Human Rights and Labour Rights
Checklist for the Board and Company
- Embedded in risk management and corporate culture.
- Adherence to the OECD Guidelines for Multinational Enterprises.
- Specific assessments prior to new contracts, investments, or business areas.
- Regular testing of risk management systems.
- Enhanced due diligence in high-risk sectors and geographies.
A lack of respect for human rights and labour rights can lead to reputational damage, loss of customers, operational disruptions, and other negative financial consequences.
Folketrygdfondet’s expectations for companies’ conduct in this area are based on the UN Global Compact, the OECD Guidelines for Multinational Enterprises, the UN Universal Declaration of Human Rights (1948), the UN Guiding Principles on Business and Human Rights, and the ILO Core Conventions.
• States are responsible for protecting human rights and labour rights under international conventions, but these standards are also relevant for companies. We expect companies to use them as part of their risk assessment, both in their own operations and throughout the value chain.
• Companies are expected to follow the OECD Guidelines for Multinational Enterprises.
• The board is responsible for ensuring that human rights and labour rights are respected across the company’s activities, and that this is embedded in the corporate culture. Policies in this area should be well understood internally and clearly communicated externally.
• Companies should have ongoing processes to identify and manage risks of human rights or labour rights violations. Risk management systems should be updated regularly to ensure they work as intended. Specific assessments should be carried out before entering into new agreements, investments, or business areas.
• The risk of violations will vary by industry, geography, value chain, and type of production. In conflict zones, high-risk geographies, or sectors where serious or systematic violations of basic human rights or labour rights are documented, we expect enhanced due diligence.
• Companies should report openly on their work related to human rights and labour rights.