional organizations even when implementation is low priority; implementation occurs when aligned with national interests; regional hegemons influence agendas; and donors have significant influence but provide fragmented support. It concludes by discussing options for regional organizations to consider ambitions realistically given path dependencies and political realities.
Sustainable Mining: The Dodd Frank Act Section 1502 On "Conflict Minerals"RCS Global
Resource Consulting Services is a leading consultancy that specializes in extractive industries, natural resources, and supply chain management. They provide advisory services to help clients comply with regulations regarding conflict minerals. The Dodd-Frank Act Section 1502 requires companies to report whether their products contain conflict minerals from the Democratic Republic of Congo. These minerals, which include gold, tin, tantalum, and tungsten, have helped finance armed groups in eastern DRC. Companies must conduct supply chain due diligence to determine if their minerals are "conflict free". Resource Consulting Services advises clients on implementing the OECD Due Diligence Guidance to help achieve Dodd-Frank Act compliance.
The International Bar Association (IBA) has created a new Corporate Group Membership that allows all members of a company's in-house legal team to become full IBA members with access to IBA resources. This membership provides benefits like risk awareness, knowledge building, global reach, local knowledge, and cost savings. Membership fees are based on the size of the in-house legal team, and full members can join any of the IBA's 70+ committees and forums.
MNC/ TNC operates in multiple countries through foreign direct investment. It generates significant revenue from foreign markets and has many foreign employees. It can enter foreign markets through joint ventures, subsidiaries, or mergers and acquisitions. The UNCTC outlined duties for MNCs in host countries like respecting laws and human rights, but was never approved. Corporate social responsibility has grown in importance, with companies voluntarily regulating themselves regarding economic, social and environmental impacts.
The document summarizes trends in consumer protection and financial education based on a global survey of financial regulators. It finds that between 2010 and 2013, more countries established a legal framework for consumer protection and financial literacy and assigned responsibility to financial supervisors. Regulators are also broadening monitoring tools and involvement in financial literacy efforts. The document outlines good practices for consumer protection in areas like disclosure, business practices, and dispute resolution. It discusses responsible digital finance and ensuring protection as services move online. Finally, it discusses measuring and improving financial capability through financial education programs and national strategies.
Economic growth in Africa remains strong with growth of 5% in 2013. At least a third of countries in the region are growing at 6% and more, and African countries are now routinely among the fastest-growing countries in the world. Yet for businesses seeking to expand into or operate on the Continent and their legal advisers, there remain serious challenges to success. So how can we all make the most of this continent of opportunity and challenges?
Focussing particularly on recent developments, legal harmonization, opportunities and day to day issues in the legal world in Africa, the session will provide an insight into the potential challenges that lawyers may find when working with clients or on transactions or litigations in Africa and suggest some ways to mitigate the risks. Covering a range of topics such political risk, corruption, the importance of trust and relationship-building and the different pace of working, the webinar will provide a unique insight into working in Africa and present our unique offering on the continent.
Can mining company - NGO partnerships make corporate social responsibility in...RCS Global
This document discusses mining company-NGO partnerships and their potential to make corporate social responsibility interventions more effective. It defines civil society and NGOs, noting they are distinct from but related to one another. The document also outlines some key criteria for effective partnerships, like being based on common interests and resulting in mutual benefits. Two case studies of partnerships are provided: one between Pact, TFM and local entrepreneurs in the DRC that initially improved community relations but faced sustainability questions, and another between Rio Tinto and Conservation International in Guinea that positively leveraged additional resources and expanded influence over decision making. The document concludes that partnership skills need strengthening on both sides to build trust, benefits must be clearly defined, and communication can be improved
Asian Financial Services Congress 2013 - The Challenge with RegulationsSam Gibbins 紀俊森
The document discusses the challenges of balancing business profits and regulatory compliance in the financial services industry. It notes that regulations aim to protect investors, ensure fair markets, reduce risk, and prevent financial crime. Regulations have increased in number and complexity due to factors like new technologies and globalization. Compliance is more difficult as products and criminal opportunities become more sophisticated. Firms must carefully manage risks and consider options like reducing, transferring, accepting, or avoiding risks. An effective compliance framework requires strong oversight, independence, training, and a culture of compliance from the top-down. There is no single solution, as what works for one firm may not work for another.
The document discusses building sustainability through public-private partnerships for environmental investments. It outlines that the public sector lacks funding and technical skills, private sector faces short-term profit pressures, and NGOs lack funding and capacity. Successful partnerships require the public sector to set standards, private sector to provide expertise, and NGOs to represent communities. Key challenges include political, regulatory, commercial and financial risks. Overcoming these requires capacity building, innovative financing, and delineating clear roles and responsibilities for partners.
Presentation by Frédérique Six at the OECD Workshop on “Joint Learning for an OECD Trust Strategy” on 14 October 2013. Mr. Six discusses effective regulation, the trust triangle, compliance and a trust regime.
15 april enabling environment ester asin [compatibility mode]Olga Kozhaeva
The document summarizes discussions from the Structured Dialogue process, which brought together CSO platforms, institutions, and local authorities to define minimum standards for an enabling environment for CSOs. Key recommendations included calls for governments to respect CSO rights and autonomy, institutionalize multi-stakeholder dialogue, and adopt policies supporting CSO involvement. However, some gaps and controversial issues remained, such as lack of participation from all stakeholders and ensuring funding follows supportive policies.
Exploring Synergies from Partnership: The Case of the EITI and Certified Trad...RCS Global
The document discusses potential partnerships between the Extractive Industries Transparency Initiative (EITI) and Certified Trading Chains (CTC) in mineral production. It notes that both initiatives aim to increase transparency and good governance in the natural resources sector. While their approaches and scopes differ, with CTC taking a broader value chain approach, there are opportunities for synergies. Standard 17 of the CTC requires companies to publish payments to governments in accordance with EITI standards, creating governance structures to support EITI implementation. Overall, the document explores how CTC and EITI concepts could work together to increase transparency throughout the mining value chain.
The document discusses the Extractive Industries Transparency Initiative (EITI), which aims to address issues related to natural resource governance. It provides an overview of EITI, including its history and goals. Key points include:
- EITI was established in 2002 to address the "resource curse" where countries rich in natural resources tend to have less economic growth than countries with fewer natural resources.
- EITI has 31 implementing countries and aims to improve transparency and accountability by reconciling company payments with government revenues in the oil, gas and mining industries.
- Studies show EITI is beginning to have some positive impacts like increased trust, but more evidence is still needed on its effectiveness in reducing corruption and improving living standards.
Political Economy Assessments can secure political licenses to operate and in...RCS Global
This document discusses how political economy assessments can help mining companies secure a "political license to operate" and increase the effectiveness of their corporate social responsibility programs. It provides examples of how Chinese investment in Zambia's mining sector led to resentment that was exploited by populist politicians, and how Rio Tinto's iron ore concession in politically unstable Guinea made it vulnerable to changes in the country's unstable elite politics. The document argues political economy assessments can help anticipate such challenges.
This document outlines a 5-year initiative led by Transparency International Australia to prevent corruption in the awarding of mining permits, licenses, and contracts in approximately 20 resource-rich countries. The initiative will conduct risk mapping and multi-stakeholder engagement to create transparency and accountability in the mining sector governance. This aims to ensure countries' wealth from minerals benefits local communities and leads to sustainable development. Transparency International's global network and experience in anti-corruption advocacy make it well-positioned to implement this initiative working with governments, companies, and civil society groups.
This presentation by Scott Hammond, Partner, Gibson Dunn, was made during the discussion “Challenges and co-ordination of leniency programmes” held at the 127th meeting of the OECD Working Party No. 3 on Co-operation and Enforcement on 5 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gt.
This document discusses various models for internet governance and cybersecurity regimes. It begins by outlining different public goods governance models including state regulation, cooperation, private self-regulation, co-regulation, and delegation. It then examines the "shadow of hierarchy" and its implications for governments and non-state actors. Next, it addresses issues with private self-regulation such as monopoly power and the potential for regulatory competition. It also discusses multistakeholder and multilateral models. The document concludes by posing questions about regional internet registry governance and outlining components of an effective national cybersecurity strategy model and power hierarchy principles.
Session 3:10 – SDG Towards Coherence
From PCD to PCSD
James Mackie PhD
Head of Learning & Quality Support, ECDPM
Visiting Professor, IRD Dept, College of Europe
University of Amsterdam, 29 June 2016
Maintaining the Business Case for Equality - Reducing Risk and Ensuring Compl...SWF
The document discusses the dismantling of individual rights and attacks on equality and human rights in the UK. It summarizes the findings of a review of the Public Sector Equality Duty (PSED) in Wales, which found that the PSED raised the profile of equality and provided a structure for equality work, but that organizations faced challenges from a lack of clear guidance. It also outlines budget savings from various welfare reforms in the UK totaling over £5 billion.
This presentation by Alexandre de Crombrugghe was made at the session "Investment policy reform and regional integration" during the 2nd ASEAN-OECD Investment Policy Conference held on 10-11 December 2014.
Find out more at: http://www.oecd.org/daf/inv/investment-policy/2014-asean-oecd-investment-policy-conference.htm
This presentation by Brent Snyder, Chief Executive Officer, Competition Commission of Hong Kong, was made during the discussion “Challenges and co-ordination of leniency programmes” held at the 127th meeting of the OECD Working Party No. 3 on Co-operation and Enforcement on 5 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gt.
This document discusses the political economy of regional integration in Africa. It analyzes the key drivers and constraints of regional organizations in promoting regional cooperation on the continent. It uses five lenses to examine these factors: foundational structures, institutions, actors and agencies, sectoral characteristics, and external factors. Some key observations are that member states may signal support for regional organizations even when implementation is low priority; implementation occurs when aligned with national interests; regional hegemons influence agendas; and donors have significant influence but provide fragmented support. It concludes by discussing options for regional organizations to consider ambitions realistically given path dependencies and political realities.
Sustainable Mining: The Dodd Frank Act Section 1502 On "Conflict Minerals"RCS Global
Resource Consulting Services is a leading consultancy that specializes in extractive industries, natural resources, and supply chain management. They provide advisory services to help clients comply with regulations regarding conflict minerals. The Dodd-Frank Act Section 1502 requires companies to report whether their products contain conflict minerals from the Democratic Republic of Congo. These minerals, which include gold, tin, tantalum, and tungsten, have helped finance armed groups in eastern DRC. Companies must conduct supply chain due diligence to determine if their minerals are "conflict free". Resource Consulting Services advises clients on implementing the OECD Due Diligence Guidance to help achieve Dodd-Frank Act compliance.
The International Bar Association (IBA) has created a new Corporate Group Membership that allows all members of a company's in-house legal team to become full IBA members with access to IBA resources. This membership provides benefits like risk awareness, knowledge building, global reach, local knowledge, and cost savings. Membership fees are based on the size of the in-house legal team, and full members can join any of the IBA's 70+ committees and forums.
Similar to The Responsibilities of Banks, Sovereign Wealth Funds and Other Financial Institutions to Respect Human Rights: The Example of the Extractives Sector Financing (3-2017)
MNC/ TNC operates in multiple countries through foreign direct investment. It generates significant revenue from foreign markets and has many foreign employees. It can enter foreign markets through joint ventures, subsidiaries, or mergers and acquisitions. The UNCTC outlined duties for MNCs in host countries like respecting laws and human rights, but was never approved. Corporate social responsibility has grown in importance, with companies voluntarily regulating themselves regarding economic, social and environmental impacts.
The document summarizes trends in consumer protection and financial education based on a global survey of financial regulators. It finds that between 2010 and 2013, more countries established a legal framework for consumer protection and financial literacy and assigned responsibility to financial supervisors. Regulators are also broadening monitoring tools and involvement in financial literacy efforts. The document outlines good practices for consumer protection in areas like disclosure, business practices, and dispute resolution. It discusses responsible digital finance and ensuring protection as services move online. Finally, it discusses measuring and improving financial capability through financial education programs and national strategies.
This document summarizes the key points from a presentation on latest practices in financial consumer protection and financial education. The presentation covered trends from a global survey on consumer protection and financial literacy, good practices for financial consumer protection, responsible digital finance, and financial capability and education. It discussed how most countries now have a legal framework for consumer protection and financial literacy, and that responsibilities are shared across multiple regulatory agencies. New good practices were being developed to address digital finance issues around areas like data protection and product suitability. Financial capability was defined and its importance discussed, along with how countries measure capability through surveys to help design national strategies.
This document summarizes the key points from a presentation on latest practices in financial consumer protection and financial education. The presentation covered trends from a global survey on consumer protection and financial literacy, good practices for financial consumer protection, responsible digital finance, and financial capability and education. It discussed how most countries now have a legal framework for consumer protection and financial literacy, and how regulatory responsibilities are shared across multiple agencies. The presentation also outlined the World Bank's good practices for financial consumer protection and efforts to ensure they remain up to date. It addressed consumer protection issues specific to digital finance and financial inclusion. Finally, it discussed definitions and frameworks for measuring financial capability at the individual level.
The document discusses challenges around financing the sustainable development goals (SDGs) through private sector engagement. It raises questions around whether the private sector can reliably partner to achieve the SDGs. While private activity, finance, and investment are increasing, challenges remain around ensuring additionality, impact, and inclusiveness of private sector activities. Effective monitoring and accountability mechanisms are also needed. Politics and incentives shaping firm behaviors are key factors that must be understood to build on domestic policies and strategies and determine if the SDG agenda can truly alter approaches to development financing.
Human Rights Impact Assesments And Corporate ResponsibilityAviva Canada
This presentation is a companion piece to a larger work that looks at the grand tension between the corporate model of wealth generation and human
rights abuses. I advocate that the integration and implementation of pre-emptive risk management
tools can operationalise corporate human rights obligations within the UN Ruggie framework. In the
context of a case study analysis of water privatisation in Argentina, I have placed specific focus on the
corporate operationalisation of (human rights) due diligence utilizing a Human Rights Impact
Assessment model in its ex-ante project planning as an effective risk aversion-profit generation
model.
This document discusses the evolution of how multinational corporations (MNCs) are governed, moving from being objects regulated by states to becoming subjects that self-regulate through their own governance systems. It describes how MNCs now set standards for their supply chains through contracts and monitoring, functioning similarly to governments. Other actors like NGOs, media, investors and consumers also play roles in these decentralized regulatory networks. The future involves polycentric governance with multiple overlapping systems between states, international laws, and corporate norms.
These highlights from the OECD Investment Policy Review of Myanmar were presented by Stephen Thomsen at launch events in Myanmar on the 1 and 4 March 2014. Myanmar's Union Minister of National Planning and Economic Development, Dr. Kan Zaw, praised the comprehensive nature of the report and said that it would help to guide the government in solidifying investment climate reforms and in promoting more and better investment.
Find out more at http://www.oecd.org/daf/inv/investment-policy/investment-policy-reform-in-myanmar.htm
This document discusses challenges related to corporate social responsibility (CSR) from a legal and corporate governance perspective. It notes that while corporate governance research has focused on linking good governance to financial performance, there are increasing expectations for businesses to address social concerns. However, most investors do not yet systematically factor environmental, social and governance issues into investment decisions. It argues that as social issues become subject to international standards and domestic legislation, corporate governance needs to bridge the divide between financial and social objectives. Moving forward, greater collaboration is needed between businesses, governments and academics to help companies both create value for shareholders and stakeholders and prevent adverse impacts.
Investing the Rights Way: A Guide for Investors on Business and Human Rights Dr Lendy Spires
This document provides an overview of why human rights should matter to investors. It notes that companies associated with human rights abuses face operational, legal, and reputational risks. Respecting human rights can also benefit companies financially. The fiduciary duties of company managers require them to identify and manage material risks like human rights issues. There is a growing body of research indicating that environmental, social, and governance factors including human rights should be considered in investment decision making. The UN Guiding Principles on Business and Human Rights provide a framework for investors to assess human rights risks across their portfolios and engage with companies on human rights.
This document discusses corporate social responsibility (CSR). It covers key CSR concepts like the social contract and stakeholder theory. It also outlines some of the main issues in CSR like labor rights, environmental conditions, and human rights. Additionally, it examines the global context and key drivers of CSR such as NGO activism, responsible investment, litigation, and government initiatives. Finally, the document explores implications for enterprises like CSR management systems and implications for development through experiments to quantify the relationship between CSR and economic growth.
Workshop 4 rules and reg legislation up dated 2016 no logo (1)finalamandajune
This document summarizes a workshop on customer service NVQs. The objectives are to review progress, identify the university's service standards, discuss how standards are applied, explore complaint procedures, consider relevant legislation, and link evidence to assessment requirements. Topics covered include service level agreements, university policies, reviewing the student charter, legislative frameworks, consumer protection laws, health and safety legislation, data protection, and the Equality Act. Activities include reviewing the student charter and identifying workplace hazards.
This document summarizes a workshop on customer service NVQs. The objectives are to review progress, identify the university's service standards, discuss how standards are applied, explore complaint procedures, consider relevant legislation, and link evidence to assessment requirements. Topics covered include service level agreements, university policies, reviewing the student charter, legislative frameworks, consumer protection laws, health and safety legislation, data protection, and the Equality Act. Activities include reviewing the student charter and identifying workplace hazards.
The document provides information about a CSR workshop held by Citizen Act, including quizzes about CSR-related topics. The quizzes cover the size of the environmental market globally and in 2020, the Equator Principles for banks, disability rates globally, and Socially Responsible Investing funds in 2010. It also outlines Société Générale's CSR priorities and examples of how it implements CSR through initiatives like the Equator Principles, sustainable banking, carbon markets, diversity programs, and microfinance.
Mba1034 cg law ethics week 14 ethics international business 072013Stephen Ong
This document provides an overview of ethics in international business. It discusses several key topics:
- International law and institutions that govern interactions between countries and foreign firms.
- The challenges of cultural relativism versus universal ethics principles when operating across borders. Firms must balance local customs with fundamental human values.
- Human rights and justice issues that sometimes arise from government policies in developing countries.
- Responsibilities of companies for working conditions in supplier factories. Several case examples are provided.
- The issues of questionable payments and corruption to foreign officials. Various laws and guidelines for companies are outlined.
The document provides an overview of a presentation on global anti-corruption, money and commodity flows, data security, and asset recovery. It discusses key topics including the Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, anti-corruption compliance best practices, cyber financial crimes like social engineering and malware, data security best practices, responding to data breaches, and international data privacy laws. The presentation aims to help attendees prepare for the CFCS (Certified Financial Crime Specialist) examination through scenario-based questions.
The document provides information about a CSR workshop hosted by Citizen Act, including quizzes about CSR-related topics. The quizzes cover the size of the green economy market, how much it will grow by 2020, the definition of the Equator Principles for banks, disability rates globally, and amounts invested in socially responsible investing. It also includes an agenda for the workshop that discusses CSR definitions, how CSR relates to business and banking, examples of CSR implementation, and a case study.
Why do companies need to consider embedding the UN Guiding principles on business and human rights? What is the current status of the UK Modern slavery Act? What other developments are we seeing?
Similar to The Responsibilities of Banks, Sovereign Wealth Funds and Other Financial Institutions to Respect Human Rights: The Example of the Extractives Sector Financing (3-2017) (20)
The Algorithms of Ideology in Economic Planning: A Critical Look at Cuba’s N...Larry Catá Backer
Short Abstract: The development plans of Marxist Leninist states are usually given short shrift as expressions of ideology (at best) and propaganda (at its most pathetic). Yet there is value in considering critically these development plans, if only to get a sense of the mindset of high level functionaries with control over macro-economic policy, and to get a sense of the administrative cultures within which governmental middle managers will actually exercise discretionary authority. Especially useful in that context is the Cuban Communist Party 7th Congress’s Conceptualización del modelo económico y social Cubano de desarrollo socialista: Plan nacional de desarrollo económico y social hasta 2030: Propuesta de vision de la nación, ejes y sectores estratégicos in which the PCC posited that development can be better managed by rejecting the central role of markets, and substituting state planning in its place, taking an all around view of economic planning as inextricably bound up in social, political and cultural progress of a nation. The resulting structural proposal elaborated in the Cuban National Economic and Social Development Plan 2030 (PNDES) suggests behavior and choice algorithms with interesting implications even if only partially realized. It is particularly important as a vision for transition developed in the wake of anticipated changes in higher leadership and the effects of normalization with the United States. This essay critically considers PNDES in the current context national and regional context. It starts with a brief analysis of PNDES for what it can reveal about entrenched ideological perspectives that shape decision making and analysis within Cuban Party and administrative elites. It then considers the way these appear to manifest themselves as a set of self-referencing decision systems that substitute or supplant market or regulatory determinations. Those premises are tested against Cuban approaches to the pharma sector, among the most important targets of centrally planned development. The essay ends with an assessment of the consequences of Cuban current approaches for national and regional affairs.
“One Belt One Road and RMB Internationalization—A Strategic Alliance” Larry Catá Backer
Focus: Consideration of the peripheral structures of Chinese trade and investment policy and its potential effects on RMB internationalization. Thesis: RMB internationalization is one small part of a larger more ambitious project: (1) External: An integral part of Chinese trade and development policies; an interlocking set of objectives to solidify the all around central position of China; (2) Internal: Core of socialist modernization and development of productive forces within China; situating China at center of global commerce essential for next stage of economic and political development.
Structures of discussion: (1) Situating RMB internationalization within broader issues of Chinese policy; (2) The OBOR initiative and related development efforts. Last section considers putting the pieces together; and (3) Tie it back to issues of reality (trade and investment use) and perception (consensus of others states)
Why are OBOR and RMB internationalization linked? (1) Stability; (2) Development; and (3) Control
Unpacking Accountability: The Multinational Enterprise, the State, and the In...Larry Catá Backer
Larry Catá Backer argues that effective systems of accountability for corporate violations of human rights, labor, and environmental standards require all stakeholders - states, enterprises, international organizations, civil society, and NGOs - to hold each other accountable. True accountability is multidirectional and context-dependent, operating through reciprocal relationships defined by objectives like norm generation, good governance, and institutional legitimacy. These objectives are pursued through diverse accountability mechanisms and grounded in the internal accountability structures of each actor. Effective accountability thus depends on coherent, multilayered frameworks encompassing self, mutual, and external accountability across this complex accountability ecology.
The Privatization of Governance: Emerging Trends and ActorsLarry Catá Backer
Globalization's challenges, tensions and contradictions, indeed all of the variables that contribute toward the trajectory of globalization and its relationship to its principal actors, merely reinforce the primacy of globalization itself as a singular orthodoxy. And it is an orthodoxy that is itself embedded in the more fundamental governance orthodoxy of the mid-1945s from out of which the framework of its conception and operation was itself embedded. That orthodoxy itself posited a hierarchy in which politics served as the legitimating instrument of power, and that the state served as the apex organization of politics. That organization, itself, was expressed as the institutionalization of mass power framed within a set of fundamental substantive norms the limiting principles of which would be set by the community of states dominated by its leading members. Thus, the appearance of challenge and opposition that has been more sharply drawn since the start of this century might be understood as occurring within a carefully protected orthodoxy the object of which is to protect the primacy of politics (and law) with the state as its apex.
And yet, one of the great ironies of globalization is the way in which its effort to cement a framework orthodoxy after 1945 has served to overturn orthodoxy itself, and in its place, has ushered in an age of heterodoxy that is both ordered but anarchic. This presentation introduces some of the basic trends and actors that have emerged from out of the orthodox conceptual framework of globalization, and the extent to which these are contributing to its transformation as a vector of governance.
Sovereign Wealth Funds, Capacity Building, Development, and Governance Larry Catá Backer
Abstract: Though operating in some form or another for over half a century, sovereign wealth funds (SWFs) did not become an object of general attention until the early part of the 21st century when a combination of the need of developed states for investment and the growing acceptability of state investment in private markets abroad made them both threatening and convenient. Assured by the framework of the Santiago Principles most states now view SWFs as a useful multi-purpose sovereign investment vehicle. Yet over the last decade or so, SWFs appear to have developed the potential to become an important instrument in good governance and development, especially for resource rich and capacity poor developing states. Following the lead of Chile, and with the patronage of IFIs, these SWFs have begun to serve objectives as and with development banks both within and beyond their home state. This paper considers the capacity of SWFs to serve ends beyond mere fund value maximization as envisioned in the Santiago Principles. It explores the value of SWFs as a means of enhancing governance capacity in weaker states, its utility in enhancing development objectives, the emerging landscape of joint ventures among SWFs for development and their intersections with emerging infrastructure and development banks, and their importance in enhancing the operationalization of emerging international business and human rights standards not only within their own organizations but through their investment activities. A brief assessment of these trends ends the paper. Lastly it develops a set of transformative changes in approaches to SWF instrumentality that SWFs, especially the smaller SWFs and those in developing states, might deploy in structuring and operating their SWFs within a globalized economic order. These strategies are meant to avoid the circular characteristics of current discussions grounded on premises of finance instrument silos and state based systems that no longer accord with the realities of, and fail to take advantage of the possibilities now offered through, global finance and can be grouped into the three transforming categories suggested in Section III: regionalization strategies; financial objectives strategies; governance strategies.
Diversity in Legal Education: Considering the Hollow Spaces Between Speech an...Larry Catá Backer
The document summarizes Larry Catá Backer's presentation on diversity in legal education given at Penn State Law. It discusses challenges with moving from aspirational statements on diversity to implementing real change. Specifically, it notes a need to refocus analysis on responsibility at higher administrative levels rather than just obligations of front-line actors. It also calls for robust accountability measures for those responsible for shaping organizational culture and assessments of diversity-related performance in reviews of managers.
Presentation Delivered January 26, 2017Johns Hopkins University School of Education. his presentation will help to build a broader understanding of governance issues and models within academe and provide an overview of challenges to shared governance derived principally from a university model of faculty senate. Professor Backer has served as a member of Penn State’s University Faculty Senate in the capacities of Senate Chair, Parliamentarian, Representative for the Law School, and Chair, Co-Chair and Member of various senate committees. He maintains a website devoted to faculty voice entitled Monitoring University Governance with the mission of “promoting transparency and engagement in shared governance in universities and colleges.”
Between the Judge and the Law—Judicial Independence and Authority With Chines...Larry Catá Backer
Abstract: What is the scope and nature of judicial reform? To what extent does borrowing from Western models also suggest an embrace of the underlying ideologies that frame those models? It is a common place in the West, whether in Common Law or Civil Law states, that the integrity of the judiciary depends on their authority to interpret law and to apply that interpretation to individual cases and the litigants that appear before the courts. That presumption, however, embeds premises about the organization of political and administrative authority that may be incompatible with those of states developing Socialist Rule of Law structures within Party-State systems. In Common law states those deep presumptions touch on the disciplinary role of judicial opinions as a constraint on judicial interpretation. In civil law states that discipline arises from the constraining principles of the legal codes themselves. In both the legislatures serve as the ultimate check in a complex dialogue with courts in three respects. First, judges serve a political role in their relation to law. Second, cases themselves serve an important political role as well. Third, courts begin to serve as the place where societal narratives are forged and popular expression is constructed and applied. In Socialist rule of law systems, the disciplinary systems are quite different and ought to produce a different relationship between courts, law, and the cases they are bound to apply fairly and consistently under law. This paper considers the way that the logic and grounding principles of Chinese Marxist Leninism may provide guidance in the construction of a judicial enterprise that is both true to its organizational logic and which enhances the authority of judges to serve litigants fairly. It suggests the points of compatibility and incompatibility in the ideologies of these distinct systems of judging and what it may mean for judicial reform in China. That consideration, in turn is based on a fundamental difference, in Socialist Rule of Law systems, between the authority to interpret law and the authority to apply law to an individual case. For Chinese judicial reform it is in the perfectibility of the judge that lies the perfectibility of law that in turn ensures the perfectibility of the judge. Part II considers in very broad strokes the relationship between the judge and law in the West. Part III then considers Chinese reforms touching on the relationship between the judge and the law, and the evolution of normative structures within which one can speak to judicial independence. Part IV then considers the project from the perspective of the grounding ideology of the Chinese state. From that fundamental distinction, the paper will propose a Socialist approach to the judicial function compatible with its own logic and legitimacy enhancing under global consensus principles for a well-organized and functioning judiciary.
中国,法律与外国人:国际舞台上的相互交融 ("China, Law, and the Foreigner: Mutual Engagements on a...Larry Catá Backer
外国人在中西法律交流中的角色类似于新中国前的情形。
这表明了中西法律交流的典型形态
这表明了中国人自身在“走出去”的战略中可以从中西法律交流中摄取经验。
内部思考:是否可以从党的“建设社会主义现代化”中发展出一套思维—以实事求是的态度来发展现代化。
外部:中国人是否可以避免西方曾经的错误,从而变成他国之上的“老外”?"China, Law, and the Foreigner: Mutual Engagements on a Global Stage," considered the structures of patterns of engagements between China and foreigners from the template well established by the end of the Qing dynasty. Drawing form those patterns, the paper developed a number of archetypes that I suggested could provide a useful framework for analysis. Those archetypes also suggested lessons for China as its now assumed the position of inferential foreigner in other states.
Central Planning Versus Markets Marxism: The Cuban Communist Party Confronts ...Larry Catá Backer
The 7th Congress of the Cuban Communist Party stands in stark contrast to its predecessor. The 6th PCC Congress appeared to usher in an era of at least limited opening up and the institutionalization of a private sector of sorts. Yet the 7th PCC Congress in many respects appeared to disappoint. Procedurally it appeared to mark a step back from the openness of the 6th Congress. And it offered little by way of political opening up, even an opening up ushering in more robust intra-Party democracy. Most importantly, the 7th PCC Congress appeared to fall far short of confronting the economic model reaffirmed in the 4th PCC Congress—a model of central planning and Soviet bureaucratic mechanisms substituting for any sort of markets based regulation of economic activity. This paper considers the potential and the missed opportunities of the 7th PCC Congress. A close reading of the 7th PCC Congress will suggest the limits of reform in Cuba. Ideological limits are suggested by a political timidity that has been built into the operating culture of the PCC. As a consequence the PCC is finding it hard to move even from soviet style central planning ideologies to Marxist market ideologies that have proven more successful in other states. The PCC is suffering from a paralysis that may be more dangerous to its long term authority than any machinations originating in its enemies. The paper ends with a consideration of options and likely movement over the short term moving forward.
China, Law and the Foreigner: Mutual Engagements on a Global StageLarry Catá Backer
Prepared for the Conference: “Foreigners and Modern Chinese Law”, Tsinghua University School of Law, Beijing, China, July 9-10, 2016; Organized by Profgessors Xu Zhangrun and Chen Xinyu
Transnational Law and the Multinational Enterprise: From Legal Concept/Method...Larry Catá Backer
At first blush, transnational law’s engagement with TNCs reflects the situational and ad hoc approach of the transnational law project. Transnational law tends to focus on the TNC as an actor apart, like the state, within transnational law situational processes.
Like the state, TNCs are governance singularities into which law can be poured, extracting coherent action. It moves the TNC from the construction of a category to consequential instrumentalism
But is this relationship between TNCs and transnational law construct TNCs too restrictively?
Does it fail to describe the reality of TNCs (the problem of definition)?
Should we consider TNCs as a transnational legal order in its own right (the systems issue)?
Should we consider TNCs instead as the constitution of production chains (the conflation issue)?
Presented at “Jessup’s Bold Proposal: Engagements with 'Transnational Law’ after Sixty Years” Transnational Law Institute, The Dickson Poon School of Law, King’s College, London, Friday-Saturday 1-2 July 2016
Normalization With Cuban Characteristics: How Might Cuba Navigate Normalizati...Larry Catá Backer
Cuba has constructed a tightly woven framework of macro-economic policy and political structures around a unique application of European Marxist-Leninism. That framework has proven durable even in the face of substantial economic crisis and a political situation increasingly subject to internal pressures. Closer working ties with the United States will only exacerbate the tensions and contradictions of the current system. If Cuba means to keep a Marxist-Leninist political structure, something will have to evolve.
The document summarizes the crisis currently facing American law schools and opportunities for reform. It notes declining law school admissions and job prospects for graduates as traditional high-paying legal jobs decrease. This has put pressure on schools and some may close. The document outlines challenges regarding curriculum, teaching methods, accreditation standards, student funding, and career placement. It also discusses trends toward internationalizing legal education and differentiating between elite schools and others. The future may include more emphasis on practical skills training, varied approaches across school tiers, and convergence of business-oriented management styles.
Trail By Fire: Rana Plaza and Transnational Legal Orders Larry Catá Backer
Considering the construction of transnational legal orders through the lens of a deep study of the aftermath of the Rana Plaza Factory building collapse in 2013.
Analysis of the General Program of the Chinese COmmunist Party COnstitution as a basis for theorizing the fundamental principles of Chinese political and legal theory
Institutionalization of Faculty Role in Shared Governance: The Faculty Senate...Larry Catá Backer
The document summarizes the history and present structure of shared governance at Penn State University, focusing on the role of the Faculty Senate. It discusses how governance has evolved from autocratic models pre-1870s to the current system where faculty have an institutionalized role in decision-making through the Senate. The Senate has legislative, advisory, and other functions carried out by committees. It faces ongoing challenges to meaningful participation from administrative techniques that sideline faculty input as well as structural changes to the faculty and university.
Developing Social Media Policies for Universities: Best Practices and Pitfalls."Larry Catá Backer
The presentation highlighted the social media policies of US universities. The object was to catalog, make accessible, and provide a basis for comparison and discussion of policies. The ultimate objective will be to develop a model set of social media policy guidelines that balances the legitimate duty of universities with the human dignity and academic freedom rights of individuals.
Democratizing International Business and Human Rights by Catalyzing Strategic...Larry Catá Backer
Democratizing International Business and Human Rights by Catalyzing Strategic Litigation: The Guidelines for Multinational Enterprises and the U.N. Guiding Principles of Business and Human Rights From the Bottom Up
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
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Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Profiles of Iconic Fashion Personalities.pdfTTop Threads
The fashion industry is dynamic and ever-changing, continuously sculpted by trailblazing visionaries who challenge norms and redefine beauty. This document delves into the profiles of some of the most iconic fashion personalities whose impact has left a lasting impression on the industry. From timeless designers to modern-day influencers, each individual has uniquely woven their thread into the rich fabric of fashion history, contributing to its ongoing evolution.
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf46adnanshahzad
How to Start Up a Company: A Step-by-Step Guide Starting a company is an exciting adventure that combines creativity, strategy, and hard work. It can seem overwhelming at first, but with the right guidance, anyone can transform a great idea into a successful business. Let's dive into how to start up a company, from the initial spark of an idea to securing funding and launching your startup.
Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
The Responsibilities of Banks, Sovereign Wealth Funds and Other Financial Institutions to Respect Human Rights: The Example of the Extractives Sector Financing (3-2017)
1. Financial Sector Responsibility for Human
Rights Conduct of Borrowers:
Lessons from the Extractives Sector
The Responsibilities of Banks, Sovereign Wealth Funds and Other
Financial Institutions to Respect Human Rights: The Example of the
Extractives Sector Financing
(March 2017)
Larry Catá Backer
W. Richard and Mary Eshelman Faculty Scholar, Professor of Law and International Affairs
Pennsylvania State University
2. Context
• Extractive industries have been at center of CSR and environmental
responsibilities debates at the national and international level
• The sector faces unique social and environmental challenges when operating in
developing countries. Faced with these challenges, a number of Canadian
companies are engaging in corporate social responsibility (CSR) initiatives,
generally defined as the voluntary activities undertaken by a company to operate
in an economically, socially and environmentally sustainable manner. Building the
Canadian Advantage: A Corporate Social Responsibility (CSR) Strategy for the
Canadian International Extractive Sector
• These generally involve direct compliance
• Domestic law: home and host states
• Soft law; indigenous law (national an international)
• Private law
• But increasing need to think about indirect compliance:
• Financial institutions
• Suppliers
• Upstream customers
• We Focus on financial institutions and their responsibilities with respect to
the human rights responsibilities of their borrowers
3. Focus of Discussion:
• To what extent are financial institutions
responsible for the human rights breaches
of their borrowers?
• “While the obligation for the protection of human
rights lies with the state, IFIs and their member
states also have responsibilities to ensure that
activities they support do not cause, or contribute
to, human rights abuses by putting in place
adequate safeguards.” Statement of Global
Initiative for Economic, Social and Cultural Rights to
UN Human Rights Council
• How might these obligations constrain
borrowers? Secondary responsibility of
financial sector enterprises
• Loan making
• Pricing
• covenants
• Due diligence during life of relationship
4. Roadmap for Discussion
• International norm structures
• Companies
• Financial Institutions
• Application
• Human Rights Due Diligence
• Risk analysis
• Positive/passive obligations
• Case Studies
• OECD
• SWFs
• Private Standards
5. International Norm Structures; Hard Law
• Basic structures
• Hard vs soft law
• Domestic versus international
• Public versus private
• Operation
• Disclosure versus substantive structures
• Link between social norms, markets,
international law and national law
• Hard law—none
• New comprehensive Business and Human
Rights Treaty?
• National efforts, mostly disclosure
oriented
• Dodd Franck ¶1502Conflict Minerals (2010);
• UK Modern Slavery Act (2015)
• France: Supply Chain Due Diligence Law
(2017) [24 March 2017: Constitutional
Council removed the €10 to €30 million civil
penalty attached, liability continues to apply
when companies default on their duty of
vigilance obligations, including failing to
publish a vigilance plan or faults in its
implementation.]
5Source HERE
7. Sources of Obligation:
Soft Law; Private Governance
• Soft Law—Examples
• UN Guiding Principles
• OECD Guidelines for MNEs
• BITs with Human Rights
Components
• 3rd Party Standards (Extractives
Specific Guideline; e.g. Extractive
Industries Transparency Initiative
(EITI))
• MNE internal norms
• Social License for extractives
8. UNGP
• Endorsed by UN Human Rights Council
• Does not create new CSR or HR legal protections
• Polycentric: simultaneous obligations to states and
enterprises
• 3 part structure
• State duty to protect human rights
• Extends no further than legal obligations of state
• Opens the door to extraterritorial application
• Corporate responsibility to respect human rights
• International bill of human rights
• Human rights due diligence
• Obligation to work around host state restrictions
• Remedial obligations for states and enterprises
• Principally through state
• Also international and private mechanisms
• For extractives applies three different ways
• State duty
• SOEs
• Development Banks
• SWFs (contentious)
• State controlled banks and other lenders
• IFIs
• Corporate responsibility
• Private extractives firms
• Private lenders
• Public lenders operating under commercial
activities exemption of sovereign immunity(?)
• Remedial
• States through judicial and non judicial public
mechanisms
• State based and private systems with option to
opt into state system (which state?; against
which entity? Under what law?)
9. OECD Guidelines for Multinationals
• Guidelines: recommendations addressed by governments to MNEs.
• They provide principles and standards of good practice consistent
with applicable laws and internationally recognised standards.
• Observance of the Guidelines by enterprises is voluntary and not
legally enforceable.
• Cover a number of general areas
• transparency/disclosure, human rights, employment/industrial
relations, environmental issues, bribery/corruption, consumer
protection, technology transfer, anti-competitive schemes, and
taxation
• Special toolkit for weak governance zones
• Extractives and weak governance zones HERE
• OECD Due Diligence Guidance: Meaningful Stakeholder Engagement
• Complaint procedures through National Contact Points.
• Have been used increasingly in two contexts
• NGOs to advance international normative agenda
• Labor unions to leverage national litigation
10. BITs with Human Rights Elements?
--Bilateral Investment Treaties typically deal
with investment and investment protection
--Cuban Bits tend to focus on state prerogatives
--Most others
-internationalize national law
-might discriminate in favor of foreign investors
over domestic
-stabilization provisions protect investment
against domestic law
-focus on expropriation;
--Possibilities
-Incorporate HR norms in BIT subject to
stabilization protection
-produce strong enforcement mechanism through
arbitration
-Early Study HERE
--Requires coherence between HR and trade
bureaucracies Graphic Source (2009)
11. 3rd Party Private Standards
• GRI (Global Reporting Initiative)
• Social, economic and rights based reporting of economic activity
• Private-public partnerships
• ISO 26000 CSR
• EITI (Extractive Industries Transparency Initiative;
• (2016 Standard)
• Private organizations
• Certification of compliance with their standards
• Monitoring .
• Canadian Government promotes these for extractive sector:
• International Finance Corporation Performance Standards on Social & Environmental
Sustainability for extractive projects with potentially adverse social or environmental
impacts;
• The Voluntary Principles on Security and Human Rights for projects involving private
or public security forces; and
• The Global Reporting Initiative (GRI) The government will work with the GRI and
stakeholders to develop GRI supplements for oil and gas and junior mining
companies.
12. A Work in Progress; Example EITI
Source EITI Web Site
13. Internal MNE Norms and Social License
• Largest MNEs already have harmonized and sometimes complex systems of CSR based control of
its supply and production chain throughout their global operations
• Rio Tinto
• Barrick
• TransCanada
• Internal governance norms applied throughout production chain and administered through the
MNE itself enforced through contractual and capital arrangements.
• Constraints to application: veil piercing rules, contract principles (e.g., 3rd party beneficiary, etc.)
• Extractives Specific--Social License
• “Social license ” generally refers to a local community ’s acceptance or approval of a company ’s project or
ongoing presence in an area. It is increasingly recognized by various stakeholders and communities as a
prerequisite to development. The development of social license occurs outside of formal permitting or
regulatory processes, and requires sustained investment by proponents to acquire and maintain social
capital within the context of trust-based relationships. Often intangible and informal, social license can
nevertheless be realized through a robust suite of actions centered on timely and effective
communication, meaningful dialogue, and ethical and responsible behavior. (2013 Social License to
Operate: How to Get It, and How to Keep It, Brian F. Yates and Celesa L. Horvath)
• What happens when they say “no”?
• Domestic law trumps societal licensing; complications of indigenous rights and politics at local level
• Worry for the financial institution (threat to the security of its loan) and operating company
14. Investment and Finance Specific Obligations
• 3rd Party Standards for Financial
Institutions
• UN PRI
• Equator Principles
• Responsible Business Conduct
for Institutional Investors: Key
Considerations for Due Diligence
under the OECD Guidelines for
Multinational Enterprises
(March 2017)
15. 3rd Party Standards for Financial Institutions
• IFC Financial Valuation Toolkit
• “to help companies identify the optimum sustainability investment portfolio to
deliver maximum business and social value.”
• Equator Principles
• risk management framework, adopted by financial institutions, for determining, assessing
and managing environmental and social risk in projects.
• Guidelines for incorporation into loan documents
• U.N. Principles for Responsible Investment
• SWFs
• Ethics Guidelines
• Public-Private efforts
• PROTOCOLO VERDE AGENDA DE COOPERACIÓN ENTRE EL GOBIERNO NACIONAL Y EL
SECTOR FINANCIERO COLOMBIANO
• Generally IFC Sustainable Banking Guidance from Sustainable Banking Network Members
16. UN-PRI
As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role,
we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment
portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). We also recognise that
applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with
our fiduciary responsibilities, we commit to the following:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.+
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.+
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.+
Principle 4: We will promote acceptance and implementation of the Principles within the investment
industry.+
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.+
Principle 6: We will each report on our activities and progress towards implementing the Principles.+
In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our
fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over
time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment
activities with the broader interests of society.
17. Equator Principles
• The EPFI will, as part of its internal environmental and social review and due diligence,
categorise it based on the magnitude of its potential environmental and social risks and
impacts
• Client to conduct an Assessment process to address, to the EPFI’s satisfaction, the
relevant environmental and social risks and impacts of the proposed Project
• Address compliance with relevant host country laws, regulations and permits that
pertain to environmental and social issues in accordance with international standards
• EPFI will require the client to develop or maintain an Environmental and Social
Management System (ESMS)
• the EPFI will require the client to demonstrate effective Stakeholder Engagement as an
ongoing process in a structured and culturally appropriate manner
• the EPFI will require the client, as part of the ESMS, to establish a grievance mechanism
an Independent Environmental and Social Consultant, not directly associated with the
client, will carry out an Independent Review of the Assessment Documentation
• Incorporation of covenants linked to compliance
• The client to retain qualified and experienced external experts to verify its monitoring
information which would be shared with the EPFI.
• Client reporting requirements
18. OECD Guidance
• GUIDANCE
• Expert letters and statements on the application of the OECD Guidelines for
Multinational Enterprises and UN Guiding Principles on Business and Human Rights in
the context of the financial sector, 2014
• Scope and application of ‘business relationships’ in the financial sector under the OECD
Guidelines for Multinational Enterprises, 2014
• Due diligence in the financial sector: adverse impacts directly linked to financial sector
operations, products or services by a business relationship, 2014
• Responsible Business Conduct for Institutional Investors (MARCH 2017)
• 2. Implementation of the OECD Guidelines in the context of institutional investment
• 2.1 Embedding responsible business conduct in investor policies and management systems
• 2.2 Implementing due diligence: Identifying actual and potential adverse impacts
• 2.3 Implementing due diligence: Seeking to prevent and mitigate adverse impacts
• 2.4 Implementing due diligence: Accounting through tracking and communicating on results
• 2.5 Processes to support remediation
20. Case Studies
• Friends of the Earth Europe and
Friends of the Earth
Netherlands/Milieudefensie –
Rabobank
• Norway Sovereign Wealth Fund
Cases
• Private Bank Responsible
Investing Programs
21. OECD: -Friends of the Earth Europe and Friends of
the Earth Netherlands/Milieudefensie - Rabobank
• Large financial institution heavily involved in palm oil sector
• Rabobank states it expects its clients to respect rights and to obtain free, prior and informed
consent (FPIC) as a part of and guided by the Round Table for Responsible Palm Oil (RSPO)
principles & criteria and as part of the environmental and social impact assessment (ESIA)
process prior to embarking on a new palm oil development.
Rabobank will address the consequences of non-compliance with the FPIC requirement in
the provisions of its palm oil policy;
Rabobank handles complaints concerning negative impacts caused by clients. Rabobank
will modify its current approach to handling complaints. It will publish its complaints
procedure, including a time frame for the procedure;
• Privatization of enforcement of emerging rule systems for the management of
the palm oil production chains through the organs of financial institutions.
• Rabobank, then, is entrusted with global management of palm oil production
chains through its structurally differentiated self referencing governance system,
one founded on its relationship with its borrowers. (On the structural
characteristics here)
22. SWFs: Norway Pension Fund Global
• History
• A new form of projecting public power through
private markets. Described HERE.
• Structure
• Ministry of Finance
• Norges Bank
• Secretariat
• Applicable Standards
• Santiago Principles
• The Norwegian Government Pension Fund Global’s
adherence with the Santiago principles 2015).
• Management Mandate (§2.2 Responsible
Investment)
• Ethics Guidelines
• Ethics Council
• Authority
• Active Shareholding Global Voting Guidelines
• Exclusion
• Observaiton
• Bound by OECD Guidelines? UNGP?
Native Americans to meet Norway's wealth fund watchdog over
pipeline
Rock Sioux tribe representatives will meet the ethics watchdog for
Norway's $915 billion sovereign wealth fund on Monday over a U.S.
oil pipeline, a watchdog official said on Monday.
On Sunday, Norway's largest bank DNB sold its share of loans funding
the Dakota Access oil pipeline, ending its involvement in a project
that has faced strong opposition from Native Americans and
environmental groups.
23. Norway SWF: Pension Fund Global
• Ethics Guidelines
• Section 3. Criteria for conduct based observation and exclusion of companies
Companies may be put under observation or be excluded if there is an
unacceptable risk that the company contributes to or is responsible for:
• a) serious or systematic human rights violations, such as murder, torture,
deprivation of liberty, forced labour and the worst forms of child labour
• b) serious violations of the rights of individuals in situations of war or conflict
• c) severe environmental damage
• d) acts or omissions that on an aggregate company level lead to unacceptable
greenhouse gas emissions
• e) gross corruption
• f) other particularly serious violations of fundamental ethical norms
• Observation versus Exclusion
24. Excluded Companies
• Severe Environmental Damange
• Severe environmental damage
• IJM Corp Bhd (17 August 2015)
• Genting Bhd (17 August 2015)
• POSCO (17 August 2015)
• Daewoo International Corp (17 August 2015)
• Sesa Sterlite (30 January 2014) (Madras Aluminium Company
and Sterlite Industries Ltd. - both excluded 31 October 2007- are
merged into Sesa Sterlite)
• WTK Holdings Berhad (14 October 2013)
• Ta Ann Holdings Berhad (14 October 2013)
• Zijin Mining Group (14 October 2013)
• Volcan Compaña Minera (14 October 2013)
• Lingui Development Berhad Ltd. (16 February 2011)
• Samling Global Ltd. (23 August 2010)
• Norilsk Nickel (31 October 2009)
• Barrick Gold Corp (30 November 2008)
• Rio Tinto Plc. (30 June 2008)
• Rio Tinto Ltd. (30 June 2008)
• Vedanta Resources Plc. (31 October 2007)
• Freeport McMoRan Copper & Gold Inc. (31 May 2006)
• Other particularly serious violations of fundamental
ethical norms
• San Leon Energy Plc (4 March 2016)
• Potash Corporation of Saskatchewan (6 December 2011)
25. Norway SWF: Violation International Law; Indigenous Rights
• exclusion of San Leon Energy Plc for
contribution to serious violations of
fundamental ethical norms
• The Council on Ethics for the Government
Pension Fund Global (Etikkrådet for
Statens pensjonsfond utland)
recommends the exclusion of San Leon
Energy Plc (SLE; SLGYY) from the
Government Pension Fund Global
because the company contributes to
serious violations of fundamental ethical
norms through its onshore hydrocarbon
exploration in Western Sahara on behalf
of Moroccan authorities.
• Same: Potash Corporation of Saskatchewan (6
December 2011)
• Recommendations from 2010, 2012 and
2014 regarding the companies Repsol
S.A. and Reliance Industries Limited
• On 1 December 2010 the Council on
Ethics recommended the exclusion of the
companies Repsol YPF (now Repsol S.A)
and Reliance Industries Limited from the
Government Pension Fund Global. In the
Council’s view, the exploration activity
undertaken by the companies in Block 39
would increase the risk that any
indigenous peoples who may be living in
voluntary isolation within the block would
come into contact with outsiders, leading
to potentially serious consequences for
these peoples’ life, health and way of
living. This would constitute an
unacceptable risk of the companies
contributing to serious and systematic
human rights violations.
• Exclusion lifted when Repsol sold its
interest
26. Norway SWF: Corruption; Severe Environmental Risk
• Corruption
• Incoherence or Discretion in
Corruption and Investment
Approaches?--Petroleo Brasileiro SA
(Petrobras) under observation
• Norges Bank has decided to place
Petroleo Brasileiro SA (Petrobras)
under observation because of the risk
of severe corruption. Petrobras is one
of the largest state owned petroleum
TNCs in Latin America and one that is
deeply embedded in corruption
investigations (here and here
(including the write off of over $2
billion in bribe payments)) that
reached all the way to the office of
the President of the Republic (here).
• Others excluded
• Severe Environmental Risk
• Indonesian Company PT Astra
International Tbk Placed Under
Observation (Severe Environmental
Risks) by the Norwegian Pension
Fund Global (SWF) Investment
Universe
“The Council on Ethics for the
Government Pension Fund Global
(GPFG) recommends that PT Astra
International Tbk be placed under
observation due to the risk that the
company may be responsible for
severe environmental damage. The
observation relates to the company’s
plantation operation in Indonesia. On
11 June 2015, Astra announced that it
would immediately be ceasing all
logging and land conversion while
developing a new sustainability
strategy.
28. IFIs
• World Bank Development Policy Loans
• (DPLs) are programmatic loans that largely fund policy reform, often through rapidly
disbursed budgetary support, rather than project -based physical investments. DPLs
were created in 2004 by merging Sectoral Adjustment Loans (SECALS), Structural
Adjustment Loans (SALs), and other instruments. The World Bank has approved an
average of 60 DPLs per year compared to about 400 investment lending projects),
but the size of each DPL is generally much larger than an investment loan. While the
majority of DPLs go to middle income countries, at least a quarter of the loans are
given to the world’s poorest countries (IDA countries).
• Extractives: “The Poland Coal SECAL II demonstrates the benefits of proper risk assessment of
DPLs under OP 4.01 and the importance of Strategic Environmental assessments (SEAs) for
higher risk DPLs.” (PP 6)
• Generally: Quick Reference Guide to Extractive Industries’ Revenue and
Contract Transparency at the International Financial Institutions
• IMF:
• Guide on Resource Revenue Transparency (May 2007) supports the application of
Extractive Industries Transparency Initiative EITI) guidelines and includes a wide
range of disclosure, reporting, and accounting practices that exceed the EITI
framework.
• Development Banks
• Similar framework around EITI
29. HSBC: Mining and Metals Policies
• Private standards drawing from international soft norms
• Mixes risk management and CSR approaches
• “HSBC’s Mining and Metals Sector Policy provides guidance to its offices on sustainability
standards applicable to the Group’s involvement with this sector. The standards are based on
those accepted by the industry and by other stakeholders as representing best practice, and
are consistent with HSBC’s long-standing commitment to sustainable development.”
• Complemented by Equator Principles
• Scope
• The financial services covered by the Mining and Metals Sector Policy include all lending and
other forms of financial assistance, debt capital markets activities, project finance and
advisory work. The policy applies to equity capital markets and asset management where
practical, recognising the lower degree of influence the bank may have in these
circumstances.
• The mining and metals activities within the scope of the policy are: exploration; mine
development; mineral extraction and mine operation; mine closure and reclamation; and
primary processing of minerals.
• 2007 Mining and Metals Policies
• Policy
• Standards
30. HSBC: Policy
• The policy is consistent with, and builds on, HSBC’s Sustainability Risk Standard and its adoption
of the Equator Principles – voluntary guidelines which apply to project finance activities – as well
as the existing sector risk policies. In particular, HSBC will not provide financial services to the
mining and metals sector which directly support:
• Operations in UNESCO World Heritage Sites, unless the activities pre-date the UNESCO designation;
• The mining, processing and/or sale of uranium for weapons purposes;
• The mining or trading of rough diamonds not certified under the Kimberley Process Certification Scheme;
• Artisanal mining;
• Operations in wetlands on the Ramsar List (the Register of Wetlands of International Importance of the
Ramsar Convention on Wetlands); and
• Operations in Primary Tropical Moist Forests, High Conservation Value Forests or Critical Natural Habitats,
where there is significant degradation or conversion – unless legacy assets are involved (see below).
• Support where the disposal of tailings is in a river or shallow sea-water environment will only be
considered exceptionally where alternative options are not feasible and the benefits to local
communities are significant.
• HSBC has a restricted appetite for supporting individual operating sites where:
• Tailings storage facilities and waste rock dumps represent a material threat to human life or groundwater
(for example, from tailings dam failure or acid mine drainage);
• Mines are in an area of high seismic activity or exceptionally high rainfall, without adequate accident and
contingency planning in place;
• • Mines have no credible closure plan; and
• • Mines or metals operations are in areas where there are credible allegations of human rights violations.
31. HSBC: Standards
• HSBC looks to its clients to operate in accordance with relevant global, regional and
national laws, and the policy makes express reference to the following standards.
• International Cyanide Management Code: HSBC requires clients using cyanide in the mining of
gold to observe this Code or its equivalent.
• International Atomic Energy Agency: HSBC has a restricted appetite for financing uranium for the
power sector where IAEA standards are not met.
• European Union Emissions Trading Scheme: HSBC expects clients covered by the scheme to
comply with their allowances to restrict greenhouse gas emissions.
• International Finance Corporation (IFC): in jurisdictions where appropriate standards do not exist
and potential client impacts are high, the IFC’s Performance Standards, and Environmental Health
and Safety Guidelines are used as a benchmark of internationally accepted standards. This is
especially important for social and safety risks, which can arise frequently in the sector and where
there are a limited number of internationally accepted standards.
• HSBC is keen to work with clients in the sector who meet these standards. As part of its
commitment to engage with clients and assist them towards higher standards of
sustainable development, it will also work with clients who may not currently meet these
standards due to legacy assets. These assets will typically be ones which pre- date this
policy and clients should have a credible, documented and time-bound plan to meet our
standards.
32. Crédit Agricole: Metals and Mining June 2015
• The Bank will not participate in financings or investments directly related to the development,
construction or expansion of any metals & mining installation if aware of the following
characteristics:
• - coal mining projects
• - asbestos mining projects
• - artisanal mining
• - critical impact on a protected area or on wetlands of international importance covered by the Ramsar
Convention
• - the project is located within a site listed on the UNESCO World Heritage list
• or when a risk of material non-compliance has been identified and has not received, in its
opinion, satisfactory answers with respect to:
• 6
• - the IFC Performance Standards (or equivalent standards when a export credit agency or a multilateral
institution is involved) or the Environment, Health and Safety Guidelines, in particular with respect to the
ESMS, protection of the fundamental rights of workers, displacement of population, management of tailings,
closure and rehabilitation plans as appropriate, biodiversity conservation, impact on critical natural habitats,
consent of indigenous people and protection of cultural heritage
• - the relevant industry initiatives listed in section 3 (International Cyanide Management Code for gold mining,
Kimberley Process for diamonds, ISTCI for tin minerals, WNA Sustaining Global Best Practices for uranium)
• - public consultation or, when necessary, consent from affected indigenous peoples
• - inter States consultation in the event of major cross-borders impacts
33. Summary
• The responsibilities of enterprises to respect human rights and with respect to
environmental and sustainability principles have expanded to institutions that
finance enterprise activity
• The scope of a financial institution’s obligations are evolving
• Serve as an instrument of privatized international norms
• Sources in international soft law frameworks and self-governance structures
• Evolving structures of compliance
• OECD NAPs
• Evolving scope of obligations for both financial institutions and their borrowers
• Possibility of incoherence as they might be subject to different standards
• Private governance structures evolving as they incorporate international
standards
• Control of borrowers through loan pricing (based on human rights risks) and covenants
(compliance and monitoring of standards developed and imposed by lenders)
• Reflect DOUBLE OBLIGATION
• Internal: operations of financial institutions
• External: Financing obligations