Investor Presentaiton
MVO
NEDERLAND
operating abroad to act in accordance with the OECD Guidelines for
Multinational Enterprises.
OECD member countries subscribe to the OECD Guidelines and host a National
Contact Point (NCP). The NCP has two tasks: inform the business community
about the OECD Guidelines, and to handle cases of possible violations of the
guidelines. Cases of companies allegedly violating the OECD Guidelines can be
brought in at the NCP, which serves as a non-judicial grievance mechanism.
Even though Brazil is not a member of the OECD, it has adhered to the OECD
Guidelines and it therefore has an NCP in Brasilia.
Universal human rights
Fundamental human rights related to business are described in the UN Guiding
Principles on Business and Human Rights (UNGPs), accorded in 2011 by the
UN Human Rights Council. Professor John Ruggie has developed the "Protect,
Respect and Remedy" framework, resting on three pillars:
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the state duty to protect against human rights abuses by third parties,
including business
the corporate responsibility to respect human rights;
greater access by victims to effective remedy, both judicial and non-judicial.
Labour rights
Labour rights are often integrated in national laws, but compliance and
enforcement can be lacking. All labour rights are stipulated in the conventions
of the International Labour Organisation (ILO).
Environmental legislation
Environmental protection laws and regulations are normally ratified on a
national level (not on a global level). The Paris Agreement might eventually lead
to global international binding measures for reduction of global greenhouse
emissions.
Strategies for CSR
Some CSR strategies (figure 1) are more ambitious than others, and some focus
more on transformational opportunities (do good), than on avoiding risk (do no
harm). It is not said that one is better than the other; the appropriateness of the
strategy depends on the context and goals of individual companies or entire
sectors.
CSR IN BRAZIL
Brazil offers opportunities for Dutch enterprises to enlarge their markets or to
source new products. Nevertheless, as in all business activities, there are
potential environmental and societal challenges that call for a good CSR
strategy by companies. This links to the commitment of the Dutch government
to align its trade policy to the OECD Guidelines and the UN Guiding Principles
on Business & Human Rights. We will provide a short overview of general CSR
risks relevant for Brazil. This is predominantly based on the CSR Risk Check.
In the following sub-chapters, specific risks per sector are elaborated upon.
Social challenges
Corruption
In Brazil, personal relations and status are very important in business culture.
Therefore, there is a fine line between relation management and corruption,
especially at governmental level. Since the law can also be very detailed and
complex, the interpretation of federal legislation can vary from one state or
municipality to another, as can the way in which it is enforced. Combatting
corruption has been key priority for the current and previous governments,
especially ever since the enormous Lavo Jato case exposed many politicians and
business leaders being involved in corruption schemes.
Land rights
Over twenty per cent of the population in Brazil, mostly in rural areas, live below
the poverty line and there is a high social inequality partially due to uneven
distribution of land. Several hundred thousand people continue to have no
access to (fertile) land, while a far smaller number of landowners control
extremely large areas. The lack of a good functioning land registration and a
mapped cadaster for land tenure has also given rise to (violent) conflicts,
especially in the Amazon. Many parts here are untitled public or poorly titled
private land, but do often have people using the land (for housing and
commercial aspects).
Labour conditions
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