Ghislain Boyer (KPMG): “Human Resources Departments are put under pressure by CSRD process” Frame of reference/standards Faced with the imminent arrival of the social and environmental reporting directive (CSRD), the retail sector will be particularly affected. The increasing complexity of business models and supply chains makes ESG (environmental, social, and governance) reporting 'unmanageable,' according to Ghislain Boyer, Director at the ESG Center of Excellence at KPMG, interviewed by mind Retail.
Corporate due diligence (part 1/2): six years on since French due diligence legislation came into force and essential fundamentals remain wanting Frame of reference/standards With the first wave of due diligence related lawsuits now appearing in the courts, mind RH has attempted to gauge just how much the 2017 landmark due diligence legislation has really changed the situation for the major corporate groups that come within the legislation’s scope. While almost all the relevant companies now comply with the mandatory publication of a vigilance plan, the real impact of the law remains limited for several reasons ranging from minimal compliance levels, to restricted appropriation (primarily just the CSR teams), and again to a paucity of jurisprudence.
The ILO revises its Tripartite Declaration of Principles concerning Multinational Enterprises Frame of reference/standards Although International organizations don’t compete in the human rights arena, the ILO was lagging somewhat behind others, even in terms of its trademark interest of promoting decent work. This Tripartite Declaration concerning Multinational Enterprises and Social Policy is the ILO’s key corporate instrument and yet came in second behind the OECD Guidelines for multinational enterprises as regards CSR standards. On 17 March however the ILO Governing Body adopted the revised Declaration, which now addresses the challenges of supply chains and consistent with the UN Guiding Principles on Business and Human Rights now also provides guidance on ‘due diligence’ processes. With the revision the ILO is seeking to promote what is a unique instrument in terms of international scope with the aim of becoming a primary tool that corporates will mobilize as part of their sustainable development policies.
The OECD publishes due diligence guidance for responsible supply chains in the garment and footwear sector Frame of reference/standards In line with the trend for greater demands as regards multinational responsibility, the OECD has over recent years increased the number of its guides, which are discussed between governments, unions and NGOs, to effect corporate socially responsible behavior, with the idea being to provide businesses with appropriate tools. The goal is to assist multinational companies by way of practical and technical support so they can succeed in their due diligence obligations. The OECD guides cater to the extractive industries (mining, oil, gas), conflict minerals, supply chains in the agriculture industry and the apparel industry. A guide is currently being drafted for the finance industry.
105th ILO international labor conference sets out a roadmap to guarantee decent work in global supply chains Frame of reference/standards The ILO international conference was held from 30 May to 10 June. One of the key topics increasingly gaining prominence was the issue of decent work in global supply chains and this conference marked the first time that the subject received ILO debate. Conclusions adopted on 09 June recognize the need to channel resources for efforts to be made on the issue. Workers’ representatives hope these efforts will lead to a new international standard.
A group of legal experts contribute to elaborating a set of binding international norms over business activities and human rights as part of UN action on the issue Frame of reference/standards Together, the International Federation for Human Rights (FIDH) and the International Network for Economic, Social & Cultural Rights (ESCR-Net) have announced a network of legal experts tasked with setting up a UN working group to formulate propositions for binding norms to tackle human rights violations related to corporate activities.
International: work on the development of binding international standards for multinational enterprises and human rights to start in 2015 Frame of reference/standards The resolution adopted on June 26 by the UN’s Human Rights Council provides for the introduction of an Intergovernmental Working Group in 2015 to negotiate legally binding instrument on Transnational Corporations and Human Rights. In line with the UN’s Guiding Principles on Business and Human Rights of 2011, the idea would be to guarantee access to justice for the victims of human rights violations committed by multinationals.
International: the UN adopts guidelines on businesses respecting Human Rights Frame of reference/standards Guidelines. Laid down in a report presented to the Human Rights Council last year (see our dispatch No. 100370), these new international standards follow three principles, “Protect, Respect and Remedy.” The first principle targets the States and their obligation to adopt a legal framework on the protection of Human Rights in business operations, including when the State is an integral part of the business relationship. The second principle lays down the responsibility of businesses to respect Human Rights in their operations, including vis-à-vis their suppliers and other trade partners. Finally, the third principle aims to grant legal or non-legal compensation to the victims of Human Rights violations in the business sector. The Human Rights Council believes that these principles should help improve regional, national and international governance on the subject. In the resolution, the UN states that it is “concerned that weak national legislation and implementation cannot effectively mitigate the negative impact of globalization on vulnerable economies, fully realize the benefits of globalization or derive maximally the benefits of activities of transnational corporations.”
OECD: guidelines for multinational enterprises updated Frame of reference/standards New context. Started in June 2010 (see our dispatch No. 100374), the negotiations to update the OECD’s guidelines truly started in October. In April, the representatives from 42 governments (the OECD’s 34 members plus Argentina, Brazil, Egypt, Latvia, Lithuania, Morocco, Peru and Romania) finally agreed on what changes to make to the recommendations, which were last updated in 2000. These recommendations are a sort of code of conduct on corporate social responsibility which, even if it isn’t legally binding, it is established for the signing States. The 2011 update should take account of globalization and of the new economic and social context in emerging countries, in consultation with employers’ representatives (BIAC) and union representatives (TUAC) for the OECD, and the network of NGOs working to promote corporate social responsibility, the “OECD Watch.” The review is greatly based on the recommendations issued by John Ruggie, special representatives from the United Nations working on a strategy on businesses and human rights since 2005 (see our dispatch No. 100370).
OECD: towards an update of guidelines for multinational companies Frame of reference/standards Global context. After a major consultation, the Member States agreed on a mandate to improve the OECD’s guidelines aimed to promote responsible entrepreneurial behaviors across the world. The document, published on may 4, reminds in the introduction that global economic evolutions, the emergence of countries that aren’t OECD members, the appearance of new stakes such as the environmental issue… this new global context imposes adjusting the rules supervising economic operators’ activities.
