Erhvervs-, Vækst- og Eksportudvalget 2013-14
ERU Alm.del Bilag 231
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Danish NationalAction Plan– implementation of theUN Guiding Principles onBusiness and Human Rights
March 2014
Danish NationalAction Plan– implementation of theUN Guiding Principles onBusiness and Human Rights
Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
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ContentsPreface.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
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Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9The state duty to protect human rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
2.1 UNGPs on the state duty to protect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.2 Recommendations from the Coucil for CSR on the state duty to protect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.3 Actions taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.4 Planned actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
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The corporate responsibility to respect human rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
3.1 UNGPs on the corporate responsibility to respect human rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173.2 Recommendations from the Council for CSR on the corporate responsibility to respect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173.3 Actions taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
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Acces to remedy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
3.1 UNGPs on access to remedy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.2 Recommendations from the Council for CSR on access to judicial and non-judicial remedy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.3 Actions taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
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UNGPs in Denmark looking ahead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Appendix 1:Overview of the implementation of the state duty to protect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Appendix 2:Overview of the implementation of the access to remedy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
PrefaceIn June 2011, the United Nations Human Rights Councilendorsed a set of Guiding Principles for Business and Hu-man Rights. For the first time in history, we have a globalstandard for preventing and addressing adverse impactson human rights linked to business activities. The processincluded comprehensive consultations with a large num-ber of stakeholders including representatives from states,business community and civil society around the world.Denmark supported the work of John Ruggie in developingthe UN Guiding Principles on Business and Human Rightsand is now supporting the UN Working Group in promotingthe implementation of the principles in practice.The UN Guiding Principles on Business and Human Rightsmarked a milestone, but it is only the first step. It is notenough to have adopted the principles. The challenge isnow to turn principles into practice.Sustainable development offers opportunities forglobal growth but opportunity does not come withoutresponsibility. Even though companies are committedto respect human rights, it can sometimes be difficultto know what to do in practice. The aim of the DanishGovernment is to assist private and public businesses inturning the respect for human rights into reality wher-ever they operate. The disaster in Bangladesh in April2013 where a collapse of an eight-story building causedthe death of more than 1.100 workers sewing clothes forwestern manufacturing companies was a dark reminderthat huge challenges still remain.It is the Government’s ambition that Denmark should be aglobal front-runner by ensuring that all players in societydemonstrate social responsibility and create value both fortheir own organisation and the surrounding society by us-ing dialogue to manage social, environmental and ethicalchallenges in accordance with internationally recognisedprinciples and CSR guidelines.Companies must integrate social responsibility in theircore business. Consumers must assume greater responsi-bility and be given better opportunities for demonstratingsocial responsibility through their choice of consumergoods. Investors must use their investments as a drivingforce for responsible growth. Organisations and NGOs mustact as watchdogs of social responsibility while also promot-ing it through dialogue and partnerships with companiesand, finally, the public sector must be a driving force bycreating good framework conditions for CSR and therebypromote responsible growth.
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The Danish Government is committed to ensuring thatgrowth goes hand in hand with responsible conduct. TheUN Guiding Principles’ step-by-step approach highlightsthe importance of continuous improvement of corporaterespect for human rights allowing all companies to be onboard regardless of their size or geographical location oftheir operations.
Henrik Sass LarsenMinister for Businessand Growth
Mogens JensenMinister for Trade andDevelopment Cooperation
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1.IntroductionThe work of the Danish Government on the implementa-tion of the UN Guiding Principles on Business and HumanRights is to a large extent based on the recommendationsfrom the Danish Council for Corporate Responsibility (TheDanish Council for CSR)1. The Council supports and advisesthe Danish Government in matters on Danish companies’social responsibility and represents Danish business andfinancial organisations, NGOs, local municipalities andtrade unions. The council has made recommendationson all three pillars of the Protect, Respect and Remedy-framework as to what they believe the Danish Governmentshould do in order to implement the UN Guiding Principleson Business and Human Rights.Also the European Council2 and the European Commis-sion3 have called for member states to develop nationalaction plans for the implementation of the UN GuidingPrinciples (UNGPs).In 2012, the Danish Government started to take dedicatedmeasures to implement the UNGPs on each of the pillarsin the Protect, Respect and Remedy-framework basedon recommendations from the Council for CSR. Some ofthese initiatives are part of the second National ActionPlan for CSR; Responsible Growth 2012–2015, which theGovernment presented in March 2012. The CSR ActionPlan focuses on business and human rights and was in-spired by the recent international development in the fieldof CSR including the revision of the OECD Guidelines forMultinational Enterprises from May 2011, the ratificationof the UNGPs in June 2011 and the renewed EU Strategy2011–14 for Corporate Social Responsibility.The purpose of this National Action Plan on the imple-mentation of the UN Guiding Principles on Business andHuman Rights is to summarise the dedicated initiativeson business and human rights which have been takenby the Danish Government since the UN endorsement ofthe Guiding Principles on Business and Human Rights. Inaddition, the Action Plan gives an overview of the statuson all guiding principles. The intention is to give a com-plete overview on the implementation of UN GuidingPrinciples on Business and Human Rights in Denmarkanno 2014.The initiatives in the Danish Government’s action planon Business and Human Rights are focused on preventingand mitigating adverse impacts on human rights by Dan-ish companies at home and abroad.Denmark has a long political tradition of supporting andaddressing human rights. Changing governments haveconcentrated on special focus areas such as freedom of ex-pression; freedom of religion; racism; indigenous peoples;children’s rights; the rights of persons with disabilities;human rights defenders; torture, and most recently, cor-porate social responsibility (CSR).With Danish companies’ increased engagement in newgrowth markets and the adoption of the UN GuidingPrinciples, human rights impacts of companies and theirbusiness relations operating outside Danish territoryhas gained increased political attention and become animportant focus area of the Danish Government.
Structure of the Action PlanThe action plan is structured around the three pillars ofthe UNGPs. Each of the three main parts sets out by:1) shortly summarising the principles of UNGPsfollowed by;2) recommendations from the Danish Council for CSR;3) initiatives which have been implemented by theDanish Government, and4) initiatives which are planned.The first descriptive part of the National Action Plan onBusiness and Human Rights highlights some of the initia-tives taken to implement the UNGPs. The annex in the endof the publication includes a schematic overview of theDanish implementation of the UNGPs principle by principle.
1SourceCf. http://csrcouncil.dk/2Sourcehttp://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/131181.pdf3Sourcehttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
2.The state dutyto protect human rights2.1UNGPs on thestate duty to protectThe UN Guiding Principles on the state duty to protectfocus on the preventive measures that states can take toavoid adverse impacts on human rights:The state can protect human rights by (not exhaustive):– Enforcing laws (including law with extraterritorialimplications) that enable rather than constrain busi-nesses to respect human rights.– Providing guidance and encourage businesses torespect human rights.– Promoting the respect for human rights through itsbusiness relations, in bilateral and multilateral institu-tions and through development cooperation.The Government has taken initiatives in all three areas asdescribed in the following.
“A.Foundational Principles1. States must protect against humanrights abuse within their territoryand/or jurisdiction by third parties,including business enterprises. Thisrequires taking appropriate steps toprevent, investigate, punish and redresssuch abuse through effective policies,legislation, regulations and adjudication.2. States should set out clearly theexpectation that all business enterprisesdomiciled in their territory and/orjurisdiction respect human rightsthroughout their operations”4
2.2Recommendations from the Councilfor CSR on the state duty to protect:In November 2011, the Danish Council for CSR startedworking on recommendations to the Government on howthe UNGPs on the state duty to protect could be implement-ed. The council finished its work in January 2012 where therecommendations were handed over to the Government.Among other initiatives, the Council for CSR recom-mended that the Danish Government:Expandsthe existing Danish corporate non-financialreporting requirement to include mandatory report-ing on human rights;Encouragesresponsible public procurement byrequiring government contractors to perform due dili-gence on human rights in relation to the products orservices covered by the contract, including regularlysupervising the contractual requirements;
4SourceUN Guiding Principles on Business and Human Rights, p. 3–4.http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
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Requiresstate-owned companies and governmentsagencies which distribute significant government fundsto incorporate due diligence in their business activities;Advocatesjoint solutions at international level, e.g.through the UN or the EU, in the areas of humanrights, labour rights and the environment, to enablehome countries to prosecute companies involved inparticularly gross violations outside the home coun-try’s borders; and also toConsidersthe possibility of relevant national meas-ures that meet the need for prosecuting particularlygross violations.The recommendations from the Council on how the Dan-ish Government can fulfill the UNGPs on the state duty toprotect can be found here:http://www.raadetforsamfunds·ansvar.dk/dokumenter/0/16(in Danish only).
lishment of the mediation and grievance mechanism (formore information see section 4.3).The Trade Council under the Ministry of Foreign Affairsadvises Danish companies and their local partners onhow they should handle their social responsibility in anumber of export markets. The advisory services includehuman rights due diligence. The advisory services aredemand-driven and offered to companies on the sameterms as the other business services of the Trade Council,i.e. chargeable by the hour in accordance with Danishlegislation (UNGPs 3c).In addition, at Danish embassies in emerging markets, theTrade Council in co-operation with the Danish BusinessAuthority holds workshops in responsible supply chainmanagement, especially focusing on small and medium-sized companies and their local business partners (GP3c). The courses are held on an annual basis. They includepractical guidance on how to demonstrate due diligencein business operations in regard to adverse impacts onhuman rights. To further assist Danish companies inemerging markets, the embassies are also conductingCSR reviews of local business partners. The reviews in-clude a due diligence component (UNGPs 3c).The Guiding Principles have proved to be an excellentinstrument in rallying stakeholders for joint action. Usingthe Guiding Principles as the basis for a new Partnershipfor Responsible Garments Production in Bangladesh, theDanish government, business associations and enter-prises have agreed on a number of detailed commitmentsto improve conditions within their sphere of influence.The partnership, which was agreed within the frameworkof the Danish Ethical Trading Initiative (DIEH), will beimplemented in close co-ordination with internationalpartners as well and stakeholders in Bangladesh.
2.3Actions takenEnsuring policy coherence across governmentaldepartments and agenciesThe Government's CSR efforts are coordinated by aninter-ministerial working group with representativesfrom departments and agencies who work with CSR andhuman rights related areas. These include Ministry ofBusiness and Growth, Ministry of Foreign Affairs, Minis-try of Employment, Ministry of Environment, Ministryof Finance, Ministry for Food, Agriculture and Fisheries,Ministry for Climate, Energy and Building and the Invest-ment Fund for Developing Countries (IFU) (GP 8).Danish Government’s expectationsto companiesIn the National Action plan for CSR, the Danish Govern-ment sets out clear expectations to Danish companiesthat they must take responsibility to respect humanrights when operating abroad- especially in developingcountries where there can be an increased risk of havingan adverse impact on human rights (GP 2).As part of the promotional activities among Danishcompanies the government has committed to providingcourses and guidance on responsible business conduct.The Government has launched an information campaignspecifically aimed at companies and NGOs on compliancewith the Guiding Principles in connection with the estab-
Protection of human rights throughstate regulation and policyIn Denmark all new legislation is systematically evalu-ated in terms of human rights consequences by theMinistry of Justice.Denmark actively takes part in the Universal PeriodReview process of the United Nations as well as review bythe UN Treaty Body Monitoring mechanisms with regardto obligations arising under the United Nations core hu-
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
man rights conventions, and by relevant ILO and Councilof Europe bodies. These processes provide a platform forsystematic consideration of the compliance of Danish law,policies and administration with international humanrights law. Denmark duly takes account of findings andrecommendations issued by such bodies.Denmark is fully committed to human rights obligations– both nationally and internationally – and has signedand ratified many legal instruments, which belong tovarious organs, especially the United Nations, the Euro-pean Union and the Council of Europe.For a complete list of the International Human RightsTreaties that Denmark has signed and ratified see:http://www1.umn.edu/humanrts/research/ratification·denmark.html.Together with more than 40 countries Denmark adheresto the OECD Declaration on International Investment andMultinational Enterprises. The OECD Guidelines for Mul-tinational Enterprises are the only multilaterally agreedand comprehensive code of responsible business conductthat governments have committed to promoting. TheGuidelines are supported by a unique implementationmechanism of National Contact Points (NCPs), agenciesestablished by adhering governments to promote andimplement the Guidelines. Denmark is one of the onlycountries in the world which has established the OECDNational Contact Point by Danish law. The purpose is toensure that the Danish NCP has a maximum of legiti-macy and authority (for more information see section 4.3).As stated in the strategy for Danish development co-operation: “The Right to a Better Life”, Denmark appliesa rights based approach to development. The humanrights based approach entails that the goal of develop-ment cooperation should seek to realise human rightsas well as poverty alleviation. Furthermore politicaldialogue with partners and concrete development inter-ventions should be guided by human rights standardsand principles, focusing in particular on rights-holdersand duty–bearers and their capacities to claim andfulfill obligations related to human rights. The “protect,respect and remedy framework” also provides the basisfor Danida’s institutional private sector programmesaimed at enhancing the capacity and institutionalenvironment for private sector development. Oneprime example of this approach is the new “Program for
Responsible Business in Myanmar”, using both the stateduty to protect and the company duty to protect as thekey parameters in its programme design.Denmark works to ensure that companies involved in Dan-ish development cooperation respect human rights andact responsibly within the areas of worker’s rights, humanrights, environment and anti-corruption within the frame-work of ILO conventions, UN Global Compact, the OECDguidelines for multinational enterprises and work towardsimplementation of the UN Guiding Principles on Businessand Human Rights.Companies involved in Danida Business Partnerships – aninstrument that facilitates and provides economic supportto develop commercial partnerships between Danish com-panies and partners from developing countries - are nowrequired to integrate CSR strategically in their businessoperations and to demonstrate due diligence, includinghuman rights, in order to mitigate adverse impact. TheDanida Business Finance instrument engages both localbuyers and Danish companies in the promotion of humanrights and CSR activities through due diligence analysisand requirements to comply with fundamental principlesof ILO when providing interest-free loans to public infra-structure projects in developing countries.To further support the protection of human rights, theDanish Government has ensured that individuals haveaccess to a non-juridical remediation mechanism in caseswhere Danish companies have had adverse impact on hu-man rights (GP 27) (See the specific section on the imple-mentation of access to non-judicial remedy, section 4.4).
Protection of human rights in thebusiness sphere in Danish legislationGeneral Danish law contributes to fulfilling Denmark’sduty under human rights treaties to which it is a partyagainst human rights abuses by private actors, includingbusinesses. For example, the Danish parliamentary actprohibits differential treatment in the labour marketfrom 1996 protecting against discrimination based onrace, gender, skin colour, religion, political opinion, sexualorientation or national, social or ethnic origin. It is alsoan offense to refuse to serve a person on the same termsas others involved in commercial or non-profit companybecause of his/hers race, colour, national or ethnic origin,religion or sexual orientation. The Working EnvironmentAct of 2005 and the Act on the Work of Young Persons
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from 2005 implement the EU Directive 94/33/EC from1994 on the protection of young workers, and the 1956Constitutional Act of Denmark covers freedom of associa-tion and assembly.Similarly, the Danish Data Protection Act helps to upholdthe right to respect for private life; the Working Environ-ment Act contributes to protecting the right to a safe andhealthy working environment, the act protects, amongother things, individuals against adverse impacts onhealth due to environmental pollution from businesssources and contributes to protecting the right to thehighest attainable standard of health through regulat-ing access to health services. Denmark’s Criminal Codeprotects the right to life and human rights against torture,slavery, while proscribing a range of activities connectedwith human trafficking, for example. The Criminal Codefurther provides that companies and company repre-sentatives can be punished under the Act while othercriminal laws contain provisions in similar terms.
Since 2007 Denmark has worked actively in the OECD toensure that export credit agencies have a common ap-proach for evaluating human and labour rights as well asthe protection of the environment (GP 10).For more initiatives on the Danish Export Credit Agencyand the Investment Fund for Developing Countries (IFU)see annex 1 under GP 4 and 7.When Danida under the Ministry of Foreign Affairs signscontracts with companies, it is a requirement that companieslive up to Danida’s anti-corruption policy and to the UNGlobal Compact. A description of the applicant’s approachto quality assurance and how it will comply with Danida’santi-corruption code of conduct and the principles of the UNGlobal Compact during implementation are requested frompre-qualified tenderers and form part of the tender evaluation.
Companies owned or controlled by the stateIn 2008 the Danish Government introduced a statutoryCSR reporting requirement which obligates all state-owned public limited companies irrespective of their sizesto report on CSR in the management’s review in theirannual reports (GP 4).The same year state owned companies were required tojoin the UN Global Compact principles and the Principlesfor Responsible Investment (PRI). Businesses must accedeto the Global Compact as a group, in which the parentcompany accedes. The parent company then reports onthe group’s observance of the principles on behalf of thesubsidiaries (GP 4).The Danish Government believes that public authorities,including companies owned or controlled by the state,should live up to the same requirements that private com-panies are expected to fulfill. Therefore, the non-judicialremedy mechanism can also examine complaints involv-ing public authorities (GP 4).
Promotion of human rights incommercial transactionsThe Government has committed itself to promotingresponsibility in public procurement through severalinitiatives among other:– By publishing a set of common guidelines for respon-sible procurement in the public sector in collaborationwith municipalities and other relevant parties. Theguidelines will serve as a practical tool to determinewhen and how the UNGPs can be applied in connec-tion with public procurement (GP 6). The tool is avail-able in Danish:www.csr·indkob.dk.Providing effective guidance onhow to respect human rightsSince 2005, the Danish Government has worked directlywith promoting CSR among Danish companies. The ef-forts have focused on providing companies with tools andguidance to implement CSR policies in a manner which isboth strategic and manageable (GP 3c).Examples of relevant tools include:– The CSR Compass – which is a free online tool thathelps companies implement responsible supply chainmanagement.http://www.csrcompass.com/– The Global Compact Self-Assessment Tool - whichhelps companies to test their performance on all tenUN Global Compact principles, and how well theseissues are managed:http://www.globalcompact·selfassessment.org/
Companies that receive substantial supportand services from State agenciesThe Environmental & Social Due Diligence Policy of theDanish Export Credit Agency (EKF) states that EKF iscom mitted to implementing the UN Guiding Principles onBusinesses and Human Rights (GP 4).
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
The tools have been developed in collaboration with theUN Global Compact and other partners from Danish civilsociety and industry organisations.The Danish Government is committed to continuouslyimproving and promoting guidance provided to com-panies on how to work with CSR in general and humanrights in particular. To ensure that companies have theright tools and the necessary guidance to handle the newdue diligence requirements, the Government has updatedthe existing web tool, the CSR Compass and the GlobalCompact Self-Assessment Tool in accordance with thedue diligence requirements of the UNGPs. The revisedCompass includes a guide for small and medium-sizedcompanies on how to exercise due diligence (GP 17) andalso gives guidance on ways to solve company conflictsby actively engaging in a dialogue with the company’sstakeholders (GP 29). The revised Global Compact Self-Assessment Tool works as a self-Assessment guide to aCSR due diligence going through a questionnaire cover-ing aspects of human rights, worker’s rights, environmentand anti-corruption and including a template for a follow-up action plan.
In June 2012, this reporting requirement was expandedso that the largest Danish companies from 2013 expresslymust state in their reports what measures they are takingto respect human rights and to reduce their impact onthe climate. This means that if a company has a policy onhuman rights or climate issues, it must report accordingto the existing structure; what is the policy, how has thepolicy been translated into action and what has beenachieved through the initiatives. If the company does nothave policies for human rights or climate issues, this mustalso be disclosed. The purpose is to further strengthenDanish companies’ activities in relation to human rightsand climate change which will be beneficial to societyoverall, but also to the individual company.Three years after the reporting requirement was intro-duced, analyses show that companies generally appear tohave been encouraged to report on CSR. In the course ofthe first three years of the legal requirement’s existence,nearly 50% of the companies reported on CSR for the firsttime. Secondly, there have been significant improve-ments in reporting practices in a number of areas. Thereis, nevertheless, still room for improvement as regardsreporting consistency and reporting on the results of theCSR work. For information on Danish companies report-ing on human rights see section 3.3.
Reporting requirement on human rights impactAnother priority for the Danish Government has beento strengthen the existing legal reporting requirementfor the largest Danish companies and all state-ownedcompanies (GP 3d).Since 2009, large companies including all state-ownedcompanies and institutional investors in Denmark havebeen required to report on their work on corporate socialresponsibility. This means that while Danish businessesare free to choose whether or not they wish to have a CSRpolicy there is a statutory requirement that they musttake a position on CSR in their annual reports.If the company has a CSR policy, the company mustaccount for this policy in their annual reports, includingany CSR standards, guidelines or principles the companyemploys. Secondly, the company must report how thesepolicies are translated into action, including any systemsor procedures used. Thirdly, the company must evaluatewhat has been achieved through the CSR initiatives dur-ing the financial year, and any expectations it has regard-ing future initiatives. If the company does not have anysocial responsibility policies, this must be reported.
Promoting transparency through the Group ofFriends of Paragraph 47The Group of Friends of Paragraph 47 is a government ledinitiative formed by the governments of Brazil, Denmark,France and South Africa in June 2012 following theacknowledgement of the importance of corporate sustain-ability reporting in Paragraph 47 of the outcome documentof the 2012 United Nations (UN) Conference on SustainableDevelopment (Rio +20). Since then several governmentshave joined the group. The Group issued their Charter on7 November 2012, declaring their shared belief that cor-porate transparency and accountability are key elementsof a well-functioning market economy, that substantiallyenhances the private sector’s contribution to sustainabledevelopment, and that governments have a primary role toplay in this agenda. This agenda includes all aspects of CSR,including human rights. The group is supported by the UNEnvironment Programme (UNEP) and the Global Report-ing Initiative (GRI) in a Secretariat capacity5.
5SourceCf. http://www.unep.org/resourceefficiency/Business/SustainableandResponsibleBusiness/CorporateSustainabilityReporting/GroupofFriendsofParagraph47/tabid/105011/Default.aspx
Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
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Promoting shared understanding and internationalcooperation on UNGPsDenmark participated actively in the 2011 revision ofthe OECD Guidelines for Multinational Enterprises. Amain focus of the Danish efforts was to ensure that therevision of the OECD guidelines was made in accordancewith the UNGPs.The Danish Government is highly committed to the UNGlobal Compact and works for even closer cooperationbetween the UN Global Compact and the UN GuidingPrinciples on Business and Human Rights. Danida hasprovided financial support to the UN Global Compact fora number of years and has also provided support to JohnRuggie's work on developing the UNGPs as well as supportto the UN Working Group's work in promoting the imple-mentation of the principles in practice.Denmark continues to work actively to ensure consisten-cy between the different policies in the OECD including inthe area of export credits. Denmark also works to ensurethat the future EU policy in the field of CSR and humanrights is based on UNGPs.At EU level, Denmark is an active player in the EU-Com-mission’s high level group on CSR.At the multilateral level, Denmark actively works topromote and strengthen the implementation of the UNGuiding Principles. In May 2012, as part of the DanishEU Presidency, the Danish Government organised aninternational conference on the UN Guiding Principles toincrease the awareness among both EU member statesand companies on the implementation of the UNGPs (GP10). Moreover, Denmark participates in the annual UNForum on Business and Human Rights held in Geneva,focusing on trends and challenges in relation to the effec-tive implementation of the UN Guiding Principles.
Extraterritorial legislationDirect extraterritorial legislation and enforcement includescriminal regimes that allow for prosecutions based on thenationality of the perpetrator no matter where the offenceoccurs6. The Danish Government wishes to engage in thediscussion on extraterritorial legislation as proclaimed inthe UNGPs and as recommended by the Danish Councilfor CSR. Acknowledging the complexity of the issue, theGovernment has taken the following initiatives:– At international level the Danish Governmentactively promotes the discussion on extraterritoriallegislation, in particular the need for joint solutions.The Government has recommended that the Councilof Europe should take the lead on the issue of extrater-ritoriality. The Council of Europe would be an excellentpoint of departure for this discussion as it coversvirtually the entire European continent and focuseson the protection of human rights. Furthermore theCouncil of Europe is already working on these issuesthrough its Steering Committee for Human Rights.– The Government has recommended that the secondannual UN Forum on Business and Human Rightscould focus on the issues of extraterritoriality as this isa challenge for every country to implement.
6SourceUN Guiding Principles on Business and Humans Rights, p. 4.http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
2.4Planned actionsExtraterritorial legislationTo further engage in the issue of extraterritorial legisla-tion, the Danish Government has planned the followinginitiative:– At national level the Government will put together aninter-ministerial working group which will discuss theneed for and feasibility of legislation with extraterrito-rial effect in areas of particular relevance. The groupwill look at what other countries have done and aredoing in this area with the purpose of learning whatworks and what does not work. Finally, the group willexamine the need for judicial prosecution of severehuman rights impacts as recommended by the DanishCouncil for CSR.Promoting CSR in the Public SectorThe Government wishes to establish good frameworkconditions for social responsibility as the public sector’scontribution to the promotion of responsible growth.This is the reason why the new mediation and complaints-handling institution can handle complaints about humanrights impacts and other adverse impacts on internationalguidelines by public authorities, as is the case with privatecompanies (see section 4.3 for more information).The public authorities should assume social responsibilityrelating to environmental, social and economic conditionsas well as human rights in connection with their activi-ties. To obtain this objective, the Government will invitemunicipalities and regions to jointly prepare guidelines forhow public authorities can avoid having an adverse impacton international guidelines. The guidelines should be usedto manage the challenges the public authorities are facingtoday when acting as a private company.
The following initiatives are planned:– The current labour clause threshold value of approxi-mately DKK 37.5 million for public construction pro-jects included by the labour clause requirement willbe abolished. In the future, governmental contractingauthorities (including companies that are fully ownedby governmental authorities and not in competition)must use labour clauses in all public tender calls forconstruction projects.– Furthermore, it has been agreed that Danish mu-nicipalities and regions in the future will use labourclauses to a further extent in the same manner asgovernmental contractors.– Finally, more and better information on the use oflabour clauses will soon be available in written formand on the internet.The Government also wants to increase the voluntary useof social clauses in connection with public tenders. Manypublic authorities already use or are considering usingsocial clauses. To assist with this work, a number of caseswill be prepared to demonstrate how companies and mu-nicipalities work with social clauses in practice (GP 5).
Increasing the use of labour and social clauses inpublic contractsPart of the foundation of the Danish labour market modelis that work performed in Denmark must be performed onDanish pay and working conditions. In this, the authori-ties hold an important role in ensuring that underpaidforeign labour does not occur in public projects. TheGovernment wants to ensure fair and reasonable pay andworking conditions in accordance with ILO Convention94 by increasing the use and better enforcement of labourclauses in public contracts (GP 5).
Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
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3.The corporate responsibilityto respect human rightsThe UNGPs onthe corporate responsibility to respecthu-man rights focus on what companies need to do in order toknow and show that they respect human rights.While, the Danish Government has an important role inpromoting the UNGPs by clarifying and communicat-ing expectations towards companies, the Governmentacknowledges that in the short term it can be a significantchallenge for companies to implement due diligence intheir business operations - especially if the company hasa complex supply chain or if the company is an SME. Thus,the Government supports the implementation of the cor-porate responsibility to respect by carrying out initiativeswhich are aimed at supporting and assisting companieswith this effort. These initiatives are described under sec-tion 2: the state duty to protect. In addressing challenges,the Government monitors and evaluates progress in closedialogue with stakeholders, in particular within the Dan-ish Council for CSR.b) A human rights due-diligence process to identify, pre-vent, mitigate and account for how they address theiradverse impacts on human rights;c) Processes to enable the remediation of any adversehuman rights impacts they cause or to which theycontribute7.
3.2Recommendations from the Councilfor CSR on the corporate responsibilityto respectSince its creation in 2008, the Danish Council for CSRfollowed the work of the SRSG John Ruggie closely. In2009, the Government asked the Council to produce aset of guidelines for responsible supply chain manage-ment to help companies meet international social andenvironmental requirements and expectations in theirsupply chain.In June 2010, the Council published a set of guidelines forresponsible supply chain management based on the Pro-tect, Respect, Remedy Framework. The Council also madesure that the guidelines were aligned with recognisedinternational principles like the UN Global Compact, ISO26000 etc. The guidelines were meant as a supplementto the Protect, Respect, Remedy-Framework, intended toprovide greater clarity about responsible supply chainmanagement by offering a practical, easy-to-read guideand online tool. The guidelines are supplemented bya checklist of self-help questions intended to help theindividual company find the solutions that address theirspecific challenges. For the guidelines in its entirety, see:www.csrcouncil.dk/guidelines.
3.1UNGPs on the corporateresponsibility to respect human rightsIn order to respect human rights business enterprisesshould avoid having an adverse impact on the humanrights of others and should address adverse human rightsimpacts with which they are involved.In order to meet their responsibility to respect human rights,business enterprises should have in place policies and pro-cesses appropriate to their size and circumstances, including:a) A policy commitment to meet their responsibility torespect human rights;
7SourceUN Guiding Principles on Business and Humans Rights, p. 13–16.http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
While the guidelines are focused on assisting companieswith the implementation of the UNGPs with regard to sup-ply chain management, implementation of the corporateresponsibility to respect continues to be a very importantpart of the council’s agenda.
In 2013, a number of Danish organisations were grantedsupport to promoting CSR and Fair Trade.
3.3Actions takenDanish Government’s support forinternational guidelines for CSRIn the National Action Plan for CSR (March 2012), the Gov-ernment encourages Danish companiesto demonstrateresponsible business conduct and apply internationallyrecognised guidelines for corporate responsibility such as theUN Global Compact, the UN guiding principles on businessand human rights, the OECD guidelines for multinationalenterprises and ISO 260008.Expectations to companies and otherstakeholders to respect human rightsThe National Action Plan for CSR (March 2012) containsa number of expectations, based on UNGPs recommen-dations, that companies are expected to follow (GP 2).The government has reiterated its expectations in thepreface to this National Action Plan on the implementa-tion of the UNGPs.In order to fulfill their requirements companies need to beable to know and show that they respect human rights. TheGovernment therefore wants to create more transparencyabout the CSR efforts of both private companies and publicauthorities. It is only through increased transparency thatCSR can become a key parameter for consumer choices.Danish legislation thus requires major Danish companiesto report on social responsibility in their annual reportsincluding what specific measures they have taking to re-spect human rights and reduce their adverse impact on theclimate (GP 3d). For more information on the legal reportingrequirement on human rights see section 2.3.The transparency framework for the major private andpublic companies is supported by the new non-judicialremediation mechanism where cases involving potentialadverse impacts by Danish companies on internationalCSR principles, including adverse impacts on human rights,can be investigated (GP 4 and GP 27). For more informationon the implementation of access to remedy see section 4.
Evaluation of CSR reporting in largeand listed Danish companiesIn 2008, Danish Government introduced a legal require-ment for large companies in the Danish Financial State-ments Act (see section 2.3 page 6 for more on the reportingrequirement). Since the statutory CSR reporting was intro-duced a survey on the effects of the legal requirement hasbeen conducted in three consecutive years. The surveyswere based on a rolling group of participants, meaning thatthe same group of companies has been surveyed the previ-ous years. Since the group has been subject to the reportingrequirement for three years it includes – in the last survey- very few companies reporting for the first time. As expect-ed, there have also been few changes in the choice of topicsand content in the reports.In the financial year9 2010, a significant increase in thenumber of companies reporting actions relating to humanrights (38% compared to 16% in 2009) and labour rights(35% compared to 16% in 2009) was noted. In the 2011financial year, these reporting topics were as common asin 2010. Due to recent developments in international CSRprinciples (in particular the development of the UN GuidingPrinciples on Business and Human Rights), an increasedfocus on human rights, in particular, can be expected in thefuture. Following the latest amendment of Section 99a ofthe Danish Financial Statements Act, companies thus haveto report on the topics of human rights and climate witheffect from the 2013 financial year.
Award for best non-financial reportThe Danish trade organisation of auditing, accounting, taxand corporate finance, “FSR - Danish Auditors” annuallyannounces the company with the best CSR report bothfor large companies and SMEs. The reports are judged by apanel of selected representatives from Danish businesses,organisations, financial sector, educational institutions,etc. As part of the evaluation the judges look at whethercompanies also report on difficult subjects such as adversehuman rights impacts.For more best practice cases on reporting on non-financialissues, see:http://csrgov.dk/communication_and_reporting.
8SourceDanish Government Action plan for CSR “Responsible Growth” 2012–2015, p. 6.9SourceThe reports that companies submit in 2011 cover the financial year 2010.
Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
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4.Access to remedy
4.1UNGPs on access to remedyAs part of their duty to protect against business-relatedhuman rights abuse, States must take appropriate stepsto ensure, through judicial, administrative, legislative orother appropriate means, that when such abuses occurwithin their territory and/or jurisdiction those affectedhave access to effective remedy (GP 25).This includes providing effective and appropriate judi-cial and non-judicial grievance mechanisms, alongsidejudicial mechanisms, as part of a comprehensive State-based system for the remedy of business-related humanrights abuse.In order to ensure their effectiveness, non-judicial griev-ance mechanisms, both State based and non-State-based,should be:a) Legitimate: enabling trust from the stakeholder groupsfor whose use they are intended, and being accountablefor the fair conduct of grievance processes;b) Accessible: being known to all stakeholder groups forwhose use they are intended, and providing adequateassistance for those who may face particular barriersto access;
c) Predictable: providing a clear and known procedure withan indicative timeframe for each stage, and clarity onthe types of process and outcome available and meansof monitoring implementation;d) Equitable: seeking to ensure that aggrieved parties havereasonable access to sources of information, advice andexpertise necessary to engage in a grievance process onfair, informed and respectful terms;e) Transparent: keeping parties to a grievance informedabout its progress, and providing sufficient informationabout the mechanism’s performance to build confidencein its effectiveness and meet any public interest at stake;f) Rights·compatible: ensuring that outcomes and remediesaccord with internationally recognized human rights;g) A source of continuous learning: drawing on relevantmeasures to identify lessons for improving the mecha·nism and preventing future grievances and harms;The effectiveness criteria in the UNGPs largely coincidewith those recommended in the OECD guidelines for thenational contact points, which also stressvisibilityandaccountability.10
10SourceUN Guiding Principles on Business and Humans Rights, p. 33–34.http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
4.2Recommendations from the Councilfor CSR on access to judicial and non-judicial remedyIn November 2010, the Council for CSR established a work-ing group who would be able to work intensively on therecommendations for implementing remedy as describedin the UN Protect, Respect, and Remedy-framework. Theworking group was composed by a representative fromthe Confederation of Danish Industry, the Danish Confed-eration of Trade Unions, the Danish 92 Group, the DanishShipowners’ Association and the chair of the Council.The working group followed closely the final work of theSRSG John Ruggie on the development of the GuidingPrinciples for the implementation of the Protect, Respectand Remedy framework as well as the work of the OECDInvestment Committee on the revision of the OECD-guidelines for multinational enterprises.
UN’s recommendations on business and human rights.The mechanism should also be established in accordancewith the UN and OECD criteria for non-judicial mediationand grievance mechanisms, including legitimacy, acces-sibility, transparency and predictability.Furthermore, the Council’s recommendations includedthe following unique features:– The institution should be established by Danish law– The institution should be able to take up cases on itsown initiative– The institution should be able to handle cases involv-ing not only private companies but also public authori-ties and private organisation, like NGO's– The company which is subject to a complaint shouldbe given a period of two months to solve the conflictwith the complainant without the involvement of thenational institution.The recommendations on non-judicial remedy from theCouncil for CSR was for the most part implemented by theDanish Government (see section 4.4).The recommendations from the council on a Danish me-diation and grievance mechanism can be found here:http://www.csrcouncil.dk/documents
Recommendations on judicial remedyThe Danish Council for CSR acknowledges that this is anextremely difficult issue that is best handled at an inter-national level. The Council therefore recommended thatthe Danish Government works to find a solution to grossviolations covered by the revised OECD guidelines at aninternational level (under the EU umbrella), for examplevia a UN agency.In terms of legislation with extraterritorial effect, theCouncil recommended that the Danish government, inaddition to the international work, consider introducingrelevant national legislation for particularly gross viola-tions. A balance should be established between, on theone hand, the need to prosecute particularly gross viola-tions and maintain an overwhelming sense of justice,and, on the other, the possibilities of examinating viola-tions in practice.In addition to criminal law consequences, the Council rec-ommended that the government consider the possibili-ties of civil law measures against companies committinggross human rights violations abroad, cf. UNGPs.
4.3Actions takenAccess to judicial remedyThe provisions laid down in the Danish Administration ofJustice Act (Consolidation Act 2012-10-24 No. 1008) forman essential and important part of the framework on ac-cess to judicial remedies in cases regarding human rightsissues in business. Denmark keeps these provisions underconstant review in order to fulfill international obligationsand to ensure that the provisions are adequately applied.Access to non-judicial remedyIn the second national action plan for CSR from March2012, the Danish Government announced the establish-ment of a Mediation and Complaints-Handling Institutionfor Responsible Business Conduct.The institution was established by Danish law, which waspassed through parliament and approved on June 12 2012.The Danish Government wanted to ensure that a non-judi-cial remedy has a maximum of legitimacy and authority.
Recommendations on non-judicial remedyThe Council recommended that a Danish non-judicialmediation and grievance mechanism for responsiblebusiness conduct should be based on the OECD Guidelineson Responsible Business Conduct, which incorporate the
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The purpose of the institution is to investigate cases in-volving potential adverse impacts by Danish companieson international CSR guidelines as described in the OECDGuidelines for Multinational Enterprises.The mediation and complaints-handling institution isestablished in accordance with the international effec-tiveness criteria for non-judicial mediation and grievancemechanisms as described in the UNGPs and the OECDGuidelines for Multinational Enterprises (GP 31).The institution will base its assessments on the OECDGuidelines for Multinational Enterprises, which incorpo-rate the UN Guiding Principles on Business and HumanRights, including in particular the due diligence conceptas described in the UN Guiding Principles, when lookingat a complaint.The institution focuses on mediation to solve complaints- both on company level and if that is not possible, assistedby the Mediation and Complaints-Handling Institution.If mediation is not possible, the institution can initiate aninvestigation of the matter and based on the result, makea public statement.The institution can examine complaints involving notonly Danish private companies but also public authoritiesand private organisation, like NGO’s. It can also take upcases on its own initiative, which will allow the institu-tion to be proactive in cases of substantive importance.As a first step in the case handling procedure the institu-tion gives the company two months to solve the conflictwith the complainant without the involvement of theinstitution itself. If the company does not solve the matteron its own, the institution undertakes an initial assess-ment and based on the result the institution can offermediation or investigation.The institution which has existed since November 1st2012 is composed of five members – one chairman, oneexpert and three members appointed on the recom-mendation of the following organisations; Confederationsof Danish Industries, the Danish Confederation of TradeUnions and the Danish 92 Group which is an associationof 23 different Danish NGO’s. For more information on themember of the institution see:www.businessconduct.dk.The institution is also working to promote the respect for
the OECD Guidelines and the knowledge of the institu-tion. So far the promotional activities have includedamong other:– Homepage in Danish and English;www.businessconduct.dk;– Survey among Danish companies on the knowledge ofthe institution and of the OECD Guidelines in order tobe able to measure the progress in the coming years;– Information leaflet in Danish, English, French andSpanish; the leaflet has been distributed through 112Danish embassies for audiences abroad;– Translation of the OECD Guidelines for MultinationalEnterprises into Danish;– Briefings, presentations and dialogue with interestgroups, NGOs, etc. in order to raise awareness of theinstitution and the OECD guidelines for multinationalenterprises and the UN Guiding Principles;– Development of guidance on due diligence in the sup-ply chain and company-based conflict resolution;– Instruction for Danish Embassies encouraging themto raise awareness about the Danish National contactPoint to local stakeholders.For more information see:http://www.businessconduct.dkOther examples of non-judicial institutions which con-tribute to remedy for victims of business-related humanrights abuses, include Employment Tribunals, nationalOmbudsman, and Consumer tribunal. FurthermoreDenmark has mechanisms for dealing with cases of race,gender, disability, age, religious discrimination in employ-ment or services, etc.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
5.UNGPs in Denmarklooking aheadWhile the National Action Plan for CSR 2012–15 alreadyincludes initiatives on implementing the UN GuidingPrinciples, this is the first Danish stand-alone NationalAction Plan on the implementation of the UN GuidingPrinciples on Business and Human Rights.The expectation towards business and stakeholdersto respect internationally recognised principles andguidelines has received considerable attention the pastfew years. The UN Guiding Principles on Businesses andHuman Rights form an important part of this agenda.Implementing the UN Guiding Principles is a global chal-lenge, and a common responsibility. To succeed we need toinvolve all stakeholders in raising awareness and levelingthe playing field. With this action plan, Denmark wants todemonstrate its commitment towards this agenda.In a European context, this national action plan is also tobe seen as a response to the EU Action Plan on HumanRights and Democracy 2012-2014 and the renewed EUstrategy for Corporate Social Responsibility 2011-14. In theaction plan, the European Council lists the developmentof national plans on implementation of the UN GuidingPrinciples as actions for EU Member States. In the strat-egy, the European Commission invites EU Member Statesto develop national action plans for the implementation ofthe UN Guiding Principles. We will continuously updateDanish priorities with regard to the implementation ofthe UN Guiding Principles in alignment with the NationalAction Plan for CSR 2012–15.We thank all stakeholders, in particular the Danish Coun-cil for CSR, for contributing to this action plan. We look for-ward to continue working with them, as well as with othergovernments, businesses and stakeholders in the future.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
Appendix 1
Overview of the implementation of the state duty to protectThe following gives a schematic overview of the implementation of the state duty to protect principle by principles.
GP 1
State Duty to ProtectStates must protect against human rights abuse within their territory and/or jurisdiction by thirdparties, including business enterprises. This requires taking appropriate steps to prevent, investigate,punish and redress such abuse through effective policies, legislation, regulations and adjudication.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The National Action Plan for CSR from 2008 is the Government's first official policy for promotingCSR among Danish companies. The national action plan encourages Danish businesses to contin-ue to work actively with social responsibility, thus contributing to, for example, improving condi-tions in the countries in which they do business in and/or have established themselves in.Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— In 2011 the Danish government published it second national action plan for CSR “ResponsibleGrowth” 2012–2015. The national action plan contains several initiatives which translate the UN-GPs into practice, among other:—A reporting requirement on human rights and climate—A non-judicial grievance mechanism
GP 2
State Duty to ProtectStates should set out clearly the expectation that all business enterprises domiciled in their territoryand/or jurisdiction respect human rights throughout their operations.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— In 2004 the Ministry for Business and Growth in collaboration with the Confederation of Danish In-dustry developed the CSR Compass. The CSR Compass is an online tool which Danish companies canuse when requiring customers and suppliers to respect human rights and perform due diligence.In 2008 the Danish Government published its first national action plan on CSR which encouragesDanish companies and investors with international business activities to follow the UN GlobalCompact and Principles for Responsible Investment (PRI). Since 2007 the number of Danish com-panies that have joined the UN Global Compact has risen from 26 to 248.In 2010, the Government asked the Council for CSR to develop guidelines for Responsible SupplyChain Management based on the UN Protect, Respect and Remedy framework.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)In the national action plan for CSR thegovernment encourages Danish companies to demonstrate respon·sible business conduct and apply internationally recognised guidelines for corporate responsibility such asthe UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines forMultinational Enterprises and ISO 26000(National action plan on CSR page 6).
GP 2 continued
State Duty to ProtectExtraterritorial legislationAt present States are not generally required under international human rights law to regulate theextraterritorial activities of businesses domiciled in their territory and/or jurisdiction. Nor are theygenerally prohibited from doing so, provided there is a recognized jurisdictional basis. Within these pa-rameters some human rights treaty bodies recommend that home States take steps to prevent abuseabroad by business enterprises within their jurisdiction….. Other approaches amount to direct extra-territorial legislation and enforcement. This includes criminal regimes that allow for prosecutionsbased on the nationality of the perpetrator no matter where the offence occurs. Various factors maycontribute to the perceived and actual reasonableness of States’ actions, for example whether they aregrounded in multilateral agreement.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— According to the Criminal Code, acts committed outside the Danish territory are subject to Danishcriminal jurisdiction in certain specified cases. Criminal liability presupposes that the Danish pe-
Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
25
nal provision that may be violated also applies to acts committed abroad (extraterritorial applica-bility). The question of whether a penal provision has extraterritorial applicability is not generallyregulated by law. Instead, the question depends on interpretation in each case of the particularpenal provision. Generally, the penal provisions in the Criminal Code have extraterritorial ap-plicability. Conversely, other penal provisions generally only apply to acts committed within theDanish territory.Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The Government has recommended to the Council of Europe that Drafting Group on the HumanRights and Business under the Council of Europe should take the lead on the issue of extraterritori-ality. The Council of Europe would be an excellent point of departure for this discussion as it coversvirtually the entire European continent and focuses on the protection of human rights. Further-more, the Council of Europe is already working on these issues through its steering committee forhuman rights.The Government has recommended that the second annual forum on Business and Human Rightscould focus on the issues of extraterritoriality as this is a challenge for every country to implementindividually.The Government has put together an interministerial working group which will discuss the needfor and feasibility of legislation with extraterritorial effect in areas of particular relevance. Thegroup will look at what other countries have done and are doing in this area with the purpose oflearning what works and what does not work. Finally, the group will examine the need for judicialprosecution of severe human rights impacts as recommended by the Danish Council for CSR.
GP 2 continued
State Duty to ProtectStates have adopted a range of approaches in this regard. Some are domestic measures with extrater-ritorial implications. Examples include requirements on “parent” companies to report on the global op-erations of the entire enterprise; multilateral soft-law instruments such as the Guidelines for Multina-tional Enterprises of the Organization for Economic Cooperation and Development; and performancestandards required by institutions that support overseas investments.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The Danish Ethical Trading Initiative is an example of a soft law initiative. It is the first Danishmulti-stakeholder initiative for Ethical Trading and Responsible Supply Chain Management. Theinitiative is co- financed by Danida.Together with other OECD members, Denmark has worked and will continue to work to ensurethat project-related social and human rights impacts are included in the OECD Common Approach-es, including that relevant elements from the UNGP and Human Rights become part of the wayexport credit agencies undertake their due diligenceDenmark works to ensure that companies involved in Danish development cooperation respecthuman rights and act responsibly within the areas of workers' rights, human rights, environmentand anti-corruption within the framework of ILO conventions, UN Global Compact, the OECDguidelines for multinational enterprises and work towards implementing the UN Guiding Princi-ples on Business and Human Rights.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)-Denmark has contributed actively to the discussions in OECD on how to embrace Human Rightsin the ”Recommendation of the Council on the Common Approaches for Officially supported Ex-port Credits and Environmental and Social Due Diligence (Common Approaches)”. Together withother OECD members, Denmark has worked to ensure that project-related social and human rightsimpacts are included in the OECD Common Approaches, and also that relevant elements fromthe UNGPs and Human Rights become part of the way export credit agencies demonstrate duediligence. Furthermore, the revised Common Approaches now ensure policy coherence with theOECD Multinational Guidelines.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
GP 3a
State Duty to ProtectIn meeting their duty to protect, States should:(a) Enforce laws that are aimed at, or have the effect of, requiring business enterprises to respect hu-man rights, and periodically to assess the adequacy of such laws and address any gaps;Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— In Denmark all new legislation is systematically evaluated in terms of human rights consequenc-es by the Ministry of Justice.Denmark actively takes part in the Universal Period Review process of the United Nations. Den-mark also takes part in the review by the UN Treaty Body Monitoring mechanisms with regard toobligations arising under the United Nations core human rights conventions, and by relevant ILOand Council of Europe bodies. These processes provide a platform for systematic consideration ofthe compliance of Danish law, policies and administration with international human rights law.Denmark duly takes account of findings and recommendations issued by such bodies.
GP 3b
State Duty to Protect(b) Ensure that other laws and policies governing the creation and ongoing operation of business en-terprises, such as corporate law, do not constrain but enable business respect for human rights;Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The Government's 2007 Action Plan was prepared by an inter-ministerial working group with re-presentatives from a variety of departments and agencies. The working group still coordinates theDanish government’s initiatives in the area of social responsibility.As mentioned in GP 3a, all new legislation is evaluated in terms of human rights consequences.Large parts of Danish national law support compliance with the UNGPs such as legislation on la-bour issues, the environment, child labour etc. This type of protective legislative framework ofDenmark enables business respect for human rights.
GP 3c
State Duty to Protect(c) Provide effective guidance to business enterprises on how to respect human rights throughouttheir operations;Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The Danish Government's CSR policy is especially focused on developing knowledge and toolsthat are directly applicable to businesses. Whenever possible these tools are developed in coop-eration with relevant stakeholders. Tools with a direct focus on human rights include the CSRCompass and the Global Compact Self-Assessment tool, developed by the Ministry of Business andGrowth, the Confederation of Danish Industry, the Danish Institute of Human Rights and the Dan-ish Investment Fund for Developing Countries.Danida has provided financial support to the UN Global Compact for a number of years and alsoprovided support to John Ruggie's work on developing the UNGPs as well as support to the UNWorking Group's work in promoting the implementation of the principles in practice.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— To make sure companies have the right tools and the necessary guidance to handle the new re-porting requirements, the Government will continue to improve and promote the guidance pro-vided to companies via a revision of an existing web-based tool.To promote responsible business conduct among Danish businesses, the government has alsocommitted to providing courses and guidance on responsible business conduct.In connection with the establishment of the Mediation and Complaints-Handling Institution forResponsible Business Conduct the Government has therefore launched an information campaignon compliance with the UN Guiding Principles.
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The Danish Government is highly committed to the UN Global Combat and the UN Guiding Princi-ples on Business and Human Rights and works for even closer cooperation between the two sets ofprinciples.The Trade Council under the Ministry of Foreign Affairs advises Danish companies and their localpartners on how they should handle their social responsibility in a number of export markets. Theadvisory services include human rights due diligence. The advisory services are demand-drivenand offered to companies on the same terms as the other business services of the Trade Council, i.e.chargeable by the hour in accordance with Danish legislation.The Trade Council in co-operation with the Danish Business Authority holds workshops in Re-sponsible Supply Chain management, especially focusing on small and medium-sized enterprisesand their local business partners (GP 3c). The courses are held on an annual basis. They will includepractical guidance on how to demonstrate due diligence in business operations in regard to ad-verse impacts on human rights. To further assist the Danish companies in emerging markets, theembassies are also conducting free CSR reviews of local business partners. The reviews include adue diligence component.Whenever necessary, the government also initiates and drives multi-stakeholder partnershipsbased on the Guiding Principles. This year the government established the partnership for Re-sponsible Garments Production in Bangladesh, gathering all the major Danish stakeholders with-in the industry and linking the partnership up with international public and private partners toachieve joint action.Companies involved under Danida Business Partnerships are required and guided to undertake aCSR due diligence covering human rights, workers’ rights, environment and anti-corruption andto follow-up with an action plan in order to mitigate adverse impacts of business activities on em-ployees and society at large.The ministry of Foreign Affairs is also working on competence development courses within UNGPsand CSR for embassy staff, including e-bites, guidance on how to perform CSR due diligence andworkshops for Danish companies operating abroad and local companies in new growth markets.In 2013, a number of Danish organisations have been granted support by Danida for initiativesfocusing on the promotion of ethical trading initiatives and supply chain management, CSR andFair Trade.
GP 3d
State Duty to Protect(d) Encourage, and where appropriate require, business enterprises to communicate how they ad-dress their human rights impacts.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— Mandatory CSR reportingAs part of the first national action plan for CSR, the Danish Government introduced a reporting re-quirement to ensure that major businesses, institutional investors and unit trusts report on theirCSR work in the management review of the annual reports. The duty to report for major business-es, institutional investors and unit trusts has entailed an obligation to report on their CSR policiesand how they implement the policies in practice. Businesses and investors must also report if theyhave yet to set up policies for the area. This fact must appear from the management review of thebusinesses’ annual reports.Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— Reporting on human rights and climateFrom 2013 the 1,100 largest Danish companies and all state-owned limited liability companiesmust report on CSR in their annual reports. The Government will introduce a bill proposing thatthe largest Danish companies and state-owned limited liability companies in future must ex-pressly state in their reports what measures they are taking to respect human rights and reducetheir impact on the climate.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
GP 4
State Duty to ProtectStates should take additional steps to protect against human rights abuses by business enterprises thatare owned or controlled by the State, or that receive substantial support and services from State agen-cies such as export credit agencies and official investment insurance or guarantee agencies, including,where appropriate, by requiring human rights due diligence.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles forResponsible Investment (PRI). The Export Credit Agency (EKF), the Investment Fund for Develop-ing Countries (IFU) and Investment Fund for Central and Eastern Europe) (IØ) has committed tojoin the UN Global Compact.EKF's Environmental & Social Due Diligence Policy states that EKF is committed to implementingthe UN Guiding Principles on Businesses and Human Rights. EKF has also committed to the EquatorPrinciples. These are binding international standards and frameworks for project funding. This en-sures that private institutions and banks assess the environmental and social responsibility througha common set of guidelines. EKF works to promote the Equator Principles internationally, especiallyto institutions in the BRIC countries (Brazil, Russia, India and China). EKF uses International FinanceCorporations (IFC) Performances Standards when rating a project which EKF participates in. The IFCPerformances Standards mainly covers labor rights but human rights are also covered.IFU's overall objective is to promote sustainable economic growth, economic development anda more equitable distribution of income by co-financing private sector investment in develop-ing countries. IFU's investments in projects should contribute to job creation, good governance,respect for the environmental, higher social standards and community development. IFU hasjoined the UN Global Compact and is committed to promoting these principles in its investments.Furthermore, IFU’s CSR policy is based on UN, ILO and OECD international conventions and dec-larations. By promoting these, IFU wishes to contribute to the achievement of the UN 2015 Mil-lennium Development Goals. When conducting due diligence IFU uses the Global Compact Self-Assessment tool, which contains a robust assessment of human rights conditions.As part of the approval process, Danida Business Finance analyses potential human rights relatedrisks including local legislation and policies and other CSR issues. Access to finance is based onbuyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Dani-da signs contracts with companies, it is a requirement that companies live up to Danida’s anti-cor-ruption policy and to the UN Global Compact. A description of the applicant’s approach to qualityassurance and how it will comply with Danida’s anti-corruption code of conduct and the principlesof the UN Global Compact during implementation are requested from pre-qualified tenderers andform part of the tender evaluation.With the 2008 national action plan for CSR a number of state owned companies were committedto join the UN Global Compact, among other DONG Energy, DSB, and Post Denmark. The nationalaction plan also introduced a CSR reporting requirement for all state owned companies (see GP 3d).
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The public authorities should assume corporate social responsibility relating to environmental,social and economic conditions as well as human rights in connection with their activities. Toobtain this objective, the Government will invite municipalities and regions to jointly prepareguidelines for how public authorities can avoid breaching international guidelines. The guidelinesshould be used to manage the challenges the public authorities are facing today when acting as aprivate company.The Danish Export Credit Agency (EKF) has a CSR policy which includes taking into account social,economic and environmental issues.Companies involved in Danida Business Partnerships are required to integrate CSR strategicallyin their business operations and to demonstrate CSR due diligence in order to prevent and mitigateadverse impact of business activities.
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GP 5
State Duty to ProtectStates should exercise adequate oversight in order to meet their international human rights obligationswhen they contract with, or legislate for, business enterprises to provide services that may impact uponthe enjoyment of human rights.Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The new non-judicial remedy mechanism (see GP 27) can examine complaints involving publicauthorities. This means that public authorities have the same responsibilities as private compa-nies towards sub-suppliers which they are directly linked to, e.g. by a contract.Increasing the use of labour and social clauses causes: Part of the foundation of the Danish labourmarket model is that work performed in Denmark must be performed on Danish pay and work-ing conditions. In this, the authorities hold an important role in ensuring that underpaid foreignlabour does not occur in public projects. The Government wants to ensure fair pay and workingconditions according to ILO Convention 94 by increasing the use and better enforcement of labourclauses in public contracts (GP 5). The following initiatives are planned:– The current labour clause threshold value of approximately DKK 37.5 million for public con-struction projects included by the labour clause requirement will be abolished. In the future,governmental contracting authorities (including companies that are fully owned by govern-mental authorities and not in competition) must use labour clauses in all public tender calls forconstruction projects.– Furthermore, it has been agreed that Danish municipalities and regions in the future will uselabour clauses to a further extent in the same manner as governmental contractors.– Finally, more and better information on the use of labour clauses will soon be available in writ-ten form and on the internet.The Government also wants to increase the voluntary use of social clauses in connection withpublic tenders. Many public authorities already use or are considering using social clauses. To as-sist this work, a number of cases will be prepared to demonstrate how companies and municipali-ties work with social clauses in practice.
GP 6
State Duty to ProtectStates should promote respect for human rights by business enterprises with which they conduct com-mercial transactions.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— As part of the 2008 national action plan, a requirement that all future joint state supply contractssystematically should embed social responsibility as articulated in the conventions that providethe foundation for the UN Global Compact.All state procurement officers have access to guidelines for embedding social responsibi lity.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— To promote responsibility in public procurement, the Government has developed common pub-lic sector guidelines for responsible procurement in collaboration with municipalities and otherrelevant parties. The guidelines are a practical tool to determine when and how Corporate SocialResponsibility can be applied in connection with public procurement. The tool is available in Dan-ish: www.csr-indkob.dk.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
GP 7
State Duty to ProtectSupporting business respect for human rights in conflict-affected areas.Because the risk of gross human rights abuses is heightened in conflict-affected areas, States shouldhelp ensure that business enterprises operating in those contexts are not involved with such abuses,including by:a) Engaging at the earliest stage possible with business enterprises to help them identify, prevent andmitigate the human rights-related risks of their activities and business relationships;b)Providing adequate assistance to business enterprises to assess and address the heightened risksof abuses, paying special attention to both gender-based and sexual violence;Denying access to public support and services for a business enterprise that is involved with grosshuman rights abuses and refuses to cooperate in addressing the situation;Ensuring that their current policies, legislation, regulations and enforcement measures are effec-tive in addressing the risk of business involvement in gross human rights abuses.
c)
d)
Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The Danish development assistance generally contributes to the promotion of human rights inconflict areas. In conflict areas it is often difficult to work closely with the host country, becauselocal authorities do not always have sufficient capacity to monitor and legislate. The Danish effortsin fragile states include support for building institutional framework.When Danida signs contracts with companies, it is a requirement that companies live up to Da-nida’s anti-corruption policy and to the UN Global Compact.Danida Business Partnerships provides financial support for the implementation of CSR part-nerships and CSR initiatives in a range of Denmark's partner countries. As part of the approvalprocess, Danida Business Finance analyses potential human rights related risks including locallegislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’scompliance with ILO principles on human and workers’ rights.Besides following the government regulations with respect to export promotion, trade policy andpolitical imposed trade sanctions and export controls, the EKF has initiated the development ofa model that provides an overview of the business risks that could potentially be related to hu-man rights, labour rights, environment and climate in the countries where EKF is investing. EKF isscreening the companies involved in the EKF's transactions. There has not been any cases involv-ing human rights issues.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The Danish Institute of Human Rights will launch a Business Guide to Human Rights in December2013. The Guide to Human Rights is a free website for companies to identify, assess and addresstheir human rights impacts around the world. It provides country- and sector-specific informationabout the human rights impacts of businesses, alongside concrete recommendations for prevent-ing and mitigating adverse impacts, as well as maximising positive ones. The Guide to HumanRights emphasises multi-stakeholder engagement and dialogue, and seeks to build the capacityof local Portal partners on human rights and business.The Danish Government has provided financial assistance to the OECD Proactive Agenda workwhich has a specific focus on conflict-affected areas. For more information see http://mneguide-lines.oecd.org/proactiveagenda.htm.
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GP 8
State Duty to ProtectEnsuring policy coherenceStates should ensure that governmental departments, agencies and other State-based institutions thatshape business practices are aware of and observe the State’s human rights obligations when fulfillingtheir respective mandates, including by providing them with relevant information, training and support.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— Together with poverty reduction, promoting human rights is at the core of Danish developmentcooperation. The Danish rights-based approach to development cooperation includes a focuson improving the overall framework conditions for ensuring respect for human rights, capacitybuilding in governmental and legal institutions, research institutions, civil society and businessorganisations.The Government's CSR efforts are coordinated by an inter-ministerial working group with repre-sentatives from departments and agencies who work with CSR and human rights related areas.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The Government has updated the CSR Compass which is an online tool that helps companies exer-cise due diligence in the supply chain. The guide has been updated in accordance with the UNGPsand the OECD Guidelines for Multinational Enterprises. This online tool will also be promoted togovernmental departments, agencies and other State-based institutions.Danida/the Ministry of Foreign Affairs is increasingly integrating business and human rights is-sues in its bilateral development assistance programs, especially within private sector develop-ment. The most far-reaching attempt at this so far has been the new program on Responsible Busi-ness in Myanmar which is directly based on the Guiding principles.
GP 9
State Duty to ProtectStates should maintain adequate domestic policy space to meet their human rights obligations whenpursuing business-related policy objectives with other States or business enterprises, for instancethrough investment treaties or contracts.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— When Danida signs contracts with companies, it is a requirement that companies live up to Da-nida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s ap-proach to quality assurance and how it will comply with Danida’s anti-corruption code of conductand the principles of the UN Global Compact during implementation are requested from pre-qual-ified tenderers and form part of the tender evaluation.The EU adheres to principles and standards on responsible business conduct such as the OECDGuidelines for Multinational Enterprises, which is also reflected in negotiations for free tradeagreements that includes the area of investment. The guidelines are considered the reference doc-ument on Corporate Social Responsibility, including human rights, intended to balance the rightsand obligations between investors and host states. Furthermore, it is common practice to refer-ence in the mandate the right of the parties to adopt and enforce measures necessary to pursuelegitimate public policy objectives such as social, environmental, human rights, security, publichealth and stability of the financial systems in a non-discriminatory manner
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— On responsible Business Program in Myanmar (see GP8).The Government actively supports substantial Trade and Development chapters in the EU’s bilat-eral free trade agreements as well as human rights suspension clauses in the same agreements.The new free trade agreement between the EU and Peru/Colombia is an important case in point,being substantially more ambitious in this area than earlier agreements.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
GP 10
State Duty to ProtectStates, when acting as members of multilateral institutions that deal with business related issues, should:Seek to ensure that those institutions neither restrain the ability of their member States to meet theirduty to protect nor hinder business enterprises from respecting human rights;Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The government works to promote human rights bilaterally and multilaterally. This work is de-scribed in the Danish 2009 human right strategy "International human rights work".The government works actively in bilateral and multilateral institutions such as the UN and theEU to strengthen the observance and respect for human rights.The government supports that the post-2015 development agenda is firmly anchored in humanrights and universally accepted values and principles, including those encapsulated in the Char-ter, the Universal Declaration of Human Rights and the Millennium Declaration. Further, Den-mark has been instrumental in the establishment of the World Bank’s Nordic Trust Fund whichaims to promote the application of the human rights framework in World Bank policies and op-erations. Denmark has also been active in promoting that The International Finance Cooperation(IFC) actively supports its clients in addressing human rights risks and impacts. Furthermore, hu-man rights are reflected in trade agreements.
GP 10 continued
State Duty to ProtectEncourage those institutions, within their respective mandates and capacities, to promote businessrespect for human rights and, where requested, to help States meet their duty to protect against hu-man rights abuse by business enterprises, including through technical assistance, capacity-buildingand awareness-raising;Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The government contributes actively to the promotion and dissemination of CSR in the UN andthe EU through cooperation with donors. CSR is an important element in the donor Declaration"Bilateral Donors' Statement in Support of Private Sector Partnerships for Development", whichwas presented by the Danish Prime Minister at the UN Summit in September 2010.Denmark's participation in ILO cooperation contributes to the promotion of decent work for all.The focus is on the need to prioritise the relationship between employment, social security, laborstandards and social dialogue in the ILO's work, and the promotion of decent work in other interna-tional contexts.
Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— The Government has pro-actively supported the European Commission’s proposal for an EU Di-rective as regards disclosure of non-financial and diversity information. The Danish governmentfinds that the expected European regulation is a timely opportunity for Europe and Europeancompanies to further strengthening reporting practices with regard to human rights. In additionit sends an important signal globally that while transparency is important in itself, a leveling play-ing field is needed.
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GP 10 continued
State Duty to ProtectDraw on these Guiding Principles to promote shared understanding and advance international coop-eration in the management of business and human rights challenges.Initiatives taken or planned as a dedicated measure to implement the UNGPs(after the UN ratification of the Guiding Principles)— To raise awareness about the new UN Guiding Principles on Business and Human Rights, bothamong companies and the general public, the Governement has organised an international con-ference on human rights 7–8 May 2012 in connection with the Danish EU Presidency.Denmark participated actively in the 2011 revision of the OECD Guidelines for Multinational En-terprises. A main focus of the Danish efforts was to ensure that the revision of the OECD Guidelineswas made in accordance with the UNGPs.Denmark continues to work actively to ensure consistency between the different policies in theOECD including in the area of export credits. Denmark also works to ensure that the future EUpolicy in the field of CSR and human rights is based on UNGPs.
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
Appendix 2
Overview of the implementation of the access to remedyThe following gives a schematic overview of the implementation of the state duty to protect principle by principles.
GP 25
Access to remedyAs part of their duty to protect against business-related human rights abuse, States must take appropriatesteps to ensure, through judicial, administrative, legislative or other appropriate means, that when suchabuses occur within their territory and/or jurisdiction those affected have access to effective remedy.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The provisions laid down in the Danish Administration of Justice Act (Consolidation Act 2012-10-24 No. 1008) form an essential and important part of the framework on access to judicial remedia-tion in cases regarding human rights issues in business. Denmark keeps these provisions underconstant review in order to fulfill international obligations and to ensure that the provisions areadequately applied.
GP 26
Access to remedyStates should take appropriate steps to ensure the effectiveness of domestic judicial mechanisms whenaddressing business-related human rights abuses, including considering ways to reduce legal, practi-cal and other relevant barriers that could lead to a denial of access to remedy.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— At international level the Danish Government actively promotes the discussion of legislation withextraterritorial application, in particular the need for joint solutions (see UNGPs 2).The provisions laid down in the Danish Administration of Justice Act (Consolidation Act 2012-10-24No. 1008) form an essential and important part of the framework on access to judicial remedy in casesregarding human rights issues in business. Denmark keeps these provisions under constant reviewin order to fulfill international obligations and to ensure that the provisions are adequately applied.
GP 27
Access to remedyState-based non-judicial grievance mechanismsStates should provide effective and appropriate non-judicial grievance mechanisms, alongside judicialmechanisms, as part of a comprehensive State-based system for the remedy of business-related hu-man rights abuse.Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— Examples of non-judicial institutions which contribute to remediation for victims of business-related human rights abuses, include Employment Tribunals, national Ombudsman, and Con-sumer tribunal. Furthermore Denmark has mechanisms for dealing with cases of race, gender,disability, age, religious discrimination in employment or services, etc.Initiatives taken or planned as a dedicated measure to implement the UNGPs— Mediation and grievance mechanism for responsible business conduct. In June 2012 the Govern-ment approved a bill creating the Mediation and Grievance Mechanism for Responsible BusinessConduct. This state-based non-judicial grievance mechanism can deal with cases involving po-tential adverse impacts by Danish companies on international CSR guidelines, including humanrights impacts. The mediation and grievance mechanism comply with the UN Guiding Principleson Business and Human Rights and the OECD’s Guidelines on Multinational Enterprises.
GP 28
Access to remedyNon-State-based grievance mechanismsStates should consider ways to facilitate access to effective non-State-based grievance mechanismsdealing with business-related human rights harms.Initiatives taken or planned as a dedicated measure to implement the UNGPs— Denmark has a well-functioning system in place for dealing with complaints inside companies,e.g. wrongful dismissal. In this system, employers’ organisations representing the managementlevel and trade unions representing the employees find solutions to conflicts by mediation and ne-gotiation. In this way, many problems are solved outside the legal system.
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An initiative dedicated to implementing the UNGPs which has been implemented recently is thedevelopment of a guide for small and medium-sized companies on ways to solve company con-flicts by actively involving and engaging in a dialogue with the company’s stakeholders.
GP 29
Access to remedyTo make it possible for grievances to be addressed early and remediated directly, business enterprisesshould establish or participate in effective operational-level grievance mechanisms for individualsand communities who may be adversely impacted.Initiatives taken or planned as a dedicated measure to implement the UNGPs— The state-based grievance mechanism includes the operational-level as part of its complaints-handling process. When a complaint is approved for further consideration, the Mediation andGrievance Mechanism for Responsible Business Conduct encourages the parties (petitioner andrespondent) to resolve the matter themselves. This serves to create the basis for a dialogue be-tween the parties. If the parties succeed in resolving the matter on their own, the Institution hasno further involvement. The parties must simply notify the Mediation and Complaints-HandlingInstitution for Responsible Business Conduct within three months from submission of the com-plaint to indicate whether or not they have found a solution. Matters resolved between the partiesare not subject to any form of publication by the Institution.The two online tools which help companies to integrate due diligence into their own companyand into the businesses of their sub-suppliers, the CSR Compass and the UN Global Compact Self-Assessment tool, both include guidance on company level grievance mechanisms.
GP 30
Access to remedyIndustry, multi-stakeholder and other collaborative initiatives that are based on respect for humanrights-related standards should ensure that effective grievance mechanisms are available.Initiatives taken or planned as a dedicated measure to implement the UNGPs— The guide on company conflicts resolution in the CSR Compass promotes the active involvementand engagement of the company’s stakeholders.
GP 31
Access to remedyEffectiveness criteria for non-judicial grievance mechanismsIn order to ensure their effectiveness, non-judicial grievance mechanisms, both State based and non-State-based, should be:a) Legitimate:b) Accessible:c) Predictable:d) Equitable:e) Transparent:f) Rights-compatible:g) A source of continuous learning:Operational-level mechanisms should also be:h) Based on engagement and dialogue:
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Danish National Action Plan– implementation of the UN Guiding Principles on Business and Human Rights
Status in Denmark(initiatives implemented before the UN ratification of the Guiding Principles)— The Danish Mediation and Complaint Handling Institution has been established in accordancewith the international criteria for non-judicial mediation and grievance mechanisms (UNGPs) aswell as the criteria for national contact points as stated in the OECD Guidelines for MultinationalEnterprises (Visibility, Accessibility, Transparency, Accountability):a) To ensure legitimacy the institution has been established in Danish lawb)c)Anyone can submit a complaint to the Mediation and Complaints-Handling InstitutionA description of the complaint handling procedure has been made public along with an indica-tive timeframe for each step in the processThe chairman shall assist the weaker party that may require special support, but also as-sist companies, for example, so that the chairman can help to conclude a case quickly and ina way that also takes the company’s situation into account. The Mediation and Complaints-Handling Institution for Responsible Business Conduct may allocate advisers to one or bothparties. The purpose is to ensure that the mediation outcome is in the interests of both parties.
d)
e) The institution will inform the public of the cases the institution is handling. For every step inthe case handling the institution will make a statement which will be made publicly availableon the institution’s website. Information from a case is subject to the access to information actonce the case has been concluded. Finally, the Institution will prepare an annual report thatis published and also discussed with the Council forCorporate Social Responsibility and theOECD’s Investment Committee, in order to improve the work of the Institution.f)The purpose of the institution is to help solve conflicts in accordance with the OECD Guidelinesfor Multinational Enterprises.
g) In addition to considering concrete incidences of infringement, the Mediation and Complaints-Handling Institution also has the object of promoting the implementation of the OECD Guide-lines for Multinational Enterprises, and compliance by Danish companies, authorities and or-ganisations. The Mediation and Complaints-Handling Institution will also conduct activitiesthat support the CSR efforts of Danish companies, authorities and organisations, for exampleas guidance in relation to the consideration of concrete cases, or in information and educationactivities. The institution will also work with other national contact points and the OECD Invest-ment Committee in terms of concrete complaint handling as well as promotional activities.h)Dialogue and mediation play a central role in the complaint handling.
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37

Danish National Action Plan

– implementation of the UN Guiding Principleson Business and Human Rights2013/14 : 9Enquiries regarding the publicationcan be adressed toDanish Business AuthorityDahlerups PakhusLangelinje Allé 172100 CopenhagenDenmarkE-mail: [email protected]ISBN (Printed version)978-87-92985-81-1ISBN (Electronic version)978-87-92985-82-8Layoute–Types & e–Types DailyWebThe publication can be downloaded atsamfundsansvar.dk / csrgov.dk