Machine Translated by Google Prop. 150 L (2020 –2021) Proposition to the Storting (proposal for a legislative resolution) Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Machine Translated by Google Machine Translated by Google Prop. 150 L (2020–2021) Proposition to the Storting (proposal for a legislative resolution) Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Machine Translated by Google Machine Translated by Google Contents 1 Main content of the proposition .. 5 4.2.6 The General Application Act and regulations ........................................ 27 2 The background for the bill .... 7 4.2.7 Regulations on information and duty of 2.1 Request decision from the Storting .. 7 care and right of access ................ 27 2.2 Investigation of the legal room for 4.2.8 Regulations on pay and working conditions maneuver ........................... 7 in public contracts ......... 27 2.3 The Ethics Information Committee ............ 7 4.2.9 The Government's strategy against 2.3.1 Appointment and mandate ................. 7 work-related crime ................... 27 2.3.2 Report and bill ..................... 8 4.3 The regulations for public 2.3.3 Impact assessment .................... 9 procurement .................................... 28 2.4 The hearing ......................................... 9 4.4 The Environmental Information Act ................. 28 2.5 Surveys on responsible 4.5 Product inspections ..................... 28 business ........................................ 11 4.6 Penal Code ..................................... 29 2.5.1 The OECD's contact point under the survey on 4.7 The Equality and Discrimination responsible business Act ............................................. ... 30 2020 ...................................... ............ 11 2.5.2 Amnesty Business Rating 2019 ..... 12 5 General information on the proposal for a Transparency Act .................................. 31 3 International frameworks and regulations etc ................. 14 6 The bill and EEA legal 3.1 UN, ILO and OECD .......................... 14 restrictions .............................. 33 3.1.1 United Nations (UN) .............. 14 3.1.2 International Labor Organization 7 Purpose and scope of the Act 35 (ILO) ..................... 15 7.1 Purpose of the Act ........................... 35 35 3.1.3 Organization for Economic Co-operation 7.1.1 The Ethics Information Committee's and Development (OECD) ... 17 proposal ............................................. 35 3.2 Regulation and regulatory 7.1.2 The views of the consultative bodies ................ 35 development in the EU .................................. 17 7.1.3 The Ministry's assessments ........ 36 3.2.1 Relevant regulation ........................ 17 7.2 The factual scope of the Act ......... 37 3.2.2 General information on regulatory development 7.2.1 The Ethics Information Committee's in the EU ............................................. ..... 18 proposal ............................................. 37 3.2.3 Regulatory development in 7.2.2 The views of the consultative bodies ................ 38 the EU Commission .......................... 18 7.2.3 The Ministry's assessments ........ 40 3.2.4 Regulatory development in 7.3 Obligations and geographical the European Parliament ............................ 20 scope of the Act .............. 43 3.3 Regulation and regulatory development in some 7.3.1 The Ethics Information Committee's countries .................................. 21 proposal ............................................. 43 3.3.1 Relevant regulation ........................ 21 7.3.2 The views of the consultative bodies ................ 43 3.3.2 Regulatory development ....................... 23 7.3.3 The Ministry's assessments ........ 46 7.4 Scope of the Act - business, supply chain and 4 Relevant regulations in Norway ....... 25 business partner ......................................... ... 4.1 Accounting Act .............................. 25 48 4.2 Working life regulation, etc. ............. 25 7.4.1 The Ethics Information Committee's 4.2.1 Introduction ........................................... 25 proposal ............................................. 48 4.2.2 The Working Environment Act and the 7.4.2 The views of the consultative bodies ................ 48 working environment regulations ........................... 25 7.4.3 The Ministry's assessments ........ 49 4.2.3 Internal Control Regulations ............... 26 4.2.4 Other relevant regulations ............ 26 8 Duties of the law .............................. 53 4.2.5 The social partners have agreed on rules 8.1 Duty to have knowledge ................... 53 for a decent and sustainable working 8.1.1 The Ethics Information Committee's life .................... 26 proposal ............................................. 53 8.1.2 The views of the consultative bodies ................ 53 Machine Translated by Google 8.1.3 The Ministry's assessments ........ 56 9.2.1 The Ethics Information Committee's 8.2 Duty to perform due diligence proposal ............................................. 92 assessments ..................................... 56 9.2.2 The views of the consultative bodies ................ 92 8.2.1 The Ethics Information Committee's 9.2.3 The Ministry's assessments ........ 93 proposal .............................................. 56 9.3 More about the supervision .................... 94 8.2.2 The views of the consultative bodies ................ 57 9.3.1 The Ethics Information Committee's 8.2.3 The Ministry's assessments ........ 63 proposal ............................................. 94 8.3 Duty to provide information ................. 72 9.3.2 The views of the consultative bodies ................ 94 8.3.1 The Ethics Information Committee's 9.3.3 The Ministry's assessments ........ 96 proposal .............................................. 72 9.4 Processing of complaints .................... 100 8.3.2 The views of the consultative bodies ................ 73 9.4.1 The Ethics Information Committee's 8.3.3 The Ministry's assessments ........ 77 proposal ............................................. 100 8.4 Obligation to publish information 9.4.2 The views of the consultative bodies ................ 100 on place of production .. 81 9.4.3 The Ministry's assessments ........ 101 8.4.1 The Ethics Information Committee's proposal .............................................. 81 10 Economic and administrative 8.4.2 The views of the consultative bodies ................ 82 consequences ........................... 102 8.4.3 The Ministry's assessments ........ 85 10.1 Introduction ...................................... 102 10.2 Implications for business .... 102 9 Supervision and guidance .................... 87 10.3 Implications for the public ... 104 9.1 The need for supervision and guidance, etc. .................................................. 87 11 Comments on the bill ........ 105 9.1.1 The Ethics Information Committee's proposal ........................................... 87 Proposal for a law on the openness of 9.1.2 The views of the consultative bodies ................ 87 companies and work with basic human rights and 9.1.3 The Ministry's assessments ........ 90 decent working conditions (the Transparency 9.2 More about the guide ........... 92 Act) ............... 118 Digital attachments: 1. The Ethics Information Committee's report Transparency about supply chains 2. Impact assessment of a proposal for a new Transparency Act Machine Translated by Google Prop. 150 L (2020–2021) Proposition to the Storting (proposal for a legislative resolution) Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Recommendation from the Ministry of Children and Family Affairs 9 April 2021, approved by the Minister on the same day. (Solberg Government) 1 Main content of the proposition The Ministry of Children and Family Affairs puts in this places. Many companies therefore do not have good the proposition presents a proposal for a law on business enough overview of the consequences of their business, transparency and work with the basics supply chains and business partners human rights and decent working conditions (the has on human rights and working conditions. Transparency Act). The bill follows The lack of transparency also makes it difficult up The Ethics Information Committee's report Transparency consumers, civil society, trade unions, organizations, the on supply chains and the committee's proposal for a law on media, investors, public authorities companies' transparency about supply chains, duty of care and others to obtain information about these conditions, and and due diligence assessments that were handed over to to verify these. The Transparency Act proposed in the ministry in the autumn of 2019. this proposition will, in the Ministry's assessment, meet Protection of human rights and these challenges. decent working conditions in global suppliers where there The purpose of the proposed Transparency Act is to is a significant and complex challenge in promote corporate respect for the basics many countries. Many people are concerned that products and human rights and decent working conditions in connection services are produced under good working conditions, with the production of goods and and many companies are keen to contribute positively services, and to ensure public access to information on through their business and supply chains how companies deal with negative impacts on basic human by creating value, jobs and society's useful products and rights and decent working conditions. To services. However, global supply chain chains often run through several countries achieve the purpose of the law, the Ministry proposes that with various challenges and can be very came companies are required to carry out due diligence Machine Translated by Google 6 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) to be able to stop, prevent or companies, and in that the government today expects everyone limit negative consequences on fundamental human rights Norwegian companies act responsibly and know and and decent comply with these recommendations. The Transparency Act as working conditions that the companies either have for the proposed must work with these. This cause, contributed to or that are directly related to implies that even if the law only applies to larger the companies' business activities, products or services companies, it is still expected that other companies know through supply chains or and comply with UNGP and business partners. The Ministry also proposes OECD guidelines, including the due diligence assessments that the companies are required to publish statements for that follow. This implies their due diligence assessments, and that also that although the law only applies to the basics the businesses at the request of the public human rights and decent working conditions, businesses should provide information on how they work to are still expected as well deal with negative consequences on fundamental human work with other areas covered by the rights and decent working conditions. The Ministry proposes international principles and guidelines, for that the law includes example environment. larger Norwegian companies that offer goods and services The proposed Transparency Act will, together with in Norway and abroad, and larger foreign ones other measures contribute to Norway's work to meet companies that offer goods and services in Norway UN Sustainability Goal No. 8 on Decent Work and and who are taxable here. The Ministry proposes that the Norwegian economic growth, and goal no. 12 on responsible for use Consumer Agency be given responsibility for conducting inspections and production. Government, business and with the law and to provide guidance to businesses. Through these goals, organizations have committed The proposed Transparency Act will be useful for themselves to abolishing forced labor, ending it many different actors in society. Public sector modern slavery, ensure that the worst forms of makes significant purchases of goods and services child labor is banned and abolished, and promoted safely every year and will through the Transparency Act get a and a safe working environment for all employees. The bill simpler work to ensure that companies comply with the follows up on three goals that the government set down in obligations that follow from the Procurement Act § 5. Civil the Granavolden platform. Firstly society, the media and academia will have access to The law helps to strengthen consumers' right to information information that can contribute to on how the products they buy are produced. Secondly, the uncover, influence and disseminate socially important law helps to counteract that information. Investors who strive high goods imported into Norway are produced by standards in environmental, social responsibility and child and slave labor, among others worthy of criticism corporate governance (ESG) in their investment objects, working conditions, or in ways that violate but human rights. be able to use the law to obtain information in order to Thirdly, the law covers the roof point in the Granavolden make ethical investments. The law will also be able to platform to investigate help meet consumers' expectations of insight into whether an anti-slavery law modeled on the United Kingdom. human rights and The Ministry proposes that the Transparency Act decent working conditions are maintained in production shall be evaluated after it has worked for a period. of goods and services. This will make it easier for The evaluation will, among other things, be intended to consumers to make informed purchasing choices, which will assess the effect of the law, assess whether smaller could contribute to it being sold and thus produced companies should also be included as duty subjects. fewer products under reprehensible conditions. and whether the objective scope of the Act is to be extended to The proposal for a transparency law is based on to apply to environmental impact and any other areas the recommendations that follow from the UN's guiding covered by the OECD's guidelines for more national principles for business and human rights companies. (UNGP) and the OECD's guidelines for multinationals Machine Translated by Google 2020–2021 7 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 2 The background to the bill or require specific adjustments in an eventual 2.1 Request decision from the Storting duty of ethical information. Simonsen Vogt Wiik On 1 June 2018, the government appointed the Etikkin submitted their report in the summer of 2017. There, they formation committee to assess whether businesses should concluded that there is a certain room for maneuver in order be required to provide information related to to be able to impose a to social responsibility and follow-up of supplier chains. The duty of ethical information. A summary of reason for this was two request decisions: The report is attached to the Ethics Information Committee's report Transparency about suppliers. See also discussion in 1) Request Decision No. 890 (2015–2016) of 13. the Ethics Information Committee June 2016: «The Storting asks the government to investigate and report chapter 7. consider submitting a proposal for a law on transparency production sites and ethical information on product production for consumers and organizations ». 2.3 The Ethics Information Committee 2) Request Decision No. 200 (2017–2018) of 12. December 2017: «The Storting asks the government 2.3.1 Appointment and mandate to set up a committee with broad representation such as The Ethics Information Committee was appointed on 1 June shall investigate any law on ethical information, its 2018. The government pointed out in the mandate that many scope, what the law shall cover consumer goods are produced in countries where the protection of and to whom it shall apply. The committee should in addition workers are weaker than in Norway, and that wages one consider how a law on ethical information can not live off, child labor, decent work time, and lack of can ensure the right of consumers and organizations freedom of association are among information beyond laws and other tools such as the challenges of global trade. exists today. " The government based its mandate on the purpose with an ethical information obligation will be that consumers In settings 384 S (2015–2016) which was the basis for and organizations will receive information about request decision no. 890, the proposers show how entrepreneurs work to take care of to make wages, overtime pressure, poor security and lack of fundamental rights and decent working conditions for workers respect for union work in supply chains. According to the data, consumers should characterizes large parts of the goods production for the be able to do more with this world market, and that Norwegian consumers have little informed purchasing choices. The duty to provide information shall information and gain rights when it comes to views and also help increase traders' efforts to knowledge of how goods are produced. provide decent working conditions for workers in own supply chains. The committee's mandate was twofold. Firstly should the committee investigate whether it is possible and 2.2 Investigation of the legal room appropriate to order businesses to provide information to for maneuver consumers and organizations about which As part of the work to follow up request decision no. 890 of production sites used in the production of goods and how 13 June 2016, the ministry in 2017 gave the law firm businesses work with Simonsen Vogt corporate social responsibility and follow-up of the supplier Wiik is tasked with investigating the Norwegian authorities' chain. The committee was also to assess the consequences room for legal action to introduce rules on ethical information. of such a duty to provide information. Secondly, where as Simonsen Vogt Wiik the committee came to the conclusion that legislation is assessed on national regulations, EEA law possible and appropriate, the committee should consider obligations or bilateral / multilateral agreements, which traders should be imposed on one including the WTO Agreement, would preclude such duty and how this should be enforced. Machine Translated by Google 8 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) According to the mandate, the committee's assessments financial and administrative consequences of reviewed against relevant national regulations, EEA law, suggestion. WTO obligations and other international In Part II of the report, the committee describes the regulations Norway is bound by, cf. the report to development and challenges in global goods and services The law firm Simonsen Vogt Wiik on the legal scope for production and trade, social responsibility and follow-up of action, see section 2.2. supply chains, as well as the UN's sustainability goals. The ministry extended the mandate on 27 August and the 2030 agenda, international frameworks in 2019, so that the committee was also asked to design UN, ILO and OECD. The committee also reports a concrete bill. regulation and policy in the EU and in individual countries, The following members were appointed as relay won Norwegian law, and requirements and expectations committee members: for corporate social responsibility. The committee reports - Professor Ola Mestad, University of Oslo, also for the interests of consumers and the collective manager the commitment associated with openness and decent - Professor Caroline Dale Ditlev-Simonsen, work in companies and supply chains. The Committee's BI Norwegian Business School report in Part II forms the background for this - Associate Professor Lars Jacob Tynes Pedersen, the proposal for a transparency law. NHH The committee proposes a law on business - Postdoctoral fellow Mark Taylor, University of Oslo transparency about supply chains, knowledge obligation and - Steinar J. Olsen, Stormberg AS due diligence assessments (transparency law). The law must - Bente Øverli, The Norwegian Consumer Agency ensure that consumers, organizations, unions - Jon Vea, NHO and others gain access to information on fundamental – Gro Granden, LO human rights and working conditions in - Heidi Furustøl, Initiative for Ethical Trade (current businesses and in supply chains, and contribute to Ethical Trade Norway) promote corporate respect for fundamental human rights - Camilla Skjelsbæk Gramstad, Virke and decent work. The committee proposes that the law applies to companies See discussion of the Ethics Information Committee's mandate in which offers goods and services in Norway. the sample report Transparency about supply chains The committee proposes that all businesses be imposed Chapter 3. to have knowledge of the significant risk of negatives impact on basic human rights and decent work in one's own business and in 2.3.2 Report and bill the company's supply chains. It is suggested The Ethics Information Committee started its work in also that consumers, organizations and others know August 2018. The committee submitted an interim report to request has the right to receive information about these the department in June 2019 where it concludes conditions, with some exceptions. with that it would be appropriate to introduce one The committee proposes that larger companies be statutory ethical information obligation. In the sub-report instructed to carry out due diligence assessments in order to The committee points out, among other things, that a statutory identify, prevent and limit the negative impact on fundamental duty to provide information could contribute to more transparency and human rights and insight into global value chains that can contribute in the long run decent work, and explain how this for better protection of fundamental rights and handled. The committee proposes that the companies working conditions in the supply chain. The committee chose shall publish the due diligence assessments and therefore in line with the mandate to go ahead and investigate the result of these. scope, how the duty to provide information should be The majority of the committee proposes that companies that designed and enforced, as well as the consequences of sells goods to consumers, shall publish a statutory regulation. The committee also started the work information about which production site with a concrete bill when the mandate later became is used in the production of goods, ie the place where the extended to include this. The final report product is mainly assembled at the end before Transparency about supply chains was handed over to it is sold. The committee proposes a regulatory authority the Ministry on 28 November 2019. to be able to exempt sectors or groups from this In Part I of the report, the committee describes the duty. committee's mandate and work, driving forces and framework for The committee proposes the Norwegian Consumer Agency the report, key development features and legal as an inspection body, with the Market Council as the appeal body. framework for the committee's work. Part I contains The supervisory body is given responsibility for guidance, control, also the committee's assessments and bills, as well complaint handling and enforcement. The committee proposes Machine Translated by Google 2020–2021 9 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) sanction options, including coercive fines and Directorate of Labor and Welfare infringement fee, for non-compliance with The Directorate for Children, Youth and Families the information obligations. Directorate for Public Administration and ICT The committee report and the draft law are unanimous The Data Inspectorate adopted by the members of the committee, with the exception of The court administration a minority dissent to the proposal for the publication of information The Council on Ethics for the Government Pension Fund Global on the place of production, and for the proposal on the right to Finanstilsynet make an information request orally, see further discussion in Consuming Europe sections 8.3 and 8.4 of the proposition. The Consumer Council The Norwegian Consumer Agency The county governors (now the state administrators) The Norwegian Directorate of Health 2.3.3 Impact assessment The Norwegian Competition Authority The Ministry has in connection with the work The Norwegian Food Safety Authority with the proposal for a transparency law, an assessment was The Norwegian Environment Agency obtained of the financial and administrative consequences of the National Communications Authority (NKOM) Ethics Information Committee's bill. The impact assessment, Norad - Directorate for Development Cooperation prepared by Oslo Econo mics and KPMG, is based on the Norway's contact point for responsible business committee's assessments Norwegian Center for Human Rights of financial and administrative consequences, OsloMet - the metropolitan university but concretizes and quantifies to a greater extent The Rules Council what consequences such a law may have for different companies in various industries. Take a closer look The Attorney General discussion in point 10 on financial and administrative consequences. The Attorney General The Norwegian Medicines Agency The State's civil law administration University in Bergen 2.4 The consultation University of Oslo - The Faculty of Law University of Tromsø - Norwegian Arctic University The Ethics Information Committee's report Transparency on supply chains and proposals for a law on companies transparency about supply chains, knowledge obligation and Norway's institution for human rights due diligence was sent on general The Office of the Auditor General consultation from 19 December 2019 to 23 March 2020. The Civil Ombudsman Upon request, several consultation bodies were postponed consultation deadline due to the Covid-19 situation. The county municipalities The Ministry received a total of 76 hearings. In addition, the Bergen municipality ministry received two consultation responses Kristiansand municipality from private individuals. Oslo council The hearing has revealed broad support for one Stavanger municipality Transparency Act, and several consultative bodies express Trondheim municipality that the Ethics Information Committee has done a thorough work. Some consultative bodies still have input innovation Norway to the objective scope, structure and Bank of Norway how it can be ensured that the law becomes effective and Statkraft AS practically feasible. Some consultative bodies, such as the Swedish Regulatory Council, believe that the bill is too Abelia Association for knowledge and technology burdensome and difficult to implement for companies, especially companies in NHO for smaller companies. The Bar Association The academics The following bodies received the consultation memorandum Amnesty International Norge statement: BAMA Bellona The departments Bergans Home Manufacturers' Association Machine Translated by Google 10 2020–2021 Prop. 150 L Act on companies' openness and Transparency work with basic human rights and decent working conditions (the Act) The National Association of the Construction Industry Norwegian YWCA-YMCA The Builders' Association The Christian Council of Norway The love of Norge Norwegian Society for Nature Conservation Changemaker Norwegian Shipowners' Association ClampOn Norwegian Forest Owners' Association Coop Norge SA Norsif (Norwegian forum for responsible and Kitchen sustainable investments) Grocery suppliers' association Norwegian Business Association The Norwegian Judges' Association Norwegian Mining Industry The Norwegian Auditors' Association Norwegian Farmers 'and Smallholders' Association DNV GL Norwegian Fish Farmers' Association DOF Subsea AS Norwegian Association for Building and Construction Law EL & IT Association Norwegian Recycling Energy Norway Norsk Hydro ASA Entreprenørforeningen - Building and construction Norwegian Industry Equinor Norwegian Journalist Team Eurosko Norwegian oil and gas Fairtrade Norway Norwegian Tourism Forum Joint Council of Africa Norwegian Civil Servants Association Finance Norway Norske Boligbyggelags Landsforbund SA Association of Financing Companies Norwegian Collection Agency Footstep AS Norwegian Maritime suppliers The Consumer Research Institute SIFO Norwegian Air Shuttle ASA FOCUS - Forum for women and development issues Norwegian-African Business Association The future is in our hands The Confederation of Norwegian Enterprise (NHO) The Salvation Army The Business Service Office for Market Law Friele Orkla Grieg Star The Rafto Foundation H&M RE: ACT Trade and Office Save the Children BI Norwegian Business School Accounting Norway Hope for Justice Norge AS The Rainforest Fund The main organization Virke Pipe contractors Norway IKEA SAS Norway ICT-Norway Skeidar IndustriAll SMB Norway Initiative for ethical trade Spire Legal advice for women The Electronics Industry Foundation Jussbuss - Juss students' legal information Telenor Norge AS Norwegian Church Aid Transparency international Norge National Organization in Norway (LO) UN Global Compact Norway National Association of Painters and Wallpaper Masters UNICEF Norway The House of Human Rights UNIO - Main organization for university and college graduates Master Green Ecolabelling Development Fund The environmental organization Zero Varner NHO Transport Widerøes Flyveselskap AS Norwegian Automobile Industry Association WWF - World Wide Fund for Nature Norwegian Farmers' Association Yara Norge AS Norwegian Builders' Association The Confederation of Trade Unions (YS) Norwegian Fishermen's Association NorgesGruppen ASA The following bodies have issued statements of substance: NHH Norwegian Bar Association Norwegian Association of Treasurers and Municipal Treasurers Ministry of Defense Machine Translated by Google 2020–2021 11 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Ministry of Justice and Public Security KS Bedrift Ministry of Health and Care Services Latin American groups in Norway Ministry of Climate and Environment National Organization in Norway (LO) Ministry of Trade and Industry Norwegian Farmers' Association Ministry of Foreign Affairs Norwegian Fishermen's Association Nordland County Fishermen's Association Directorate of Labor and Welfare Norwegian Journalist Team Digitization Directorate Norwegian Environmental Protection Association The Norwegian Consumer Agency Norwegian Shipowners' Association The Consumer Council Norsk Hydro ASA Research group for EU / EEA, competition and market law at The Confederation of Norwegian Enterprise (NHO) UiB Master Green Norway's OECD contact point for responsible business Orkla ASA The Rafto Foundation The Rules Council Save the Children University in Bergen Accounting Norway The Rainforest Fund Norway's institution for human rights Responsible Business Advisors (RBA) Standard Norway Bergen municipality The Electronics Industry Foundation Inland county municipality Spire Oslo council Tekna Viken county municipality Telenor ASA Bane nor Unicef Norway Statkraft AS Yara International ASA The Confederation of Trade Unions (YS) The Bar Association The academics The following instances have replied that they have not Amnesty International Norge notes: The National Association of the Construction Industry BDO AS Ministry of Transport Changemaker Coretta and Martin Luther King Institute for The Attorney General Peace work Ethical trade Norway 2.5 Surveys on responsible Equinor business Fair play building Oslo and surroundings Fairtrade Norway Joint Council of Africa 2.5.1 The OECD Contact Point's survey on Finance Norway responsible business 2020 Association of Financing Companies At the turn of the year 2019/2020, Norway's OECD contact point Fiskarlaget Nord for responsible business life implemented a FOCUS - Forum for women and survey on Norwegian business leaders development issues knowledge and work with OECD guidelines Forum for development and the environment for multinational companies. The survey passes The future in our hands (main organization) of a survey among 600 business people in Norwegian companies. The future in our hands (Oslo local team) 253 of these are leaders in The future in our hands (Trondheim Studentlag) companies with international operations, that is The future in our hands (private individuals) that they have stated that the company has owners, investments, The Salvation Army production, exports, own imports or imports Hope for Justice AS via agents outside Norway. In addition, seven semi-structured in- The main organization Virke depth interviews were conducted. YWCA-YMCA The results from the contact point's survey Norwegian Church Aid and the Christian Council of Norway shows that volunteering has not contributed to Norwegian Kongsberg Gruppen ASA companies' compliance with OECD guidelines and Machine Translated by Google 12 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the expectations of making due diligence assessments. The The business leaders state that they have a complaint system survey shows that there is little knowledge of related to responsible business. 58 percent state OECD guidelines among Norwegian business leaders. that the company does not have this. The proportion who have one 30 per cent of business leaders with foreign operations state notification and complaint scheme, increases with the number of employees that they have only heard of OECDs in the company. guidelines, 7 percent have familiarized themselves with them and 2 percent know the guidelines well. Many companies (50 percent) have guidelines for 2.5.2 Amnesty Business Rating 2019 responsible business or sustainability. The proportion with In the period August to November 2019, Amnesty International written guidelines are higher among companies Norway conducted a survey among 69 companies with the with foreign operations than among companies aim of examining the extent to which Norwegian companies without foreign operations (60 against 43 per cent). are Only 19 per cent of companies with foreign operations have exposed to the risk of violating human rights and how well written guidelines that refer to equipped they are to deal with OECD guidelines. In total, 35 percent state this risk. In the study, the following are four business leaders that the company reports systematically on business sectors mapped: responsible business. 1. Energy, oil and gas, UN Guiding Principles for Business and 2. Shipping, offshore and fishing, Human Rights (UNGP) and the OECD Guidelines for 3. Consumption, trade and services, Multinational Enterprises recommend that 4. Industry, building and construction. companies conduct due diligence assessments. In total, 50 per cent of Norwegian companies state that they The survey shows that all companies have guidelines on conducts due diligence assessments. The proportion is human rights, and 94 percent somewhat higher (54 per cent) among companies with have training of their employees. But only 38 per cent have foreign activities. The companies that carry out due diligence a reference to the OECD's guidelines for assessments were asked about multinational companies. Only 36 percent have one which area (s) this was done: reference to the UN Guiding Principles for • 45 per cent stated that they had carried out a mapping of business and human rights (UNGP). 62 environmental and climate risk, percent states reference to the UN world declaration. • 34 per cent have mapped employee rights to have, According to the survey, Norwegian companies have one • 16 per cent have mapped the risk of corruption, increased exposure to the risk of violating human rights • 15 percent have mapped human rights, compared to what emerges from a similar survey conducted • 58 per cent state «other surveys» as in 2017. HSE, reputation and customers. The survey shows that the risk exposure is highest in shipping, offshore and fishing, The companies were also asked in which stage the rice as well as industry, construction and real estate. Despite this, survey was carried out. 91 percent state that they states as many as 91 percent of the companies within make due diligence assessments in own business. industry, construction and real estate that they do not experience one Only 40 per cent map conditions in high risk of human rights violations. The same is stated by the supply chain, and 27 per cent in business relations. 73 percent of the companies in shipping, offshore and fishing. Only 19 per cent of the companies with foreign operations 47 of the companies, ie 68 per cent, state that they state that they have received guidance on has mapped the risk that the business violates responsible business from the public sector, while 39 human rights. 70 percent state that they percent answer yes to questions about whether the company has reports on human rights in annual or need for more guidance on responsible business. sustainability report. 45 per cent of companies with foreign operations need more 48 percent of the companies state that they have knowledge to map problems controlling the supply chain. risk and possible negative effect on people, society and the This applies to industry, construction and real estate environment. as many as 64 percent of the companies. 32 percent of all Both the UNGP and the OECD's guidelines express the companies have problems obtaining correct and complete expectations that companies should have complaints and information and 35 per cent have notification schemes. However, the contact point's survey problems catching up when human rights violations occur. shows that only 36 per cent of Machine Translated by Google 2020–2021 13 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) In terms of positive effects of the work assessments. 60 percent of the companies in with human rights, 51 percent state that the survey responded that they support its introduction corporate reputation improves, 54 percent at a precautionary law for business. It is pointed the company is perceived as more attractive in the labor among other things that the law must be clear and distinct market, and 55 per cent that it strengthens their self-confidence that companies should have the opportunity to comply with it. employees. 6 per cent state that they do not see any positive The law must be feasible, relevant and functional, and be effects of the work on human rights. rooted in international principles per. In addition, the law must ensure closer follow-up In the survey, the companies were also asked about the and supervision by the authorities so that the law is complied with. introduction of a law that imposes business to carry out binding diligence Machine Translated by Google 14 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 3 International frameworks and regulations etc. 3.1 UN, ILO and OECD resource use, environmental destruction and climate emissions as a society and as an individual. On term, this will lead to economic growth, limit 3.1.1 The United Nations (UN) climate change and increase the quality of life of people on 3.1.1.1 UN Sustainability Goals earth. Changed consumption can also contribute to The UN's sustainability goals are the world's joint work plan reach the goals of the Paris Agreement from 2015 and to avoid to eradicate poverty, fight inequality and dangerous climate change. Particularly relevant sub-goal for stop climate change by 2030. The UN's sustainability goals the work on the Transparency Act is a sustainability goal consist of 17 goals and 169 sub-goals. Goals 12.6 to stimulate companies, especially large and more must function as a common global direction for countries, national companies, to adopt sustainable ones business and civil society. The sustainability goals form the methods and integrate information about their own carrying basis for both national and international capacity into their reporting routines. expectations of a responsible business community. Goal 8 "Decent work and economic growth" and goals 12 «Responsible consumption and production» is special 3.1.1.2 UN conventions relevant in that way. UN Universal Declaration of Human Rights Sustainability goal 8 shall promote lasting, inclusive and was adopted in 1948. It stipulates, among other things, a ban sustainable economic growth, full employment and decent against slavery and the slave trade, the right to work and to work for all. Approximately fair and good working conditions, non-discrimination and half of the world's population earns so little equal pay for equal work, the right to rest that it is not possible to live on wages. To create and leisure, reasonable limitation of working hours and jobs with viable wages are therefore one regular paid holidays. UN Convention great challenge for all countries until 2030. Carrying power on Civil and Political Rights (1966) and the UN goal 8 has a number of sub-goals where several are relevant convention on economic, social and cultural to the work on the Transparency Act. Particularly relevant is Rights (1966) expands the rights in the world the special the sustainability goal 8.7 of implementing immediate and declaration of human rights and does effective measures to abolish forced labor, end modern them legally binding on states that have ratified them. slavery and human trafficking and ensure that the worst forms of child labor, The UN Convention on Civil and Political Rights (1966) including the recruitment and use of child soldiers, is intended to ensure fundamental rights banned and abolished, and by 2025 abolish all as the right to life and personal liberty and security, forms of child labor. It is also relevant to bear the power goal freedom of expression and the right to privacy. The Convention 8.8 of protecting workers' rights establishes a ban on slavery, the slave trade and forced and promote a safe and secure working environment for all labor, and establishes a right to freedom of association. workers, including migrant workers and The latter includes the right to form and join especially female immigrants, and workers in to trade unions to protect their own interests. an insecure working relationship. UN Convention on Economic, Social and Social Affairs Sustainability goal 12 shall ensure sustainability for use Cultural Rights (1966) recognizes the right to and production patterns. Sustainability for use and production work and the right to fair and good working conditions. Fair is about doing more and good working conditions include less resources. Today we consume much more than remuneration to provide workers with fairness what is sustainable for the planet. For example salary, equal pay for equal work without discrimination of any one third of the food produced goes away, kind, a decent existence in itself without being eaten. To ensure good living conditions for himself and his family, working conditions that are safe present and future generations, each individual must and healthy, rest, leisure, a reasonable restriction of consumer change lifestyle. That means reducing working hours, occasional paid holidays as well as Machine Translated by Google 2020–2021 15 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) allowance for public holidays. The Convention avoid violating the human rights of others and also recognizes the right to form or join deal with the negative impact in which they are involved. to a union of your choice. The business community's responsibility to respect The above-mentioned UN conventions and the ILO's human rights also applies if the state does not fulfill its core conventions together form the basis for the UN human rights obligations. Companies should avoid Guiding Principles on Business and Human Rights causing or contributing to (UNGP) and OECD Guidelines negative impact on human rights for multinational companies. These constitute the through their activities and deal with the negative impact minimum standard that the business community is that occurs. They should also seek to prevent or reduce expected to respect. This is reflected, among other the negative impact on human rights that are directly things, in the Government's national action plan for follow-up related to theirs of the UN Guiding Principles on Business and business, products or services, through Human Rights (2015) and the Government's business relationships. This also applies if ownership report Report. St. 8 (2019–2020) Statens the companies have not contributed to the impact. direct ownership in companies - Sustainable value ping. The responsibility for respecting human rights applies to all companies, regardless of size, sector, context, There are also other UN conventions and - ownership and structure. statements that are relevant to the person responsible The scope of the funds the companies use to business, such as the UN Convention on the Rights of fulfill this responsibility, however, will vary on the Child of 20 November 1989 and the UN based on these factors. It will too Declaration on the Rights of Indigenous Peoples (UNDRIP) from depend on how serious the company's negative impact 2007. is on human rights. According to UNGP, companies should conduct due diligence assessments to identify, prevent, 3.1.1.3 UN Guiding Principles on Business and limit and explain how the company Human Rights (UNGP) seeks to respect human rights. They live The UN Guiding Principles on Business and Human also have procedures for dealing with negative effects Rights (UNGP) were adopted by the UN Human Rights on human rights that the company has caused or Council in 2011. UNGP clarifies the different roles and contributed to. responsibilities of the state and the business community According to Part 3, the state must take appropriate measures to in relation to human rights in line with international ensure that those affected by the negative impact on obligations. The Universal Declaration of Human Rights human rights have access to from 1948 and the UN Convention effective complaint procedures and follow-up when on Civil and Political Rights (1966), the UN Convention action is taken. The state should, in addition to the on Economic, Social and Cultural Rights (1966) and the courts, have other effective and appropriate appeals ILO's core conventions form the basis of the UNGP. The systems in place. An example of such a complaint scheme framework has three is the OECD's national contact point, which deals with parts. It establishes 1) the states' responsibility to protect complaints about possible breaches of the OECD's human rights, 2) that business has a guidelines for multinational companies, see section 3.1.3, responsibility for respecting human rights, and as well as cases according to the ILO's Tripartite Declaration on 3) that the state has a responsibility to ensure effective basic principles for multinational companies, see section complaint and redress mechanisms. 3.1.2. Companies should, in turn According to Part 1, the state has a responsibility to protect establish and participate in effective redress mechanisms human rights. The state must also protect business level for affected individuals and against human rights abuses by third parties, including local communities. companies, within the country jurisdiction. This is done through measures to prevent, investigate, punish and remedy such violations 3.1.2 The International through effective guidelines, laws, regulations Labor Organization (ILO) and court decisions. UNGP emphasizes that the state should establish the expectation that all companies 3.1.2.1 General respects human rights in all parts of The International Labor Organization (ILO) their business. was founded in 1919, and will promote social justice and According to Part 2, the business community has a responsibility to rights in working life. The ILO differs respect human rights by from other organizations in the UN by not just having Machine Translated by Google 16 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) states as members. The ILO system is based on the age at which compulsory schooling ends and not to fall a tripartite structure in which the parties in working life, below 15 years. Member States commit as well as the authorities of the Member States, are equated in pursue a policy aimed at the effective abolition of child the design of conventions and programs. labor, and a gradual The ILO has adopted a total of 190 conventions, 6 protocols raising the minimum age for access to employment things with amendments or additions to the conventions, as well or work. ILO Convention No. 182 imposes as 206 recommendations on working life. Member States to ban and abolish the worst for more child area. The conventions, protocols and recommendations set labor. By this is meant among out basic principles and other slave labor, sale of children, debt slavery, prostitution rights in working life. The conventions and protocols are of children and / or production of pornography, forced labor, legally binding on states that ratify them, while the use of children for drug production and recruitment of child recommendations are indicative. soldiers. Norway has adopted 110 of the ILO's conventions and ILO Convention No. 87 on Freedom of Association and three protocols. protection of the right of association obliges states to make sure that workers and employers have the right to form or join the organizations they want. The 3.1.2.2 The core conventions organizations shall have the right to decide for themselves The most central ILO conventions are the eight their own representatives, organize themselves and design the core conventions. ILO core conventions their programs. The organizations must also be guaranteed constitutes a minimum of human rights which independence from must be respected in working life. The core conventions the authorities. Convention No. 98 deals with have four main categories: 1) prohibition of bare work, 2) implementation of the principles of the right of organization prohibition of forced labor, 3) prohibition and the right to conduct collective bargaining. against discrimination, and 4) the right to freedom of Employees must be protected against all discrimination association for employers and employees and collective related to the right of association, for example that bargaining. All ILO member countries must is made a condition for work that one is not comply with the principles of the eight core conventions, member of a trade union, or that membership in a whether they have ratified them or not. The union entails dismissal. relates to special reporting obligations ILO Conventions Nos. 100 and 111 deal with equal non-ratified core conventions. treatment in working life. Convention No. 100 shall ILO Convention No. 29 obliges member states to ensure equal pay for male and female workers for work of abolish the use of forced or compulsory labor equal value. Member States shall: in all forms. ILO Convention No. 105 on the Abolition of work to ensure that workers are paid equally and that wages Forced Labor requires Member States to: determined without discrimination based on sex. oppose and abolish all forms of forced or compulsory labor. Salary includes basic salary, minimum wage and additional It also prohibits states from holding remuneration. Convention No. 111 on Discrimination in someone in forced labor. Forced labor is defined as Employment and Employment promotes equal opportunities all work or any service required by and equal treatment in employment and someone who is under threat of punishment and who has professional practice. Discrimination is defined as not voluntarily offered himself, cf. ILO Convention No. 29, any discrimination, exclusion or discrimination based on Article 2, first paragraph. Lack of voluntariness means that race, color, sex, religion, political opinion, national or social the person in question must either have origin, which prevents or impedes equality; have been engaged against their will, or deprived of the opportunity to leave the workplace. In 2014, the ILO adopted a access to equal treatment in employment or important Additional Protocol to Convention 29 professional practice. obliges states to take effective measures to prevent and abolish forced labor, protect victims and provide access to effective redress as compensation 3.1.2.3 Other relevant ILO conventions and to victims and sanctions against those behind it declarations forced labor. ILO Convention No. 155 on Safety, Health and Child labor is regulated in two ILO conventions, working environment and associated protocol, is central in addition to the UN Convention on the Rights of the Child. ILO Convention when it comes to decent work. Employers No. 138 on the minimum age for access to employment shall be required to hand over protective clothing and protective stipulates that the minimum age for access to employment equipment, and ensure that workplaces, machinery, equipment or work shall not be lower than that and processes are safe and do not involve any Machine Translated by Google 2020–2021 17 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) sefare, as far as this is practically possible. The convention to countries that have acceded to the guidelines. The states that employees have the right to neglect a work guidelines aim to strengthen the basis for situation if there is a serious danger trust between the companies and the society in which they life and health. ILO Convention No. 169 on Indigenous Peoples and operate, improve the climate for foreigners tribal peoples of independent states deals investments and strengthen multinational companies indigenous peoples' right to preserve and further develop their own contribution to sustainable development. culture, and the duty of the authorities to take measures for The guidelines were updated in 2011 in line with to support this work. ILO Convention No. 14 UNGP in the field of human rights and when it is about the right to weekly rest. Convention applies to due diligence assessments. The due diligence No. 131 on the determination of the minimum wage is correct assessments are expected to be particularly related to avoidance and to especially towards developing countries. Convention No. 135 address the negative impact on human rights, employment is about the protection of employee representatives in and the relationship between the parties in enterprises and their ability to carry out their activities. working life, the environment, bribery and corruption, consumer interests and disclosure of information. National ILO Tripartite Declaration on Fundamentals contact points shall promote and principles for multinational companies and social policy (the guide the guidelines, co-operate internationally and handle MNE declaration) was first negotiated in 1977, and last revised complaints. The OECD's working group for responsible in 2017. The declaration establishes principles for employment, business has prepared one training, series of guidance documents. Central to the guidance are working conditions and the relationship between the parties in due diligence assessments as a method working life. The statement describes which to avoid and to deal with negative impact on behavior expected of companies, authorities people, society and the environment. and the parties in working life in areas such as employment, education, working and living conditions as well as the relationship between the parties in working life. The statement 3.2 Regulation and regulatory development builds to a large extent on international conventions and in the EU recommendations on working life as well as the ILO Declaration on Fundamental Principles and 3.2.1 Relevant regulation Rights at Work (1998 Declaration), and its follow-up. ILO updated 3.2.1.1 The Conflict Minerals Regulation the declaration in 2017 to reflect developments In 2017, the EU adopted Regulation 821/2017 / EU with in responsible business. The statement is now requirements for prudential assessments in the supply chain also in line with the UNGP, the United Nations Sustainable Development Goals, for importers of tin, tantalum, tungsten (heavy stone) and gold and the ILO resolution on decent work in global originating in conflict-affected and supplier chains. A separate dispute resolution mechanism high-risk areas. The regulation will get direct was established, and cases concerning the MNE declaration impact for between 600 and 1000 importers in the EU, can today be brought before the OECD's contact point in and indirect significance for about 500 smelters Norway. Multinational companies can also receive guidance and refineries regardless of whether they are based within and assistance from the ILO (ILO Help desk for Business). the EU. The regulation entered into force on 1 January 2021. The background for the regulation is the use of forced labor and conflict financing in the extraction of minerals in politically unstable areas. The goal is to 3.1.3 Organization for Economic Co- prevent conflict minerals and metals from becoming operation and Development (OECD) imported into the EU, to stop the use of minerals in The Organization for Economic Cooperation and smelters and refineries, and to avoid abuse of Development (OECD) is an international co-operation forum miners. This should be achieved by ensuring that for economic and social issues. importers of minerals in the EU meet international standards The OECD circle consists of pr. January 2021 by 37 countries. developed by the OECD, and OECD guidelines for multinational companies performs responsible supplier follow-up. (1976, revised in 2011) are the only ones multilateral Importers of tin, tantalum, tungsten (tungsten) adopted the guidelines for responsible business as all 37 and gold shall under the ordinance examine what they OECD countries and 12 other countries buy to ensure that it is not produced on one has committed itself to promoting. The guidelines are way of financing conflict or other illegal recommendations from governments to multinational practice. Importers must meet five requirements: companies operating in or from territories Machine Translated by Google 18 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 1 establish solid management systems, 2 identify and assess risk in the supplier chain 3.2.2 General information on regulatory development in the EU the, In the EU, work related to business is often mentioned 3 develop and implement a strategy to manage the risk, social responsibility, ethics, openness and sustainability under paraplybegrepet «Environmental, Social 4 carry out an independent third-party audit of the due and Governance (ESG) Reporting and diligence assessment in the supply chain, Disclosure ». "ESG" includes companies' work with openness related to: 5 report annually on due diligence assessments in - Sustainability and climate / environment, including climate the supply chain. risk and how the business is affected by and affects the climate and the environment. - Employee rights, gender equality and human rights. 3.2.1.2 The Non-Financial Reporting Directive Directive 2014/95 / EU was adopted in 2014, and amends - Corporate governance, including the line of survivors. the Accounting Directive (2013/34 / EU) with regard to disclosure of non-financial information and information on diversity for some large companies and groups. The aim of the directive is to increase the companies' The EU's measures for sustainability, social conditions and transparency and provide better environmental and corporate governance are linked to the UN's work social outcomes. with sustainability goals, the Paris Agreement and issues like that The duty to provide information on non-financial European green shift. The EU has adopted a information and information on diversity under directives wide range of tools to achieve among others 2014/95 / EU applies to large companies and groups the objectives of the Paris Agreement, including budgetary which is of general interest, and which on average has over policy. This also applies to the coronary reconstruction 500 employees during the financial year. package «Next Generation EU», which states that The statement shall at least deal with information more modern corporate governance and company law should on «environment, social and working conditions, ensure that environmental and societal interests to a greater extent respect for human rights, anti-corruption is taken into account in business strategies for economic and bribery issues necessary to recovery after the corona pandemic and in understand the company's development, performance, position and long-term company development. influence. Furthermore, the statement shall provide: 1 a brief description of the company's business model, 3.2.3 Regulatory development in the EU Commission 2 a description of policy in the various areas, including due diligence assessments, 3.2.3.1 Bill on sustainable corporate governance 3 results of policy, 4 the most central risks associated with the various The European Commission has corporate social responsibility areas, including, where applicable and high on the political agenda. The Commission proportionate, business relationships, products or is working on a bill on sustainable corporate governance services that are likely to cause harm in these areas, and how governance) which is expected to be presented to others the company manages the risks, quarter 2021, probably in the form of amendments to the 5 non-financial critical success factors such as Company Law Directive (Directive (EU) 2017/1132) and are relevant to the business. the Shareholder Rights Directive (Directive 2007/36 / EF). Companies that do not have relevant principles or On 30 July 2020, the European Commission sent a guidelines in one or more areas, should provide one preliminary impact assessment on sustainable owner clear and reasoned explanation as to why. management and corporate governance at consultation. The hearing is The information must be provided in the company's annual report a preliminary stage to a more comprehensive impact or in a separate report posted on the company assessment and any subsequent rule proposals. A public website and is referred to in the annual report. The Directive event was also held only requires the auditor to check whether the report is consultation on sustainable corporate governance from 26 issued. National authorities decide whether the reporting is October 2020 to 8 February 2021. The problem is, according to be verified by an independent party. to the European Commission, that for many companies focus more on short-term Machine Translated by Google 2020–2021 19 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) earnings than on long-term development and sustainability. in the requirements for reporting sustainability and climate- According to the consultation notes, studies show that many related matters in Norwegian law. companies feel pressured into this type of short-term planning and that this has been a trend in the period from 1992 to 2018. This pressure is unfortunate 3.2.3.3 Updated strategy for sustainable finance in several ways, but the most important thing is that the The European Commission is working on an updated companies do not sufficiently map and reduce the risk that European strategy for sustainable finance. The first strategy their own value and production chains may cause in this field came in March 2018, and environmental, social or human damage. associated regulations have already been adopted as covers the financial market's work with «ESG». The European Commission assesses how companies The main purpose of the first action plan can be ordered to "do no harm" and how company boards was to create incentives for a more sustainable can integrate broader interests in financial market by raising awareness around their decisions. Among the issues for assessment are: "ESG" ratio. A hearing on this matter was ended July 15, 2020. The updated strategy - How can companies map the risk of is expected to be presented in the spring of 2021. It is expected to protect against the harmful effects of build on the action plan from 2018. The own activity, for example on the environment and human updated strategy is likely to place greater emphasis rights, including workers' rights and child labor (obligations on risk assessments related to the environment and climate. to Such risk assessments are expected to be twofold, so that perform due diligence assessments). they will include both how an economic activity affects the - How can the company board take everyone into account climate and the environment, and how interests that are relevant to the companies Climate change can affect the profitability of a sustainability in the long run, or for those affected by economic activity. This should help to do the company's activities (employees, environment, others The business community is more concerned with long-term stakeholders). This is seen as part of the board assessments of profitability. It is further expected that it the answer. updated strategy will further emphasize increased degree of reporting and transparency on «ESG», The European Commission points out that these measures as a supplement to the revision of the Non-Financial Reporting are closely linked to the revision of the directive Directive. 2014/95 / EU on non-financial reporting, cf. point 3.2.3.2. 3.2.3.4 Deforestation-free value chains The European Commission will also in the second quarter of 2021 3.2.3.2 Revision of the Directive on non-financial submit proposals for a European regulatory framework for reporting raw materials with deforestation risk. The proposal is pending The Directive on non-financial reporting (Directive 2014/95 / to follow up to some extent the European Parliament's EU) requires certain large companies to proposals for action in a similar area that were adopted 22. inform in the annual reports on mapping and risk management October 2020, see section 3.2.4.1. If the EU Parliament's for the environment, social conditions, human rights, proposal is followed up by the EU Commission, it will corruption and diversity in corporate boards, cf. section the proposal entails mandatory due diligence assessments 3.2.1.2. A hearing on this directive ended on 11 June 2020. for companies and the financial sector to The purpose of minimize or eliminate the placing on the market of raw the consultation was to get input on the commission's plans materials with deforestation risk, to strengthen transparency about the social and environmental and breach of the regulations will in that case lead to impact of companies and financial institutions. sanctions. The European Commission has conducted two The revision is seen in the light of requirements that have already been set rounds of consultation that have received over 1.2 million responses, and investors to finance European is now preparing proposals for new regulations. It's going on companies. The goal is to get a common thread of reporting an impact assessment to assess the cost-benefit effect of and transparency about "ESG" throughout the market. various measures to reduce deforestation, The Commission is expected to submit a proposal for revision which in addition contributes to large greenhouse gas emissions, provides of the Directive in the second quarter of 2021. It is expected loss of biodiversity and is a threat to that the Commission in the proposal will go further in indigenous peoples. In addition, there is illegal logging, as usual impose a corporate social responsibility on companies than in also associated with corruption. day. Revision of the directive will involve changes Machine Translated by Google 20 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) business assessments for companies that invest 3.2.3.5 EU green classification system (taxonomy) raw materials with deforestation risk in Europe the market. It is also proposed that the obligations should To contribute to a common understanding of which cover conditions that not only lead to deforestation, investments are sustainable, the EU is developing a but which also destroys other critical habitats per. The report classification system for sustainable economic activities, a emphasizes that approx so-called taxonomy. It is prepared in 80% of deforestation in the world is related to enlargement in line with the EU's long-term climate and environmental goals and of agricultural land. EU countries' demand for should make it easier for investors to compare investment products such as palm oil, meat, leather, soy, cocoa, opportunities, give companies incentives corn, timber, rubber, etc. is a great driver for to make their business models more sustainable and identify deforestation, deforestation, destruction of sustainable investments. Regulation on the classification ecosystem and associated human rights violations. Parliament system for believes that Europe has a responsibility sustainable economic activity was adopted in the EU in to protect the world's forests, also because they June 2020. The Regulation is EEA-relevant and protects human livelihoods and biodiversity. The report asks Finanstilsynet has proposed implementing the regulation in for one a new law on information on sustainability. effective implementation of due diligence assessments for The requirements in the regulation are aimed at financial small and medium-sized enterprises in order to reduce their market participants and at companies that are subject to it financial and administrative burden. requirement to report non-financial information according to the Accounting Directive. It involves among another requirement for companies to report on where large share of their economic activity that is 3.2.4.2 Report on corporate governance sustainable according to the criteria of the taxonomy. The The plenary session of the European Parliament was adopted on 17 December commission will determine during the first half of 2021 2020 a report on corporate governance delegated acts defining criteria for (Sustainable Corporate Governance). Rapporten which contributes to achieving two of a total of six environmental goals is intended as input to the European Commission, and is (reduce and prevent greenhouse gas emissions and climate designed as calls on the Commission to adaptation), which will apply from 31 December incorporate specific elements into the ongoing work 2021, as well as a delegated legal act and more with bills related to sustainable corporate governance reporting requirements according to the taxonomy. By the and corporate governance, see discussion in section 3.2.3.1. end of 2021, the Commission will set criteria for the other In the report, the European Parliament asks that the EU four environmental objectives in the taxonomy Commission, among other things, expand its scope (sustainable use of water and marine resources, for the regulations on non-financial reporting transition to a circular economy, prevention of so that it can include far more companies than in pollution and biodiversity) which will apply from day. Parliament also asks the European Commission to 31. December 2022. propose rules on collective responsibility for board members more to design, inform about and verify sustainability strategies. 3.2.4 Regulatory development in the European Parliament 3.2.4.1 Report on deforestation-free value chains 3.2.4.3 Report on corporate review and corporate responsibility The European Parliament is also concerned with business social responsibility, ethics, openness and sustainability, and In September 2020, the European Parliament began therefore has ongoing processes with its own draft resolutions. discussions on a company review report The European Parliament has no authority and Corporate due diligence and to propose regulations, but still has an important corporate accountability). The report was final role as legislator after the European Commission has adopted in the plenary session of Parliament on 10 March 2021. As submitted regulatory proposals. The draft resolutions the report on corporate governance, is is intended to seek to influence the European Commission also the report on corporate review and corporate which has the authority to promote regulations. responsibility intended as input to the commission. IN On 22 October 2020, the European Parliament adopted a The report asks the European Parliament that the European report on the European Commodity Care Act Commission, among other things, submit proposals for rules which leads to deforestation and violations of indigenous which requires companies to map, prevent and peoples' rights. The European Parliament recommends mandatory actsprevent possible adverse effects that affect Machine Translated by Google 2020–2021 21 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) human rights and the environment along their own value or indirectly (subsidiaries), suppliers chains. Parliament also calls on the European Commission or subcontractors with whom the company has an to ensure that companies are held liable for damage established and lasting commercial relationship, so they violate human rights and the environment. provided the activity is related to this relationship. The Parliament has also drafted a regulatory proposal which business plan and the report on its implementation shall is attached to the report. Parliament calls on the European be published and included in the company's annual report. Commission to follow the proposed regulations when The companies must report drafting the new regulations. regularly on the implementation of the plan. At the request of anyone with a legal interest, the court may order the company to 3.3 Regulation and regulatory development meet the requirements to prepare, implement in some countries or publish an effective due diligence plan with a period of three months. Failure to comply could 3.3.1 Relevant regulation lead to daily fines. People who 3.3.1.1 France does not meet the requirements defined by law, can also The French due diligence law from 2017 imposes incur liability to recover the damage as companies of a certain size to prepare, implement and due to non-fulfillment. Also such a requirement must be brought before the court. publish a due diligence plan. The law applies to companies that have their headquarters in France, and which meets the following conditions 3.3.1.2 United Kingdom the end of two consecutive financial years: i) companies with at least 5,000 employees in France, in UK Modern Slavery Act, which was adopted by it the company and in subsidiaries and, ii) companies British Parliament in 2015, regulates mainly with at least 10,000 employees on a global basis, in the criminal offenses related to modern slavery in company and in subsidiaries. It is estimated that the law Great Britain. The law shall increase the protection of covers between 150 and 200 companies that are responsible victims, and an anti-slavery commissioner must coordinate about 50 percent of French exports. work against modern slavery and identify The Care Act is based on UNGP and possible victims. Section 54 of the Act, Transparency in OECD guidelines for multinational companies. Supply Chains Etc., sets requirements for reporting on It is based on a due diligence plan and should the work against modern slavery in enterprises and prevent serious damage to people and the environment. the supply chain. The law's obligatory subjects are The due diligence plan is based on a duty to perform companies with head office or registration in or due diligence assessments. The companies' due diligence outside the UK, which operates in the UK, offers goods plan shall account for the measures that have been and services, and has an annual turnover of over GBP 36 implemented to map and prevent serious breaches. million. It is estimated that this includes approximately 17,000 companies. on human rights, as well as personal health, safety and environmental damage. The due diligence plan shall The companies must prepare and publish contain the following: a Modern Slavery Statement (statement) where they - a risk mapping that identifies, analyzes and ranks risk, explain what they have done to ensure that modern slavery and human trafficking do not occur in Procedures for regular risk analysis one's own business and in the supply chain. The declaration shall be prepared on an annual basis. The law related to subsidiaries, suppliers and subcontractors in line with the survey, provides examples of information such as the statement may contain: - appropriate measures to mitigate risk and prevent serious injury or damage, - the business's structure, activities and supply chains, A mechanism for alerting and for collecting reports of actual or potential risk. - plans / policies related to slavery and human trafficking, This will be developed in collaboration with representative unions in the company, Diligence processes with regard to slavery and human trafficking in the business and supply door A system for following up implemented measures and evaluate the impact of the measures. chains, - the parts of the business and the supplier (s) where The due diligence plan and the measures in it must cover there is a risk of slavery and human trafficking, and parent company, companies it controls directly the steps taken to analyze and manage the risk, Machine Translated by Google 22 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Efficiency in the work to prevent slavery and The public sector must, according to the guidance to the law, human trafficking - measured by the indicators focus on the risk of modern slavery in public the business considers relevant, procurement and in government activities, including in Education on slavery and human trafficking such as investments. is available to employees. The reports are stored in a public register such as should be available on the internet. In the work of The statement shall be published on the company's the bill is considered to be market-based solutions in the website or published on request within 30 days. form of a desire for good Companies that have not prepared a statement Reputation can motivate businesses, and one and / or has not published the statement clearly visible on therefore did not support an ombudsman scheme or the company's website, may be ordered to sanction mechanism. prepare and publish a statement. If the company after this does not give a statement, the company can be fined. It is not yet available 3.3.1.4 USA case law related to the provision. It is California's law of transparency in the supply chain possible for companies to report that they have not entered into force on 1 January 2012, and later served as taken some action to combat modern slavery and inspiration for the reporting requirement in the UK nevertheless meet the legal requirement. British authorities Modern Slavery Act from 2015. The law applies to believes that the reputation and pressure from investors, retailers and manufacturers operating in California nia with for users and society in general will influence companies an annual turnover of over USD 100 million. About. 3200 to take action. companies are affected by the law. Incidentally, the British Parliament is considering The law requires one-time reporting from now a bill to ban the import of raw materials as major retailers and manufacturers about the work to originates from illegally converted land and forest ales. eradicate slavery and human trafficking in the supply chain. The bill will be part of the British Environment Act. The The law sets minimum requirements for one-time reporting statutory subjects of the law will be large companies, on the work to eradicate slavery and estimated at over 500 employees. human trafficking in the supply chain. The subjects of duty must account for: - whether the company is working to verify the product 3.3.1.3 Australia supply chain to evaluate the risk of human trafficking In November 2019, Australia passed a law on reporting on and slavery, and whether one has been used modern slavery. Large companies and other units third-party verification, (companies operating in Assessment of suppliers and how they Australia, funds, etc.) shall report annually on the risk of meets and complies with the requirements, including whether modern slavery in their own operations and in supply chain reporting on the inspection was completed chains, and on measures to manage the risks. by an independent party, The law is largely inspired by section 54 of the UK law on - information on which certification requirements modern slavery, but the reporting requirement in Australia to the direct suppliers, goes further by setting requirements. Follow-up of internal standards and procedures for own to what the reporting should contain, and require employees and contracting parties such as also reporting from the public sector. does not meet the company's standards on human The annual report shall state: trafficking and slavery, - the company's structure, operations and supply chains, - whether the company offers training and competence development of employees and management that has direct Risk of modern slavery, and business responsibility for the supply chain. measures that address and manage risk modern slavery in one's own business and in the The duty subjects can report that they do not supply chain, including the diligence assessments the any of the above activities without it being in conflict company has carried out, with the law. The annual report is published on the website. - how effective these measures and actions are If the companies do not report adequately, the public is, prosecutor can order to intervene - the processes for consultations with strange otherwise provide additional documentation. It is businesses and no fines for companies that do not comply - all other information reporting activities consider relevant. the law. Machine Translated by Google 2020–2021 23 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 3.3.2 Regulatory development was not adopted. The alternative proposal that was put by the parliament in the vote thus enters into 3.3.2.1 The Netherlands force, provided that a so-called is not initiated The Dutch parliament passed in May 2019 referendum leading to a new referendum a law of care with regard to child labor. concerning the proposal. The alternative proposal The purpose of the law is to prevent goods and services limited to larger companies with over 500 produced using child labor from being sold employees, companies that are connected to conflict to consumers in the Netherlands. The law applies to minerals and companies with a risk of child labor companies that offer goods and services in the Netherlands. in its supply chain. That is, not only those who are registered in the Netherlands, but also foreign companies such as 3.3.2.3 Germany sells products to Dutch consumers via Internet. Germany came in March 2021 with a new bill The companies must publish a statement that they to improve the international human rights situation. The bill have performed due diligence assessments is, among other things, one to prevent child labor from being used in production consequence of a study from 2020 conducted by the of goods and services. This is an implicit requirement German Ministry of Foreign Affairs on how companies to perform due diligence assessments with regard to safeguard human rights in child labor in the supply chain. The companies should supplier chains. The survey included companies with more Assess whether goods and services are likely than 500 employees, and shows that is produced using child labor. If only between 13 and 17 percent of the businesses there is a suspicion of the use of child labor, the companies meets the recommendations for due diligence. The bill is must prepare an action plan in line with part of international guidelines. It is not required that the follow-up of the national action plan the companies guarantee that child labor will not find for Economics and Human Rights from 2016. place in the supply chains. If the company does not The action plan is based on the recommendations in complies with the order to publish the declaration, the UNGP. The bill refers to the fact that a voluntary self- company can be fined. The same applies if the company regulation is not sufficient and that legal regulation does not prepare an action plan, or does not follow it, in needed. case of suspicion The bill is proposed to enter into force in January 2023, on the use of child labor. Some people can and will in the first instance apply to companies complain to the authorities if they have evidence that who are employed or have their head office in Germany the company's products or services are manufactured and who have at least 3,000 employees, regardless of when using child labor. the company's industry affiliation. From 2024 will The Dutch government promoted in 2020 companies with at least 1000 employees are also covered proposals for measures to stimulate business by the reporting obligation in the law. There are requirements due diligence assessments. The key to this is that to companies' due diligence assessments in supply chains general due diligence assessments are introduced, related to internationally recognized preferably at EU level. The Dutch government has human rights. The duty is based on previously stated that if general activity assessments are the recommendations for due diligence assessments such as introduced at EU level, this will follows from the UNGP. Risk assessments also include replace the enacted law on child labor. If you do not join at some environmental aspects and corruption, provided that EU level human rights are directly affected. The law an effective and feasible proposal, the Netherlands will also contains rules related to supervision, enforcement consider introducing binding measures nationally and sanctions. level. 3.3.2.4 Finland 3.3.2.2 Switzerland Finland has, among other things, in connection with the EU At the end of November 2020, Switzerland held a Commission's consultation on sustainable corporate governance referendum on whether to introduce one and corporate governance (sustainable corporate duty for Swiss companies to carry out business governance), see section 3.2.3.1, expressed that they are positive assessments of the impact on human rights and the to a mandatory due diligence assessment on human rights environment, with the possibility of sanctions. and the environment at EU level. The result of the referendum was that proposal Machine Translated by Google 24 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) At the same time, Finland is working to study the to introduce statutory due diligence assessments possibility of ordering companies in Finland to carry out within the Finnish regulations, including possible due diligence assessments related to human rights and the scope, supervision and sanctions. The investigation environment. In 2019, the Finnish ordered was sent to a general hearing, where 48 hearing bodies Ministry of Labor and Trade a legal submitted hearing responses. The Ministry has in study by Ernest & Young on how responsible business is the further follow-up appointed a working group that will related to human rights and work until February 2022 environment can be regulated. The report was made public with the design of a statutory due diligence assessment. on 2 September 2020, and outlines the possibility Machine Translated by Google 2020–2021 25 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 4 Relevant regulations in Norway 4.1 The Accounting Act the right to information about companies' environmental impact in the Environmental Information Act, see section 4.4. The Accounting Act requires an account of The Accounting Act § 3-3 a to c implements social responsibility for large enterprises, cf. § 3-3 c. The the main content of Directive 2014/95 / EU on non-financial requirements in Directive 2014/95 / EU on non-financial reporting. The directive requires that reporting are to a large extent reflected in the Accounting Act. large companies must prepare a statement that contains consistent and comparable information related to Large enterprises shall, in accordance with the Accounting Act § 3-3 c sustainability, which includes the environment, explain what the company does to integrate social and working conditions, respect for respect for human rights, workers' rights, equality and non- human rights and the fight against bribery and corruption. discrimination, The statement must contain information that is necessary to social conditions, the external environment and combating understand corruption in their business strategies, in their day-to-day the company's development, results and financial position, operations and in their relationships with their stakeholders. as well as the influence of its activities. The Ministry of The report must at least contain information about Finance presented Prop. 66 LS on 18 December 2020 guidelines, principles, procedures and standards that the (2020–2021). In the pro position, the Ministry of Finance company uses to integrate the mentioned proposed, among other things, changes in the Accounting considerations in its business strategies, in its day-to-day Act that are necessary to implement in Norwegian operations and in its relations with its stakeholders. amend the Consolidated Accounting Directive (Directive Companies that have guidelines, principles, procedures 2013/34 / EU) and the Directive on non-financial and standards used to integrate the above considerations, reporting (Directive 2014/95 / EU). Amendments were shall disclose whether proposed to the Accounting Act § 3-3 b and § 3-3 c, how the company works to turn these into as well as in some other provisions to provide action, give an assessment of the results that are that the Norwegian Accounting Act fulfills the directive obligation achieved as a result of the work of integrating year. considerations in the business, and inform about expectations for this work in the future. Enterprises who do not have such guidelines, principles, procedures and 4.2 Working life regulation, etc. standards, should disclose this. The statement on social responsibility pursuant to the 4.2.1 Introduction Accounting Act § 3-3 c shall be given in the annual report or in Working life in Norway is well regulated by law other publicly available document. If and regulations and with supervision as both supervisor and the statement is given in another publicly available gives orders. Existing working life regulation will document, and the company has a duty to deliver border on the rules of the Transparency Act, and annual report, it shall be stated in the annual report below is an overview of parts of the adjacent regulations on where the document is publicly available. labor law Section 3-3 a of the Accounting Act regulates the content of the area, etc. Several inspections, including the Norwegian Labor the annual report for those who are not required to keep accounts Inspection Authority and the Petroleum Safety Authority Norway, provide small businesses. The provision imposes, among other things guidance on regulations and control practices. reporting on working environment and conditions at the business, including its input factors and products which may result in a not insignificant 4.2.2 The Working Environment Act impact on the external environment. The latter reporting and the working environment regulations requirements in the Accounting Act § 3-3 a must be seen in Act on working environment, working hours and job security connection with companies' duty of knowledge and mv. (Working Environment Act) is the central protection law for Norwegian working life. Working environment regulations Machine Translated by Google 26 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) gen has an objective of a fully justifiable Environmental Act § 3-1 first paragraph. The regulations on working environment, and applies to most working conditions in internal control are authorized in the Working Environment Act § 3-1 and private and public enterprises. This applies to separate legislation applies to companies that produce, sell for shipping, trapping, fishing and or offers goods and services in Norway. The regulation military aviation. Supplementary working environment regulations provides rules for systematic work with health, environment provide detailed rules on how to wear and security, and also includes the protection of the exterior that in Norwegian workplaces. The Norwegian Labor Inspection Authority leads environment against pollution. The actual requirement for supervision that the companies comply with the working systematic HSE work is the same for all companies, but the environment law with regulations. internal control must be adapted to the nature of the company, Instruments in the work environment work and requirements for activities, risk factors and size in the working environment follows from the working environment law chapter the scope necessary to comply with the requirements of health, 3 and 4, as well as associated regulations. The work must safety and environmental legislation. arranged and organized so that the employees are protected The internal control regulations are linked to one against health injuries and accidents. Chapter 2 A of the Working series of laws and regulations, and is administered by several Environment Act provides rules on notification. These are authorities. The most central authorities are justified in the public interest in the fact that criticisms worthy of Arbeidstilsynet, the Directorate for Civil Protection and Emergency criticism are uncovered, and the consideration of a Planning, the Norwegian Environment Agency and the Confederation sound working environment, cf. the Working Environment Act § 4-1. of Norwegian Business and Industry's safety organization. In the Chapters 6 and 7 of the Working Environment Act have rules event of a breach of the regulations, the authorities may order rectification on safety representatives and working environment committees. the relationship within a certain time limit. If the order does not In all companies with more than ten employees, it must be chosen complied with within the deadline, the business can be safety representative. Companies with more than one safety imposed daily fines that run until the order is met. IN representative must have at least one main safety representative, Severe cases can also result in police reports. who is responsible for coordinating the safety representatives business. In companies with more than 50 employees, a working environment committee shall be established 4.2.4 Other relevant regulations which shall ensure the implementation of a fully sound work environment. There are several regulations with rules for handling Chapter 8 of the Working Environment Act provides rules on of chemicals. The Major Accident Regulations comply information and discussion of issues of importance against companies that have chemicals that can for the employees' working conditions with elected representatives. cause so-called major accidents. REACH regulation Chapter 9 regulates the conditions for control measures and the CLP regulations set requirements for suppliers of in business. Chapter 10 provides rules on what chemicals. The REACH regulation has provisions is legal working hours, bans on night work, health checks, breaks on registration, assessment, approval and and leisure time. The Working Environment Act provides restriction of chemicals. The CLP regulation has detailed rules on child labor in Chapter 11. requirements for classification, marking and packaging of The main rule is that child labor is prohibited. The chemicals. The declaration regulations require the worst forms of child labor are affected that chemicals that are imported or traded should the provisions of the Penal Code. registered in the Product Register. Chapters 12 through 19 regulate the right to per mission, protection against discrimination, the main rule on permanent employment and conditions for the use of temporary 4.2.5 The social partners have agreed on rules for a employees, rules for seconded workers, restrictions on the use of decent and sustainable working life hired labor, equal treatment of hired labor, requirements In the main agreement between LO and NHO, it was included on objective grounds for termination of employment, a provision in 2008 in which the parties emphasize employees' rights in the event of a business transfer, disputes the importance of a decent and sustainable over working conditions, etc. working life. The provision refers to the principles OECD guidelines for multinational companies and the UN Global Compact is based on. Businesses 4.2.3 The Internal Control Regulations encouraged to base such principles on The employer is required to work systematically with their business both at home and abroad. The provision has been HSE to ensure that the consideration of employees continued in the Main Agreement for 2018–2021. health, environment and safety are taken care of, cf. work Machine Translated by Google 2020–2021 27 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) regulations. This should be interpreted so that it too 4.2.6 The Generalization Act and regulations includes hired workers. Duty of care means that The purpose of the Act is to ensure that foreign workers main supplier and / or customer must ensure that working in Norway receive pay and working conditions that Wages and working conditions of the company's suppliers are equal to the terms Norwegian are in accordance with current general regulations. The workers have. The law must thus at the same time provision prevent distortion of competition to the detriment of it applies only where the orderer conducts business. Duty of Norwegian labor market. When all or part of care means that it must be implemented a collective agreement between the social partners is made systems and routines for examining, and if necessary, applicable to anyone who performs work of that kind following up on generalization regulations which the agreement covers, it is called generalization of complied with. As a general rule, the regulations entail collective agreement. The Tariff Board, established through that the main supplier is obliged to collect information on pay the entire Meaning Act § 3, consists of representatives and working conditions from subcontractors and pass this on from employee and employer organizations to shop stewards in the company, if the shop stewards require and the authorities. The Tariff Board decides on this. generalization at the request of one or both parties in a collective agreement. The decision is generalized by regulation. In some industries, such as the shipping and 4.2.8 Regulations on wages and working conditions shipbuilding industry and the construction industry, the in public contracts collective agreements are all made by the Tariff Board. In The regulations require public clients to practice, general provisions on wages will be the minimum wage in set requirements in the contract that the supplier must provide the industries in which this has been introduced. their employees' pay and working conditions (not pension A joint and several liability has also been introduced for rights) in accordance with general regulations where clients in accordance with section 13 of the General Application applicable, possibly in accordance with Act. The joint and several liability applies to a supplier business nationwide collective agreements. These rules are who has undertaken to carry out an assignment within only aimed at the supplier who has been awarded the the scope of a generalization regulation, and contract. The public client shall also which uses one or more subcontractors to carry out the necessary control to ensure that the pay and perform part of the mission. The responsibility applies working conditions are met during the contract period. throughout the chain, ie the main supplier and down. This does not apply to the person who orders themselves the product or result, such as a building 4.2.9 The Government's strategy against work-related crime or a ship (the builder). The client can is held jointly and severally liable for salary and overtime Norwegian working life is mainly characterized by good and benefits in accordance with general regulations and holiday orderly working conditions. Work-related crime money in accordance with the Holidays Act. If a higher salary is nevertheless a significant challenge for certain employees, has been agreed than the minimum wage that follows from some companies and society as all building regulations, the client will only whole. Work-related crime involves be responsible for the minimum wage. Solidarity responsibility actions that violate Norwegian laws occurs when the salary is due for payment, and wages and working conditions, social security, taxes, fees, employee must submit written claims within three often carried out in an organized manner, which exploits months. The Norwegian Labor Inspection Authority supervises that workers or distorts competition and undermines social pay and working conditions that follow from regulations structures. Over the last fifteen years, social dumping and whether generalization is complied with. work-related crime have become so serious that the government has increased the appropriations to combat development. This 4.2.7 Regulations on information and is done, among other things, through the inter-agency Arbeids duty of care and right of access livkrimsenter (A-crime). The government prepared in The purpose of the regulations is to help ensure 2015 a strategy to combat working-class crime. The strategy compliance with pay and working conditions as follows has been prepared in close dialogue with of generalization regulations. The duty to provide information the parties in working life, and was revised in 2017, 2019 means that the customer in contracts with contractors or and 2021. A number of new measures and a suppliers must inform that extensive cooperation between different agencies to the company's employees must at least have wages and fight work-related crime. This is discussed in working conditions in accordance with current generalization the revised strategy of 2021. Machine Translated by Google 28 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) and criteria guide to assist purchasers in its work. 4.3 The regulations for public procurement The Procurement Act contains several provisions which requires public purchasers to take into account 4.4 The Environmental Information Act environment, working conditions and social conditions in the implementation of their procurements. Section 5 of the The Environmental Information Act regulates both public Procurement Act deals with human rights, the environment and bodies and public and private enterprises other societal considerations. obligations to have and to publish environmental information. Pursuant to section 5 of the Procurement Act, the Environmental information is factual information and assessments about the environment, factors that influence or can procurement practice shall be designed so that it contributes to reducing harmful environmental impact and promote climate-friendly affect the environment and human health, safety solutions where relevant. Clients must also have suitable and living conditions. routines for promotion Administrative bodies must have a superior respect for fundamental human rights level have environmental information that is relevant to their in public procurement where there is a risk own responsibilities and functions, and do violation of such rights. Clients can this information publicly available (active set appropriate requirements and criteria related to various duty to provide information). Executive agencies and others steps in the procurement process, so that public Public bodies shall, upon request, disclose information they contracts are carried out in a way that promotes more have or shall have as a result of the duty of knowledge consideration for the environment, innovation, working conditions (passive duty to provide information). Anyone and social conditions, provided that the requirements and business, both public and private, are obliged to have criteria are related to the delivery, and the law knowledge of conditions at the business that can basic principles and more detailed regulation in regulations cause a not insignificant impact on the environment. are respected. The Ministry of Trade and Industry has The knowledge obligation includes positive and negative prepared another guide environmental impacts, including potential or possible the provisions of the Procurement Act on society environmental impacts that result from the business. responsibility. Companies are obliged to publish environmental information about this The routines should primarily help to prevent on request (passive information obligation). The court violation of fundamental human rights. for information applies to "anyone". Knowledge and Central to the understanding of fundamental human rights is the information obligation does not include the supplier. the rights enshrined in the ILO's core conventions. These Right to information from companies about environmental consist of eight conventions that set minimum standards for impact from production or distribution of working life. In line with the principle of proportionality shall product outside Norway's borders applies to that extent such information is available, ie that the company either has the routines apply to procurements where there is a risk the information itself or it is easy to for human rights violations. It has to turn procure. The company must make a request about more than one theoretical risk. Report. St. 22 to the previous sales stage if necessary (2018–2019) Smarter procurement - efficient and professional to answer the requirement. public procurement, Chapter 12 on more The Environmental Information Act has no duty of care social responsibility, describes in more detail what is considered or requirement to make due diligence assessments. as appropriate routines. The Procurement Department in the Directorate for Public Administration and Financial Management (DFØ) provides guidance 4.5 Product Controls about how public clients at best possible way to carry out public procurement The Product Control Act § 3 stipulates a duty of knowledge within the procurement regulations. On the websites of and care about products. Anyone who manufactures, imports, DFØ (www.anskaffelser.no) has been provided with processes, sells, uses or wears information on how buyers can make demands otherwise treats product that may result social responsibility, including guidance in preparing health damage or environmental disturbance, shall show due appropriate procedures to promote fundamental but human diligence and take reasonable measures to prevent and rights. DFØ recommends, among other things, use limit such effect. Manufacturer and importer of a list of high-risk product categories shall acquire such knowledge as is necessary for violations of fundamental human rights. to be able to assess whether a product can cause Standard contract terms have also been prepared health damage or environmental disturbance. Owner or manager Machine Translated by Google 2020–2021 29 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) of business offering consumer services shall second column, the person must have had a positive home flour have the necessary knowledge to assess the danger of to act on behalf of the enterprise. It further follows from the same health damage. This means having an overview of place in the preparatory work that a parent company can not existing knowledge, and obtain information automatically be held responsible for and exercise a certain critical sense towards information sources action committed on behalf of the subsidiary. and which are relevant and reliable. Whether the parent company can be held liable, Furthermore, it is an obligation to provide the user of a depends on an assessment of the offender's affiliation sufficiently relevant and relevant information for the user product to this company, for example about the offender and the recipient of a consumer service so that also holds positions in the parent company. In general, they will these are enabled to assess the safety of the same factors be relevant as in the assessment of the these and possibly secure against danger, unless offender's connection to the subsidiary, cf. No. 90 (2003–2004) this is clearly stated without such information. The information page 431. must be clear, easily accessible and adapted to the needs of the Section 27 of the Act only provides authority to punish the mother user and the recipient. company if the violation can also be considered Section 5a of the Product Control Act stipulates that anyone committed on behalf of it, cf. Ot.prp. No. 27 (1990-91) who distributes consumer products shall have to the available page 20 second column and Ot.prp. No. 90 (2003–2004) information necessary to page 431 first column. be able to specify and trace the origin of the products. The The company can be punished with a fine. The company can information shall be kept available for also deprived of the right to carry on the business control for 5 years from the end of the year they are received. or is prohibited from exercising it in certain forms, and is imposed Section 10 of the Product Control Act gives everyone the right to confiscation, cf. section 27, third paragraph. get information about products, including information about the Section 28 of the Act states a non-exhaustive list of factors risk of health damage and environmental disturbances. Anyone in the decision on whether a company shall be punished, and the can also request information about the manufacturer on request. determination of the penalty: Everyone also has the right to receive a. preventive effect of punishment, information on effects on the environment as a result of b. the seriousness of the offense, and about anyone who acts production or distribution of product outside on behalf of the enterprise, has shown guilt, Norway's borders, to the extent that such information is available. c. about the company by guidelines, instructions, That is, the business either has training, control or other measures could have the information itself or it is easy to obtain. prevented the crime, The company shall direct information requirements to the d. whether the offense has been committed to further the interests preceding sales stage if it is necessary to of the company, answer the requirement. There is thus no knowledge obligation e. whether the enterprise has had or could have achieved related to health damage or environmental disturbance during any benefit from the offense, production or distribution outside f. the financial capacity of the enterprise, Norway. g. about other reactions as a result of the offense is imposed on the company or someone who has acted on behalf of it, including whether any individual is punished, 4.6 Penal Code and h. on agreement with foreign state provided The rules on corporate penalties, ie penalties such as use of corporate penalties. affects companies or other legal entities in form of fines, is included in the Penal Code § 27 and § 28. The Ministry of Justice and Emergency Preparedness sent in May When a penalty is violated by someone who has 2018 on consultation a proposal for changes in criminal law, etc. acted on behalf of an enterprise, the enterprise may be punished, which, among other things, deals with corporate penalties cf. section 27, first paragraph. This applies even if none and the application of the Penal Code to acts committed in individual can be punished for the violation. abroad. The consultation has been followed up through Prop. 66 The provision thus authorizes that an enterprise can be held L (2019–2020), see Chapter 14, and Inst. 328 L criminally liable for all criminals (2019–2020). The amendments to the Penal Code § 5 on actions committed on behalf of the enterprise. What is jurisdiction came into force on 1 July 2020. It is in progress is "on behalf" of an enterprise, depends on a specific also a study of the rules on corporate penalties and assessment. The offender can either be employed by the corruption that is expected to be delivered to Justice and company or be a person who works as a permanent contractor. Ministry of Emergency Preparedness in 2021. According to the mandate According to the preparatory work for for the report, it shall, among other things, be considered «whether Penal Code, Ot.prp. No. 90 (2003–2004) page 430 enterprises to a greater extent than today should be able to Machine Translated by Google 30 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) be held liable for offenses committed by agents, also an obligation to carry out a salary survey other self-employed contractors and others who broken down by gender, and explain the results can be associated with the company, including the extent from this survey. They must also map of the participation responsibility must be considered ». The the use of involuntary part-time work, where the post holder shall be considered «whether parent companies should be able to be held wishes and is available to responsible for offenses committed in subsidiaries in work more. The same applies to employers in private to a greater extent than today », and« about organizational and companies with between 20 and 50 employees preventive measures to prevent crime should when one of the working life parties in the company requires is given greater importance than under current law, it. and how this should possibly be regulated ». The same employers who have a duty of activity pursuant to section 26, second paragraph, also have a duty to report pursuant to section 26 a of the Equality and 4.7 The Equality Discrimination Act. Employers must report and Discrimination Act for the actual state of gender equality in the business, and what the business does to The Equality and Discrimination Act shall fulfill the activity obligation pursuant to section 26. The duty promote equality and prevent discrimination to report shall ensure that the activity obligation is followed up. due to gender, pregnancy, maternity leave The report must be given in the annual report or in one or adoption, caregiving, ethnicity, religion, belief, disability, other publicly available document. Employers in public sexual orientation, gender identity, gender expression, age enterprises that are not required to and prepare an annual report, shall include the statements other significant matters of a person. The law in the annual report. sets, among other things, a ban on discrimination Limited companies and public limited companies and harassment. By discrimination is meant both Board responsibility for active gender equality work is direct and indirect discrimination as emphasized in the Gender Equality and Discrimination Act § 26 can not be considered a legal discrimination c. Here it is stated that the board shall ensure that the duty by law. Harassment includes acts, to actively work for gender equality and the duty to omissions or statements that have as their purpose or account for this is fulfilled in accordance with the activity effect of being offensive, intimidating, enemy straight, obligation pursuant to the Equality and Discrimination Act degrading or humiliating. and the Accounting Act § 3-3 c. On 1 January 2020, amendments to the Gender The Equality and Anti-Discrimination Ombud has Equality and Discrimination Act came into force as strengths responsibility for guidance and follow-up of activity and the employers' activity and reporting obligation. duty to report, both for private and All employers have a duty to work actively, public actors, cf. the Act on the Equality and Discrimination targeted and planned to promote gender equality Ombudsman and the Discrimination Tribunal and prevent discrimination on all grounds of discrimination § 5 fourth paragraph. This means that the ombud must in the Act, with the exception of age, cf. the Equality and follow up the activity and reporting obligation after Discrimination Act § 26 first paragraph. the Gender Equality and Discrimination Act, as well as the The work will include the areas reporting obligation on equality and non-discrimination recruitment, pay and working conditions, promotion, pursuant to the Accounting Act § 3-3 c. development opportunities, facilitation and Among other things, involve the ombudsman and the employer opportunity to combine work and family life. prepares a common approach to how the activity obligation Employers in all public enterprises and in is followed up in the business. The ombud private companies with more than 50 employees have can further review the gender equality statements, pursuant to section 26, second paragraph, an obligation to: analyze the findings, and make a suggestion a. examine whether there is a risk of discrimination or other improvement measures and strengthened efforts on gender obstacles to equality, equality work in the company. The ombud can also b. analyze the causes of identified risks, carry out follow-up visits to the companies. c. implement measures that are suitable for counteracting The Discrimination Tribunal enforces the provision on discrimination, and contribute to increased equality and the employer's reporting obligation and diversity in the business, and may make an administrative decision if there is a breach of d. evaluate the results of the work. the fulfillment of the reporting obligation. The tribunal may impose a coercive fine to secure Employers in all public enterprises and in fulfillment of the order. private companies with more than 50 employees have Machine Translated by Google 2020–2021 31 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 5 General information on the proposal for a Transparency Act The Ethics Information Committee's report and proposals for and make sure that they are better known and a transparency law has generally been positively received complied with. of the consultative bodies, including the business community. According to the Ethics Information Committee, the signal has Some consultative bodies have highlighted that still from companies with which the committee has had a dialogue Several businesses are concerned about how they can during the preparation of the report, been that an openness safeguard their social responsibility and contribute to reaching the UN law could contribute to more competitive conditions for those sustainability goals. To achieve this, it is needed who already work systematically with clear and consistent requirements from authorities and improvements in human rights and working conditions today. stakeholders, as well as guidance, tools and collaboration At the same time, some consultation bodies have in their platforms. consultation responses pointed out that Norwegian and non- The Ministry is concerned that the duties that national business and industry operate in an international imposed on the businesses in the Transparency Act is good context, and that relating to different national anchored in international guidelines and principles for regulations create unnecessary obstacles and barriers responsible business, including the UN's leading principles for global trade. The consultative bodies have therefore for business and human rights (UNGP) and the OECD's pointed out the importance of avoiding nationally guidelines for regulations that can lead to competitive disadvantages multinational companies. These standards reflect recommended for Norwegian companies. The Ministry agrees practices globally and should be good that it is important that the requirements set out in the known in business. The government expects everyone today Transparency Act harmonize with international law, and that all Norwegian companies know and has therefore in the work with the Transparency Act taken into account complies with UNGP and OECD guidelines. This to the development of regulations in the EU, and the development of follows, among other things, from the government's national similar legal requirements in other countries. The Ministry sees action plan for the follow-up of the UN's guiding principles a clear international development that is moving from 2015 and Meld. St. 8 (2019–2020) Statens in the direction of more regulation and statutory reporting. direct ownership in companies - Sustainable valuation (the National regulations that go in this direction have, among Ownership Report). other things, been introduced in the United Kingdom and The Transparency Act does not replace the international ones Australia in the form of modern slavery laws, and principles and guidelines. It is expected that all companies in France and the Netherlands in the form of various prudential know and follow laws in response to UNGP and OECDs UNGP and OECD guidelines. This expectation applies to both guidelines. Similar processes are also underway those covered by the Act in, for example, Finland, Germany and Switzerland, see scope and those who fall outside. This further discussion in section 3.3. There are also more implies that all companies should carry out due diligence ongoing processes in the EU related to responsible assessments in line with UNGP and OECD guidelines, even business. The European Commission is working, for example, if the proposed Transparency Act on changes in company law and companies will only apply to larger companies. At the same corporate governance that is expected to require companies In this way, companies are still expected to carry out due to perform related due diligence assessments diligence assessments for corruption and environmental to the environment and human rights. The European impact, even though the Transparency Act is limited to Commission is also working to revise the directive on basic human rights and decent working conditions. The fact non-financial reporting (2014/95 / EU) as that the Transparency Act has a narrower scope than UNGP requires large companies to report on social responsibility. and the OECD's guidelines must not be interpreted as a signal The European Parliament is also concerned of a narrower these issues and is therefore working on expectation related to UNGP and OECD guidelines. On the own draft resolutions to ensure sustainability contrary, the purpose of this law is to products and value chains. See section 3.2 on regulations uphold the international principles and guidelines and regulatory development in the EU. Depart- Machine Translated by Google 32 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) ment sees that developments in the EU may require important. Several consultative bodies have also emphasized amendments to the Transparency Act as proposed here, and will the importance of making it clear therefore follow closely the development of regulations in the law that it is based on the general principles of risk-based EU. approach and proportionality. The principles are based on the The Ministry also believes that it is important that fact that what is expected of the companies depends on, among the Transparency Act becomes part of a unified national other things regulations, so that the companies are not imposed other industry, context, size and maturity. unnecessary reporting requirements or duplicate reporting calls. The principles follow from the UNGP and OECD guidelines for There are already legal regulations in multinational companies, as the law otherwise Norwegian law which is to influence the business community to builds on, and shall follow the Ministry's proposal safeguard human rights, and which contributes to the fulfillment be governing for the duties of the companies of UNGP and OECD guidelines, for imposed in the Transparency Act. Since the law's obligations for example, the Working Environment Act's requirements for are laid close to international guidelines and the working environment and the prohibition of discrimination, principles, it is in the Ministry's assessment the Accounting Act § 3-3 c on large enterprises' reporting obligations challenging to achieve equally detailed and clear on social responsibility, and the Procurement Act § 5 on duties as desired through legislation without routines to ensure human rights and the environment to have to interpret the international principles and guidelines, by public procurement. The Transparency Act must i and without having to do necessary to the greatest possible extent harmonize and be seen in delimitations in the law. The law must be supplemented by the connection with existing regulations in Norwegian law. guidelines for which the Consumer Agency, according to the See point 4 on relevant regulations in Norway. Ministry's proposal, will be responsible. The Norwegian Consumer Agency The Ministry is concerned that the law of transparency has long and good experience of guiding businesses, and it will clearly states what is expected be important that the Consumer Agency cooperates closely with of the businesses. That the Transparency Act sets out other key competence environments in the field in order to be clear and feasible obligations for business and industry are able to assist businesses in the best possible way. emphasized by several consultative bodies as separate Machine Translated by Google 2020–2021 33 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 6 The bill and EEA legal restrictions Articles 11, 31, 33, 36 and 39 of the EEA Agreement contain the public's access to information about business activity for general prohibition provisions against such a purpose. restrictions on the free movement of goods and services, as The restriction must also be considered to be well as the freedom of establishment. Restrictions proportionate. The proportionality requirement means that two may nevertheless take place under these provisions conditions must be met. First, the measure must if this is justified in the interests of the public be suitable for achieving the purpose, and it must therefore order, safety or public health. As a result pursue the purpose in a “consistent and systematic manner of a broad interpretation of the prohibition on restrictions through manner », cf. inter alia E-8/17 Kristoffersen section case law, other considerations have also been taken into account 118. Secondly, the measure must be necessary for accepted as legitimate considerations by the European Court of Justice, to achieve the purpose. In E 4/04 Pedicel, the EFTA Court see C-120/78 Rewe-Zentral, referred to as Cassis de formulated the requirement of necessity as that «it Dijon case, premise 8. These considerations are discussed the same goal could not be as effective as overriding public interest. achieved through measures that to a lesser extent hinder The rules on the freedoms of the internal market have trade within the EEA », cf. section 56. The conditions are evolved through practice, from being a direct cumulative. prohibition of discrimination to include an indirect prohibition The proposal for a Transparency Act means that the of discrimination and a non-discriminatory prohibition of enterprises must carry out and account for due diligence restriction which includes any assessments, cf. section 8.2, and answer requests for form of regulation, measures or scheme that is information, cf. section 8.3, in order to achieve suitable to prohibit, prevent or impede it greater awareness and openness in the companies about free movement without being discriminatory human and labor law matters in one's own company, supply on the basis of nationality, place of establishment or chain and with business partners. In the Ministry's assessment, cross-border activity, see C-76/90 Says, these are premise 12. duties suitable for achieving the objectives of increased A transparency law that applies to EEA actors, safeguarding of fundamental human rights may be considered to imply restrictions on the free and decent working conditions, which is also reflected in the the flow of goods and services, as well as the freedom of bill's purpose provision, cf. establishment, as this is suitable for preventing, involving mentioned in section 7.1. The proposal for a duty to disadvantages or making such activity less attractive, Performing due diligence assessments will oblige the considering that this entails administrative companies to map the negative impact on or additional financial burdens, ie burdens human rights and take measures to in addition to the burdens of the home state. prevent and manage this impact, and consequently lead to In order for a restriction to be considered in accordance improvements in the company's production and supply chain. with EEA law, it must seek to safeguard one The duty to provide information is legitimate consideration. Which considerations are considered directly justified in ensuring public access legitimate time depends on whether the restriction is directly on information. The duties are thus, in the Ministry's discriminatory or not. Directly discriminatory assessment, suitable for pursuing the purpose Restrictions can only be justified by the written, legitimate a «consistent and systematic way». considerations of public order, safety or public health. As for the condition of necessity shows Restrictions that do not the Ministry that both the Ethics Information Committee's discriminates on the basis of nationality, something report, and surveys from the OECD's contact point and which is the case for the requirements of the Transparency Act, can Amnesty International Norway show also justified by overriding reasons relating to the public interest. that binding legislation is needed to achieve adequate Relevant overriding general considerations for the safeguarding of basic but human rights and decent working Transparency Act are safeguarding of basic human rights, conditions. decent working conditions, and This has also been highlighted by several consultative bodies. Machine Translated by Google 34 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Careful assessments are the preferred means of achieving a and that they perform due diligence assessments in higher level of awareness and in line with UNGP and OECD guidelines, see respect for human rights in business, both in accordance with points 3.2 and 3.3. In the Ministry's assessment the UN's guiding principles for this shows that the duties proposed in the Transparency Act Business and Human Rights (UNGP) and are necessary to achieve the purpose of the session OECD guidelines for multinational companies. respect for human rights and decency Regulatory developments in the EU and in other countries such as working conditions and to ensure public access to For example, Finland, France, the Netherlands, the United information. Kingdom and Germany are also moving in the direction of session For a more detailed discussion of the proposal's proportion degree of regulation to ensure transparency in business nality and necessity, see sections 8.2.3 and 8.3.3. Machine Translated by Google 2020–2021 35 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 7 Purpose and scope of the Act the main purpose of the law. FOCUS and RBA indicate that to 7.1 Purpose of the Act secure information is not the central purpose, but rather a tool to promote human rights and decent work. 7.1.1 The Ethics Information Committee's proposal NHO thinks The Ethics Information Committee proposes a two-part that customer behavior should also be included as part of it objective for the Transparency Act, see the committee's bill § 1. one wants to achieve with the law, that is, customers First, the law must ensure consumers, organizations, trade uses the information as a basis for decisions to buy something, unions and others access to information on fundamental so the probability human rights increases for the seller and the seller's supply chain to act and working conditions in companies and in supplier chains. responsibly. Amnesty International Norway "Other" means investors in particular, (Amnesty) and Save the Children believe that the purpose of the law businesses that seek information to influence about "contributing" to promoting corporate respect industry, and public clients. Before for fundamental human rights and others, the law should help promote business decent work, rather should be about "ensuring" that respect for fundamental human rights The business community respects basic human rights and and decent work. Overall, this should, according to decent work. the committee's comments on the provision, could Hope for Justice believes that the law should have a contribute to the improvement of working conditions. The purpose clearer purpose in light of the UN's sustainability goal 8.7, in order to sought to be achieved through the proposed duties in ensure decent work, as well as prevent forced and the law. child labor. Amnesty, Bergen Municipality, Fellesrådet for Africa, The future in our hands - both the main organization, 7.1.2 The views of the consultative bodies the Oslo local team and Trondheim's student team, The Norwegian Digitization Directorate, Equinor, the Consumer Forum for Development and the Environment, YWCA-YMCA, Council, YWCA-YMCA, Norwegian Church Aid and Norway Ministry of Climate and the Environment, Norwegian Journalists' Association, Christian Council, Kongsberg Gruppen, Norsk Hydro, Save the Children, Rainforest Fund, Spire, UNICEF Oslo Municipality, Statkraft, Telenor and Yara International Norway and Viken county municipality argue that support the purpose provision of the Act as it stands the purpose of the law should not only include fundamental is suggested. The Digitization Directorate is positive human rights and working conditions, to that the purpose of the bill to «contribute to promoting but also environment. companies' respect for basic but human rights and decent Oslo Municipality believes it is positive that the purpose working conditions »is of the savings section is broad and explicitly sets out one consistent with the wording of the Law on Public large and diverse group of rights subjects. procurements § 5. The Directorate states that to use Access to information will, according to the agency, be able common formulations in the regulations help to compile the give the various actors a better basis for understanding requirements aimed at the business community, and that purchase and investment decisions and implement this contributes to simplification and streamlines follow-up of other measures that take into account the companies' whether and how the business community understands and societal impact. complies with the requirements. NHO states that there is no reason to FOKUS - Forum for women and development issues highlight some stakeholders specifically in the purpose goals, Norwegian Institute for Human Rights, statement, and suggest that the listing be replaced The Confederation of Norwegian Enterprise (NHO) and with «any». Other consultative bodies that comment on the Responsible Business Advisors (RBA) foreslår at law's subjects of rights speak for themselves The second purpose of the Act "to contribute to the promotion for individual groups to be highlighted in the legal text. of companies' respect for fundamental human rights and The Consumer Council states that the listing of the law decent work" is highlighted as rights subjects must also explicitly include Machine Translated by Google 36 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) businesses, industries and authorities, in Human rights and working conditions in companies and in in addition to consumers and workers' organizations. The supply chains are also important. Still is Norwegian Journalists 'Association proposes that "editor- this in the ministry's view secondary and more controlled journalistic media" be added to the list so that a tool to achieve the main purpose of the press' important social mission respect for human rights and decent appears more clearly from the provision. The court points working conditions. out that the media has played a decisive role With regard to the provision's indication of role in uncovering violations of fundamental human rights rights subjects, the Ministry agrees in business. NHO that it is not necessary to emphasize In particular the Directorate for Digitalisation, Inland some rights subjects over others. The law county municipality, Oslo municipality, University of shall ensure any access to information. Bergen (UiB) and Viken County Municipality emphasize the The input of the consultative bodies has revealed that the law importance of public clients will be able to be used and have a beneficial effect for several different covered by the law's subjects of rights. According to the actors in addition to consumers, organizations and Directorate of Digitalisation, it is being implemented as of today unions such as the Ethics Information Committee 16,750 public procurements each year, and requirements for proposes highlighted in the text of the law. The law will for safeguarding human rights in public procurement example could also be used by journalists, consequently has a major effect on the supplier market. investors, businesses and public clients. All of these rights Inland County Municipality, Oslo subjects will join municipality, UiB and Viken county municipality say this law provide a better basis for making purchase and that it is positive for those as public purchasers that investment decisions or to implement suppliers are required to be transparent. The Transparency other measures. The various rights subjects will on Act will provide a greater opportunity to comply with the in different ways be important for the law to be actively used and providers' compliance with human rights and working to achieve the main purpose of the law. In the Ministry's conditions, and make it easier for public clients to comply assessment, it is difficult to emphasize the importance of with the order in the Act on any rights subjects Public Procurement. In order to emphasize the significance above others, and therefore suggests that the purpose of the law for the public sector, the Digitization Directorate statement expresses that the "public" proposes that these be explicitly mentioned in information must be secured. The term "the general public" the listing of the law's rights subjects. is also used in the purpose provision in the Environmental Information Act. NHO has recorded that the purpose of the law should also 7.1.3 The Ministry's assessments include changing consumers' customer behavior. In the Ministry's assessment, the Ethics Information The Ministry believes that this is an important sub-goal Committee provides the proposed purpose statement of the to achieve the main purpose of helping to promote appropriately express what the law's intention and objectives companies' respect for human rights are. The purpose provision is and decent working conditions. The Ministry twofold, and the two purposes are closely related. believes, however, that this is not necessary to be seen in Access to information will give the various actors the text of the law. better basis for making purchase and investment decisions Some consultative bodies believe that the law should and implementing other measures that take "Secure" companies' respect for human rights and decent consideration of the companies' social impact. working conditions, instead The fact that companies must have knowledge of and provide that it should "contribute to the promotion" of businesses access to such information will be able to promote respect for human rights and decency respect for human rights and decency working conditions. In the Ministry's assessment working conditions in companies, supply chains the Transparency Act represents an important contribution in and with business partners. the work to make business responsible and Nevertheless, the Ministry agrees with the consultation improve working conditions in the global supplier chains. bodies that the two-part purpose of the Act should be However, the Transparency Act will not solve everyone contrary to the set order in the text of the Act. After the ministry the challenges in this area. According to the Ministry's assessment is the main purpose of the law to contribute to assessment, this is clearer promote companies' respect for human rights and decent the law with the wording «promote business working conditions. The law aims to ensure consumers, respect for human rights and the decent organizations, trade unions and others access to information working conditions. The Ministry nevertheless proposes to about men Machine Translated by Google 2020–2021 37 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) remove "contribute to" to get a clearer and more ambitious The UN Convention on Civil and Political Rights shall wording. ensure fundamental rights, such as: The Ministry proposes that the wording «i the right to life and personal liberty and security, companies and in supply chains »as the sample freedom of expression and the right to privacy. Article 8 states proposes to be replaced by "in connection with the prohibition of slavery and the slave trade, and that «none production of goods and the provision of services". This for must be ordered to perform forced labor or otherwise to make it clear that the law applies at the production stage forced labor ». According to Article 22, anyone shall from the raw material stage to the finished product, and that have the right to freedom of association. This includes the right to the law does not apply to future paragraphs after the product to form and join trade unions for the protection of their own has been sold and the service has been delivered. A sold item interests. The UN Convention on Economic, Social and which is returned to the business as part of Cultural Rights recognizes the right to work and the right to circular economy to be reused in a new production will still justice and be covered by the new production link. For a more detailed good working conditions in Articles 6 and 7. This shall discussion, see section 7.4.3.1 on not interpreted as a right to be employed, but to the scope of the law. The law applies to negative effects on choose to accept the work. Fair and good human rights inside and outside working conditions include remuneration to be provided the company's production, see section 7.4.3.2. workers fair pay, equal pay for equal The factual scope of the law and the concepts work without discrimination of any kind, a "Fundamental human rights" and "decent working conditions" decent life for himself and his family, are discussed in section 7.2. Here, the extent of their law, working conditions that are safe and healthy, rest, free time, including the factual nature a reasonable limitation of working hours, time showing paid the scope shall be limited to individual human rights and holidays as well as compensation for whether it should include environmental impact. public holidays. Article 8 recognizes the court to form trade unions or join a trade union of your choice. See proposal for a Transparency Act § 1. See also discussion in point 3.1.1.2. ILO core conventions on fundamentals 7.2 The factual scope of the Act rights and principles in working life, include The ILO's eight core conventions, and can be divided into 7.2.1 The Ethics Information Committee's proposal four main categories: 1) prohibition of child labor, The committee proposes that the law should ensure access to 2) prohibition of forced labor, 3) prohibition of discrimination information on "basic human rights and working conditions" and 4) freedom of association for employers and employees in companies and in supply chains, and that the law should and the right to collective action. According to the committee, help to promote there are also others companies' respect for «basic but human rights and decent relevant ILO conventions, including ILO Convention No. work», cf. the committee's bill § 1. 155 (1981) on Safety, Health and the working environment, and the associated protocol (2002), With "basic human rights" ILO Convention No. 14 (1921) on the right to weekly rest, means the internationally recognized human rights as set ILO Convention No. 131 (1970) on the stipulation of out in the UN Convention on the Rights of the Child minimum wages, ILO Convention No. 135 (1971) economic, social and cultural rights on the protection of employees' representatives in the (1966), the UN Convention on Civil and Political Rights undertakings and their ability to carry out their activities, (1966) and the ILO's core conventions on and ILO Convention No. 169 (1989) on Indigenous Peoples and fundamental rights and principles in tribal peoples in independent states. See also working life, cf. the committee's bill § 3 letter d. mentioned in section 3.1.2. The definition refers to the internationally recognized It is not exhaustively stated which human rights are to human rights based on the Universal Declaration of Human be regarded as "fundamental". The term "basic human Rights (1948) rights" should, according to the committee's proposal, be which establishes, among other things, a ban on slavery understood and slave trade, the right to work and to the just and the good in the same way as the corresponding concept in the working conditions, non-discrimination and the like Procurement Act § 5, see Prop. 51 L (2015–2016) page 83: treatment for equal work, right to rest and leisure, reasonable limitation of working hours and regular say paid "The statutory provision does not contain an exhaustive holidays. list of relevant legal instruments on human rights […]. Depart- Machine Translated by Google 38 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) However, the Parliament points out that the UN impact on basic human rights and decent work. OECD guiding principle for business and human rights refers contact point to the UN Universal Declaration emphasizes the importance of the bill's definition of from 1948, the two UN conventions from 1966 on civil fundamental human rights in and political rights, and the ILOs, respectively compliance with UNGP and OECD guidelines as well core conventions on fundamental rights and principles ILO Declaration on Fundamental Principles and in working life. " rights in working life. The Norwegian Institute for Human Rights (NIM) also believes it is good that the bill is linked to By "decent work" is meant work such as a wide range of respects basic human rights, safeguards health, environment human rights in line with what follows and safety in the workplace and provides a salary to live UNGP. This is in contrast to a more limited approach on, cf. the committee's bill § 3 letter e. According to the towards, for example, modern slavery, committee's remark to as is the case with British law. NIM refers to the provision corresponds to the definition of «decent his previous input in meetings with various ministries and in work ”to fundamental rights in working life as set out in the a letter to the government about the report above-mentioned framework in the definition of“ fundamental of a law on modern slavery as this appeared from human rights ”, the agenda for decent work of the The Granavolden platform, where NIM in the letter among International Labor Organization (ILO) and the UN else wrote that: sustainability goal no. 8. This includes in addition to "NIM believes it will be important, when the mandate human rights enshrined in the ILO's eight core conventions, for such a committee shall be determined, that the mandate health, safety and the environment not formulated too narrowly. There is no doubt about that the workplace and wages that make it possible for that modern slavery and forced labor constitute workers to support themselves and their families major human rights violations in connection with ("Salary to live on"). business, not least in the informal sector. NIM The committee proposes that the objective scope still think it will be an advantage if you take one limited to the external environment. This is because the broader and more holistic starting point in a environmental impact falls outside the committee's mandate and therefore such legal investigation. […] not dealt with in the report. Environmental impact is By just focusing on modern slavery / also, according to the committee, largely covered by current forced labor is limited in practice to those legislation, such as the Environmental Information Act and other human rights. UN Guidance the Product Control Act which gives the right to information principles of human rights and on environmental impact. Business (UNGP), which is the prevailing international standard in the field, covers a wide range range of human rights, enshrined in UN conventions and ILO conventions (UNGP) 7.2.2 The views of the consultative bodies principle 12). Child labor, forced relocation, 7.2.2.1 On basic human rights and decent work restrictions on freedom of expression, indigenous peoples 'rights, most workers' rights, Hope for Justice believes that the law should have had a discrimination against women, companies' use of clearer purpose in light of the UN's sustainability goal 8.7, in order to security forces that commit abuses, are examples of ensure a decent work, as well as that prevention of human rights issues that are not forced and child labor shall have priority in carrying out due falls within modern slavery or forced labor. The diligence assessments. According to the agency, the law's government's own action plan for broad purpose of helping to promote business and human rights from 2015 companies' respect for basic human rights prevents the law is about the implementation of UNGP, and Norway from working has had a clear voice nationally and internationally in as an effective tool for promoting the individual support of the UNGP. It will when one right to a decent job. To lay guidelines for a first considering introducing a law that should narrower focus related to forced and child labor limit the room for maneuver of the business community for can, according to the agency, contribute to increased engagement from to ensure human rights, could provide a business actors. unfortunate signal if one confines oneself to a relatively Other consultative bodies that comment on narrow human rights issue the factual scope of the Act expresses support for (modern slavery) compared to it the committee's proposal that the law applies to companies much broader regulation in the UNGP. " Machine Translated by Google 2020–2021 39 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) However, NIM questions whether the definition proposed by affected by production and supply chains, and the committee may end up being emphasizes the realization of children's rights read more exhaustively than what follows in this context embrace wider than children beid. Conditions UNGP, and more exhaustive than that perhaps that affect children can, according to has been the committee's intention. NIM points to that instance, for example, be lacking worthy follows from UNGP principle no. 12 that the conventions working conditions for the parents, limited rights related to is a minimum and it must be considered to other but human pregnancy and childbirth, and absence rights standards when relevant of childcare and opportunities for breastfeeding separate areas. This can, according to NIM, be the workplace. the rights of indigenous peoples, women, minorities, children FOCUS - Forum for women and development issues and people with disabilities. NIM goals call for a clearer emphasis of that proposes that this be made clearer in the Transparency Act sexual harassment, extortion and gender-based or the preparatory work. NIM also believes in the preparatory work Violence against women is clearly present in the global should embroider the content of human rights, supply chains, and points out that the ILO in 2019 adopted for example, by drawing parallels to the European Convention a new convention against violence and harassment on Human Rights (ECHR), the Basic Law, Chapter E on jobs (ILO C190). The instance points out that human rights and the Human Rights Act. 71% of all people living in modern slavery are women, and that 70 countries lack legislation against gender-based NIM also believes that it makes sense that the definition discrimination. is intended to correspond to the definition of basic human Coretta & Martin Luther King Institute for rights in section 5 of the Procurement Act, and points out that Peace work states that environmental damage that causes the preparatory work for the Procurement Act states that the human rights violations must be included in list is not exhaustive. the bill. The Rafto Foundation states that it should be stated in the law that the obligations according to Several of the consultative bodies argue for UNGP also includes environmental damage that causes that the law's definition of fundamental human rights should human rights violations, and points out that include several relevant international instruments. The the term "environmental damage" in this context should Consumer Council believes that the Universal Declaration of embrace broadly and include both environmental damage as Human Rights direct damage to human livelihoods and environmental (1948) should be included in the definition. The Norwegian Journalists' damage that contributes to the deterioration of the living Team believes that it should be made clear that freedom of expression and conditions of affected people. privacy is covered. The Directorate of Labor and Welfare The Confederation of Norwegian Enterprise (NHO) and demands a focus on corruption as they believe it is The Norwegian Construction Industry Association points out a strong barrier to the work for transparency in the supply that the core of the law needs to know the extent of chains. Amnesty International Norway the law, and therefore believes that one should explicitly (Amnesty) believes that the definition should also refer to mention the substantive provisions of the conventions. The Chapter E of the Constitution on human rights, same applies, according to NHO, to the definition of decent the Human Rights Act, as well as ILO Convention No. 169 work. NHO states that the conventions covered by the about indigenous peoples and tribal peoples in independent states. definition of The Ministry of Climate and the Environment (KLD) also states basic human rights also have that the definition of fundamental human rights should include provisions on decent work, and that it is a reference to ILO Convention No. 169, as well as the UN unclear what the definition of decent work should be Declaration on the Rights of Indigenous Peoples contain beyond this. NHO believes that the ministry should (UNDRIP), and points out that there are many violations assess whether this is necessary in legal text. indigenous peoples' rights in connection with raw material production and mineral extraction in developing countries, and UNICEF Norway believes that the definition of that these violations of rights also affect the achievement of Decent work should be reformulated to too the government's climate and forest initiative, mention the family and breadwinner perspective, ie salary and the objectives of the Paris Agreement. which makes it possible to support oneself and one's family UNICEF Norway believes that the UN Convention on the Rights families. of the Child should be included in the definition, and points out that the UN The Convention on the Rights of the Child is the most widely used human rights convention worldwide. 7.2.2.2 On environmental impact The agency states that children are particularly vulnerable The Directorate of Labor and Welfare states that the group and that their rights to the very highest degree delimitation to the external environment makes sense. On it Machine Translated by Google 40 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) on the other hand, Amnesty, Bergen municipality, the Joint map and prevent just such damage, and that Council for Africa, the future of ours there - both the main this is also part of the OECD's guidelines for organization, Oslo's local team and multinational companies. Trondheim's student team, Forum for development and The Rainforest Fund points to both the French environment, YWCA-YMCA, KLD, Norwegian Journalists' Association, the standard of care and the OECD guidelines Save the Children, Rainforest Fund, Spire, UNICEF contains due diligence obligations related to environmental Norway and Viken county municipality in different ways for that damage, and that it will be in line with the UN's sustainable environment should be included, either as part of the law goals to include the environment in the due diligence purpose and scope, or specifically as a part assessments. The Norwegian Journalists' Association points out that the bills of the duty of knowledge, the duty of information, or in Finland, Switzerland and Germany, there is a duty of care the duty to perform due diligence assessments. assessment for environmental damage. KLD states that the proposal gives companies more If the environmental aspect is included in the law, comprehensive duty of knowledge, information and diligence Amnesty believes that this can be reconciled with it for influencing human rights existing knowledge of environmental conditions in and working conditions than the Environmental Information Act, own business according to the Environmental Information Act and the Product Control Act and the Accounting Act provide for other obligations under the Product Control Act. environmental impact. The Environmental Information Act's The Rainforest Fund argues for that impact duty of knowledge and information does not include delivery on nature and the environment is included in the Transparency Act for door chains, and the Act imposes no duty of care. It may respectively the due diligence assessment and the duty to therefore, according to KLD, be appropriate to look more provide information, and that the Environmental Information Act on it closely at the possibility of one more the way is replaced by the Transparency Act. If the business holistic approach in a new transparency law. In KLD's assessments are not extended to include assessment, including the environment can contribute to an increaseenvironmental impact, it should, according to the Future in our knowledge and awareness of the environmental effects hands, it is emphasized that all environmental damage that the companies themselves and their supply chains has consequences for human rights must be included in have abroad. the due diligence assessments. Amnesty and the Rainforest Fund point out that the bill's delimitation against effects on the external environment is due to the delimitation in the mandate and not a 7.2.3 The Ministry's assessments active choice to exclude the environment. On the contrary The Committee acknowledges that the human rights aspect is 7.2.3.1 On basic human rights closely linked to challenges when The Ethics Information Committee proposes that the it concerns climate risk and environmental impact. Instan Transparency Act should apply to all "basic human rights" and senene also points out that in the current regulations it does not that the Act is thus given a broad due diligence obligations exist catchment area without being limited to certain details impact on the environment built up according to the UNGP stated human rights. The Ministry is model, and that environmental conditions are not sufficient agree with the committee's assessment. This approach is covered through the knowledge obligation, etc. after in line with the UN Guiding Principles on Business and Human current legislation. Rights (UNGP) and the OECD The Rainforest Fund states that nature destruction guidelines for multinational companies such as among other things, is a threat to biological diversity, uses the "internationally recognized human rights" as a and this affects food chains as humans concept, but which is based on the same conventions as the depends on. UNICEF Norway refers to the UN Human Rights committee Council which states that climate change proposes in the definition of fundamental human rights in the is among the greatest threats to human rights, and poses a Transparency Act. In the Ministry's assessment, it is central serious risk to them that the law is based on fundamental rights to life, health, food and and conforms to the internationally recognized an adequate standard of living. Save the Children says principles and guidelines. It will also after that impact on the environment can have consequences for the ministry's assessment may be difficult to children's right to health, food safety and access to select certain human rights over clean drinking water. Spire states that environmental destruction others to whom the law shall apply. While there are challenges at the global and local level is a key risk in companies' supply with some human rights in chains, and can have fatal consequences for the local some industries and in some parts of the world, are population. According to Spire, business assessments are an the challenges with other human rights in excellent tool to other industries and in other parts of the world. A wide Machine Translated by Google 2020–2021 41 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) approach as proposed by the committee will also be in the Procurement Act § 5, and that reference is made to the in line with the stated expectations that Norwegian preparatory work for this provision where it was further companies follow the guidelines of the UNGP and the stated that it does not contain an exhaustive list OECD, cf. the Government's action plan for follow-up of the of relevant legal instruments on human rights. Other human UN's guiding principles (2015) and rights conventions will thus be covered by the definition of Government Ownership Report Report. St. 8 (2019– 2020) The state's direct ownership in companies - Carrying fundamental human rights where it strong value creation. This approach also corresponds with Some companies consider the conventions the Procurement Act § 5 which also takes are relevant within its scope. This also corresponds with based on the wording «basic but human rights» without the OECD guidelines and the UNGP any further delimitation. The consultative bodies support which promotes the same conventions and which this approach also emphasizes that the mentioned conventions are a gen. minimum, and that other human legal standards must be Although the committee's proposal involves a broad considered when relevant in specific areas, cf. UNGP catchment area, the companies are not expected principle 12 and the OECDs focuses on all basic human rights. The duties in the law are human rights chapter. It also follows based on the principle of the national action plan for follow-up of risk-based approach, cf. sections 8.2 and 8.3. This The UN's guiding principles (2015) that other standards implies that the companies must identify may be relevant, depending on various factors, such as the risk and prioritize measures, and that businesses rights of indigenous peoples, women, national, ethnic or shall focus on risk-exposed human rights based on the linguistic minorities, conditions in their business and supply chains. Which children, the disabled, as well as foreign workers and your human rights the company must focus on will depend on families. various The question is whether the law's definition of variables, such as industry and geographical location. This fundamental human rights should only mention them is in line with UNGP and OECD guidelines. proposed conventions or whether the list should include several international frameworks, possibly one However, several consultative bodies request that exhaustive list. The question is also whether it is one in the definition of "basic human rights" includes several appropriate to incorporate national regulations on international frameworks explicitly in the legal text. The the area of human rights in the definition, here under instances have played Chapter E of the Constitution on human rights and the that one should, among other things, adopt the Constitution Human Rights Act. Chapter E on human rights and the human rights law, the In the Ministry's assessment, an exhaustive list will Universal Declaration of Human Rights, the UN Convention make visible the basics on the Rights of the Child, ILO Convention No. 169 on human rights companies are expected to respect and Indigenous and Tribal Peoples in Independent States, and include in their work the UN Declaration on the Rights of Indigenous Peoples to fulfill the obligations of the law. This can be positive for UND RIP. It has also been recorded that environmental the law's duty subjects (larger companies), the law's rights damage that leads to human rights violations should be covered subjects (consumers, organizations, trade unions and of the definition of fundamental human rights, as well as others) and supervisory and freedom of expression, privacy and the international the guidance authority (Forbrukertilsynet). NHO framework related to corruption. The also suggests that the definition of the law includes not only reference is also made to a reference to the ILO Convention the relevant international frameworks, but also the C190 against violence and harassment in the workplace. substantive provisions As the discussion in section 7.2.1 shows, the definition covered by the obligations under the law. One of «fundamental human rights» such a solution could make it even clearer widely, and covers, among other things, the prohibition of slavery and users of the law what international obligations slave trade, the right to work and to the just and the companies must be taken into account when fulfilling good working conditions, non-discrimination and the like the obligations of the law. treatment for equal work, right to rest and leisure, On the other hand, an exhaustive list reasonable limitation of working hours and regular say paid over international and national frameworks, here under the holidays. The listing in the definition material provisions in these, with the need for regular is not intended to be exhaustive. The Ministry updates and make points out that the committee has intended that the definition should the law less dynamic than what is desirable. correspond to "fundamental human rights" in An exhaustive list could also lead to Machine Translated by Google 42 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) that relevant legal instruments are excluded, and decent working conditions. The Ministry that any new instruments are not covered by notes, however, that human rights and the law without an amendment to the law or regulations. decent working conditions are closely linked The department also points out what the standards are together, and that it is difficult to draw an exact distinction relevant, will depend on different conditions, and between what is basic but human rights and what is decent the list of relevant legal instruments will therefore differ from business to business. working conditions. The concepts must therefore be seen In the Ministry's assessment, it is important that in context. In the same way as for the concept The definition of basic human rights is in line with the "Fundamental human rights", he suggests guidelines of the UNGP and the OECD, on which the law is the ministry a regulatory authority to be able to provide otherwise based, and which companies are expected to further guidance in regulations if it shows know well. The Ministry therefore proposes a definition of themselves to be needed for it. "fundamental human rights" in line with the committee's It is recorded that the definition should mention the family and provider perspective, ie that decent suggestion. However, the Ministry believes that working conditions provide a salary that makes it possible to does not appear clearly enough from the committee's bill provide for themselves and their families. This aspect that the list of conventions in the definition does not appear directly from the committee's bill, is not exhaustive. In order to prevent the provision from but it follows from the committee's remarks that with being interpreted more narrowly than intended, the Ministry "Salary to live on" means "salary that makes it possible proposes to clarify in the legal text that for workers to support themselves and their families ». The the listing is not exhaustive. The Ministry Ministry agrees with this. In the Ministry's assessment, it is further proposes a regulatory authority to be able to provide not necessary to specify this in the legal text. further guidance on which international and national frameworks covered by the definition in the See proposal for the Transparency Act § 3 first paragraph book regulations, if it nevertheless turns out to be stav c and second paragraph. need for it. In the Ministry's assessment, it will be part of the task of the supervisory and supervisory body 7.2.3.3 On environmental impact to prepare an overview of relevant legal The companies' impact on the environment is covered by instruments and substantive provisions such as The Ethics Information Committee's proposal for a transparency law covered by "fundamental human rights". Such a guide if the environmental impact results in negative could be designed dynamically with further explanations of impact on human rights. Several consultative bodies, what is however, argue that the law expected by the companies. After the ministry should also include environmental impacts that do not result assessment, this will meet the duty subjects in negative impacts on human rights. Either as part of the need for clarity. purpose and scope of the Act in general, or specifically for See proposal for the Transparency Act § 3 first paragraph book either the duty of knowledge, the duty to provide information stav b and second paragraph. or the duty to to carry out and publish due diligence calls. 7.2.3.2 About decent working conditions The Environmental Information Act regulates the The Ministry proposes a change in the use of terms obligations of both public bodies and public and private compared with the Ethics Information Committee's proposal companies to have and to publish environmental information. in that «decent working conditions» Environmental information includes both factual information used in the legal text rather than the term «decent and assessments about the environment, factors such as work". The Ministry believes that the committee that affects or can affect the environment, and human a separate definition of is appropriate health, safety and living conditions to the extent that they are affected «Decent working conditions». The Ministry or may be affected by the condition of the environment, see registers that there may be some overlap between further discussion in section 4.4. the definition of "basic human rights" and the definition of The Environmental Information Act sets out both one "decent work" as such duty of knowledge and information related to environmental the committee has proposed it, among other things by the ILOs impact from own business. However, the Environmental core conventions are part of the definition of Information Act does not cover the environmental impact in "Basic human rights" and at the same time indicate rights the supply chain. It is not set up either that form the basis for a duty to carry out due diligence assessments. Machine Translated by Google 2020–2021 43 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) This means that the duties proposed by the Ethics Information »means companies that are covered by the Accounting Act § Committee in the Transparency Act extend beyond the duties 1-5, ie public limited companies, listed in the Environmental Information Act. companies and other accounting entities, as well as companies Human rights and challenges associated that on the balance sheet date meet at least two of the following to climate and environmental impact are closely linked, three conditions: 1) more than NOK 70 million in which speaks in the direction of extending the Transparency Act sales revenue, 2) over NOK 35 million in balance sheet total, to also include environmental impact. Such an extension will 3) over 50 man-years in average number also ensure harmony between the obligations of fundamental employees during the financial year. The Committee further proposes that human rights and § 6 on the publication of information on the place of production environment, and with OECD guidelines as well shall only apply to enterprises which includes environmental impact. sells goods to the consumer, and that one is consumed As it has not been part of the Ethics Formation Committee's regulatory authority to be able to limit the scope of § 6 further mandate to propose new duties by exempting sectors and related to environmental impact, however, does not propose groups of businesses. The committee also proposes Ministry to include environmental impact in the law a legal basis that gives the King the competence to decide in this time. The Ministry is adding one writing that the law shall in whole or in part evaluation of the law after a while and assesses input received apply to companies in Svalbard and Jan. in the further work. The Ministry Mayen, cf. the committee's bill § 2 second paragraph. is also aware that the European Commission is working with proposals for rules on due diligence assessments for both human rights and the environment, as well as a 7.3.2 The views of the consultative bodies proposal on companies' duty of care towards The Norwegian Bar Association, Amnesty International Norway import raw materials that cause deforestation in (Amnesty), Directorate of Labor and Welfare, Bergen third country. The proposals are expected to be presented in 2021, Municipality, Coretta & Martin Luther King Institute for Peace and will, if adopted, necessitate Work (King Institute), Digitalisation Directorate, Ethical Trade changes in Norwegian law. Norway, Joint Council for Africa, FOCUS - Forum for women and development issues, the Consumer Council, Forum for 7.3 Obligations and development and the environment, The future in our hands, the geographical scope of the Act Salvation Army, the main organization Virke (Virke), The Ministry of Climate and the Environment (KLD), the National 7.3.1 The Ethics Information Committee's proposal Organization in Norway (LO), the Norwegian Institution for The committee proposes that the law should apply to companies Human Rights (NIM), the Norwegian Journalists' Association, that offer goods and services in Norway, cf. The OECD contact point, the Raftostiftelsen, Regnskogfon det the committee's bill § 2 first paragraph. "Business" means a and Spire express support for the committee's proposal that company, cooperative, association, the law should apply to all businesses sole proprietorship, foundation or other association, cf. the which offers goods and services in Norway. Fairtrade committee's bill § 3 letter a. Norway, the Consumer Council and Virke also express The law shall also apply to publicly owned activities support for the law to apply to e-commerce actors which offers goods and services. According to the committee based in other countries that offer goods and services in remarks will all businesses in a group Norway. This will, according to Ethical Trade Norway, raise imposed obligations under the law. Companies in a group with level and provide more equal conditions of competition. a Norwegian parent company may refer to the parent company At the same time, several of the consultative bodies argue for fulfillment of the knowledge and information obligation and that the law should be extended to apply even more the obligation to carry out business assessments. According to subject subjects than suggested. the note to the provision, the law also covers e-commerce Advokatforeningen, Amnesty, Bergen kom mune, actors, Fellesrådet for Afrika, FOKUS, Forum for including those based abroad and offers development and the environment, The future in our hands, the goods and services in Norway. Liberation Army, the King Institute, KLD, NIM, the OECD For some legal provisions, the committee proposes contact point, the Rafto Foundation, the Rainforest Fund that the subjects of duty are delimited closer than before and Spire argue that the scope of the law the law by the way. This applies, among other things, to the committee's should be extended to not only apply to businesses proposal for § 10 on the implementation and publication of due which offers goods and services in Norway, but also diligence assessments which is proposed only Norwegian-registered companies that offer goods and for larger businesses. With «larger company services outside Norway. OECD Contact Point Machine Translated by Google 44 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) and Amnesty includes in this extension Norwegian Amnesty, Joint Council for Africa, The Future of subsidiaries of companies with business in our hands, Hope for Justice, the Rafto Foundation and abroad (extraterritorial effect). Amnesty The Rainforest Fund argues that the law in addition applies points out that the UN Committee has assumed that the UN to publicly owned enterprises such as convention on economic, social and cultural offers goods and services, should also apply to public rights entail extraterritorial obligations for states. bodies that offer goods and services. Amnesty and Hope for Justice states that the public sector annually The King Institute states that it is important to expand makes significant purchases of goods and services and the law to also apply to Norwegian companies such as that the scope of the law should therefore be extended to offers goods and services outside Norway. This to include these. To exempt public bodies such as maintain the required level of basics buys and distributes goods and services from claims human rights and responsible working conditions in due diligence in relation to human rights and the environment according to UNGP, and to add a stronger appears, according to Amnesty and the Rainforest Fund, to basis for equal competition between all be arbitrary and problematic. King Norwegian companies. KLD points out that the activity The institute believes it is crucial that public to Norwegian companies that only take place outside activities are covered by the bill as this is Norway, may involve a risk of human rights violations with essential to meet the obligations in Pillar 1 of consequences for the environment and climate, or UNGP. The body states: as a result of climate and environmental impact, and that § 2 therefore should be considered strengthened to include Norwegian «Public procurement represents a significant businesses globally. The Rainforest Fund refers to part of the global economy with 15–20% of Norwegian companies that do not sell goods and services the global gross domestic product, and human rights in Norway, but that operate in developing countries violations and obscene in sectors such as mining, oil, hydropower and work occurs in supply chains regardless of whether it is renewable energy, where there is a high risk public enterprises or to contribute to the violation of human rights to private companies that are purchasers of the goods indigenous peoples and other vulnerable communities. FOCUS and the services. Research shows that although states that the risk of breach of fundamental Norway as a whole is at the forefront of the efforts for human rights in the supply chain to avoid human rights violations in global supply chains, no direct correlation with who is the end customer, and that it is pointed out that this should be reflected in the law. do not work systematically enough with this from those The future in our hands, the King Institute, various public bodies. Including public enterprises in The OECD contact point and the Rainforest Fund express the bill is necessary support for the committee's proposal that the law should to prevent taxpayers' money from indirectly helping to apply to publicly owned enterprises, cf. § 3 book letter a. support illegal activities. " The OECD contact point points out that public owned business has a large scope and The Directorate of Labor and Welfare recommends that potential to influence people, society and does not allow for general exemptions for sectors or environment, and that it is good that these are covered by groups of businesses, but that it should rather the bill. a discretionary assessment is made of each to trap. LO also The Confederation of Norwegian Enterprise (NHO) can believes that this is an unfortunate solution do not see that there is a need to clarify that law that the proposal opens up for certain business areas or also applies to publicly owned business that offers industries to be exempted, and states that it is goods and services, as all associations must It is difficult to see any reason why the requirements of are considered enterprises, regardless of form and openness with regard to basic human rights and decent ownership. NHO also states that it is unclear what work should not apply to everyone. to be regarded as "publicly owned business" However, LO sees reasons why some industries which are not already covered by the definition of may have greater needs than others when it comes to «Business». Business that is a part of it information and guidance on the law and how public, such as agencies and directorates, are, it can be adapted to business activities in different parts according to NHO, not common to count as "owned" by it of industries and cultures. According to LO, a starting point public. NHO believes it is necessary to clarify which types will be industries with generalized collective bargaining or forms of public activity are covered. agreements, ie industries where a large part of the business has shown difficulties in complying with statutory and contractual arrangements. Machine Translated by Google 2020–2021 45 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Other consultative bodies argue for NHO states that the scope of the law should make it possible delimitations of duty subjects, either for clearer that it is business activity that the law in its entirety or for some of the duties. is covered, ie goods and services are offered against NHO states that they support a distinction between small remuneration and of a certain scope and a certain duration. and medium-sized enterprises, and larger enterprises. NHO NHO states that the forms of associations states that it is ambitious to post as mentioned, will usually charge for goods and for the law to apply to all businesses, and services, but there are, for example, associations points out that this is a new type of regulation for a and organizations that offer services that benefit more large number of businesses, and that many of them are people, without any consideration small and medium, with less resources to directly related to the service. The future of ours there carry out activities outside the core business. According to suggests that sole proprietorships and associations NHO, larger companies have mostly exempt from the law as they believe that the positive effect better conditions for knowledge of the supply chains and of regulating the activities of such institutions is very limited. greater opportunities to influence conditions. The Norwegian The Rules Council lacks a closer assessment of whether it is Farmers' Association thinks it is wise to have one necessary to include associations from a cost-benefit distinguish between small and large actors in the law so that perspective, the requirements do not impose an unnecessarily large on small businesses for example, a sports team that sells socks to bureaucracy and large costs. Viken County Municipality states income for the club. KS Bedrift also believes that that it is good that the law distinguishes between the the law should only apply to companies «that operate business activities », so that municipal and others requirements for large and the requirements for small and medium-sized companies at the same time as it does not exempt these in publicly owned enterprises created to openness and to be able to be demanded and followed in their perform statutory tasks and / or offer joint services under supplier chains. The academics emphasize the importance extended self-management, and which do not operate of the bill and its implementation business activities, falls outside the scope of the law. This takes care of small players so that the costs do not become applies, for example, to inter-municipal disproportionately large for these businesses. shelters offering statutory services after The Rules Council lacks a closer assessment of whether the Shelter Act and fire and rescue companies It is necessary to include smaller businesses out which performs mainly statutory tasks after from a cost-benefit perspective. KS Bedrift proposes fire protection legislation on behalf of their owner that a threshold is set related to the company's turnover or municipalities. According to the agency, on the other hand, number of employees to be included the municipal companies that may conduct business activities of the law. NHO argues for various delimitations, for example should be covered by the law. based on the size of the company According to the National Association of the Construction Industry , the law should or the industries where the authorities believe that limited to apply to businesses as themselves the risk is greatest. NHO believes that the utility of imports goods to Norway. Businesses such as a law will be relatively far greater towards those buy goods that have already been imported, have, according to the companies that have real risk and influence. It reduced instance, not the same opportunity to influence the actual the benefit of exemption the supply chain. some companies from a law, will, according to NHO, NHO argues that some foreign be correspondingly smaller. According to NHO, a turnover companies should be exempted. Burdensome legislation can, threshold should be set for this in the law as according to NHO, make it less attractive to some excludes smaller businesses from the scope of application foreign companies to offer goods and services in of the Act. This turnover threshold can Norway. This can make it harder and possibly be at the same level as in other laws more expensive for Norwegian companies and consumers to obtain with similar exceptions. themselves the goods and services they demand, and thus According to KS Bedrift, the law should be clearer weaken competition in the market. NHO asks aimed at businesses and industries in markets where there also questions about whether it is not more difficult to is a documented risk of breach achieve compliance with foreign companies than human rights and obscene working conditions. in Norwegian. Finansieringsselskapenes Forening also states that a large According to the Norwegian Fishermen's Association , the bill must take proportion of Norwegian companies operate in service height that some industries need to industries where the supply chain problem is largely absent, shielded, and thus exempt from the obligations of the law. and questions whether the scope of the law can be limited to The fishing fleet is already subject to a comprehensive selected sectors. reporting obligation, and the agency therefore expects that the fleet is not subject to additional duties. Relevant Machine Translated by Google 46 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) information must, according to the body, be retrievable evaluated after the law has worked for a period, where from the authority that received the fishermen's reported the effect of the law is assessed and where at the same time information. The instance also notes that consider whether the law should be extended to apply to more people the whaling industry is at times exposed to threats businesses, for example, based on a about the boycott, and believes that if it is introduced risk assessment of certain industries. It is also transparent schemes that everyone can see advantageous that the supervisory and guidance body receives the suppliers in the cards, will also the grouping gained good competence to be able to provide who are against whaling could take advantage of this by good guidance before the law is possibly extended to go on the supply chains of the whaling industry also include smaller businesses. and make threats to boycott them. This The Ethics Information Committee has proposed one can, according to Norges Fiskarlag, lead to farms definition of larger companies that match Contributing goods and services to the whaling industry can with what the Accounting Act considers companies to be cause problems. Nordland County's fishing team argues are not small. That is, the definition includes everyone similarly. large and medium-sized enterprises. These are the companies that under the Accounting Act are obliged to prepare an annual report, cf. § 3-1 second paragraph. 7.3.3 The Ministry's assessments Pursuant to the Accounting Act § 3-3 a, these shall in the The Ethics Information Committee proposes that the annual report, among other things, provide information on Transparency Act should apply to all companies that offer goods the working environment, gender equality and conditions at the company, and services in Norway. Many consultative bodies including its input factors and products, such as supports this, while some argue that may cause a not insignificant effect on it the statutory subjects of the law should be delimited, among other things Environmental. Some larger companies are large companies, from size. Others believe the law should be extended to cf. the Accounting Act § 1-5. These are subject also apply to Norwegian companies that offer goods requirements for a statement on social responsibility in the and services abroad. Accounting Act § 3-3 c. Large enterprises include all public The Ministry understands the committee's proposal that limited companies, as well as «accountable if the law should apply to all businesses. Everyone shares, participations, primary capital certificates or bonds Businesses, regardless of size, may be at risk of violating are listed on a stock exchange, authorized marketplace or human rights. In addition, it is already expected today that all corresponding regulated market abroad », cf. the Accounting companies know and comply with the UN's guiding principles Act § 1-5. In addition, some are added for financial corporations that are classified as large corporations Business and Human Rights (UNGP) and after other regulation. In the impact assessment OECD guidelines for multinational companies of the proposal for a new Transparency Act, 8,830 companies on which the proposal for a transparency law is based. For have been identified to fall within the definition of Many of the smaller businesses will, however «Larger companies». the obligations in the Transparency Act entail something new. The Ministry agrees with the committee's proposal The Ministry sees that the committee has intended to limit definition of «larger companies». In the Ministry's assessment, the burdens on the smaller businesses through the law's it is appropriate that they principle of risk-based approach and proportionality, and the the same subjects of duty are covered by the Transparency Act proposal for and the Accounting Act's reporting obligation. This will a duty of knowledge that will require less of the activities than contribute to clarity in the regulations and for the companies the duty to perform due diligence. The Ministry is nevertheless that are to assess whether they are covered by the concerned about the bids for the smaller businesses as a Transparency Act. The Ministry therefore proposes that the law result applies to larger companies as defined by the committee. the bill. Both for the individual business which has few employees and limited resources, however With regard to the law's geographical scope, the also overall, the costs of including smaller businesses will be committee has proposed that the law should apply significant, even with the measures proposed by the companies that offer goods and services in committee. Today, according to the Ministry's assessment, Norway. This includes both Norwegian companies the larger companies are in a better position to familiarize and foreign companies, as long as these offer themselves with and goods and services in Norway. Several consultative bodies implement what the Transparency Act requires, and to has recorded that the duty subjects of the Transparency Act as well to bring about changes in the global supply chains. should include Norwegian companies that offer The Ministry therefore proposes that the law in the first goods and services abroad. After the ministry dealings include larger businesses, and that law assessment, this could weaken competition Machine Translated by Google 2020–2021 47 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) for Norwegian companies in the international markets by the law in general will be difficult towards these imposing the Norwegian companies the actors. In the Ministry's assessment, a duties that international competitors do not have to geographical scope corresponding to the Accounting Act relate to. At the same time, this will ensure a level playing ensure harmony between the obligations of the Transparency Act field for all major Norwegian companies. and the obligation to prepare an annual report in the In the Ministry's assessment, it should not be Accounting Act. decisive for whether a business is covered by Many bodies are concerned that the public sector is the Transparency Act where the company's goods and covered by the law. The Ministry considers it services are offered. The Ministry therefore proposes that as appropriate to limit the duty subjects of the law to the The Transparency Act covers larger companies such as same subjects of duty who do not is resident in Norway and offers goods are regarded as small enterprises within the meaning of the and services in or outside Norway. Such an approach would Accounting Act. Who is required to keep accounts in accordance be in line with which companies with the Accounting Act is stated in the Accounting Act § 1-2, and covered by the Accounting Act's obligation to prepare shall correspondingly form the basis for annual report pursuant to § 3-1 second paragraph, and the the subjects of duty under the Transparency Act. It means international principles and guidelines. It follows among other things, that municipalities, inter-municipal for example by UNGP's first guiding principle in enterprises and state enterprises, ie administrative bodies, Chapter II on what is the task of the states that the states will not be covered by the Transparency Act, as these should clearly state that they expect all companies that are are not accountable under the Accounting Act. domiciled within the country State-owned enterprises, ie enterprises owned by the state and borders and / or in their jurisdiction, respects operated as other private companies will, however, be human rights in all parts of their business. covered if the conditions set out in the definition is met. According to the Ministry's assessments, The question is what the assessment of whether a other types of delimitations or clarifications than those that business is a "larger business" should depend on. follow from the Accounting Act should According to the Accounting Act § 1-6 fourth paragraph, the avoided. This will give the law a clear focus area assessment of whether a parent company is considered a small and make sure that the Transparency Act and the Accounting Act have monitors well. The Ministry also emphasizes company shall be assessed on the basis of the group, ie parent company and subsidiaries, seen as a unit. Subsidiary that the public sector must comply with the Procurement Act be included in the assessment regardless of whether these are in public procurement. According to the procurement registered in or outside Norway. The Ministry regulations, public contracting authorities are required to take believes that this is a good solution also for the Transparency human rights and working conditions into account when Act. This will prevent the group as clearly carrying out their procurements. exceeds the criteria for "larger business", can cf. the Procurement Act § 5. organize themselves in a certain way to avoid Some bodies have stated that the law should fall within the scope of the law. The Ministry limited to businesses that conduct business, and some state also believes that it is positive that assessments after that for example The Transparency Act follows the same system as the sole proprietorships and associations should be considered Accounting Act. The Ministry therefore proposes that the exempt from the law. However, the Ministry is currently assessment of whether a parent company is a "larger proposing no delimitation in the definition of «major company" under the Transparency Act should be made on the basisbusinesses of whether»based on whether the businesses operate the group as an entity meets the conditions business or not. In the Ministry's assessment, a delimitation for "larger business". to "larger companies" will make it unnecessary to exempt The Ministry further proposes that the geographical associations and organizations that offer goods and services scope of the Transparency Act also includes from the scope of the Act. The same major foreign companies that are taxable in Norway, and that offer goods and services in applies to sole proprietorships. The Ministry nevertheless Norway. This is in line with the geographical scope of the proposes a regulatory authority to in regulations Accounting Act. Such foreign could exempt certain businesses from the law companies will be required to register in Norway. subjects of duty. In the Ministry's assessment, it will be demanding to check Some consultative bodies argue that on foreign companies the statutory subjects of the law should be delimited, among other things who are not required to register in Norway, shall from which products are offered or about themselves is considered a "larger business" as a consequence imports goods to Norway. To this end, the Ministry will note shall comply with the requirements of the law. Also the enforcement of that the law is based on Machine Translated by Google 48 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) pet on risk-based approach and proportionality. This means § 3 letter c. By «input factor» the committee means that each business raw materials, components, services and transport and themselves should map out where in their production it other. According to the committee's comments, the supply there is a risk of a negative impact on human rights and chain includes the activities, organizations, actors, even on the basis of this survey assess how they should technology, information, resources and services work with human rights and decent working conditions. which is involved in the process of moving and bearing The principle of a risk-based approach implies that both a product from the raw material stage to a finished product. The committee also writes that in the modern different expectations are set for companies economy, return schemes and other disposal of from, among other things, industry, what products the purchased goods from the seller's side be part of the companies offer and where in the world production takes supplier chain, for example subsequent services in place. In the Ministry's assessment, it will connection with recycling of a thing or be an important part of corporate responsibility to parts of the thing. even assess whether their production inside carries the risk of negative impact on human rights. Therefore, according to the Ministry 7.4.2 The views of the consultative bodies assessment may not be appropriate to delimit 7.4.2.1 On the definition of business and supply chain the law based on a general assessment of what is risky products. When it comes to the law should exempt companies that do not import themselves It is only the Confederation of Norwegian Enterprise goods due to their inability to (NHO) which has commented on the definition of affect the supply chain itself, the ministry will "Business" in terms of the scope of point out that this will also be taken into account through duties of the law. NHO states that it does not look like the principle of risk-based approach and proportionality. the law sets some restriction regarding what parts of a business should be It is pointed out that enterprises that fall outside the covered by, among other things, the requirement for knowledge and scope of the Act can still be considered covered by the information. NHO believes it is obvious that UNGP and OECD guidelines and thus the obligations in the law are linked to the goods and expected to follow these. services offered in Norway, and not the goods and services The Ministry proposes a regulatory authority offered outside Norway. Other consultative bodies that corresponding to the committee's proposal which gives the have commented on the definition of King the power to decide that the law in whole or in part "Business", states the delimitation of shall apply to companies in Svalbard and Jan. obligatory subjects of the Act, see section 7.3.2. Mayen. The Ministry also proposes a corresponding With regard to the definition of supplier chain there, regulatory legal basis for the Norwegian bilands. UNICEF Norway believes that input factors are included See proposal for the Transparency Act § 2 and § 3 letter a. origin from recycled materials and components should be mentioned as part of the supply chain. The agency points out that the environmental benefits of large-scale 7.4 Scope of the Act - business, recycling industry is significant, but that the dangerous supply chain and business conditions when collecting recycled materials are often partner hidden. According to the agency, children often stay waste pickers on the street or in landfills. 7.4.1 The Ethics Information Committee's proposal Given the risk of injury, chronic illness and exposure to The committee proposes that the law ensure information dangerous substances, child labor is considered in these on basic human rights and recycling activities as the worst form working conditions «in enterprises and in suppliers there», for child labor. The instance believes that the definition cf. the committee's bill § 1. By «enterprise» the committee of supply chain is not clear enough and that it means companies, cooperatives, should also include processing and manufacturing association, sole proprietorship, foundation or of recycled input factors. other association, including publicly owned Bergen municipality believes that the definition of activities that offer goods and services, cf. the committee's supply chain may entail that the obligations of law bill § 3 letter a. will not apply if the business in its chain have individuals (including children) who eczema pelvis enterprises that supply products or input factors to an pick or collect raw materials and sell it enterprise, cf. the committee's bill in a local market. The business concept should Machine Translated by Google 2020–2021 49 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) therefore, according to Bergen municipality, is considered extended, internally «in companies and in supply chains», cf. possibly that it is added that the obligations also apply for example, the purpose of the Act in § 1, the duty of knowledge if individuals' contributions are included in the chain. in § 5 and the duty to provide information in § 7. Fair Trade Norway states that the focus on raw materials The consultative bodies point out that human rights must be raised and is explicitly mentioned in the law as violations are often not seen within the companies, part of the supply chain. The instance points out that and they are therefore concerned that the obligations are not in a number of products, the greatest risk lies in contributing to limited to influence in companies and in supply chains, but that violations of human rights in the raw materials sector. This is the law must also apply to influence coming, according to outside one's own business and the business' supply chains, instance, clearly stated in the US Department of Labor and that this is clarified in legal texts. The consultative bodies sin List of Goods Produced by Child labour or For ced Labour. highlight different groups affected by the business's activities, for NHO points out that the definition of supply chain sets for example indigenous peoples, local people, trade unionists important limits for the obligations under and human rights defenders, women, children, minorities and the law and that these boundaries should be so precise other vulnerable individuals as possible. Without clearer boundaries in the law and groups, and the environment. or in a proposition, the law, according to NHO, can be perceived FOKUS and RBA also highlight the seizure of land in as unlimited in terms of which suppliers the companies must connection with the development of have knowledge of. mines, dams or factories, pollution NHO urges the ministry to clarify of drinking water in tanning or clothing production, and the borders. NHO points out, among other things, that the term excessive use of force by security forces and "goods and services" forms part of guards against the locals. The Joint Council for the definition of supply chain, one should, according to Africa points out that they often see that local communities in The Ethics Information Committee's comments, calculate areas where companies carry out their activities are equally companies that have «a direct connection to affected by the companies' the company's business activities, products and violations of human rights as a core worker, for example services". According to NHO, there is a delimitation in through the acquisition of common land, the "direct" connection, as opposed to one breach of promises regarding the construction of infrastructure, indirect affiliation. According to NHO, one could destruction of hunting and fishing areas and pollution of imagine a distinction between suppliers who sell fixed assets, groundwater. The instance also pulls which the company / only it uses to generate income ("other forward that human rights defenders who take operating costs" according to the Accounting Act), and suppliers the struggle for one's own and others' rights and courage who contribute to the goods / services to be offered ("goods Environmental damage is often exposed to targeted costs") ). A "direct" connection attack. Fair Play Bygg Oslo and surroundings draws attention would then, according to NHO, apply to the latter. With accommodation that the employer rents out to the employee, reference to «the company's business activities» which is not a workplace, but which is often completely however, according to NHO, it is not clear whether it is dangerous with poor hygienic conditions, fire is dangerous and intended to be such a distinction. without escape routes, as well as cramped and expensive for employee. According to the agency, the employer can in addition to illegally monitoring, reading emails and abusing 7.4.2.2 On influences outside the business and ID, exercise social control and make threats. the supply chains The Bar Association, Amnesty International Norway, Coretta & Martin Luther King Institute for Peace Work, Fair 7.4.3 The Ministry's assessments Play Building Oslo and surroundings, Fair Trade Norway, Joint Council for Africa, FOCUS - Forum for 7.4.3.1 About the definition of business, supply chain and business partner women and development issues, Forum for Development and Environment, Ministry of Climate and Environment, OECDs The Ethics Information Committee proposes that the law's contact point, Raftostiftelsen, Save the Children, Regn obligations be linked to conditions «in the company and the skogfondet and Responsible Business Advisors company's supply chain». The term "activity" is used in two (RBA) comments on the text of the law, whether it concerns different meanings in the committee's bill. First of all, it is used the purpose and scope of the law or the various to describe the obligations imposed on companies exclusively focus on the subject of the obligation, but some places are also used human rights violations there to describe the activity and Machine Translated by Google 50 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) tenes range. According to the Ministry's assessment, it is chain »is somewhat narrower than the term« business appropriate to use different terms relations »according to OECD guidelines. Both pet on the subject of duty and the scope of the duties as "business relationships" are in the guidelines regulated. The Ministry therefore proposes that defined as «relationships with business partners, the term "business" is used to entities in the supply chain and any other non-governmental describe the activity and scope of the law or governmental entity directly affiliated with the company's duties. business activities; In the Ministry's assessment, what must products or services ». The Ministry is unsure whether it is the "business" is assessed on the basis of it has been the committee's intention to have the same entity that is assessed against the law narrower range than the guidelines, or about duty subject. The Ministry proposes in section 7.3.3 it has been intended that the wording "supplier chain" that in the assessment of whether a parent company is one should cover the same as the guidelines. However, the "Larger business" must consider the group as a unit. That definition seems to have formed is, the parent company the starting point for the committee's definition of «supply business includes the activity of chain». The challenge with the definition of both the parent company and the subsidiaries, regardless "Business relationship" in OECD guidelines of where the subsidiaries are registered. The parent is, however, that it does not have entirely clear boundaries. company's due diligence assessments should therefore This makes it challenging to provide a clear definition that include risks associated with both the parent company and complies with the guidelines. the subsidiaries' activities, regardless of where the In the Ministry's assessment, it will be subsidiaries are registered. This corresponds to appropriate that the definition of supplier chain there, and UNGP where, among other things, it follows from the other thus the scope of the law, as much as possible guiding principle of the state's task in chapter tel II that degree corresponds to what is covered by "business states should clearly state that they expect that relations" in the OECD guidelines. One solution could be all companies respect human rights to use the same term and definition as the OECD in all parts of its business. According to the Ministry's guidelines, ie «business relations». A legal regulation of assessment, the business activities of foreign companies expectations will include its activities to the business community, however, in the Ministry's the part of the business that is registered in Norway. assessment, it is necessary to have clearer branches for The Ministry emphasizes that the extent to which what is covered by the law, than what follows from the parent companies have legal access to varies OECD's guidelines. It will also after require the disclosure of information necessary for the Ministry's assessment be appropriate to to carry out due diligence assessments and publish use the term "supply chain" since this is information on foreign-registered subsidiaries, an established concept that is also in itself among other things as a result of national legislation and descriptive of what is covered. The Ministry whether the company is wholly or partly owned. According to the therefore proposes that the term «supply chain» be used Ministry's assessment, the parent company's obligations will follow in the law, as the committee proposes, but with the law had to be adapted to this. some adjustments in the definition. With regard to what should be included in the "supply The Ministry proposes that it be made visible in chain", some consultative bodies have played a role the definition that "supply chain" includes the whole in that the definition proposed by the committee is something the chain of suppliers and subcontractors such as narrower than the term «business relations» is part of a company's production of goods and which follows from the OECD guidelines, and which delivery of services. Suppliers 'and subcontractors' includes supply chains and business relationships that are business partners will be covered by the word sound, as not part of the supply chain. long as they supply goods and services Some consultative bodies have also asked questions which is part of the company's (ie the subject of the obligation) by whether the definition includes the raw material link, delivery of services or production of goods. input factors originating from recycled materials and With this, demands are made that it exists components, and whether individuals a business connection between the supplier's and contribution is included in the definition. It is also posed subcontractors' business partners and the business that is question whether a distinction should be made between subject to the obligation to direct and indirect contribution to the production of goods the law. Business partners who supply goods and and services. services to suppliers and subcontractors The Ministry agrees that it may seem like which is not included in the duty subject's delivery of the committee's proposal for the definition of «supplier Machine Translated by Google 2020–2021 51 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) nests and production of goods, will therefore not agency, etc. Suppliers 'and subcontractors' business covered. partners who supply input factors, goods or services to the The committee proposes that the concept of supply chain suppliers and includes all goods and services businesses the subcontractors and which are part of the company's which delivers products or «input factors» to (ie the subject's') supply of services and a business. In the comments to the provision is production of goods, will be covered by the definition it specified that "input factors" will be raw materials, of «supply chain». According to the Ministry's assessment, components, services as well as transport and other. the definition of «supply chain» and The Ministry agrees with this inclusion, and "Business partner" collectively corresponds to the definition suggests that the term «input factors» still of "business relationship" in the OECD guidelines. should be part of the definition of supplier chain. In the Ministry's assessment, effort will be factors originating from See proposal for the Transparency Act § 3 letter d and e. recycled materials and components are covered by the definition. What which is covered by the term "input factor" is specified in 7.4.3.2 On influences outside the business and the note to the provision. Although "raw materials" are in the supply chains principle covered by the term "input factor", the Ministry Several consultative bodies are advocating for the law proposes that should also apply outside one's own business and the it is made clear in the legal text that the supply chain company's supply chains, and that one looks beyond includes all links in the supply chain, from the raw material employer-employee dimension. The Ministry agrees that stage to the finished product. A sold item that stays the negative impact of companies is not limited to internal returned as part of the circular economy to stay conditions, but reused, may be included in a new supplier chain. that companies can also influence, for example local people, indigenous peoples, trade union leaders, but In the case of individual contributions such as human rights defenders, women, children, minorities and is part of the supply chain, the ministry agrees other vulnerable individuals and groups, and with Bergen municipality's input that this should the environment, as well as accommodation of employees etc. covered by the «supply chain», so that the obligations in In the Ministry's assessment, the law must the law will apply where the business in its chain has apply to all influences on fundamental human rights and individuals, such as children who pick or collect raw decent working conditions such as materials and sell them at a local is linked to its own business, supply chain or business market. However, the Ministry does not propose that partners, regardless of this is specified directly in the legal text, but proposes whether the consequences apply within an adjustment of the definition of supply chain or outside these. To delimit the scope of the law by using the wording "any" in the chain of to influence that is only seen internally, will in the Ministry's suppliers and subcontractors who supply assessment exclude influence that can input factors, goods or services included in have a major impact on basic human rights, and give the a business' supply of services or production of goods. With law of transparency a narrower the wording «any» must catchment area than desired. After the ministry also the contribution of individuals is included. This is also assessment, it has also not been the committee's intention specified in the note to the provision. to distinguish between negative influences within For the law to have the same scope as and outside the business and the business' supply chains. The OECD's guidelines, which also include business The sample shows, for example, in points relationships that fall outside the supply chain, propose 8.4.4.2 in the sample report to how far back in that the Ministry, in addition to the «supply chain», apply the supply chain law applies, and writes that certain the law to «business partners». The Ministry proposes that human rights in practice will be more vulnerable the term «business partner» includes anyone who delivers than others in specific industries or contexts, and that goods companies may be at risk of causing negative consequences and services directly to the business (ie. for people belonging to certain groups or parts of the the subject of the obligation), but which is not covered by population. the definition of «supply chain». This will include everyone which is in a direct contractual relationship with the In order to avoid future ambiguities about influences company, but which does not supply goods and services outside the company and the supply chain, that are part of the company's production, the ministry proposes changes to the committee's proposals for example, supplier of office supplies, rekla for wording. See for example suggestions for Machine Translated by Google 52 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Transparency Act § 4 first paragraph letter b where it regardless of whether the impact is internal proposed to clarify that the negative impact or outside these. This is also made clear in must have an affiliation with the business, supplier chain or the comments to the provisions. business partners. This will apply Machine Translated by Google 2020–2021 53 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 8 Duties of the law 8.1 Duty to have knowledge 8.1.2 View of the consultative bodies 8.1.2.1 Overall on the proposal 8.1.1 The Ethics Information Committee's proposal The Norwegian Bar Association, the Academics, Amnesty The Ethics Information Committee proposes that all International Norway (Amnesty), the Directorate of Labor companies that offer goods and services in Norway, and Welfare, Bergen Municipality, the Digitization Directorate, a duty of knowledge shall be imposed, cf. the committee's YWCA-YMCA, the Norwegian Journalists' Association, the law proposal § 5 first paragraph. This means that companies OECD contact point, Oslo Municipality, Save the Children, are obliged to have significant knowledge the Rainforest Fund, Responsible Business Advisors (RBA), risk of adverse effects on basics Tekna, the University of Bergen (UiB) and the Confederation human rights and decent work in own of Professional Organizations support the committee's business and in the business's supply chains. proposal that companies be required to have knowledge The purpose of the knowledge obligation is to increase about significant risk of adverse effects on awareness of human rights and working conditions in basic human rights and decent work in your own business all businesses, and to do business in and in the business able to respond to requests from the public, supplier chains. see section 8.3 on the duty to provide information. YWCA-YMCA states that a duty of knowledge, The scope of the knowledge obligation will, according combined with a duty to carry out due diligence assessments, to the committee's proposal, vary based on the size of the will contribute to the companies being held accountable, company, ownership and structure, activities, and will be decisive for the law to industry and types of goods or services. The committee be effective. UiB points out that there are large differences proposes that the duty of knowledge applies in all cases there in business maturity in the field, and pronounces risk of adverse effects is greatest, such as that a statutory duty of knowledge will set a standard, and risk of forced labor and other slave-like contribute to a simplified follow-up of contract requirements work, child labor, discrimination in employment things and against suppliers and equal conditions for all work, lack of respect for the right to businesses. The Digitization Directorate believes establish and join unions and conduct collective bargaining, the knowledge obligation will be positive for competition in as well as risk to health, environment the market as a generally elevated level of knowledge and safety in the workplace, cf. the committee's law proposal reduces the risk that suppliers on § 5 second paragraph. Due to lack of knowledge and lack of implemented due The knowledge obligation is proposed to apply to the diligence assessments are withdrawn from participation in company and the entire supply chain. According to the public competitions. The Directorate of Labor and Welfare committee, however, there is not an expectation that one states that a duty of knowledge will business should have detailed information about everyone help to mature the market and that it eventually suppliers and subcontractors. will be able to give the individual business better knowledge The proposal for the duty of knowledge is supported by of risk in their own business and supplier chain. Such insight a joint committee. Committee member Ditlev-Simonsen has can also, according to the instance, however, special remarks related to the duty. Dit lev- contribute to public clients' better position Simonsen points out that the duty in the first place suitable requirements. proposed to apply to all businesses that offer The OECD Contact Point states that it is crucial that the goods and services, but that the obligation is modified law is based on the already established expectations that somewhat through the reference to the risk-based approach follow from international standards there, and considers that in the provision. Ditlev-Simon sen believes this should be the proposed knowledge obligation clarified to a greater extent and complies well with the OECD guidelines for specified in the legal text. multinational companies. Machine Translated by Google 54 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the chains and with subcontractors, especially not in 8.1.2.2 Content and proportionality of the complex global value chains. KS Bedrift states knowledge obligation that the duty of knowledge must be in a factual relationship to The Ethics Information Committee proposes that the the size and turnover of the companies, and that companies should have knowledge of significant risks can not be expected that a smaller business should have negative impact on basic human rights and decent work. The knowledge of all aspects of the input factors construction industry down to the last paragraph. The National Association (BNL) and the Confederation of Telenor supports the special remark of Ditlev Simonsen Norwegian Business and Industry (NHO) believe that the content with regard to the differentiation of of the conventions on which the duty of knowledge is based is unclear. businesses must be clarified and specified in legal texts, as BNL states that it is important to have a clear description of the committee's bill sets out extensively the content of the obligations, and that the law is concrete requirements for businesses, even if it is set up to one must state the substantive provisions of the conventions that risk-based approach in line with UNGP. Orkla the duty of knowledge covers. According to NHO believes that the point of the risk-based approach must must companies in Norway and similar countries as well described more clearly in the legal text. BNL points to that be able to relate to the fact that national regulations for peace- the duty of knowledge, among other things, depends on some making the requirements in the conventions, and that the moments listed in the provision, however companies must thus be able to assume that points out that it is unclear what other factors human rights are safeguarded by complying with national which are relevant when the scope of the knowledge obligation rules. The companies must then, is to be determined. Accounting Norway believes the limit according to NHO, could not acquire the knowledge required for the duty of knowledge is discretionary and difficult to in the committee's bill. determine. BNL believes the proposal has not been assessed well enough The City of Oslo states that even if proportionality is up against complex products with many taken into account, it will be possible for one components, and indicates that a house builder does not small business to have a conscious relationship with which have the practical opportunity to have knowledge of the value goods that are most at risk and which importers, wholesalers chain for all the components of a house, including or suppliers one chooses to work with based on their attitude all nails and screws. Such knowledge will entail to, and any measures to contribute to respect for, fundamental significant costs. BNL thinks it is the most human rights. nearby that they are the ones who import the goods to Norway, which must have a knowledge obligation to supply According to Finans Norge and NHO, companies will the door chains to the products they import. According to always have knowledge of the identity of those they buy from. BNL, companies that buy goods that have already been However, the committee's bill presupposes imported do not have the same opportunities that the business must have additional knowledge both to influence the supply chain itself. BNL thinks about the supplier and about previous sales stages. according to that it does not appear clearly enough in the text of the law Finans Norge and NHO want this information that small businesses that do not import goods themselves, not be readily available to the business. NHO also believes will have a limited duty to investigate, and that that it will be difficult to assess your risk without knowledge of nor is it clear what the consequences will be how to do it for a company that passes on knowledge from buyer is produced. NHO further states that it must suppliers about this information later it is clear which conditions may indicate a lesser in-depth turns out not to be correct. knowledge obligation. The instance mentions The majority of the bodies that comment on as an example where one knows the supplier, that the duty of knowledge expresses the support of the committee production takes place in countries with respect for human proposal that proportionality and risk-based rights, that the purchases from the supplier approach is the basis for the knowledge obligation. are small or that you are a small customer with small The main organization Virke (Virke) states that influence. companies can be expected to have some knowledge of the Amnesty states that companies at their own risk risk of contributing to negative impacts should be allowed to use trustworthy business assessments in own business and supply chain, but that from their business partners. the scope of the knowledge obligation must depend on Amnesty refers to the committee's assessment that small and other of the business's size, ownership and medium-sized companies must be able to assume that structure, activities, industry and types of goods and services importers, wholesalers and suppliers lag behind per. It can, according to the instance, not be expected to supply chains, and proposes that small and medium-sized companies have an overview of everything that goes on in value enterprises be required to make this Machine Translated by Google 2020–2021 55 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) gen known. Such an assumption can, according to the body, 8.1.2.4 Risk areas the companies must always be communicated through a general public have knowledge of declaration, in line with the UNGP recommendation. Work points out that there are large differences between traders In the committee's bill § 5 second paragraph, a duty of who sell their own brands and those who sell knowledge is proposed in all cases where there is a risk other people's brands, and states that it must be negative impact is highest. According to NHO, the proposal possible for a business to refer questions to for the second paragraph complicates the content of the brand manufacturer, importer or wholesaler. knowledge obligation. In all cases, the listing in RBA and Fair Play Bygg Oslo and surroundings believe that the provision, according to NHO, be exhaustive. the duty of knowledge must be followed by a duty to act Oslo Municipality believes the wording is imprecise if a business becomes aware that a and can be read so that the listed violations are categorized provider violates basic human rights. According to the RBA, as worse than other types of violations knowledge of human beings has rights violations that are human rights and labor rights. not accompanied by action to Orkla believes that the wording can be interpreted as meaning that remedy this little or no value. It should, according to one should always have knowledge of serious violations Fair Play Bygg Oslo and the surrounding area, sanctions on human rights regardless of the scope are linked to breaches of this duty to act. of the companies' purchases from the relevant suppliers are pure and independent of the complexity of the supply chain. Fair Play Bygg Oslo and surroundings think 8.1.2.3 The concept of risk «significant risk« the duty of knowledge should be strengthened so that the The Ethics Information Committee proposes that the duty of knowledge about forced labor and other slave-like companies should have knowledge of "significant risk" for work is strongest closest to the activity in negative impact on basic human rights and decent work. the supply chain. The duty of knowledge will then be largest in the first paragraph, and somewhat smaller in the second paragraph, Finans Norge, NHO and Oslo Municipality state etc. that there is a need for clarification of the risk concept in the provision. According to Oslo Municipality, it is also 8.1.2.5 Scope of the duty of knowledge - Who is behind need for a clarification of how the term the influence and who is affected "Significant risk" must be applied in practice with consideration for small businesses. The majority of the bodies that comment on the duty of Tekna believes that the materiality of the bill erodes the knowledge express support for the committee's proposal threshold for the duty of knowledge. that no restriction be set. Tekna states that the companies must do enough related to how far back in the supply chain studies to understand the risk picture in their own the duty of knowledge shall apply. However, the Directorate company and in the supply chain. of Labor and Welfare states that it can YWCA-YMCA believes lack of opportunities be difficult for a business to determine where to free trade union organization must be considered essential there is a significant risk of a negative impact and how far risk of negative impact on human rights and decent work by back in the supply chain it is the companies is necessary to map. The Association of Financing therefore obliged to have knowledge of. Companies also believes that there is a need for one The Directorate of Labor and Welfare states that clarification of which supply chains it it is not entirely clear what the difference is between Some businesses are required to have knowledge of, and a risk assessment as a result of the knowledge obligation how far down in the individual supply chain in § 5 and the proposed due diligence assessment in the responsibility extends. BNL, Finans Norge and § 10. The body also points out that the regulations NHO believes that it must be clearer in the text of the law for public procurement requires that suppliers must have that the duty of knowledge does not apply to all sections routines to perform regularly in the supply chain. risk analyzes in own business and in the supply chain, cf. The Rules Council lacks a closer assessment of the Norwegian Digitization Directorate's (current what is the need and rationale for that all DFØs) contract terms, and that it can be unfortunate businesses in theory should have to map the whole if there is no correspondence between the law and the the supply chain to uncover a possible contract term. risk. The Rules Council points out that the committee in the report assumes that it is not expected that one business should have detailed information about everyone suppliers and subcontractors, but miss Machine Translated by Google 56 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) a discussion of whether, for example, it can be sufficient on information from consumers, civil society and if all companies go one step behind in the supply chain. others, see section 8.3. A duty of knowledge will be able to According to the Rules Council, one will contribute to the companies getting a more positive in this way avoid that all businesses in kje it must do the impact on the surrounding community, better relationships same job, and stakeholders and better reputation. This in turn can contribute to value will still be able to get a complete overview of the supply creation, among other things by reducing costs, chain. better understanding of markets and suppliers, At Tekna's discretion, the duty of knowledge must and strengthen risk management. apply to the supply chain in which the business is located The Ethics Information Committee proposes that all direct or indirect contractual relationship to. Amne sty and companies be required to have a knowledge obligation, and that the Rainforest Fund state that there should be one larger companies are required to perform clearer requirement for companies to map where in due diligence assessments. As the ministry sees the supply chain there is the greatest risk of negative that, the purpose of the duty of knowledge has been to impact, and that such a survey should also impose less burdens on smaller businesses include business partners. duties than those proposed for larger companies. As Fair Play Bygg Oslo and surroundings believe that for explained in section 7.3.3, the Ministry proposes that the conditions outside the workplace must be investigated and Transparency Act be limited to only covered by the knowledge obligation. The instance mentions apply to larger companies. When smaller businesses are for example, that accommodation that the employer rents out to not covered by the law, in the Ministry's assessment, a employee is not a workplace but is often duty of knowledge is not appropriate or necessary. The both hazardous to health with poor hygienic conditions, Ministry flammable and without escape routes, cramped and cost proposes that the enterprises covered by the law, bar for worker. shall perform due diligence assessments, see section 8.2. The duty to perform due diligence assessments presupposes and requires that the companies have knowledge 8.1.3 The Ministry's assessments on the risk of negative impact on fundamental human There is a general expectation that businesses rights and the decent has knowledge of its own operations and of its business working conditions in the business and in the business connections. The Ethics Information Committee's proposal supplier chains. The duty thus contains one for a duty of knowledge is a concretization of duty of knowledge. Unlike the duty to perform this expectation in terms of significant due diligence assessments, however, the duty of risk of negative impact on human rights and working ownership does not imply any duty to act or conditions that the company can duty to account for what risk has been identified or what be associated with. measures have been implemented. The duty to To respect human rights and Carrying out due diligence assessments thus requires decent working conditions, and deal with negatives significantly more from the companies. The Ministry consequences of their own activity, the companies must therefore does not propose a duty of knowledge. However, have knowledge of their own business and theirs it may be relevant to have a knowledge obligation in one supply chains, and what risk these pose any extension of the Transparency Act to include for negative impact on human rights smaller companies at a later date, cf. and working conditions. The purpose of the knowledge point 7.3.3. obligation is to seek to ensure knowledge of any significant risk of negative impact in one's own 8.2 Duty to perform business and the business's supply chains. The Ministry agrees with the Ethics Information Committee due diligence assessments that it is a duty to have knowledge of essentials risk of negative impact in own business and 8.2.1 The Ethics Information Committee's proposal in the business's supply chains will help to The Ethics Information Committee proposes that larger raise awareness and improve the risk management of companies carry out due diligence assessments to identify, companies with regard to their impact on society - both in prevent and limit possible terms of human rights negative impact on basic human rights and decent work, and working conditions. Knowledge can enable businesses and account for to anticipate and prevent, or how this is handled, cf. the committee's bill limit negative impact. It will also set § 10 first paragraph. businesses able to respond to requests Machine Translated by Google 2020–2021 57 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The committee's proposals for due diligence assessments are decent work and significant risk of such derived from the UN Guiding Principles on Business and impact. Human Rights (UNGP) and the OECD c) Results of the due diligence assessments, including guidelines for multinational companies, and shall measures to limit serious risk or carried out in line with these. Careful assessment is a damage and correct negative impact where it separate process that will enable the companies to map, is required. prevent, limit and account for their handling of actual and The second paragraph must be seen in connection with the committee's potential negative impact on fundamentals proposal for § 7 on a right to information. It must human rights and decent work. With also seen in connection with requirements for reporting "Negative impact" is meant, according to the committee on social responsibility in the Accounting Act § 3-3 c before comments on the provision, consequences such as the first paragraph, where information is required in the the business has either caused or contributed to, annual report on «guidelines, principles, procedures or which are directly related to the company's business, and standards »used by the company, among others products or services through a business relationship. By with regard to human rights considerations. consequences that the company has "contributed to" is The statement pursuant to the second paragraph shall meant an activity that in all cases include information on risk and measures causes, facilitates or encourages that consideration for forced labor and other slave-like another device causes adverse effects. The work, child labor, discrimination in employment things and does not include minor or trivial contributions. This work, lack of respect for the right to The understanding stems from Chapter II of the OECD's establish and join trade unions and conduct collective guidelines for multinational companies. bargaining, as well as health, safety and the environment, In the note to the provision, the committee writes cf. the committee's proposal for the third paragraph. that the due diligence assessments must be risk-based, The statement pursuant to the second paragraph may be included in repetitive and preventive. The species and the statement on social responsibility pursuant to the The scope of the assessments and the measures that are Accounting Act § 3-3 c or published elsewhere implemented will depend on factors such as the company's way, cf. the committee's proposal for the fourth paragraph. size, context and severity of the negative impact. Mapping The information must be easily accessible. The annual and assessment of report shall state where the report is located negative impact requires an overall analysis of publicly available. The statement will follow own business and business connections. Important initial the committee's proposal for § 10 fifth paragraph is signed assessments can, for example by the general manager and board. be whether the operating area or production process is The proposal to carry out due diligence assessments particularly risky, or whether the environment is at particular and publish a statement supported by a risk. A key part of the activity is to overall selection. prioritize risk for further assessment and handling. When the risk of adverse effects is truly visible and serious, it will require more extensive 8.2.2 The views of the consultative bodies assessments and measures. The assessments and measures must be adapted to the types of negative impact it 8.2.2.1 Overall about the proposal applies. A number of consultative bodies have commented on the The companies must, according to the committee's proposal committee's proposal that larger companies should carry § 10 second paragraph, of own initiative at least make public out and publish due diligence assessments. The bodies that account for the following with regard to own business comment on the duty are and supply chains: positive to this and that it builds on those already a) A description of the structure of the business, established the expectations of, among others, UNGP and operating area and supply chains, including OECD guidelines. Some consultative bodies control systems and warning channels to prevent or has, however, input into the duty's objective scope, scope, reduce adverse effects on subjects of duty and the public sector fundamental human rights and the statement. working conditions. The consultative bodies that support a duty of care b) The companies' due diligence assessments, here under assessment are the Norwegian Bar Association, Amnesty information on negative impact on International Norway (Amnesty), Bergen Municipality, fundamental human rights and Changemaker, Coretta and Martin Luther King Institute for Peace Work (King Institute), Digitalisation Machine Translated by Google 58 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Directorate, Equinor, Ethical Trade Norway, Fai rtrade 8.2.2.2 The content of the due diligence assessment Norway, Joint Council for Africa, Consumer Council, Forum and the relationship to UNGP and OECD for Development and the Environment, The future of our hands, Salvation Army, YWCA-YMCA, Church guidelines Norwegian Aid and the Christian Council of Norway, Bergen Municipality, Changemaker, Master Green Kongsberg Grup pen, Latin American Groups in Norway and the Confederation of Norwegian Enterprise (NHO) are (LAG), Norwegian Institute for Human Rights (NIM), concerned that it appears more clearly in the law Norsk Hydro (Hydro), Norsk Journalistlag, OECD or the proposition what a due diligence assessment kontaktpunkten, Orkla, Raftostiftelsen, Regnskogfon det, is and what is expected of businesses to Responsible Business Advisors (RBA), Stat kraft, Telenor, perform a satisfactory due diligence assessment. Universitetet i Bergen (UiB), Viken Master Green states that clarity will ensure that County Council and Yara International (Yara). does not become a disproportionate burden for companies to According to NIM, the companies' due diligence call is implement the requirements of the law. The requirements of the law must far from the key mechanism below also, according to the instance, be possible to implement UNGP to achieve that companies respect but human rights. without the companies having to deal with cost only Ethical trade Norway states that memberships or consultants. Bergen municipality says that all their members have committed themselves to follow it varies greatly where Ethical trade Norway's declaration of principles which is thorough and comprehensive due diligence assessments based on the leading international standards is, and that it often appears as routine descriptions such as UNGP, and where due diligence assessments are of a more general nature. LAG states that clearer the basic method of the members requirements should be set in the business assessments work with ethical trade. Forum for development and to companies' stakeholder dialogue and that the due environment states that due diligence assessments are a diligence assessments should also include analyzes of excellent tool for mapping and prevention the power relations between business and local discoveries. Damage. The Consumer Council states that a duty to carry out due diligence assessments helps to set Several consultative bodies are concerned that the duty more focus on the issues in the companies of care assessment is based on and complies with who today do not work adequately with challenges related with the UN Guiding Principles on Business and to ethics and dignified working conditions. Human Rights (UNGP) and the OECD Guidelines for The Norwegian Bar Association states that due diligence Multinational Enterprises. This applies to NIM, among assessments will be able to contribute to awareness of others, which states that it is important human rights and opportunities for influence, among other things by and good grip that it is built on UNGP which is it that it is facilitated that companies can already prevailing standard in the field. The OECD contact implement measures to reduce risk and correct point also supports the bill's principle negative impact on human rights. This that the due diligence assessment must comply with is also, according to the body, in line with the international UN guiding principles. This implies, development that is moving towards more legal regulation according to the OECD contact point, that the requirement, within both in individual countries and at European level. the area of the Act, also complies with the OECD's guidelines UiB states that the duty of care assessment is in and the requirement there to carry out business assessments. in line with their desire for simplified follow-up of contractual requirements against suppliers. Viken County NHO states that many larger companies Municipality states that the obligation to carry out business already engaged in systematic assessments, assessments may entail additional work, but among other things according to UNGP. For the companies, that the benefit to society and the individual business and probably for those who request information, it will, compensates for this. Changemaker states that it is according to NHO, be a great advantage that highly commendable that the bill requires that Norwegians is a common set of principles that is applied regardless of companies perform due diligence assessments. The agency where in the world the activity takes place. The department states that it is morally correct, fair and should, according to NHO, therefore make sure that a law effectively that companies themselves take responsibility is designed so that the application of these principles will for human rights violations in their supply chains, rather be in line with the law. Equinor, Hydro, Kongs berg Gruppen, than consumers having to take responsibility for acting ethically. Statkraft and Yara also think so The YWCA-YMCA states that a duty of care assessment, It is important that the selection has been so close together with the duty of knowledge and information, will UNGP in key parts of the bill, and that they help to make the companies responsible and material requirements for due diligence assessments and is absolutely crucial for the law to be effective. active information obligation thus no longer goes Machine Translated by Google 2020–2021 59 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) than many companies have already committed to include environmental impact, see section 7.2.2.2 to. The authorities further state that it will be for a more detailed discussion of this. important that a final legal text reflects the wording and concepts from UNGP. Together with the preparatory work it will, according to the authorities, clarify that it is UNGP 8.2.2.4 The scope of the due diligence assessment - which is the basis for how companies should who is behind the impact and who is affected meet the requirements of the law. Norwegian Church Aid and Norway The Christian Council states that it is very important that NHO encourages the ministry to clarify in The business community is committed to implementing good and the legal text who is to stand for the negative thorough due diligence assessments so that human rights the impact to be covered by the companies' violations can be proactively prevented. according to due diligence assessments. The instance indicates that Changemaker and Norwegian Church Aid and Norway the duty of knowledge, according to the Ethics Information The Christian Council should make satisfactory due diligence Committee's proposal, applies to influence from «own business assessments as close as possible to those described in the and the company's supply chains», and that UN Guidelines for Business and Industry. the duty to account for the due diligence assessments human rights and the OECD Guidelines for applies to influence from «own business and supply chains», multinational companies. The RBA believes that an explicit while the proposal for § 10 to perform reference in the law to the OECD's guide for business due diligence assessments do not have such a delimitation. assessments for responsible business will Nevertheless, it follows from the special remarks that strengthen the law and the understanding of what lies in one aims at «consequences as the business business assessments for both consumers and others either caused or contributed to, or as stakeholders and not least the companies themselves. directly related to the company's activities, products or services through a business relationship ». 8.2.2.3 The objective scope of the due diligence NIM points out that the committee's bill differs assessment from UNGP in that the requirements for due diligence according The OECD contact point points out that the bill to UNGP are linked to all of the company's principle of due diligence assessments mainly is "Business relations", while the committee's bill seems to be in accordance with OECD guidelines and OECDs based on a somewhat narrower approach guide for due diligence assessments, but that the bill is also by using the more delimiting wording somewhat limited compared with «Supplier chains». NIM emphasizes that it does not these. The body points out that due to the delimitation in the It is necessarily a problem that in national legislation one takes mandate, corruption and effects are on a narrower approach than that which follows from more the external environment not covered by the proposed requirement "voluntary" schemes, but that it is nevertheless okay to be to due diligence assessments, as long as it does not at the aware that the expectations same time lead to a violation of human rights. The body according to UNGP, which many Norwegian companies emphasizes that the expectations in already follow or will follow, contains more. The OECD's guidelines for conducting due diligence The Rainforest Fund states that it should come assessments cover more areas than the committee's bill. more clearly states that the due diligence assessments should OECD guidelines set out expectations for companies to include the business' value chain. Fairtrade exercise due diligence in the following areas: human rights, Norway states that the due diligence assessments as well should cover the supply chain, including the raw material employment and the relationship between the parties in chain, where there is a known risk, see also point working life, environmental protection, combating bribery, 7.4.2.1. The Consumer Council points out that the EU bribery and extortion, Commission in the action plan «Financial Sustainable consumer interests and disclosure of information. Themes Growth »from 2018 states that requirements should be set related to, among other things, the environment and corruption that companies must prepare due diligence assessments will, according to the OECD contact point, continue linked to their supply chains. form an important part of the guidance of companies in Several consultative bodies, including Amnesty, their work with due diligence assessments for that Forum for Development and the Environment and the Rainforest Fund, they must comply with OECD guidelines. believes that the duty to perform due diligence assessments Several consultative bodies, including Amnesty must include external influences on, among other things and the Forum for Development and the Environment, mention that the duty indigenous peoples and locals, and not just within to conduct due diligence assessments must expand the business itself. The Rainforest Fund states that they most serious human rights violations, and Machine Translated by Google 60 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the consequences of environmental damage, often not seen Virke states that to prioritize the most serious within the business. See section 7.4.2.2 for a more detailed risk first, does not mean any basic discussion of this. human rights are more important than others, cf. UNGP and the OECD's guide for due diligence calls, but that a company rarely has the resources to work with all basic 8.2.2.5 The concept of risk - possible human rights at the same time and in a good way. The method negative impact The King Institute believes that the concept of risk must be behind the due diligence is therefore that it does not clarified in order to facilitate that companies carry out due everyone is expected to work on everything. Fairtrade diligence assessments and mediate Norway states that due diligence assessments are demanding, the account of the process on such a meaningful and that a proportionate assessment must be used as a basis, way as possible. The instance points to that misinterpretation as stated in of the concept of risk can lead to critical conditions UNGP principle 14. overlooked and that resources for measures are not used there Some consultative bodies have recorded that the principle it is needed most and will have the greatest effect. After two years of a risk-based approach can be with the french precautionary law, it is seen that companies clarified in the law. NHO points out that the committee interpret the concept of risk differently, somewhat report and draft of § 10 express that the duty which has led to the law not working so effectively in to assess due diligence is relative, but that the draft law does practice. Although the French law is clear in its not provide guidance on this, as the draft law to intention, 75% of the companies have mapped the duty of knowledge does. NHO further states that risk based on the understanding of what constitutes risk the ministry should consider giving clearer expression for the company and not based on what constitutes risk for the due diligence assessments to be risk-based. Also for humans. This is explained by the fact that traditional Equinor, Hydro, Kongsberg Gruppen, reporting is often performed with a focus on risk Orkla, Statkraft, Telenor and Yara want the point about the for the business, something the businesses can have risk-based approach to be described more clearly in the legal transferred to this obligation. text. Orkla points out that by legislating NHO states that they read "possible" negatively the requirement for due diligence assessments will business influence as an indication of a fairly low degree of be imposed a large additional responsibility, and that it is therefore probability, but that it is unclear whether this applies regardless It is important that the legal text is designed so that unrealistic of the consequences. expectations are not set for what the company can and should The Directorate of Labor and Welfare states that do. it is not entirely clear to them what the difference is BDO assumes that one should avoid that the reporting between a risk assessment as a result of the knowledge obligation is shifted down to subcontractors, obligation and the proposed due diligence assessment. something BDO understands has been a challenge in England. BDO therefore recommends that the legal text specifies that the due diligence assessments are imposed by the main contractor / client, 8.2.2.6 In particular on the principle of risk-based also for the part performed abroad. This approach and proportionality can, according to the instance, reduce the room for maneuver Amnesty, Ethical Trade Norway, Equinor, the main organization for the actual subject of duty to shift responsibility Virke (Virke), Hydro, Kongsberg over to subcontractors, which in particular will The group, Orkla, Oslo Municipality, Regnskogfon det, Statkraft be important to prevent in the construction industry and Yara support that the scope of the due diligence where medium-sized and large players already have assessment is based on a risk-based Very low margins and new reporting obligations can quickly approach adapted to the business, in line with become a significant burden. UNGP and OECD guidelines. According to Amnesty, companies normally will not have detailed information about all suppliers and 8.2.2.7 Statement of due diligence assessments subcontractors. Due diligence requires that The Consumer Council states that the publication of information it examines which parts of the supply chain, related to the due diligence assessments makes a more if any, which represents such a risk that close more research comprehensive picture of the work done is required. According to Amnesty, the scope will be greatest at larger companies and makes it easier to compare the for companies players. The Bar Association is positive operating in particularly demanding sectors. to the publication of due diligence assessments complements the requirement for a statement on social responsibility Machine Translated by Google 2020–2021 61 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) according to the Accounting Act § 3-3 c and that the reporting Equinor, Hydro, Kongsberg Gruppen, Stat kraft, Telenor can be coordinated and take place in the annual report or otherwise and Yara state that they are satisfied with similar document, cf. the Accounting Act § 3-3 c that modern slavery is included in § 10 third paragraph fifth paragraph. which contains a specific requirement for that companies Bergen municipality thinks it appears as publicly account for risks and measures with regard to unclear what the companies are obliged to publish. to forced labor and other slave-like work. The provision in § 10 second paragraph letter a) could, The King Institute states that it is important to make clear according to the instance, with advantage been more concrete which definition is used in connection with through a more detailed definition of what lies forced labor and other slave-like work in in the term «description». the legal text itself. Furthermore, the King Institute believes that NHO states that this is the duty to publish it is crucial that human trafficking is included in proposed design, it may imply that companies must provide the actual legal text in connection with risk and measures information about suppliers. This which companies must account for. This is, may imply that the information identifies suppliers and that according to the body, in accordance with the UN the information has a content such as Guiding Principles for Business and Human Rights (UNGP) the supplier disagrees with or exposes the supplier to the as human trafficking falls pursuit of authorities or business relations. NHO believes that under its definition of human rights violations committed by businesses third parties as companies should not be required to publish such and employers. The body states that it is crucial that a law information. binds Norwegian companies The King Institute states that it is necessary to carry out due diligence assessments and infor more public, with a clear description of what is meant covers current conditions in Norway, with the word «risk» as the statement in § 10 other as well as internationally to avoid getting one paragraph letter b must be attached to, see section 8.2.2.5. two-part system. The Rainforest Fund states that the report The future in our hands states that it is important on due diligence assessments should include that the reporting on the due diligence assessment living wage and living income, cf. section 10, third paragraph. not just about corporate action, but Mester Green states that it is important that reporting also what effect these have. Also the King Institute in other contexts there is sufficient documentation of, for states that in order for the law to achieve the greatest possible effect example, the due diligence assessments. in practice it will be necessary to have your own This is for businesses that already have one point that binds large companies to clarify significant use of resources on various reporting requirements the effect of the company's implemented measures. to various public bodies, do not get one The body states that if the report only focuses on the additional load. measures a company has implemented The Norwegian Journalists' Association does not agree that it should on the basis of the due diligence assessment, and not on be voluntary to include the report on due diligence what the effect of the measures has been, then the law can be assessments in the report on corporate social responsibility more process-oriented than result-oriented. King pursuant to the Accounting Act § 3-3 c. Norwegian The institute further states that it is necessary to establish an Journalist teams believe this must be turned into a duty evaluation framework so that the companies themselves woodcut. The body further states that the wording know what concrete effect they have achieved year by year that the statement «is published elsewhere by measuring real change. Et way »becomes too vague. The agency points out that the evaluation framework also provides the companies special comments state that the information required must be the opportunity to continuously work on the due diligence visible on the companies' websites. process and adjust the measures along the way if so that it is easily accessible to various users. it is necessary so that they through the measures up to This clarification should, according to the achieve the best possible result. The agency further believes that be explicitly stated in the wording of the law. In addition, the it is necessary that the businesses along with body believes that it must be possible to demand that an evaluation framework also uses a result framework where, the information is up to date. The due diligence assessment on the basis of the due diligence assessments, an account is must, according to the body, be checked regularly, and given of what the objective for The latest online version must reflect current assessments. the measures are, what sub-goals the companies set, The Norwegian Journalists' Association therefore proposes the and what is the desired result. The businesses following wording: «Report pursuant to the second paragraph shall can thus, according to the instance, refer to a long-term be included in the statement on social responsibility after progressive plan that identifies sub-goals year by year. Accounting Act § 3-3 c. Updated information shall be published on the company's website ». Machine Translated by Google 62 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The King Institute states that it is crucial that The Digitization Directorate states that publicly a central public register is created where published due diligence simplifies and large companies are required to publish an account of the streamlines public procurement. The instance due diligence assessments they have made states that transaction costs for public in addition to publishing in their own annual reports and enterprises to comply with section 5 of the Public Administration Act on their own websites. The King Institute states that with a procurements are significantly reduced with the opportunity public register where all obligatory companies account for to use published due diligence assessments the processes they have performed will the effect of the law for high-risk acquisitions. Instead of performing time- get stronger from the start. It will also, according to the instance, consuming manual reviews of self-reporting reported by the be easier for investors, civil society organizations, suppliers, the suppliers' published due diligence assessments consumers, academics and authorities to monitor the can be used as a starting point for contract follow-up. development and quality of the work carried out by the companies. Et public register where all data is gathered in one place Amnesty states that the duty to publish can will to a greater extent drive forward the best practices of contribute to the fulfillment of other frameworks, for companies from the start. example The Accounting Law Committee's proposed rule in The King Institute points out that one of the strongest NOU 2016: 11 § 9-6 and Directive 2014/95 / EU on criticisms of the UK Modern Slavery Act have been publication of certain large companies and groups that the authorities did not establish a public register from of non-financial information and information the start. Without a public register, it has, on diversity. according to the instance, been difficult to control which companies are required to report. Until now, Business and Human Rights has Resource 8.2.2.8 Obligatory subjects Center (BHRRC) operated a public register as Some consultative bodies generally support the law several civil society organizations merged distinguishes between large and small companies, see about establishing. There is now, according to the instance, one point 7.3.2. Digitization Directorate, RBA and process in which the British authorities are engaged Virke explicitly supports that only larger companies are to establish a public register with guidance from required to carry out and publish business assessments. BHRRC. In France, there has also not been a public register, but a register that NIM states that the proposed requirement for due the civil society organization Sherpa has established diligence differs from UNGP in that it according to the British model. In Australia they have does not apply to all companies, but only the largest ones. attached a public register to the law. NIM emphasizes that it is not necessarily one Equinor, Hydro, Kongsberg Gruppen, Stat kraft, Telenor problem that in national legislation one takes a narrower and Yara state that the law should be approach than that which follows from more "voluntary" clearly on in what time period a statement from schemes, but that it is still okay to be the general manager and the board are valid. aware that the expectations of the UNGP, which NHO states that the ministry should consider whether many Norwegian companies already follow or want to It is appropriate that the businesses, instead follow, accommodates more. for an annual report, has the opportunity to provide the Amnesty, Joint Council for Africa, The Future of information dynamically as the companies develop the work. our hands, the Salvation Army, the OECD Contact Point, NHO also states that the ministry should consider whether the Rainforest Fund and UNICEF Norway state that it is appropriate that the duty to carry out due diligence assessments a statement with so many discretionary should apply to all companies, regardless of size. Amne sty, considerations and assessments must be signed by the OECD contact point and the Rainforest Fund the board and general manager. NHO points out, among other things, that states that the industry and countries in which it operates the legal responsibility that such case processing may are of greater importance than the company's size. entail, means that the documents treated very thoroughly to get a precise in hold. According According to Amnesty and the Rainforest Fund differ to NHO, it is possible that a duty imposed on the company UNGP not between small and large companies, however as such, gives more meaningful statements than if they the expectations of diligence are different. The consideration must be signed by to the limited resources of smaller companies can, the board and general manager. Accounting Act § 3-5 third according to Amnesty, adequately taken into account paragraph should, according to NHO, in any case apply to the through good public guidance and the relativity of statement. the standard of care. Machine Translated by Google 2020–2021 63 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The OECD Contact Point points out that the UN's guiding The Ministry agrees with the consultative bodies on the principles and OECD guidelines apply usefulness of this duty. After all multinational companies regardless of industry and the ministry's views are due diligence assessments a size. In a transition from voluntary expectations key mechanism under the UNGP and OECD guidelines, and to statutory requirements, the contact point can see that it a key tool in international regulatory development at European may appear more feasible for larger level and in company to comply with § 10. In that the method and single country. The Ministry also notes the scope of due diligence assessments, after Some consultative bodies' input that follow-up of claims The OECD's guidelines and the UN's guiding principle per, against suppliers will be easier to must be adapted to the company's size, context carry out when the duty to carry out due diligence and the severity of a negative impact, can assessments is statutory. After the ministry even smaller businesses comply with the requirement to assessment, this duty is expedient and expedient, and the conduct due diligence assessments. Ministry therefore proposes that The Rainforest Fund believes it is important that each the law contains such an obligation. company incorporates assessment and prevention of Some consultative bodies have stated that all companies human rights and environmental risks in their corporate must be covered by the obligation to carry out business culture. This is because all companies, regardless of assessments, regardless of the size of the business. The size, may risk violating human rights and cause environmental Ministry sees that there are good reasons damage. The Salvation Army also points out that there is to extend the obligation to apply to all businesses. exploitation in small and medium-sized companies. As for the law in general, the ministry proposes however, that the obligation to carry out due diligence calls According to NHO, the ministry should consider whether should only apply to larger companies, see it is appropriate to regulate risk-exposed sectors. mentioned in section 7.3.3. Some consultative bodies have stated that the duty to perform due diligence assessments must be extended to include more than basic human rights and decent working conditions. It shows 8.2.3 The Ministry's assessments among other things, that the expectations in the OECD's 8.2.3.1 Overall about the proposal guidelines for performing due diligence assessments Business prudence assessments act includes human rights, employment and to investigate and manage the risk of negative impact on the relationship between the parties in working life, the environment, human rights and the decent bribery and corruption, consumer interests working conditions. The due diligence assessments apply and disclosure of information. Special is only factors that the company has a certain effect on, which many bodies concerned with that duty to perform presupposes a certain connection between the company and due diligence assessments are extended to also apply the risk. The purpose environmental impact. The ministry sees that it is good with the requirement to perform due diligence assessments is reasons to expand to other areas such as the environment, to limit negative consequences and for the general public to but suggests at this point that the duty to perform have access to information about these conditions. due diligence assessments apply fundamentally human rights and decent working conditions as proposed by The duty to perform due diligence assessments has the Ethics Information Committee generally been well received by the consultative bodies. for duty and the law in general. The Ministry shows The agencies emphasize that the duty is based on the to the planned evaluation of the Act after it has worked for a already established expectations from, among others, the UN period in which the input related to the inclusion of other Guiding Principles on Business and Human Rights (UNGP) areas, including the environment, will be assessed in more and OECD Guidelines detail, cf. section 7.2.3.3. What to for multinational companies, and that due diligence covered by the due diligence assessments must be seen in assessments are considered to be an important tool for context of what is covered by the definition of fundamental mapping and preventing negative impact on human rights. human rights and Several agencies highlight decent working conditions, see section 7.2 for a also that the duty will be able to contribute to increased awareness further discussion. about human rights and decent working conditions in the Although the consultative bodies are generally positive companies and in their supplier chain there, especially in the to a duty to perform due diligence assessments, has companies that currently do not have sufficient jobs. several of them input into the design of the duty. The bodies are concerned that the requirement is based on Machine Translated by Google 64 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) expectations from, among others, UNGP and The Norwegian Consumer Agency, which the ministry OECD guidelines and that the law is clear on proposes as the supervisory and guidance body for the what is expected of the companies in the implementation of Transparency Act, will also play an important role in specifying due diligence assessments. The instances have the duty. At the same time, the OECD's contact point in also input to the scope and scope of the duty, and mandate to guide companies in how to comply with OECD to the duty to report. This is discussed in more detail in guidelines. Although the Ministry's intention is that the duty to the points below. carry out due diligence assessments under the Transparency Act in terms of content must be based on OECD guidelines and thus 8.2.3.2 Relationship with UNGP and interpreted equally, it will nevertheless, in the Ministry's OECD guidelines assessment, be a natural and unavoidable consequence of Several consultative bodies are concerned about the duty to having two guidance bodies in the field that perform and publish due diligence assessments one will be able to experience situations where the duty to builds on and matches the already established ones perform due diligence assessments in accordance with the expectations in the UNGP and OECD guidelines. Transparency Act and the expectations that follow from the The Ministry agrees that the duty must be performed so OECD's guidelines are interpreted differently. To the greatest extent possible that it corresponds in content To avoid the development of different interpretations, the Ministry what the UNGP and OECD guidelines expect from is therefore concerned that the Norwegian Consumer Agency and the businesses. An enterprise that fulfills the obligation to The OECD's contact point works closely together, see perform due diligence assessments under the Transparency point 9 for a more detailed discussion of the supervision and Act must in principle be able to add guidance task. due to the fact that it also meets the recommendations in The Ministry points out that the objective scope of the Act UNGP and OECD guidelines regarding is proposed to be limited to the basics due diligence assessments related to human rights and decent human rights and decent working conditions, cf. section 7.2.3. working conditions. The Ministry is therefore concerned that The objective scope of the duty the Transparency Act is implemented in line with international proposed to be delimited accordingly. As OECDs principles and guidelines materially go beyond the Transparency Act by also guidelines in order to avoid companies having to carry out two requiring due diligence assessments for, among other things, different due diligence assessments for human rights and the environment and combating bribery, etc., companies must decent also carry out due diligence assessments related to these working conditions under the Transparency Act, respectively areas in order to and the international principles and guidelines. The Ministry meet all the recommendations in the OECD guidelines. therefore proposes to specify in the legal text that the due diligence assessments must be See proposal for the Transparency Act § 4 first paragraph. carried out in line with OECD guidelines. In the Ministry's view, due diligence carried out in accordance with the OECD's guidelines will also be in line 8.2.3.3 General information on due diligence with UNGP. assessments and the principles of risk- One challenge with this approach is based approach and proportionality however, that OECD guidelines are vague. This As explained in section 8.2.3.2, the Ministry makes it challenging to design the duty to perform concerned that a due diligence assessment under the due diligence on a clear and distinct Transparency Act corresponds to what is expected in one way, without going too far from the guidelines. due diligence according to UNGP and OECD guidelines. The The Ministry has therefore tried to do as much as possible guidelines give the companies degree clarify the duty in the law, and give further flexibility to adapt different elements, measures and explanations in the notes to the provision. For routines in the due diligence assessment to own context. For to ensure that the duty of the Transparency Act to carry out due a more detailed description of due diligence assessments, see diligence assessments is interpreted as much as possible in line with the OECD's guide for due diligence assessments for responsible with OECD guidelines, the legal provision must business and industry. and the note to the provision is then supplemented by what the sectoral guides for which the OECD has prepared follows from the OECD's guide for business assessments for different industries. The method for due diligence assessments responsible business and in the sector supervisors corresponds with the approach in the the sectoral guides for which the OECD has prepared OECD's general guideline on due diligence assessments, but different industries, see section 8.2.3.3. provides more detailed recommendations adapted to specific industries or sectors. It is Machine Translated by Google 2020–2021 65 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Box 8.1 The steps in a due diligence assessment The OECD's guide for due diligence assessments for 3) Stop, prevent or reduce negative impact / damage: responsible business - An introduction they describe This step is about handling findings from the survey, different steps in a due diligence assessment as follows: by both 1) Anchor accountability in policies and governance stop own negative influence, and to develop systems: This step is about having and implement plans and routines to prevent future relevant guidelines and plans for business negative impacts. assessments adopted by management. 4) Monitor implementation and results: This Guidelines and plans should cover the whole The step is about making sure your business has the business, the supply chain and business enough information to consider about that connections. It is important that responsibility for done actually works. Good systems to to conduct due diligence assessments is record and manage information forms clearly located and that everyone involved knows what also the basis on which the business can they should do. This step is also about communicate remotely. to contribute to responsible business operations of 5) Communicate how the impact is handled: This step is suppliers and business associates, through about communicating externally about how the agreements and contracts. business 2) Map and assess negative impact / damage handles risk, and on how harm in based on own business, supply chain and for own business and in the supply chain or directional connections: This step acts in other business relationships is hand tert. about identifying the business's possible and Communication with affected rights holders is actual negative impact or damage, important. included in the supply chain, in order to prioritize the 6) Ensure, or collaborate on, recovery and most serious risk to people, society and the replacement where required: This step environment. It's about to is about repairing the damage the company has first form an overall risk picture, for caused or contributed to. It's action too so to prioritize risk areas for more thorough to ensure, or cooperate with, that they mapping and measures. Furthermore, it is about who is injured or potentially injured, has access to a to assess how the company is involved in grievance procedure to any negative impact, to determine the correct get their case heard. response. Stakeholder involvement is central. also prepared an introductory guide for due diligence due diligence assessments. Not all measures are like that assessments that provides a more concise description. will be appropriate and relevant in any context, and it can also be in some cases According to the OECD's guide for due diligence, a correct to implement measures that do not emerge due diligence assessment consists of six by the supervisor. The OECD's guide also adds some different steps, see box 8.1. According to the Ministry's central principles on which the duty to perform assessment, due diligence assessments under the due diligence assessments, see Box 8.2. According to the Transparency Act should consist of the same steps, department's assessment, the same principles should apply adapted to the objective scope of the Transparency Act (basic apply to due diligence assessments under the Transparency human rights and decent working conditions). The Ministry Act. proposes to make the steps in the legal text visible, and OECD guides are dynamic documents that an explanation be included and will therefore be subject to change, which will also the note to the provision. For a closer and involve a change in what will be expected of the companies more specific description of the various steps, however, under the Transparency Act. It is therefore important that refer to the OECD's guide. Here is given the companies stay up to date and follow any new versions there are also examples of practical measures related to of the guide. This every single step. The measures mentioned are not also applies to any changes in UNGP and intended to be an exhaustive checklist for OECD guidelines. Machine Translated by Google 66 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Several consultative bodies are concerned with height for companies' resources and that the companies companies' due diligence assessments, in line with operate in different industries and markets, see The UNGP and OECD guidelines are based on the also mention in box 8.2. Reference is made to the OECD's principles of risk-based approach and proportionality, and guide there for due diligence assessments for those responsible that this is made visible in the law. The Ministry agrees that business life pages 46 and 47 which give examples of these are key principles how resource constraints in the business for the duty to perform due diligence assessments. can be handled and how due diligence assessments can The risk-based approach means that the ceilings that a be adapted to the business context. The Department agrees company implements in the due diligence assessment with the consultative bodies that should correspond to the degree of severity and the with advantage can be clarified in the law that the duty to probability of the negative impact. When the probability and perform due diligence assessments based on these severity are high, it will require more of the business. principles, and therefore proposes to clarify this in the law. Proportionality means that expectations The Directorate of Labor and Welfare requests one related to the companies 'due diligence assessments will explanation of the difference between a due diligence vary on the basis of the companies' assessment and a risk assessment. The Ministry different circumstances, which, among other things, should take emphasizes that companies' risk assessment Box 8.2 Central principles for due diligence assessments The OECD's guide for due diligence assessments for talk to and listen to those concerned. Examples of responsible business - An introduction bases the following stakeholders are employees, key principles on due diligence assessments: employee representatives, trade unions, representatives from local communities, civil society - Caution assessments are preventive - For the goal is to organizations, investors and industry and trade avoid causing or contributing to associations. adverse effects or harm to humans, - Caution assessments do not shift responsibility - society and the environment. All companies in a business relationship have theirs - Caution assessments are risk-based and involve independent responsibility for mapping and managing prioritization - It will rarely be negative influences. Careful assessments are not possible to address all potential and actual negative intended to shift responsibility impact at once. Every business will authorities to companies, or from a company had to prioritize. Prioritization of risk for which causes harm to another company human rights are done on the background associated with this business. of severity, extent and probability of potential adverse - Caution assessments comply with international standards effects or for responsible business damage. - Careful assessments can assist the business - Caution assessments are dynamic - The caution community in complying with national laws and assessment process is an ongoing, repetitive process. international standards for responsible The process is evaluated all the time so that the business. company can learn from - Careful assessments depend on the circumstances - All what worked and did not work, and for better companies are responsible for processes. identify and deal with negative influences, - Careful assessments are strengthened through but what measures are taken and the scope can Stakeholder Involvement - Stakeholders are vary according to the size of the company, persons or groups that may influence or context, business model, position in the supply chain affected by the company's business ("stake holders"). and type of goods or services. Stakeholder dialogue involves - Careful assessments include continuous communication two-way communication, not just information - Communication around from the company to the stakeholders. Meaningful The process, findings and plans are part of a business stakeholder involvement is necessary for assessment in itself. It helps to to make good priorities. It's about to Build trust in the business. Machine Translated by Google 2020–2021 67 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) will be a central part of the companies' due diligence business assessment. Similarly, subsidiaries can assessments. Careful assessments remain in a group with a Norwegian parent company add however, also by other steps, including implementing due to the parent company's due diligence assessments, so measures to limit and prevent negative long due diligence assessments to a sufficient degree impact. In the case of stakeholder dialogue, covers the subsidiary and its supply chain. the ministry emphasizes that in line with See proposal for the Transparency Act § 4 first paragraph book The OECD's guide for due diligence assessments will stave a to f and second paragraph. be a natural part of the due diligence assessments. Stakeholders are individuals or groups who can affected by the business, such as employees, employee 8.2.3.4 The concept of risk - negative consequences representatives, trade unions The Ethics Information Committee proposes that the and people from the local community. Stakeholder dialogue companies carry out due diligence assessments for involves, according to the OECD's guide for due diligence to map, prevent and limit «possible negative assessments, interactive involvement processes with impact". Some consultative bodies request relevant stakeholders, for example through a clarification of what is meant by "possible" meetings, hearings or consultations. Interested dialogue is negative impact. characterized by two-way communication, and According to the Ministry's assessment, the duty to includes sharing relevant information to to perform due diligence assessments are practiced in line the right time, presented in a way the stakeholders with the recommendations of the OECD Guidelines and have access to, which they understand and which makes them in UNGP. OECD guidelines use «negative able to make informed choices. Reference is made to almost consequences »as a concept, while the OECD's guidelines more discussion in the OECD's guide for prudential there for prudential assessments use« negative assessments for responsible business and industry , pages 48 to 51.influence It is »as a concept. After the ministry in the Ministry's assessment sufficient that they assessment, there is no material difference between six steps that the due diligence assessments should the terms, and the Ministry proposes to use consist of, follows from the law as these include «Negative consequences» in the law in line with the stakeholder dialogue. This is also mentioned in the note to guidelines. That is, the companies should the statutory provision. deal with negative consequences on fundamental human The Ministry is concerned with avoiding duplication of rights and decent work by having several companies carry out business working conditions. With «negative consequences» assessments related to the same supply chain. Businesses means both actual and potential negative consequences can therefore work together, for example, at industry level for the individual human rights throughout and decent working conditions. This means that the the due diligence assessment process, even though the companies must both map and assess the negative companies are always responsible for carrying out their consequences that have resulted in an injury own due diligence assessments. According to OECDs (actual consequence), and the risk of negative supervisor on due diligence assessments, the companies consequences that have not yet materialized can, for example, collaborate to create one (potential consequence). Risk is assessed on the basis of common knowledge base, to increase the power of how serious the consequences are or will be able to influence and to step up effective measures. be for those affected and the likelihood of negative It is pointed out that sector cooperation can provide savings consequences. The negative consequence and cost sharing. Such a collaboration will also can either be caused by the business, be in the Ministry's assessment, provide the companies something the business has contributed to, or be greater opportunity to influence the supply chains. directly related to the business's business, its products or A company can also use the performance assessments services of another company as a basis through a supply chain or business partners, see also in its due diligence assessment. For example, one can section 8.2.3.5. As for which business that gets goods delivered from a major negative consequences the companies are obliged to importer, rely on the importer's risk mapping and account, it is referred to in more detail in assessments, as long as the business point 8.2.3.6. In the bill here is used considers that the importer's due diligence assessments the terms "impact" and "consequences" without is of a good quality. The business needs then that the terms are meant to have different content. do not map the same risk in the same After actual and potential negative consequences have the supply chain as the importer, and can then been identified, the principles of risk-based approach and focus on other parts of the business in its act proportionality indicate that the Machine Translated by Google 68 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) NEGATIVE IMPACT DIRECTLY ASSOCIATED CAUSED CONTRIBUTED TO through the company's business, of the company of the company goods or services provided of a business associate STRAIGHT UP Use INFLUENCE real negative Use INFLUENCE to get the business impact STOP OR to reduce which causes PREVENTION STOP OR remaining damage the damage to PREVENTION contribution To the biggest possible extent prevent or reduce potential negative the damage impact Figure 8.1 How the company's connection to the impact affects the handling the companies must prioritize which actual and potential the ministry's assessment has been the committee's negative impact the business is to work on intention. The Ministry therefore proposes to specify in continue with. This must be considered concretely. It will the law that the due diligence assessments must be linked be an important part of the companies' work with not only to influence from own business and due diligence assessments to prioritize what they should the company's supply chains, but also from focus on further, based on, among other things, the business partners. As for the closer degree of severity and the probability of negative impact the content and scope of these terms, on human rights and decent working conditions, cf. section it is shown in section 7.4.3.1. The Ministry points out 8.2.3.3. that the raw material link is also considered part of the supply chain, and is thus covered by the due diligence assessments. 8.2.3.5 Scope of the due diligence assessment - OECD guidelines apply to negative effects that the Who is behind the impact and who is business has either caused or affected contributed to, or is directly related to, the business, or the NHO demands clarity in the law regarding who business's products or services through a business one envisions being responsible for the negative impact, relationship. The Ethics Information Committee has based including whether it is “own business and its comments on the company's supply chains »as proposed by the the provision that the same shall apply to the Transparency committee for the duty of knowledge, or if Act's obligation to carry out due diligence assessments. there may be another delimitation. The Ministry agrees with this and proposes that NIM points out that the duty to carry out due diligence this is clarified in the statutory provision on due diligence assessments as proposed by the committee differs from assessments. The relationship between the business UNGP knows that the requirements for due diligence assessments and the negative impact, ie whether the activity has according to UNGP relates to all of the company «for caused, contributed to, or whether the activity is directly directional connections», while the committee's bill related to the impact seems to build on a somewhat narrower approach by through a supply chain or other business connections, is that one uses the more limited wording an important factor that determines «Supplier chains». The ministry sees no one how a company should react to the negative impact, and reason to deviate from the UNGP and OECD guidelines whether the company is responsible for correcting, or on this point. This is not the case either cooperating to correct Machine Translated by Google 2020–2021 69 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the negative impact. See illustration figure visibility in the companies' key findings and measures such as 8.1 which is taken from the OECD's guide for due diligence implemented. assessments page 72. The Ministry proposes that the statement in all The Ministry proposes that the companies should mainly contains the moments as the sample identify and uncover negative influences such as has suggested. The duty to report can be deduced in part asserts itself within and outside the company, the supply from the OECD's guidelines, and is a specific ring of chain and business partners. information that it is natural for companies to publish as a Influences that appear outside are, for example result of the various steps in the due diligence assessments. impact on indigenous peoples and local people. It is The Ministry in other words, in the Ministry's assessment, it is not decisive refers to step # 5 on how to communicate who is affected, as long as it applies the impact has been managed, which includes making influence that is related to the company's own information available to the public, cf. activities, the supply chain or business partners. It is referred box 8.1 in point 8.2.3.3. The Ministry also shows to further assessments in point to the principle that due diligence assessments involve 7.4.3.2 regarding this. continuous communication and dissemination, cf. Box 8.2 in See proposal for the Transparency Act § 4 first paragraph section 8.2.3.3. So that's a lot book stav b. of the actual due diligence process that companies communicate about their due diligence assessments, findings and plans. This contributes to the company building trust in its business and its own 8.2.3.6 Statement of due diligence assessments decision-making processes, and shows that business Content of the statement acts in good faith. In the Ministry's assessment, the report The Ethics Information Committee proposes a duty to must be linked to the due diligence assessments that the account for the due diligence assessments. The purpose company has carried out in accordance with the Transparency is to ensure the public access to information about Act, by specifying what can be considered to be the companies' due diligence assessments and the result of be key information regarding the various steps that the due these. The Ministry agrees with the Consumer Council that diligence assessments consist of. an active duty to provide information is linked to The consultative bodies have not commented negatively the due diligence assessments can give the public a these, but some point out that the content of the reporting more comprehensive picture of the work done at obligation is unclear. The ministry is for one the businesses. to some extent agrees with this, and proposes some Mester Grønn states that it is important that reporting in adjustments in the committee's proposal for a legal text, other contexts is sufficient especially in the use of terms, in order to clarify the obligations. documentation on, for example, the due diligence The Ministry proposes, firstly, that the report include a assessments, so that the companies that already have general description of a significant use of resources on different reporting the business itself and its guidelines and routines for working requirements to different public bodies, does not get one with human rights and additional load. For this, the ministry will working conditions. This is partly in line with the Ethics' note that it is the actual execution of the due diligence formation committee's proposal, but is somewhat more assessments that is the core of the bill, and generally formulated. According to the Ministry's assessment, on which the reporting obligation is based. It is late in the day the content of the duty to report on this should that companies do not look at the obligation to point not set for detailed requirements for business perform and publish a report on business assessments as a tene. purely reporting duty, but as a duty to work continuously in The Ministry further agrees with the committee that the statement must contain information about actual negative the enterprises with the steps in the due diligence consequences such as the business assessments, cf. further discussion in section 8.2.3.3. This has revealed. The Ministry also agrees shall contribute to businesses to a greater extent than in the committee that the report must contain information on the today has an active relationship and awareness around but significant risk of negatives nske- and labor law conditions in the production consequences the business has revealed, ie. of their goods and services. The duty to make a statement potential negative consequences that are considered publicly must be seen as a natural thing significantly. What the companies are obliged to account for as a result of the companies' work with due diligence for at this point is less comprehensive than that assessments where the purpose is to provide the public with the companies' due diligence assessments shall include. The companies' due diligence assessment Machine Translated by Google 70 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) shall identify, prevent and limit «actual and potential» information about someone's personal circumstances and negative consequences, operational and business conditions as it is while the statement applies only to actual negatives reason to cherish, as well as information that is consequences and "significant" risk. The Ministry uses the graded according to the Security Act and protected according to same understanding of the concept of risk as that used in the Copyright Act. This is in line with the equivalent the OECD's guidelines and the UNGP. This means that risk exceptions from the duty to provide information, and after must be assessed on the basis of how serious the the Ministry's assessment in line with the committee's proposal. consequences are or will be The Ministry further proposes that this be clarified could be for those affected, and the probability in the law that information about actual negative for negative impact. What to consider consequences on human rights that the company is aware "Significant risk" must be considered specifically. of, can not be exempted from the statement. This is in line The Ministry further agrees with the committee that with the corresponding rule for the information obligation, the statement must include the results of the due diligence see section 8.3.3.4. assessments, including measures to limit As explained in section 8.2.3.3, it will be serious risk and correct negative impact there possible for a company to use other companies' due it is required. However, the Ministry proposes diligence assessments as a basis a change in the use of the term in that the statement must in its due diligence, so that duplication include measures to limit «significantly related to mapping risk in the same supply chain is avoided. risk »instead of« serious risk ». This to Similarly, it should be the use of the term must comply with the provision opportunity for the companies in their account of by the way. performed due diligence assessments to refer to others Some consultative bodies are concerned that the law companies' report related to mapping has a separate point that binds the businesses to of risk in the same supply chain, so long clarify the effect of implemented measures in the report. the statement with the reference will meet the minimum The Ministry agrees that in order to achieve requirements set out in the bill, and the purpose of the Act would be appropriate with a thus provides a comprehensive picture of the business greater focus on the outcome of the measures that are due diligence assessments. Subsidiaries in a group with a implemented. It is part of the companies' due diligence Norwegian parent company may refer to the parent assessments that the measures that are implemented to company's due diligence assessments, as long as the due stop or limit negative impact is diligence assessments adequately cover suitable. In the Ministry's assessment, the companies the subsidiary and its supply chain. should therefore at least account for this See proposal for the Transparency Act § 5 first and second how selected measures have contributed to or are expected to joint. help reduce risk or actually correct negative impact. It is nevertheless appropriate that the companies are given room to assess where Risk areas and measures that the companies must thoroughly such a statement shall be. The Ministry proposes account for in particular a provision concerning The report on due diligence assessments shall, this. according to the Ethics Information Committee's proposal, In the Ministry's assessment, it is not in all cases include information about risk and measures it is appropriate to regulate in more detail how the companies consideration for forced labor and other slave-like are to account for the due diligence rings. Businesses must work, child labor, discrimination in employment things and be given the flexibility to work, lack of respect for the right to design the statement at your own discretion, as long as establish and join trade unions and conduct collective it meets the specified minimum requirements. The businesses bargaining, as well as health, safety and the environment. must assess specifically what information about suppliers Some consultative bodies state that it is and business partners must be provided positive that modern slavery is included in this to provide a comprehensive presentation of the company's the provision. The King Institute states that it is due diligence assessments, including these It is important to clarify which definition is used in connection must be named. In the Ministry's assessment, one will with "forced labor and other slave-like work" in the text of discussion of the challenges identified, the law itself, and that human trafficking should be included and what measures have been implemented could be in the provision. sufficient even without naming them. The Ministry The Ministry agrees that it is important that the nevertheless proposes that it be made clear in the law that companies identify and account for risks and measures the statement as a general rule must not include with regard to, among other things, forced labor and Machine Translated by Google 2020–2021 71 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) other slave-like work. In the Ministry's assessment, tets assessment harmonizes the duty to account however, it is not intended to require the companies to on due diligence assessments well with the duty in always report the Accounting Act to account for social responsibility. for these conditions. It can be disproportionately Duties can be coordinated within the area of human rights burdensome for businesses to always and thus do not involve one had to account for these, even where there is no actual double reporting for the companies. negative impact or significant The Ministry agrees that it will be appropriate with a risk. In the Ministry's assessment, risk public register how large for forced labor and other slave-like work, companies are required to publish the report child labor, etc. are accounted for to the same extent as the due diligence assessments, for example in addition to other human rights and decent working conditions covered own websites and the annual report. This will do by the Transparency Act. That is, if the due diligence it is easier for consumers, organizations, supervisory assessments bodies and others, to find their businesses has revealed actual negative impact or statements, without going to the various websites. significant risk of such influence. In that case, shall The Ministry does not propose on the current Measures and the effect of implemented measures to time to create a public register, but will reduce the risk and rectify it are also described possibly reconsider this after the law has the negative impact. The Ministry therefore proposes no worked for a while. This may be relevant, for example, if it provision on risk areas turns out that information about the companies' due and measures that the companies must account for in diligence assessments is not sufficiently easily accessible particular. to the public at corporate websites. The committee proposes that the report be signed by Where the report is to be published and the relationship to the general manager and the board. For companies the Accounting Act covered by the Accounting Act § 3-3 c, will The Ethics Information Committee proposes that the report this, according to the committee, be a natural extension on due diligence assessments may be included in the of the general manager's and board's duty to sign report on corporate social responsibility pursuant to section the report on social responsibility, cf. the Accounting Act § 3-3 c of the Accounting Act or published in another way. 3-5. NHO states, however, that it should be considered The information should be easily accessible. The whether it is appropriate for a statement with so many see section 4.1 for a more detailed discussion of the discretionary considerations provisions of the Accounting Act. and assessments, are treated as necessary The Ministry is unsure whether the report on the due signed by the board and general manager. according to diligence assessments will be sufficiently easily accessible NHO, it is possible that a duty that rests on the company to the public if as such, gives more meaningful explanations than if they the companies only include this in the annual report. must be signed by the board and In the Ministry's assessment, there will be one CEO. The Ministry points out that for accounting entities higher threshold for consumers, organizations that have a board, section 3-5 of the Accounting Act and others obtain a company's annual report requires that the annual accounts and the annual report rather than visiting the company's websites to signed by all board members. For find information about a company's work with Accountants who have a general manager must also human rights and decent working conditions. The Ministry general manager sign. For those required to keep accounts therefore proposes that the report on due diligence who has neither the board nor the general manager, must assessments in all cases should attend the core or the members sign. After published on the company's website. In addition, the the ministry's assessment is appropriate companies are free to also take this that the rules of the Transparency Act on the signing of in the statement on social responsibility according to the the account of the due diligence assessments, corresponds Accounting Act. However, it will be sufficient, with the rules of the Accounting Act on the signing of both in order to fulfill the requirement for a statement on annual accounts and the annual report. That also corporate social responsibility in the Accounting Act and a formed the basis for the account of social responsibility in statement required by the Transparency Act, that the the Accounting Act, the Ministry believes that the board will be closest to reporting on due diligence company in the annual report states where the statement is located publicly available. The companies will thus in assessments, and that a reporting obligation of the annual report could refer to where the statement can the company as such will be able to contribute to a greater extent be found on their website. After the ministry to make the responsibility for the statement less clear. Machine Translated by Google 72 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) A requirement that the statement must be signed by you work in the business and in the business the board and the general manager will help to make them accountable supply chains, cf. the committee's bill § 7. The purpose is board, and counteract a practice in which the statement for the general public to receive information about a document is prepared by an enterprise's information companies' impact on human rights and working conditions. department with little anchoring in the enterprise The proposal for a duty to provide information is mainly real business. The Ministry therefore proposes supported by an overall that the statement must be signed in accordance with selection. the rules in the Accounting Act § 3-5. Requirements for information can be based on general See proposal for the Transparency Act § 5 third paragraph and information about the companies' work, systems and fourth paragraph, second sentence. measures to prevent or reduce adverse effects on human rights and working conditions. Requirements for information may also be based on When the statement is to be published information about a negative impact on fundamentals Some consultative bodies have called for closer regulation human rights and working conditions, significantly of when the companies will publish the report. Some argue risk of such influence and how the company handles this, for including related to a separate product or service. The basis that companies should be required to update the report for the duty to provide information is the duty of knowledge, regularly. According to the Ministry's assessment, it is appropriate that the deadline for making the statement see section 8.1, and for larger companies also the duty to public is linked to the deadline for carry out due diligence assessments, see determination of the annual report in accordance with the Accounting Act, point 8.2. see § 3-1 see § 1-7. This is to harmonize the regulations, The scope of the information obligation will vary which is positive for the business community depending on the information requirement and the size of already subject to different duties in different the business to which the claim is addressed. After the selection regulations. The Ministry therefore proposes that the report assessment, it can not be expected that small and medium- be published and updated within sized enterprises will use large resources June 30 every year. The Ministry is at the same time also on following supply chains. They will, for example agree with the consultative bodies that argue be able to refer to importers, wholesalers or suppliers for that the statement should be updated regularly. It is various questions. A proportionality assessment must be much that can happen in the course of a year in the global used as a basis. The information from supply chains, and the information that follows from one the business must nevertheless be comprehensive, true annual report can quickly become outdated. It is too finished and understandable compared to presented important that due diligence assessments are repeated, cf. information requirements. Box 8.2 in section 8.2.3.3. Continuous The committee proposes that the request for information due diligence assessments may reveal a change must not be substantiated, and that the request can be risk picture that provides a basis for updating the report made both orally and in writing. Committee member Dit lev- more often than once a year. The Ministry proposes that Simonsen has, however, dissented on this the companies in such cases do not point and believes that the right to make information will wait until the next annual update, but update the requirements orally must be revoked. The committee information continuously. The Ministry member points out that oral inquiries to nevertheless proposes such an obligation out of consideration for the burden random employees in companies can be unclear and can inflict on businesses, that businesses only easy to misunderstand, especially if the person in question are required to update the statement when they reveal is unable to answer and has to pass on the question significant changes. internally. See proposal for the Transparency Act § 5 fourth paragraph first The committee proposes that information requirements dot. can be rejected if the requirement is too general or does not provide a sufficient basis for identifying what the requirement is. 8.3 Duty to provide information The committee proposes exemptions from the duty to provide information if a claim is obviously unreasonable or so 8.3.1 The Ethics Information Committee's proposal concerning information about any personal matters, The Ethics Information Committee proposes that all cf. the committee's bill § 8 first paragraph. It is suggested companies should have a duty to respond to specifics also an exception if the information concerns requests for information about their relationship with operational or business conditions as it is basic human rights and dignity reason to cherish, and which among other things can Machine Translated by Google 2020–2021 73 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) apply business strategies, business ideas, recipes or production 8.3.2 The views of the consultative bodies methods. The exception from 8.3.2.1 Overall on the proposal The obligation to provide information pursuant to the first paragraph does not, however, apply to information about breaches of the basics A number of consultative bodies have commented on this human rights in connection with the company and in its supply The Ethics Information Committee's proposal that companies chains as the company be required to provide information, and a is familiar with, cf. the committee's bill § 8 other majority of these support the committee's proposal. This is joint. The Norwegian Bar Association, the Academics, Amnesty The company can provide the information in International Norway (Amnesty), the Digitization Directorate, the form the company considers to be appropriate within the Fairtrade Norway, the Consumer Council, YWCA YMCA, Oslo framework of the provision, cf. the committee's bill § 9. If the Municipality, the Norwegian Institution for Human Rights, the request can Norwegian Journalists' Association, the Rainforest Fund, the answered adequately through existing and Responsible Business Advisors and the Professional relevant reports and other existing public information, the Association. To provide consumers, ideal company can refer the information seeker there. organizations, media and other better tools to hold companies accountable by demanding answers The committee proposes that whoever receives a claim for companies' negative impact on human rights and the information, shall take a position on and answer the requirement environment will, according to Amnesty, contribute to within a reasonable time, at the latest within three weeks after that companies become aware of their human rights and the claim has been received. If the quantity or type environmental risk. With increased awareness, the companies, information makes it disproportionately burdensome to according to Amnesty, could make demands on its supplier provide access to it within three weeks, the information must doors. The Consumer Council points out that information is a have reached the information seeker within two months at the of the most central instruments in consumer policy. According latest. In that case, information should to the Consumer Council, information promotes consumer that the claim has been received, the reasons for the extension power and enables consumers to make informed choices. Oslo and when the information can be expected to be received, is given to Municipality points out that information seeker within three weeks at the latest. Transparency is important for meeting informed purchasing and If a request for information is rejected or investment decisions, and to build trust between businesses, is rejected, the company must refer to which provision is the governments, communities and basis for the refusal and state the individual consumer. YWCA-YMCA states that about the admission and the deadline for demanding further the duty to provide information will be important for consumers, justification, as well as on the right of appeal and the time limit for appeal. but also for organizations and other actors working with the In the event of rejection or refusal, the information seeker topic, as the duty to provide information will be a tool for may, within three weeks, demand a brief justification for the investigating and evaluating refusal. The reasons must be given as soon as possible businesses. possible and no later than within three weeks of the requirement The Consumer Council refers to a survey from further justification was received. The rationale Norstat in February 2019 where half of them shall be given in writing if the information seeker requests asked are concerned that they risk buying about it. goods produced under indefensible The committee proposes that the right to information apply working conditions. The Consumer Council believes in another right there with the restrictions that follow from the intellectual property information will provide both consumers, media and clause, cf. the committee's proposal for section 4, second paragraph. various organizations a tool to verify The Committee assumes that this restriction will be small allegations that a producer takes care of ethical considerations practical significance. in production. This in turn can contribute to more The committee problematizes in the report section 7.2 intelligence information to consumers and to that if incorrect information about conditions in the supply chain can more businesses are taking more responsibility to ensure good be claimed as a defect. ethics in its value chain. Intelligent information will According to the committee, the error can be claimed also be important for the competitive situation to as a defect if the consumer has purchased a product he or she industry players who today work seriously to would not have purchased if they ensure both good working standards as well as correct information was provided. good pay conditions. The Consumer Council also believes that one law that ensures a right to information, will contribute to that more self-employed people are investigating to a greater extent the conditions in their supply chains and make demands to working conditions and wage determination. Machine Translated by Google 74 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The Consumer Council believes, like the committee, that Regarding the right to receive information related to a most likely will be organizations, and not specific product or service, points out individual consumers, who will most often take advantage of Equinor, Hydro, Kongsberg Gruppen, Statkraft, the right to information. However, the Consumer Council Telenor and Yara, among others, state that it will be clearer points out that a number of organizations can potentially with a clearer definition of "product" or "service". The reach out to large amounts of consumers and thus authorities point out that companies create many "products" contribute to many consumers being able to make more informed which in turn purchasing choices. is part of the production of the products they offer the market. For example, they mention parts like assembled in oil platforms, gas pipelines and 8.3.2.2 Content of the duty to provide information wind farms. The authorities believe it is natural that Several consultative bodies have input for adjustments the reporting requirement is limited to due diligence to improve the duty to provide information. assessments, risks and actions related to the products or Finans Norge, Finansieringsselskapenes forening services a company itself offers in the market. Virke thinks it and KS Bedrift believe that there is a need for clear is unreasonable to give delimitation of how far the duty to provide information very resource-intensive information about a product that is extends to the individual business. The Confederation of not defined as a risk product, Norwegian Enterprise (NHO) points out that the duty or which is not logically a risk product. to provide information is designed beyond the duty According to Virke, judgment must therefore be exercised in to acquire knowledge. While the proposal for a duty of the assessment of what information can be demanded. knowledge applies to «significant risk of negative Bergen municipality believes that the law is too vague to influence », the duty to provide information applies to« a authorize that a customer has the right to receive further company's relationship »to human rights. The main information about the supply chain. Bergen municipality organization Virke (Virke) and NHO think so believes the law should go further and authorize a right, in should not be obliged to inform about conditions one at least in certain risky industries, do not have a duty to have knowledge of. The duty to provide or for larger companies, to gain access to supply chains that information should therefore not go beyond the duty of are known to the company. knowledge. NHO points out that this is the scheme in The agency fears that particularly immature industries will the Environmental Information Act. The academics pose exempt such information from the public when one question as to whether it is clear enough from the bill that the obligation to publish such information is not actively provided basis for the duty to provide information is for in law. the duty of knowledge. The academics believe the company's Orkla fears that the provision to provide information follow-up of the right to be organized about the supply chain for any product and to participate in collective bargaining, health, environment will provide ad-hoc work aimed at less important issues that and safety, worker representation and notification channels may be at the expense of systematic efforts related to the should be included in the information problems that are the business is committed to providing. defined as significant. According to NHO, the duty to provide information should Save the Children believes the law must also include be relativised so that there is no expectation that a duty to inform about the company's mechanisms to ensure example small and medium-sized businesses should access to redress for victims spend large resources on compiling the information that is for business-related human rights violations of environmental requested. damage. Equinor, Kongsberg Gruppen, Norsk Hydro Fairtrade Norway believes it is important that (Hydro), Statkraft, Telenor and Yara International appears from the legal text that the supply chain (Yara) believes it is important that the level of detail in the includes the raw material link, so that the duty to provide information information obligation is further clarified. The instances also includes the raw material link where it is available points out that the Ethics Information Committee has found known risk. The same is also true of need to regulate information on the place of production in the Norwegian Environmental Protection Association. bill. Therefore, the authorities interpret The Consumer Council points out that if the information the duty to provide information so that it does not involve a is to be comparable and able to function as a good decision- requirement to state individual suppliers or other making tool, it presupposes business partner name and or specification of that companies report and publish information based on place of production where any risk has been identified. The similar criteria. The Consumer Council therefore believes that authorities believe that it will be an important principle to a set should be prepared adhere to even in a final legal text. Machine Translated by Google 2020–2021 75 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) with criteria for reporting, for example in for writing. goes in the opposite direction of greater transparency in terms of operational and trade secrets, and that the same will apply to the Ethics Information Committee's bill as long as reference is made to the Public Administration Act's bill. Bergen municipality 8.3.2.3 Subjects of duty and rights thinks it should The City of Oslo believes that it can be specified in the law that It is specified in the law that documentation cannot be withheld the obligation to provide information applies to in its entirety on the grounds of trade secrets, but that the all businesses. According to the Rules Council , it should be clear information must then the law states who is to provide the information handed out in the corded version. and the extent to which it is possible to forward the inquiry to The Ministry of Health and Care Services notes that others. The Rules Council points out that it is to a large extent subject to the duty of confidentiality for the committee in the report has stated that it can not medicinal products who produces the medicinal products, small and medium-sized businesses are expected including the active substances, and also where these are will use large resources to follow up on supply chain chains, produced, so that with the Ethics Information Committee but that they will be able to point to the importer, bills will be allowed to reject such claims wholesaler or supplier for such questions. The Rule Council information. points out, however, that this is not stated Bergen Municipality and the Norwegian Journalists' of the committee's bill. Association support the clarification that information about violations Tekna believes it is natural that shop stewards are given basic human rights in connection with the company and in its greater right of access to the business and survivors than supply chains outsiders who are not employed that the business is familiar with can not be exempted. the business. Tekna further believes that the right to Bergen municipality believes from experience information from the company, as formulated in the committee's very unpopular for businesses to deliver like that bill, should take further information. As a public client, Bergen municipality has been in height for trade unions' right to collective bargaining agreements discussions with several times insight and information in companies. According to Tekna should suppliers who want such information to it is therefore emphasized that trade unions in companies have defined as business sensitive. A clear specification in the law the right to all information about work and will simplify Bergen municipality salary conditions in the supplier links when such information is work and prevent unnecessary discussions. Ber gen municipality requested. and the Norwegian Journalists' Association think so NHO believes there may be reason to consider is clear that such information may be of material importance certain requirements for those who make demands for importance to the general public and the choices customers make information, so that, for example, pure political inquiries, tar. Equinor, Hydro, Kongsberg Gruppen, Stat kraft, Telenor actions, etc. may not be entitled to and Yara agree that the consideration of information. Transparency about violations of basic human rights outweighs, for example, companies' general interest in keeping business information secret. However, the authorities are missing one 8.3.2.4 Exceptions from the duty to provide information Tekna believes it is understandable and necessary that legal assessment of the provision's relationship to companies can make exceptions from information requirements. protection against self-incrimination in Norwegian and Wood emphasizes the need for shielding international law, and other laws imposed on companies operational and trade secrets. For the general public, Tekna to follow, the rules on lawyers' duty of confidentiality and believes that it is natural that it any other legal barriers to withholding information. The elaborates on what is meant by operational or trade secrets, cf. authorities also believe that Prop. 5 LS (2019–2020) should be considered on the duty to provide information on breaches Law on the protection of trade secrets. Tekna fundamental human rights must take precedence is nevertheless concerned that it is not allowed for larger the right to reject "manifestly unreasonable" claims. exceptions than those required by the company's protection NHO believes that it is a question of whether it is reasonable needs. Towards trade unions and their elected representatives, for companies to be required to provide information about Tekna believes it is not natural suppliers' possible breaches of such exceptions as employees will be bound by fundamental human rights. The relationship both duty of loyalty and duty of confidentiality throughout to human rights can be a sensitive issue the employment relationship. to address to suppliers, and a duty of information could weaken The Norwegian Journalists' Association is very critical of the the confidence needed Public Administration Act Committee's bill, and believes the proposal for cooperation on human rights issues. One Machine Translated by Google 76 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) risk that information may harm suppliers, ensures that the question is conveyed to the right person may make suppliers less willing to or department. provide information to the businesses that request NHO believes that the committee's bill has been drafted the. Similar views are also expressed by Equinor, Hydro, so that anyone who wants information can both Kongsberg Gruppen, call and show up at a company office and Statkraft, Telenor and Yara. require information. NHO believes companies must NHO believes that exceptions must be made for cases have the opportunity to coordinate the receipt of requests in where the right to information is abused in a way a way that is appropriate for them; and which means that companies have to answer inquiries that at the same time adequately available to those who have no sensible purpose. NHO want to ask for information. This implies, according to believes a requirement of writing may NHO, in writing and that the companies can refer to a remedy this need somewhat, see section 8.3.2.5. specified contact point. The Ministry of Defense thinks it may be The Rules Council refers to the dissent from a committee member necessary to ensure that a new law on transparency Ditlev-Simonsen where it is pointed out that oral regarding internal matters in companies does not apply inquiries to random employees in companies at the expense of the need to protect information is not suitable. The Rules Council misses a closer look in accordance with the Security Act, and proposes that it be taken discussion of who should address such inquiries a provision exempting classified information. to. The instance assumes that there is a purpose in itself that the correct information is provided. In that case, it should be According to NHO, the relationship between access to considered whether inquiries about information should be directed to to reject an information claim if the claim is for a specific unit within the business. It may generally formulated or does not provide sufficient in the Rules Council's assessment, it is not expected that basis for identifying what the claim is about, after Every employee is able to provide the right information the committee's bill § 7 fifth paragraph and the access to or pass on such oral inquiries to refuse an information request pursuant to section 8, first paragraph, in a sufficiently precise manner. The same is done be clarified and better expressed in the law. also applicable by Virke. The academics believe it will be difficult to The Bar Association believes it is positive that it Review companies' claims that a claim no requirements are set as to what the information is to be whether information can be rejected. The academics believe used for, or for a justification to be provided therefore in some cases it will be necessary insight. According to the Bar Association, this is one a wider right to information for the supervisory or appeal prerequisite for the law to have the intended effect. body than with the person requesting access, for that As the right to information is very extensive, NHO the body can ensure that the regulations are complied with. believes that it is reasonable for the recipient a claim directed at him is given some form of justification from the person who requires information about what the 8.3.2.5 Formal requirements and requirements for justification information is intended to be used for. That way it will be, Directorate of Labor and Welfare, Equinor, Hydro, according to NHO, it will be easier for the company to Kongsberg Gruppen, NHO, Statkraft, Telenor and provide and for mulating the information that is relevant to Yara believes that there should be no right to make a request the goal, and it will be easier to assess the conditions for for information orally. NHO shows other provisions in the committee's bill, among among other things to the need for notoriety, as other exemption from the duty to provide information. NHO breach of the duty to provide information may be sanctioned. believes this will also put businesses better off Equinor, Hydro, Kongsberg Gruppen, Statkraft, able to get the requester to make the claim Telenor and Yara point out that the vast majority information clearer. of consumers will be able to ask questions in writing from NHO does not agree with the committee that is incorrect his phone via the company's website, too information could give consumers a right of withdrawal, when in the store. Consumers' path to the right stating that this possible consequence part of the company can be done in this way emphasizes the need for the person requesting information significantly shorter than, for example, many store employees' to justify the information requirement. way to the general manager or head office. The Norwegian Environmental Protection Association believes it should be According to these agencies, consumers want the right to a requirement that a request for information easy to be able to ask questions is taken care of even with a answered in writing. The body also points out that the design requirements for writing. At the same time, writing gives the of the legal text should be as similar as possible company greater opportunities to assess the information the formulation of corresponding provisions in the Public requirement and the right to refuse information, as well as Legislation Act. Machine Translated by Google 2020–2021 77 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) users will be able to request information about for 8.3.2.6 The deadline for processing information requirements example production conditions to be able to take NHO points out that larger companies may have extensive, ethical purchasing choices. Civil society, the media and complicated and many supply chains in academia will be able to request information that can contribute to many countries. NHO thinks it is difficult to know to uncover, influence and disseminate socially important something about the scope of requests for information a law information. On the subjects of the right to duty, see section will lead to, and that the subjects of duty there should have 8.3.3.3. After the ministry a certain amount of time available, both to possibly clarify assessment, the duty to provide information will be useful the content of requests and to find for the individual actors who receive a statutory right to to and compile the information they information, and be positive for the achievement of will give. NHO therefore believes that the deadline for responding will the overall purpose of the law. The Ministry therefore could be too short, if the businesses are going to proposes that the activities covered by be able to answer satisfactorily. NHO the Transparency Act, an obligation to provide information is imposed by believes there is a need for greater flexibility in the law. request. Equinor, Hydro, Kongsberg Gruppen, Statkraft, Although the consultative bodies support the proposal Telenor and Yara believe that the deadline for answering an obligation to provide information, several bodies still have information requirements should be longer than three input to clarifications to improve the duty to provide weeks. The authorities point out that any inquiry information, including clarifying who will require both collection and quality assurance, shall provide the information, to what extent there is an possible dialogue with business partners over opportunity to forward the inquiry to others, about worldwide. A longer response time will, according to the shop stewards and trade unions should have an extended right authorities, give the questioner a more informative answer. on information, as well as whether it should be required which makes a request for information. This discussed below. 8.3.3 The Ministry's assessments 8.3.3.1 Overall on the proposal 8.3.3.2 Content and duty subjects of the duty to provide information The Ethics Information Committee has proposed a passive duty of information, ie a duty for the companies The Ethics Information Committee has proposed that the duty to provide information upon request, in line with to provide information should be based on the duty of knowledge. the principle of transparency in the UN's guiding principle However, the Ministry does not propose a duty of knowledge per for business and human rights in the Act, cf. section 8.1.3, and proposes that the duty to (UNGP) and the OECD's guidelines for multinational provide information be based on the duty. companies. The purpose is to provide the public with to perform due diligence assessments. In order for the information about companies' work companies to be able to answer information requests, it is a with human rights and working conditions. prerequisite that the companies With this, the public should be able to take informed through due diligence assessments have acquired choice and verify the businesses, which in turn should knowledge of negative consequences due to fundamental help promote respect for human rights and working conditions. human rights and decent working conditions in one's own business, in the supply A clear majority of the consultative bodies support it chain and with business partners. Surrounded by the proposal for a duty to provide information. The Ministry the information requirement can therefore as a starting point agrees with the consultative bodies that the duty has one is seen in connection with what the obligation to perform utility value in addition to the duty to perform and activity assessments requires of the individual company. A publish due diligence assessments. The right to request may still require that information allows anyone to access information that makes the company obtains information that the company does not it easier to assess whether and possess when it receives the information requirement, even how the company respects human rights, whether working though it has performed good due diligence assessments. conditions are decent, For example, if it concerns information about a production and what is being done to improve conditions. relationship such as Investors will be able to request information that can the company has not prioritized focusing on, cf. contribute to ethical investments. Public bodies the principle of a risk-based approach and of compliance, or will be able to request information that can be used in the in the case of unforeseen events that have occurred at a assessment of whether the company complies production site. the obligations under the Procurement Act § 5. And for Machine Translated by Google 78 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) A request for information may, according to the ker. Nor will it always be the answer committee's proposal, be based on general information an information requirement can be found in the report on about the company's work with basic human rights and business assessments. An information requirement can decent working conditions, or apply to information that does not follow from the company's themselves to negative impact or risk of negative account of the due diligence assessments, impact, for example for a specific product as the reporting obligation does not have to include all or service. The Ministry proposes a right to information about the company's performed due diligence information in line with the committee's proposal, but as assessments. The information requirement can also, is generally linked to the company's work to as mentioned above, deal with information that the company deal with negative impact, ie the various steps that a due does not possess even if it has performed diligence assessment consists of. good due diligence assessments, and as such This means, for example, that an information requirement requires further investigations from the company. can be based on information about the company In the Ministry's assessment, a company should in some organization and structure, guidelines and cases also be able to refer to the importer for special routines the company has established to prevent questions. As mentioned in point or limit the negative impact on fundamental human rights 8.2.3.3, a company may submit other companies' due and the decent diligence assessments, for example from working conditions, what negative impact the business has an importer, on the basis of his due diligence calls, and identified, how the business refer to these assessments in his own handles these and the effect of any measures statement, cf. section 8.2.3.6. It should therefore be have had. The information requirement can be both general an access to, for example, forward or refer to the importer or more specifically related to a specific product or service. for questions regarding these The latter can for the due diligence assessments. Subsidiaries in a group example be information about under what kind with a Norwegian parent company can similarly refer to the human and labor law matters a specific parent company. product is produced, how the company provides good What will be a satisfactory answer to one working conditions in a specific area information requirements must be assessed specifically based on or at a production site, or how the local population is what kind of information is requested and who affected by the production. The right to who demand it. The principle of proportionality will here set information does not give companies a duty to limits on the company's obligations. state the specific place of production of an item. All the The principle is central to the Transparency Act in its authorities must nevertheless be able to receive entirety, including the obligation to carry out due diligence comprehensive and correct information on the protection of assessments. If the amount or type of information makes it human rights and working conditions without the production disproportionately burdensome to answer name having to be named. When it comes to what should the requirement within the deadline of three weeks, the be considered a "product" or "service", he believes Ministry proposes an extended deadline of up to two months after the Ministry that this must be understood as the products that the claim has been received, which will give the companies and services that the company offers, including the various better time to be able to answer the demand for a good parts that these consist of. However, the Ministry points out way, see section 8.3.3.6. that the duty to provide information See proposal for the Transparency Act § 6 first paragraph and § 7 scope depends on the principle of risk-based approach and first paragraph. proportionality. If the request can be answered through existing reports or information that is 8.3.3.3 Especially about rights subjects publicly available, the business can refer The Ethics Information Committee has proposed that the the information seeker there. This may be relevant information obligation should apply to requests from since the companies according to the ministry's proposal «Any». This is supported by the consultative bodies. shall publish reports on due diligence assessments, cf. NHO believes, however, that there may be reason to section 8.2.3.6. The companies will consider certain requirements for the person making the claim thus be able to refer to the statement if this will information, so that, for example, pure political answer the information requirement on an adequate requests, actions, etc. may not be right and clear way. In some cases, it will still be for information. The Ministry does not agree appropriate with a simpler composition this. The purpose of the duty to provide information is to of the information that follows from the statement, ensure any access to information and contribute to especially where the request is promoted by a consumer transparency so that the opportunities to pursue business Machine Translated by Google 2020–2021 79 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the work of the force is strengthened. This implies that all who the Copyright Act. The Ministry assumes that the latter wants information, should be able to request this. The extent to clarification will have little significance in practice, which an information requirement must be rejected must be considered but nevertheless proposes such a provision. This is specifically against the exceptions set out in the law, in line with the committee's proposal for § 4 on the relationship to and not on the basis of who submits one other legislation, and corresponding clarification in the information requirements and their motives. In line with the Environmental Information Act. committee's proposal, the Ministry proposes that The committee has proposed an access to reject one "Anyone" should be able to request information. information requirements if it is too general for mulated or does As for whether certain actors, such as not provide sufficient basis for shop stewards and trade unions, shall have an extended identify what the requirement is. A similar right to information, the Ministry refers to the law provision is included in the Environmental Information Act purpose that the law shall ensure "the public" access to § 16 third paragraph. In the Ministry's assessment information. According to the Ministry's assessment, no the rights subjects must be able to demand general distinction should be made between them information about the companies' work with human rights and various actors who can request information for decent working conditions. the Transparency Act. The Ministry agrees that it is The Ministry therefore does not propose an access to It is important that shop stewards and trade unions are secured to reject information requirements that are too general for access to information, but they will include this mulated. However, as in the Environmental Information Act, the Transparency Act as proposed. There are in addition there should be an opportunity to reject claims such as separate rules on this in collective agreements and does not provide a sufficient basis for identifying the Working Environment Act today. It appears, for example what the requirement is. The Ministry proposes such of the Working Environment Act § 8-1 first paragraph that in provision. Access is about having to activities that regularly employ at least 50 employees, the be possible for the companies to understand which conditions employer shall inform about and discuss are being asked about. Claims that are incomprehensible can issues of importance to employees thus be rejected. When it comes to the relationship with working conditions with the employees' shop stewards. the provision on the right to reject an information requirement as Representatives in countries outside Norway must behave manifestly unreasonable, the Ministry refers to a similar provision to national legislation and ensure access to information through in the Environmental Information Act § 17 first paragraph letter these. b. The right to reject an information requirement as manifestly See proposal for a Transparency Act § 6 first paragraph. unreasonable unreasonable, deals with, among other things, the economic and the administrative burden on businesses 8.3.3.4 Exceptions from the duty to provide information related to answering the information requirement. If The duty to provide information proposed is not absolute. The business must use disproportionate resources looking at The Ethics Information Committee proposes an access to obtaining and compiling information for reject or reject claims for information after a to answer the requirement, there may be grounds for concrete assessment. The Ministry agrees that reject the information requirement. This must, however businesses must have a right to reject or in the Ministry's assessment, be a narrow one reject requests for information, and register that more exception provision, and must be seen in context consultation bodies in their consultation responses in particular have shown with the right to postpone the response deadline by two to the importance of being able to exempt trade and business months if the amount or type of information secrets. According to the Ministry's assessment, such a right to makes it disproportionately burdensome to answer make exceptions must be based on the current provision on the the information requirement within three weeks, see point duty of confidentiality in 8.3.3.6. the Public Administration Act § 13, and is interpreted in accordance with The Ethics Information Committee has proposed that this. Information about someone's personal circumstances the right to refuse an information request can never must also be exempt from the duty to provide information, i include human rights violations in the company and in its supply in line with the committee's proposal. Such a provision must also chain with which the company is familiar. The provision is be interpreted in accordance with the Public Administration Act § 13. inspired by one The Ministry also proposes that one be included similar provision in the Environmental Information Act provision that excludes classified information in § 12, and gives indications that there is a core area for the right in accordance with the Security Act, in line with the Ministry of to information that should always Defence's input. Such information shall respected. The purpose is to prevent the grounds for exemption never covered by the right to information. The in the law from being interpreted too broadly, and in this way the same applies to information that is protected by excluding information that must be regarded as particularly important Machine Translated by Google 80 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) for the general public. The committee's proposal implies that informs about actual negative consequences information shall be disclosed regardless of whether the on human rights. The trust in the contractual relationship must information, for example, concerns trade secrets that there is be secured by the companies in a suitable manner, for reason to protect pursuant to the Public Administration Act § example by informing the supplier that 13. Several consultative bodies express the company is required by law to provide the public with support for this, and considers the provision for information about any actual negative consequences for example will simplify the work of public clients. The Ministry human rights. agrees with the consideration In the Ministry's assessment, it is not to transparency about the actual negative impact on human reason for establishing a further right to information in rights outweighs the companies' general interest in keeping the Transparency Act for the supervisory body to control such that the company's allegations that information requirements information. In the Ministry's assessment is can be rejected are correct. The Norwegian Consumer Agency, the provision formulated in a general way that proposed as a supervisory body is given wide access will rarely conflict with the duty of confidentiality. to obtain information from the companies. In other words, it will in principle be possible to disseminate This also includes information that companies do not have to the information in a good way without disclosing provide to the general public. This trade secrets or other confidential matters. When it comes to gives the audit the opportunity to assess whether one of the disregarding the duty of confidentiality, the provision must, in exemptions from the information obligation has been fulfilled. It shows the same way as to discuss the Consumer Agency's right to collect information the corresponding provision in the Environmental Information in section 9.3.3.2. Act, therefore, is interpreted restrictively and understood See proposal for the Transparency Act § 6 second to fourth so that this opening in the provision is intended to joint. reserved for special occasions. Some consultative bodies problematize 8.3.3.5 Formal requirements and requirements for justification The duty to provide information on violations of fundamental human rights is in conflict with the protection against self- The Ethics Information Committee proposes that a requirement of incrimination. The protection against self-incrimination, ie the information can be presented both orally and company's right not to stay in writing. Several consultative bodies are arguing for forced to participate in their own conviction, is considered that the right to make oral claims should be removed from as a fundamental rule of law. Before the bill. there is a criminal charge is a duty of disclosure, even if it The committee points out in its report that it particularly wants to occurs under threat of punishment be natural to make a claim orally in a or administrative sanction, not problematic purchase situation. In the Ministry's assessment under the right of confidentiality pursuant to Article 6 (1) of the ECHR, cf. the consideration for consumers indicates that an information Prop. 62 L (2015–2016) point 22.2.1. The duty to provide request can also be made orally. By a requirement of information in the Transparency Act applies to answering writing can be the threshold for consumers to request for information from the person asking. Duties make information demands become higher. does not relate to an ongoing investigation or supervisory On the other hand, a requirement of writing case, but shall ensure that the public has access to information. could contribute to consumers making a In the Ministry's assessment, the duty to provide information information requirements, receive answers that to a greater will therefore extent meet consumers' expectations. The Ministry agrees not be problematic according to the principle of self- with the consultative bodies that it does not incrimination. It is nevertheless conceivable that evidence It can always be expected that an employee in a store can obtained prior to a criminal charge cannot be used in one give the user a good answer in the sales situation, especially later criminal case. In that case, this must be considered if the question concerns certain goods in concretely. In this connection, the Ministry refers to the store and where the store has many items. In such further discussion in Prop. 62 L (2015–2016) point situations, the employee will have to pass on 22.2.4. the question to the person in question to be able to give In the consultation round, NHO asked questions a comprehensive and correct answer. A question posed whether it is reasonable for the companies to be ordered orally in a purchase situation that can not be answered duty to provide information about suppliers' possible immediately by an employee, but who must be further violation of fundamental human rights, mediated to the general manager or head office, can quickly and refers, among other things, to the trust in the contractual relationship. misunderstood and get a different meaning content on To this end, the Ministry will note that the Transparency Act, the road. A requirement for writing will mean that the as proposed, presupposes that business requirements for information are locked to the correct person. Machine Translated by Google 2020–2021 81 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) in the business, and can simplify the duty for the businesses. It will help the businesses 8.3.3.6 The deadline for processing information requirements gain a clearer understanding of the information requirement The Ethics Information Committee has proposed that a requirement scope, and also give companies better opportunities for on information must be answered by the companies clarifications with those who require information. It will also form within a reasonable time and no later than three weeks after that a clear starting point the claim has been received. What lies in «within reasonable for the deadline for answering the information request. Based time »must be considered concretely. The committee has added on the above, the Department proposes that a reason that in a case where it can be referred to existing requirements for information must be submitted in writing, for information or where answers can be given without example through email or letter delivered in physical further inquiries, answers must be given during shop. some days. The Ministry agrees with this assessment. The The requirement that the request be given in writing Ministry also points out that the committee presupposes that the companies state where the inquiry is to has taken into account that the companies may have needs be sent. If the companies have a website, it follows from the E- for longer time to answer information requirements. The Commerce Act § 8 first paragraph that will in special cases be a deadline of 2 months for they must provide an email address. For businesses to answer the information requirement, for example there who do not have websites, need the contact information this is a larger amount of information given in another way. No matter how the contact information is to be handed out or compiled. The Ministry can not see that provided, it must be provided in a way that is not there are reasons to undermines consumers 'and others' ability to extend the deadline for processing information claims send a request. This means that the contact information must beyond what the committee has proposed. be easily accessible. The Department sees no need to regulate See proposal for the Transparency Act § 7 second paragraph. this closely more. The Ministry agrees with the committee that 8.4 Duty to publish no justification requirements should be set for submitting an information about place of production information requirement. After the ministry 8.4.1 The Ethics Information Committee's proposal assessment is the purpose of the information obligation to ensure the public access to information, and the reason for The Ethics Information Committee proposes that companies making an information request can that sell goods to consumers have a duty to is raised if a justification must be given for publish information about the place of production, why one wants the information. However, a justification from cf. the committee's bill § 6. By «place of production» is meant the information seeker will the factory or plant there could contribute to the person receiving a more comprehensive the majority of the item, ie the end product, is answer. A justification can therefore be positive for the put together before sale. Information about the place of information seeker, but should still follow production can be given as information about where the the department's assessment be voluntary. production takes place, for example the name of the factory As it is proposed that information requirements should and address. The proposal does not include an obligation to submitted in writing for the business, it is after publish vendor lists. The committee proposes that the Ministry's assessment also appropriate that information about the place of production must be published on the companies meet the information requirements the company's website or in another way in writing. This is in contrast to the Ethics Information made easily accessible. Committee's proposal that companies can disclose the The committee proposes that it can be stipulated in regulations information in the form in which the company operates. exceptions for certain sectors and groups of enterprises - for consider is appropriate. The Ministry proposes example enterprises under one a provision stipulating that businesses certain size. The committee justifies this with that shall answer information requirements in writing. while in some sectors it is appropriate to state With regard to the question of whether incorrect information place of production, e.g. for textiles, footwear, electronics, toys gives consumers a right of cancellation, the Ministry wishes to and flowers, however, it can for note that this must be considered specifically certain commodity sectors may be less appropriate to state in the individual situation based on current statutory and non- place of production. statutory contract law. Information about the place of production can in some See proposal for the Transparency Act § 6 first paragraph and § 7 cases be competition sensitive. Consideration for first paragraph. trade secrets are safeguarded, according to Machine Translated by Google 82 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) get, through the right to exempt such information. example color, size, material selection and maintenance advice. The future in our hands and YWCA YMCA points out The committee's minority (committee members Gram that several major players already stad and Ditlev-Simonsen) do not agree with the proposal for publishes the production site, such as Varnergrup pen and an obligation to publish information about H&M. YWCA-YMCA states that if two place of production, and points out, among other things, that of the largest players in the Norwegian textile market that the purpose behind the provision can in reality be achieved can do this, there is no longer a basis through the right to information. The minority to claim that such practices would be too burdensome. believes that reporting will be a disproportionate burden for Oslo Municipality mentions that the proposal can contribute actors of different sizes. to more efficient and socially beneficial procurement and contract follow-up processes by giving the municipality, as a public contracting authority, the opportunity to make use of published information about the place of 8.4.2 The views of the consultative bodies production. For the provision to be the most 8.4.2.1 Overall on the proposal possible expedient, however, the City of Oslo proposes that Amnesty International Norway (Amnesty), Bergen the duty to publish also includes one municipality, Coretta and Martin Luther King Institute for reference to the type of products or stock parts of the product Peace Work (King Institute), Consumer Council, Consumer that are manufactured at the individual production site. Agency, The future in our hands - both the main organization, Oslo Local Association, Trond The Ministry of Health and Care Services (HOD) is in heim student association and private individuals, YWCA-YMCA, initially positive to the proposal, but finds Norwegian Church Aid and the Christian Council of Norway, the Ministry of however, it is important to emphasize that there is uncertainty Climate and the Environment (KLD), the Norwegian Journalists' Association, about how market participants will react The OECD contact point, Oslo Municipality, the Rainforest if they are covered by the law and must provide information Fund and the Confederation of Professional Organizations they do not otherwise wish to provide. HOD (YS) supports the proposal that companies that states that in a situation of global scarcity of sells goods to the consumer, is obliged to make public medicines and where in a small market like Norway information about the place of production. Simultaneous introduce national requirements that violate the practice of some of the consultative bodies also argue pharmaceutical manufacturers, without for this duty to go beyond what is other countries introduce similar requirements, conceivable proposed, cf. sections 8.4.2.2–8.4.2.4. lead to drug manufacturers will prioritize The Norwegian Consumer Agency believes that it would markets that do not make similar demands, rather be appropriate for consumers to have access to information the Norwegian market. According to HOD, this can in about the place of production, without having to ask for ultimate consequence imply that access to this from the individual trader. Suggestion medicines in Norway may be weakened. will, according to the agency, make the information more The main organization Virke (Virke), Nærings livets accessible to conscious consumers who want to Hovedorganisasjon (NHO) and Orkla are negative to the make more ethical purchasing decisions. Also YS proposal to publish the production site. Master Green states believes the proposal provides consumers and other actors that they are positive about better conditions for requesting more information, and thus proposal, but that it must be reconsidered what should influencing companies in a positive direction. The future in is considered the place of production. Master Green and our hands points out that the proposal Virke points out that there may be other parts of the will make goods traceable to the one who has production chain that pose a greater risk interest in knowing where the goods are produced, then violation of human rights, and that a claim for particularly related to a statement on working conditions. publication of place of production therefore will have Traceability, and thus directly after testability, is, according small value. Virke believes that the proposal to make the to the instance, the very core of production site public has no connection the need for ethical information about an item. Without with the risk-based approach the rest of this link, the companies will, according to the instance, the bill is based on, and otherwise refers to the dissent from give the impression that the production of goods takes place Virke's member of the committee. Seem mean under good working conditions. it will be relatively easy to define the place of production in The future in our hands states that to lay the textile sector, while in other sectors out information about the main production site, no and industries will be more complicated to define will be more stressful than much other information posted on the place of production. the website about the item, for Machine Translated by Google 2020–2021 83 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Mester Grønn and NHO state that the proposal will national companies contain recommendations that the place entail a large burden for businesses with large of production should be published, or that the company should product range with different production sites. have open supplier lists. On the other hand, Amnesty states According to NHO, a requirement to publish means that the duty is in line with UNGP. factory name / address that even the smallest store must The Rules Council questions the extent to which make sure to gather information throughout information about the factory name and address the supply chain about the place of production for each helps to achieve the goals of the proposal. As a rule, it lacks only product sold. NHO shows example show that a hair salon a closer assessment of the usefulness of giving must know where shampoo and the information, and further if the requirement is necessary shampoo bottles are produced and that the grocery store must in addition to the duty of knowledge and the right to information. have the same information about meat, fish and vegetables. Accounting Norway questions whether sufficient transparency The store does not receive the information it requests can instead be achieved by increasing the number of about from the supplier, the store can not sell packaging or the like. the product without violating the obligation to publish information about the place of production. NHO states that the store does not necessarily have the right to information 8.4.2.2 Scope of the duty - the definition of «place from the previous sales stage, and that it is not certain of production» and the raw material link that the previous sales link is entitled to information from its Fairtrade Norway, KLD and Oslo Municipality and sales link. NHO therefore believes that a possible duty believes the definition of place of production will not to publish the place of production, the mirror must be dec. Capture all risks associated with a product, including Instead of a regulatory authority to do other raw material link. Mester Grønn is also skeptical of the exemption from the obligation to publish, a home meal should definition of production site, and says possibly mean that the obligation can be imposed in that it is artificial that the place of production is the place regulation. In this way, it is justified specifically where the majority of the product is composed. for industries, sectors and goods which benefits and The instance points out that there may be other parts of disadvantages it may have to publish the place of production. the production chain that poses a greater risk to NHO mentions as a further alternative that human rights violations. the extent of the obligation to publish the place of production, KLD points out that the proposal hardly includes in the same way as for the duty of knowledge, depends on publication of where minerals are included in the size of the enterprise, ownership and structure, activities, batteries and cell phones are recovered, rather industry and product or not where raw materials for biofuels or various for consumer service types. goods are produced. According to KLD can so Orkla believes that it will be resource-intensive to information be an important contribution to be able to record, update and share information and that determine the consequences of production the benefit should be considered in more detail. Master on human rights, working conditions, climate and Green and Orkla suggest that a possible obligation to environment. state the place of production is made passive, ie that the Fairtrade Norway states that a bag of cashews marked information is given on request for those products with "produced in Norway" will be able to one is interested in. state factory in Norway as place of production then According to NHO, it may be contrary to contractual the product is roasted or salted and packed in a bag in obligations to provide information about the place of Norway. However, according to Fairtrade Norway, the main production. NHO, Orkla, Regelrådet and Stiftelsen part of the product, the raw material Cas hewnøtt, is The electronics industry points out that information about most likely processed in Vietnam and grown in Manufacturers may be sensitive to information. According to West Africa with the risk of human rights violations in both Orkla, this can make it easier places. Fairtrade Norway proposes for competitors to copy the products. Orkla therefore that the definition of place of production is expanded points out that their products are sold through Norwegian so that when the bulk of the product is raw material with grocery chains and other retailers, in competition with the known risk of human rights violations, chains' own brands, and that the place of production, preferably mine, farm, ground floor, therefore, there is a risk that a duty of transparency about at least country and region, must be stated. producers may lead to a weakening of competition in the Oslo Municipality proposes that larger companies norwegian grocery market. must also publish information on the most important production The Rules Council states that neither the UN guidelines sites for the most important raw materials principles of business and human rights with significant risk of adverse effects on (UNGP) or the OECD Guidelines for Multi-Sea Machine Translated by Google 84 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) basic human rights and decent you work. the connection between company and supplier is indisputable. According to the Future in our hands do Bergen municipality states that it can be discussed this affirmation that the company's liability whether companies should have a duty to inform becomes clearer than if the suppliers are kept hidden. on changing production sites to their customers. The future in our hands refers to the accident at Rana Plaza in 2013 as an example of the challenges in the absence of transparency about supplier lists. 8.4.2.3 Scope of duty - the supply chain None of the around 30 clothing chains that bought Amnesty, Bergen Municipality, Joint Council of Africa, goods from the four factories in the building that kol lapset, The Consumer Council, Forum for Development and the Environment, had open supplier lists, and it was The future in our hands - both the main organization, Oslo very difficult to get them all to admit that they local team, Trondheim student team and private individuals, had bought goods produced there, despite discoveries the Salvation Army, YWCA-YMCA, King of both labels and delivery agreements. The institute, Norwegian Church Aid and Norwegian Christians Both The Future in Our Hands and the King Institutet Council, Norwegian Journalists' Association, OECD contact point believe that the supplier lists make it possible and the Rainforest Fund believe that a new transparency law workers and the trade union movement to promptly notify should go further by requiring companies to make their branded goods companies purchasing goods from the place supplier lists public, in addition to the place of production. of production, of human rights violations or significant environmental damage. This gives companies the opportunity YWCA-YMCA refers to the purpose of the law to to intervene, stop harmful practices, create ensure access to information, and believe it will new and better routines and contribute to redress, be absolutely necessary with open supplier lists according to the authorities. The future in our hands Trond to achieve this purpose. The Salvation Army points out that heim student team also points out that open supplier lists exploitation often takes place earlier in the supply chains, and strengthen local unions' ability to that open supply chains will therefore follow up production site and their workers be an important tool for fulfilling the purpose of the law. without having to expose oneself to the vulnerable situation of According to Amnesty International Forum for Development and the Environment requesting information. The instance points out and the Rainforest Fund, information on delivery lists will that local unions in production countries are one make it possible for various types of interest centers such as vulnerable group with low recognition that is investors, trade unions, volunteers essential to be able to link real premises for hold up to global organizations, consumers and the media to gain insight into guidelines. Transparency is, where the company has its business, and on it according to Amnesty and the Forum for Development and the Environment, the way to verify the extent to which the company makes one particularly important in cases requiring redress, efforts to ensure human rights and decent work. as it helps to confirm the company's connection to the place of production. Amnesty states that companies that already operate The Consumer Council and the Future in our hands operate with openness about the place of production and are open points to the right to verify actual for hold in production. With Vendor lists report that transparency does not a duty to state only has led to lost revenue as a result of making business sensitive information about the factory or plant where the final product information public. according to is put together for sale, it is, according to The OECD Contact Point shows the OECD's sector guides, The Consumer Council, risk that critics worthy of criticism in particular the guide for responsible supplier chains in the from suppliers do not appear. Forward it in our hands believes footwear and textile sector from 2016, that a that playing with open Many companies have good results in their work cards related to the production of goods will increase the with responsible business through increasingly to companies' credibility in that it will clear away choose to publish vendor lists. This applies there, according potential suspicions of being reprehensible to the agency, especially companies that are in established working conditions are kept hidden. Bergen municipality collaborative relationships with other actors in points out that when there is no obligation to make companies' industry. The OECD Contact Point therefore believes that supply chains public, it is not the obligation should include publication of the company possible for stakeholders to obtain the necessary information production sites, supply chains and supplier door lists that to be able to verify or deny who name all suppliers and sub-suppliers from which they purchase which contributes to, and possibly is responsible for, but goods and services. The future is in our hands and the King human rights violations further down the chain. Where the Institute believes open companies had an active duty to and updated vendor lists make that business publish the supply chain, it would not Machine Translated by Google 2020–2021 85 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Gre be an appropriate strategy to hold back information to The Norwegian Environmental Protection Association (NMF) believes in the duty seek to evade criticism to publish the place of production should not from customers, media or others. An active duty to limited to companies that sell goods to publish production site will, according to Bergen consumer, and that also businesses that sell municipality, support the responsible suppliers raw materials where the consumer is the end customer must be included. which already publishes this information in NMF further states that the duty should also apply to day. companies that produce or supply feed to The Consumer Council states that several manufacturers animals or fish, foodstuffs, input factors for foodstuffs, has already chosen to open its supplier lists, knowledge services, semi-finished products and / or and the introduction of a statutory duty would contribute to equal industrial products. In NMF's opinion should conditions of competition for all. Open vendor lists one could examine the supply chain as well can, according to The Future in Our Hands and the King Insti pure industrial suppliers, for example to the oil industry or wind tuttet, also contribute to better cooperation between the turbine companies. Many industrial suppliers bring in their raw companies that are customers at the same production site, by materials or share products in low-cost countries, where they giving them the opportunity to identify each other and join are not forces on measures to prevent and same focus on working conditions and environment as in uncover human rights violations. Another Norway, according to the agency. effect is, according to the Future in our hands, that number The future in our hands believes that a duty to suppliers can be reduced, where suppliers with good working Publishing vendor lists must apply to everyone conditions win enterprises covered by the scope of the Transparency Act. expense of suppliers with less good working conditions. The Norwegian Journalists' Association states that the The Electronics Industry Foundation comments on it regulatory framework allows for exceptions to be established other since that supply chains on electronic for the duty to publish, entails a for products and components can be complicated. extensive restriction in the principle of openness, For example, a mobile phone may contain up to 50 different and therefore proposes that the right of regulation be repealed. metals. It may, according to the instance, The Consumer Council believes that exceptions can be granted be thousands of contracts needed for for requirements for transparency of place of production and manufacture of materials and final assembly of a possible supplier lists for smaller companies. product. The instance therefore believes that it must be The City of Oslo states that it is possible to differentiate sufficient to provide information on where the final product is between smaller and larger companies, and that larger produced. companies should in that case be imposed The future in our hands - both the main organization, the a more far-reaching duty to publish, see Oslo local team and the Trondheim student team, point 8.4.2.2. allows for the introduction of exceptions from the requirement of publication if the obligation is extended to include vendor lists. Bergen municipality states 8.4.2.5 Especially about the publication that an extended requirement may be considered The Norwegian Journalists' Association believes that it must be determined more clearly on transparency about production chains further down in framework for how the information is to be made public, so the chain should only apply to certain particularly vulnerable people that this is not left to the company industries, such as textiles and electronics, or about it even to decide. The instance proposes that the wording should only be a requirement related to larger companies "Or otherwise made readily available" is removed, to have. and that it is clear from the text of the law that the information shall be published on the company's website. The instance believes that it must be possible to demand that 8.4.2.4 Obligatory subjects - enterprises the information is corrected and supplemented regularly. that sell consumer goods Bergen Municipality questions the appropriateness and justification for the delimitation 8.4.3 The Ministry's assessments to consumer goods. The agency states that for public An obligation to publish information about the place of clients (customers) and other business actors, this information production shall, according to the Ethics Information is just as relevant, and will Committee, contribute to promoting the law's purpose of could facilitate the work also for professional actors increasing access to information in companies and supply who want information about companies' production sites. chains. The purpose is transparency. UN Guidance principles of business and human rights Machine Translated by Google 86 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) (UNGP) and the OECD's guidelines for multinational to publish information about the place of production and what companies aim to ensure respect for this obligation should include, if so human rights. Ensuring transparency in the companies will be that it is appropriately designed to achieve its important in order to achieve this goal. Although there is no purpose and at the same time do not place too great a burden on recommendation in the UNGP the businesses. It is a question of whether the duty should and the OECD's guidelines for publishing information on the designed in line with the majority of the committee, or about it place of production may be such a requirement will be more expedient if it also includes be in accordance with the intention behind publication of information on the raw material link UNGP and OECD guidelines. and / or the companies' supplier lists. It is The input from the consultative bodies may indicate also the question of whether the obligation should apply to that it may be appropriate and expedient companies other than those that sell consumer goods, with a duty to publish information about whether certain sectors should be exempted from the obligation, and whether place of production. Such a duty will make it easier the law instead should specify which industries, sectors for consumers, organizations and others to try the companies' or goods the obligation shall apply to. The Ministry work with human rights and working conditions, and thus therefore does not propose to introduce an obligation to publish influence the companies in a positive direction, and make it information about the place of production now. easier The Ministry will possibly propose such an obligation for consumers to make good consumer choices. On it a later date if further assessments on the other hand, some consultation input indicates that the shows that such an obligation is appropriate and practical duty may be burdensome for the companies, and that feasible. Reference is also made to the planned evaluation of In view of the competitiveness of Norwegian companies, the law after a while. The Ministry shows caution should be exercised in introducing national rules that also that the duty to account for the due diligence assessments go beyond what follows from and the duty to provide information will ensure the international principles and guidelines. increased access to information from the companies and Both the discussions in the committee and the hearings thus will contribute to increased transparency in the companies show that there is a need for thorough assessments of whether and their supply chains, cf. further discussion in the Transparency Act should contain a duty points 8.2 and 8.3. Machine Translated by Google 2020–2021 87 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 9 Supervision and guidance 9.1 The need for supervision and guidance 9.1.2 View of the consultative bodies mv. 9.1.2.1 The need for supervision and guidance All consultative bodies that have commented, 9.1.1 The Ethics Information Committee's proposal believes the Transparency Act should be enforced and that it must According to the Ethics Information Committee's assessments are guidance is given to the companies about the law the need for guidance for the law to work provisions. for its purpose, and to ensure compliance. The committee also The Rafto Foundation believes in control and enforcement believes that supervision is needed to ensure this is of significant importance for the law to have that the companies follow the law. Especially applies desired effect. The authorities must, according to the body, this small and medium-sized players operating have effective supervisory bodies with clear mandates and outside the public spotlight, but who may have sufficient capacity. The Rainforest Fund high risk of adverse effects on human rights or working believes that an effective supervisory body is absolutely crucial conditions. for the law to lead to change in corporate culture, and The committee points to various ways of organizing have a positive effect on human rights and the environment. inspections and appeals according to the law, including to The Joint Council for Africa believes that a establish a new audit, to add the tasks to a a strong supervisory body with resources to assist companies existing supervision, or to co-locate the supervision in making good and thorough due diligence assessments also with an existing supervision. The committee proposes to down the supply chain. add the guidance function and enforcement Amnesty International Norge (Amnesty), Forum The Norwegian Consumer Agency and the Market Council, and points out for development and the environment, YWCA-YMCA and Redd that this is cost-saving rather than establishing The children believe that it is absolutely crucial that the something new. However, they emphasize that this only authorities have an effective supervisory body with the necessary is an example of how supervision and complaint handling can resources for the law to work effectively. be organized. The committee emphasizes that For the User Authority, it must draw on the experience and competence of The business community, including the main organization other actors. There are a number Virke (Virke) and the Confederation of Norwegian Enterprise's main organization bodies with competence in the field, in particular (NHO) is particularly concerned that guidance is provided to in due diligence assessments around human rights and the enterprises covered by the Transparency Act. working conditions. This includes among In terms of the scope and scope of other Norway's OECD contact point for responsible guidance and enforcement, however Business, Ethical Trade Norway, the Norwegian Institution for different views. This is discussed in more detail in the points Human Rights (NIM), employers 'and employees' organizations, 9.2 and 9.3 below. industry organizations, voluntary organizations and various networks. 9.1.2.2 Supervisory body The committee does not discuss the independence of the There are different views among the consultative bodies on supervisory bodies. However, the committee's proposal to which body should provide guidance. refer to section 32 of the Marketing Act implies that Amnesty is in favor of a state body The Norwegian Consumer Agency and the Market Council shall a duty to provide guidance, but questions whether be professionally independent and not governed by the government The Norwegian Consumer Agency is most suitable for handling or the Ministry in the enforcement of the Transparency Act. the gift. The duty to provide guidance will, according to Amnesty, help Norwegian business and industry to follow the increasingly Reference is made to the committee's bill §§ 11 and 13. concrete measures the EU is implementing to implement UNGP. The body also points out that it is public offers of free guidance in practice also supplement Machine Translated by Google 88 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) by civil society, such as organizations such as Amnesty, the kere is the most famous and used first line in Contact Point for those responsible The Consumer Council. It will therefore, according to the Business, Ethical Trade Norway, the Norwegian Institution for Consumer Council, be natural for the Consumer Council to answer Human Rights (NIM) and others. inquiries about consumers' rights after Fairtrade Norway and the Responsible Business Advisers a law of transparency. The future in our hands means (RBA) support the need for guidance to companies, but believe also that the guidance responsibility of the public should it is natural that supervision of the law considered added to the Consumer Council. The instance shows and guidance to companies is performed by two separate that the Consumer Council today has such a guideline instances. Fairtrade Norway justifies this in role in other areas. the need to avoid incapacity where the one who has Amnesty points out that several of the largest Norwegians the supervisor shall supervise. The instance shows in addition to the companies have extensive experience in making due that professional competence will be decisive for that diligence assessments and trying to prevent risk Norwegian businesses must be able to comply to violate human rights. The experiences and the law, and that it is important that the body ascribed the competence they have acquired will, according to the supervision responsibility is independent and does not hold instance, could be useful to share with colleagues self-interest and manages the interest of members. in small and medium-sized businesses. Amnesty believes Fairtrade Norway considers the OECD's contact point to be the norwegian authorities have the overall responsibility for a skilled actor to carry out the guidance. NHO also raises protecting human rights and å questions about the roles of supervisor, ensure that Norwegian companies respect human rights. For Complainant and Enforcement Officer should be combined. the many Norwegian companies No matter where the guidance function is placed, who has business abroad wants to be able to get believes Norway's institution for human rights good guidance and information at the Norwegian out stations, (NIM) that it is useful to look at the possibilities of according to Amnesty, could have a great new tea value, and take turns on existing schemes. NIM shows help companies comply with the law. here to the OECD's contact point for responsible NIM also points out that the Foreign Service and the embassies business. NIM will also be able to contribute with its are actors who should have a role to play in connection with competence, in particular on substantive human rights issues, the law and the guidance service, for if facilitated example of country-specific guidance. NIM this. If other schemes are withdrawn, it will believes there may be a need for increased and cohesive necessarily also had to be reflected in increased resource expertise in this area in a larger part of looks to these. the government apparatus. Ethical trade Norway and Virke refer to OECDs Amnesty, Ethical Trade Norway, NIM and Virke contact point for responsible business as an example of an are in favor of establishing a guidance center, actor who has expertise in the field and as the government proposed in the action plan for which Ethical Trade Norway cooperates with. Instan sene also responsible business and human rights in refers to Ethical Trade Norway's guidance expertise in the 2015. RBA encourages that it is facilitated field. Ethical trade Norway that companies are made aware of the diversity of the resource has supervised business, organizations and the public sector environment. The agency proposes, for example, a public in responsible business for over 20 years, and resource page, where all competence environments are The work is based on the UNGP and the OECD's prudential encouraged to register their services. assessment model to meet the ILO's core conventions. According to Virke, these actors should be used in the further work of implementing 9.1.2.3 Supervisory body the law. There are also divided opinions among the consultative bodies The OECD contact point states that it gladly about where the supervision of a new transparency law should be assists with his professional competence on responsible placed. business and due diligence assessments to new or The Norwegian Consumer Agency believes that it may be established supervisory arrangements as a result of the bill. expedient and cost-effective to entrust the supervisory tasks According to the body, this should mean that the contact to an existing supervisory body, in comparison with the point's expertise is drawn on or included establishment of a new body. Also as part of new guidance and supervision schemes. The OECD contact point indicates that it can be significant benefits of adding control and hand lifting to an The Consumer Council believes that it is natural for the existing body. Norwegian User Inspectorate to provide guidance to Fairtrade Norway, the Norwegian Consumer Agency, RBA and companies. When it comes to guidance on consumption The University of Bergen is positive about the supervision Machine Translated by Google 2020–2021 89 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The Transparency Act is added to the Norwegian Consumer Agency, with responsible supervision of a transparency law will, according to The Market Council as an appeal body. The Norwegian Consumer Agency The Norwegian Consumer Agency itself, demand that it be recruited indicates that there will be some overlap between a necessary expertise, as well as close cooperation any supervision of the provisions of the proposed with other actors who have expertise in the field, such as the OECD the Transparency Act and the work that the Consumer Agency contact point for already does in connection with ethics and environmental marketing responsible business and Ethical trade Norway. today. The Norwegian Consumer Agency also has The future in our hands - both the main organization, the Oslo extensive experience with guidance of businesses, which the Ethics local team and the Trondheim student team Information Committee's bill has a special focus on. The Norwegian believe it should be considered whether the features and Consumer Agency also mentions that the consumer apparatus is areas of responsibility that fall under the provisions on guidance, being restructured, and that from 1 January 2021 there will be a supervision and complaints can be distributed larger at institutions that already to a certain extent work there with tasks and expanded Consumer Supervision with new tasks and related to this today: the Consumer Council, the Norwegian wider portfolio. According to the Norwegian Consumer Agency, it will Consumer Agency and the OECD's contact point. Amnesty, The be easier for the audit to integrate a new audit area into its activities future in our hands - both in connection with this the main organization, the Oslo local team and the Trond heim the restructuring process. student team, the OECD contact point and the Rafto foundation Several consultative bodies believe there must be one believe that the Norwegian Consumer Agency can be a prerequisite for adding the supervisory authority an appropriate body for controlling the duty to provide information, The Norwegian Consumer Agency that the Norwegian Consumer Agency is building which, among other things, targets consumers. For the other duties up the necessary competence, and is provided with sufficient of the Act, including the duty to carry out due diligence assessments, resources to carry out effective supervision. the bodies ask questions about whether the Norwegian Consumer NHO assumes that the Norwegian Consumer Agency and the Market Council Agency today deals with case types that are quite different in form and is the right organ. The Rafto Foundation points out that For the content than what a new law will Norwegian User Inspectorate, consumers' interests and include. Large companies' supply chains are perspectives as the main area of responsibility. Control comprehensive and complex, and the issues to be addressed and compliance with due diligence obligations presupposes, processed will require both resources and expertise. Also Equinor, according to the Rafto Foundation and the Rainforest Fund, that Kongsberg Gruppen, Norwegian the supervisory body works closely with others Hydro, Statkraft, Telenor and Yara International public bodies that have specific tasks believes the material requirements of the Transparency Act are to the business community, as well as other relevant parts far away from the Consumer Agency's core tasks. of the policy instruments across ministries. The OECD contact point The authorities point out that the material requirements are correct points out that if the control is to apply to the quality of the due against a large number of companies that do not have for users as diligence assessments, including whether the risk assessments are customers. The authorities therefore point to good the need for the control authority to build up and thorough enough, about the measures companies have put in place necessary competence. It is also important that the control body's works to prevent adverse effects are good and management has the necessary competence effective enough, etc., expertise is required without losing focus on the Consumer Agency's core tasks, due diligence assessments, in particular with regard to according to the authorities. The professional organizations human rights, as the Norwegian Consumer Agency in The Central Federation also believes this is a prerequisite basically do not have. The instance points out that the complaints for the supervisory authority to be added to the Consumer Authority, that various contact points, including Norway, have dealt with show that the authority is provided with resources and competence in that such cases can be human rights in working life, and very complex, and can present major challenges resources to follow up cases and process incoming cases. BDO when it comes to assessing risk, uncovering the facts and assessing and Hope for Justice believe that for the User Supervisory Authority what is necessary and the Market Council, the supervisory task has not been and effective in the individual case. The contact point asks questions dimensioned without resources being provided. The Norwegian about how the Norwegian Consumer Agency can Consumer Agency and the Norwegian Consumer Council refer to develop sufficient competence when it comes to due diligence that effective supervision and enforcement of the new law assessments for the life of the responsible business. The OECD will require that the Norwegian Consumer Agency be provided with contact point believes that this should be clarified additional resources. As of today, the Norwegian Consumer Agency does not holdfurther what the Consumer Agency's control and the necessary professional knowledge of basic human rights in enforcement of the companies' due diligence assessments shall be supply chains. based on. This must, according to the instance, be seen in If the Norwegian Consumer Agency is to be able to lead a feed in connection with the right to complain to the Machine Translated by Google 90 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the focal point for non-compliance with OECDs such a body will also be able to help Norwegian guidelines, including opportunities to strengthen business to follow the increasingly concrete measures the contact point scheme. The EU implements to implement UNGP and According to the Forum for Development and the Environment, the audit must to reduce deforestation and adverse effects on be equipped to actively obtain information from environment. Changemaker believes the new supervisory companies and to guide companies in how they authority must have enough resources to not be can comply with the law. The agency asks itself whether the depending on supervision by consumers and civil society. Consumer Agency is the right place for it If a new supervisory body is not established, the Rainforest such a supervisory task. Also Norwegian Journalist Team Fund believes that the OECD's contact point will be better suited is unsure whether the Norwegian Consumer Agency is right than the Consumer Authority instance for the supervisory tasks pursuant to the Transparency Act. to oversee the law. The Rainforest Fund shows Changemaker believes the regulator should not to that the contact point has long experience of leading lie with the Norwegian Consumer Agency. supervision of companies' compliance with the OECD's The future in our hands - both the main organization, the guidelines for responsible business, and possess Oslo local team and the Trondheim student team, necessary expertise in due diligence and follow-up of companies. considers the OECD's contact point to be responsible The business community should have the responsibility for supervision and supervision related to due diligence assessments. The instances points out that the point of contact is not an interest organization 9.1.3 The Ministry's assessments and is therefore far from being perceived Like the Ethics Information Committee and as independent, as well as that the contact point already in the consultative bodies, the ministry believes it must today has an extensive mentoring function associated with conducted a public inspection of the Transparency Act OECD guidelines. The future is in our hands provisions. Civil society has an important role in indicates that the contact point handles dialogue and to uncover matters worthy of criticism and to create awareness mediation related to complaints, and thus contributes around companies' potential to companies' compliance with the guidelines in negative impact on human rights. individual cases. However, this should come in as an important supplement and Amnesty points out that if the scope of the law is extended cannot replace a more systematic one to also include the environment, the supervisory authority for the public oversight work. The Ministry also shows environment can be added to the Norwegian Environment Agency. to the Ethics Information Committee's assessment that Agencies such as Amnesty, Changemaker and lack of sanction options has been shown to The Rainforest Fund believes that a new one should be established be a weakness of similar legislation in others supervisory body that can supervise the law. Also country. When public enforcement is proposed, The future in our hands and the Norwegian Journalists' Team guidance is also provided on the regulations. This follows from believes that this is something that should be considered in the long run. ordinary administrative law. Surrounded by Amnesty and the Rainforest Fund point out that the necessary the guidance and supervision are discussed in more detail in competence to ensure compliance with sections 9.2.3 and 9.3.3. all aspects of the law as of today do not exist in one body, Both the Ethics Information Committee's report and and that this indicates that a new visual organ should be the consultation inputs show that there is not one body in created. The Rainforest Fund also points out that the Ethics Norway which has the holistic experience and competence Information Committee has not had a mandate to needed to provide guidance on and consider whether the law should go further than proposed, and control the rules in the new Transparency Act. It is that an expansion will further clarify the need however, many actors, both public and private, who have for the establishment of a new body that will have the experience with either due diligence or enforcement, including responsibility for supervision and supervision with the law. The the imposition of Rainforest Fund believes that this body must have a high level sanctions. Some consultative bodies propose there to divide of competence in accordance with UNGP and OECD guidelines, as well theasdifferent tasks between different ones human rights - including the rights and environment of organs. Other consultative bodies believe, however indigenous peoples. By gathering such expertise on a that the tasks should be gathered in one body. place one will, according to the instance, avoid the pitfalls In the Ministry's assessment, it will be it will involve dividing the responsibility between For the User resource-intensive, both for businesses like Inspectorate and other bodies, and one can shall comply with the law and the authorities be confident that all aspects of the duty to provide information, which is to enforce the rules, on guidance and for sight due diligence, human rights distributed between different bodies. Like the hearing and environment are seen in context. According to Rainforest Phone has shown, then there are a number of different bodies that can Machine Translated by Google 2020–2021 91 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) provide good information about the companies' social Marketing Act § 35 second paragraph. Further so responsibility and human rights. These bodies will be important The Norwegian Consumer Agency has little knowledge of the partners for a vision that will enforce the rules. According to the business assessments that companies must carry out Ministry's assessment, however, it is important for companies following a proposal for a new Transparency Act. to be able to deal with one body when On the other hand, the Authority has extensive experience in providing guidance to businesses on discretionary matters they must comply with the new rules, and that this body can rules. The general requirements in the Marketing Act are provide good guidance in how the law is to stand. That the distinct legal standards that set executive body that makes decisions, too great demands on the supervisory activities of the supervisory provides guidance in the regulations it is to enforce, is activities. The Authority's case processing is based on it also the normal scheme in Norwegian administration. This so-called negotiation model, cf. the Marketing Act § 36 first ensures efficient case processing and that the understanding paragraph. The negotiation model of the rules is the same in the guidance and also implies that the audit primarily works to in enforcement, which will contribute to a unified practice. get traders to volunteer. The discretionary nature of the Neither the administrative body nor the case officer becomes legislation and the negotiation model have resulted in the incompetent in assessing whether Norwegian Consumer Agency a decision shall be made or sanctions imposed has prepared a number of supervisors, including in a case in which guidance has previously been given. cooperation with the regulated industries. If The Ministry therefore proposes to lay both guidance and self-employed do not align themselves voluntarily supervision to one and the same body. regulations, the Norwegian Consumer Agency can impose both As for the question of which body coercive fines and infringement fines. who should have these tasks, there are two in particular In the Ministry's assessment, the Consumer Authority is alternatives that stand out: The Norwegian Consumer Agency, well suited to handle the task of as proposed by the Ethics Information Committee, or supervise and supervise the new Transparency Act. a newly established audit. A newly established audit can This is a law with discretionary provisions where the primary include the OECD's contact point for responsible task for the supervisory authority is to get the companies to set business. Intermediate solutions are also conceivable up voluntarily. where a new audit is established which is co-located follow the rules by providing good guidance, cf. with an existing supervision. The last solution below in section 9.2.3. If necessary, the body must was elected for the new Grocery Authority which was could also impose an infringement fine, cf. below in section co-located with the Norwegian Consumer Agency in Porsgrunn, 9.3.3.3. This is considered a penalty after see Prop. 33 L (2019–2020) Act on good commercial practice ECHR and raises a number of special issues, including the in the grocery chain section 6.2.4. right not to incriminate oneself Establishing a completely new audit will entail greater self. The Norwegian Consumer Agency has extensive experience of costs for administration, ICT, archives, personnel deal with such issues. with more, than if the tasks are given to an already When it comes to due diligence assessments and what existing supervision. This will also be the case as expected in accordance with UNGP and OECD guidelines, whether the audit is established on the basis of OECDs however, the Norwegian Consumer Agency must prepare contact point which currently has three permanent employees in themselves more knowledge. It will therefore be natural the Secretariat. By adding the tasks to an existing audit, the with a close collaboration with the players who have experience additional costs associated with taking on in this area, especially in the start-up, but themselves the new task be more limited in and also in the further work. This includes among with the common services becoming part of a larger one other Norway's OECD contact point for responsible organization. A co-location with an existing audit can lead to a Business, Ethical Trade Norway, Norwegian Institution for certain cost saving, but will hardly be as cost-effective Human Rights (NIM), Directorate for Management and Financial Management (DFØ), as a full integration into an existing audit. employers 'and employees' organizations, voluntary The Norwegian Consumer Agency supervises businesses organizations and various networks. The Ministry believes that and supervises the consumer protection rules in a the Norwegian Consumer Agency is closest a number of different laws, including the Marketing Act and the to assess the form and extent of involvement Right of Withdrawal Act. The audit leads, however and cooperation with relevant actors. After do not supervise the rules of the Marketing Act however, the department's assessment will be which applies to self-employed persons, and which particularly important with close cooperation with the OECDs as a general rule, the Norwegian Consumer Agency does not intervene contact point. The contact point has a mandate to cases with less consumer considerations so require, cf. among other things, make the OECD's guidelines known and Machine Translated by Google 92 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) available, respond to inquiries from business, labor organizations, apply in general and in individual cases. NHO thinks so civil society and is difficult for businesses to do the right thing other stakeholders, and treat and contribute to guidance applicable. The companies will themselves resolve individual cases concerning compliance with the OECD's be responsible for complying with the law, even if the guidelines. There is no dialogue or mediation administration has not fulfilled its duty to provide guidance. possible, the contact point shall publish a final declaration on According to NHO, guidance and counseling should be the the matter with recommendations to the company. The contact primary function of vision. The body believes that the introduction point must also process of a law presupposes that the authorities have complaints related to the International Labor Organization a plan - with funding - for guidance and (ILO)'s declaration on multinational information. In the same way that everyone is right corporate social responsibility. The tasks of the OECDs for information from the companies, NHO believes that The contact point will thus be able to affect both the User the companies must have a statutory right to guidance Supervision Authority's supervision and guidance in accordance with the supervisory authorities to be able to fulfill with the Transparency Act. At the same time, it will also be the duty of knowledge. NHO emphasizes the importance of important for scolds in the contact point's and the Authority's work. IN clear legal text and preparatory work. This forms the basis for contrary to the audit, the contact point can not the guidance and can do make legally binding decisions or demand access to the need for guidance less. Master Green confidential information. The Ministry believes believes that sufficient resources should be set aside so that it is not appropriate to regulate the relationship businesses can receive advice and guidance between the Norwegian Consumer Agency and the OECD's to implement the requirements of the law without costly point of contact in law, but will follow this up further, among others consultants. other through agency management of the audit. The Academics, Ethical Trade Norway, FOCUS - The Norwegian Consumer Agency has offices in Porsgrunn, Forum for women and development issues, the Salvation Army Stavanger, Tromsø and Longyearbyen. By adding and the main organization Virke (Virke) control of the new Transparency Act for the Norwegian emphasizes the importance of giving businesses good Consumer Agency, thus also promotes the government's guidance. Ethical trade Norway and Virke believe objective of facilitating growth and development in It is also important to have a long transition period the whole country and a more balanced localization of by the introduction of the law. According to the authorities will government jobs. the workload and the burden on businesses See proposals for the Transparency Act § 8 and § 9. could be reduced if sufficient provision is made with resources for guidance. Although many companies want to act sustainably, it can, 9.2 More about the guide according to Ethical Trade Norway, be great challenges in implementing it in practice and doing so 9.2.1 The Ethics Information Committee's proposal alone. The Norwegian Institute for Human Rights (NIM), the The Ethics Information Committee proposes that the Consumer OECD contact point and the Rafto Foundation also emphasize Authority should guide businesses, consumers and the importance of setting aside others on the implementation of the Transparency Act. enough resources for guidance. The contact point shows According to the committee, there is a need for guidance for that that the entry into force of the law will require a comprehensive the law shall work as intended, and to ensure increase in public competence compliance. and resources to provide guidance on the responsible With regard to the scope of the guidance, the committee business and due diligence assessments, both in one specifies in the comments to the statutory provision that the concrete supervision scheme, but also with others guidance shall go somewhat further than the administration's public actors that provide business support and general duty to provide guidance. guidance for business. Although the Norwegian Consumer Agency will be responsible for FOCUS points out that the actual challenges in the guidance, the committee emphasizes that the guidance scope and nature, and thus the solutions to these, must draw on experience and be prepared in collaboration will vary based on, among other things, size, maturity, with other actors with relevant expertise. industry and where the goods are produced. according to instance, it is therefore important to facilitate a corresponding diversity in the support apparatus. From 9.2.2 The views of the consultative bodies experience, companies will need support from players The Confederation of Norwegian Business and Industry (NHO) believes different competence to be able to ensure good progress in the guidance function should be strong and that worked, according to FOKUS. should be stated in the law that the guidance should both Machine Translated by Google 2020–2021 93 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Equinor, Kongsberg Gruppen, Norsk Hydro, written material is published and courses should be held both in Statkraft, Telenor and Yara International believe so general and within various industries it is important that the control authority provides guidance and target groups. In addition, direct guidance should be given on internationally recommended practices, in particular to to the companies and actors that are provided companies with less experience with UNGP. duties or rights under the regulations. This NIM points out that although the law only legislates that the guidance should be based on the legislation larger companies must carry out due diligence calls in and existing supervisors in the field, in particular accordance with UNGP, it will be the case that OECD supervisors. Supervisors should be prepared in UNGP's expectations and principles of both dialogue with the companies that are imposed obligations knowledge and due diligence assessments apply to according to the regulations and their representatives. In addition all businesses regardless of size, and that the actors with expertise in the area should be involved it is therefore important that it is sufficient veres. resources to guide smaller businesses such as In its consultation statement, NHO refers to Prop. 33 L of its own volition carry out due diligence assessments even if (2019–2020) on the Act on Good Commercial Practice today they are not formally obliged to do so the grocery chain as an example of how the guidance should be the law. According to the agency, there may be reason to carried out. In the proposition, it was suggested that the new assume that the greatest need for guidance will lie with Grocery Inspectorate should work according to companies with lower competence in this the so-called «negotiation model», correspondingly area from the past, for example because they are off the one that applies to the Norwegian Consumer Agency smaller size. Many large Norwegian companies have expertise pursuant to section 36 of the Marketing Act. According to the in the area and are already following suit Ministry's assessment, this is part of the supervisory activities and the requirements for knowledge and due diligence assessments in is therefore dealt with below in section 9.3.3. according to UNGP. Every executive body has a comprehensive The OECD contact point also believes companies duty to provide guidance pursuant to the Public Administration should receive advice and guidance from the public about Act § 11. Through guidance, the administrative bodies shall give how they can best report to, among other things parties and other interested parties access to their meet the requirements of the bill. The instance indicates that interests in the best possible way. Parties and potential parties there are many good existing reporting tools such as the UNGP who request it shall receive guidance reporting framework, laws, regulations and practices. The duty to provide guidance is OECD's alignment assessment tools, GIEK's reporting form on however, related to specific cases and assumptions significant risk for companies that the person to be supervised is either a party or has and GRI reporting and more. contacted the administration. That is why The National Association of the Construction Industry believes it is no general statutory obligation to provide more general guidance very important that a guidance service is in place through the publication of information before the law enters into force. According to the agency, the on websites and to conduct outreach information work through draft law is much broader and will cover many more companies course activities and the like. than is the case in the other countries to which the committee Many authorities, including the Norwegian Consumer Agency, refers. It is, according to the instance, performs this type of business today, without very important that the guidance service is adapted this is required by law. For general guidance to number of companies covered by the law. is given the desired priority, the Ministry believes that it is appropriate to set a legal requirement for this in the Transparency Act. The Consumer Agency is imposed 9.2.3 The Ministry's assessments hence this task in the Transparency Act. Good The Ministry agrees that the supervisory body's primary task general guidance becomes an important tool to should be to provide good guidance on achieve the law's objective of a resource efficient the regulations. As several consultative bodies point out, manner. this is an important measure to ensure that the law is followed Regarding the individual guidance in without inflicting unreasonably high on the business community specific cases, the Ministry considers the rules of the Public costs. Good guidance also simplifies supervisory work. Administration Act to be sufficient. They impose on the Norwegian Consumer Agency a comprehensive duty of guidance The guidance must be given to the companies that that can be adjusted depending on the business duties are imposed, and all the actors that can do resources and the capacity of the Authority. It is estimated that 8 requirements applicable under the Transparency Act, whether it is 830 businesses are covered by the new law. To give consumers, organizations or others. Guidance should be individual guidance to all of these beyond that provided in many different ways. It should prepare already follows from the Public Administration Act, Machine Translated by Google 94 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) demanding and will be at the expense of more resource effective could only be imposed for violations of the information obligations general measures. By prioritizing general guidance, the audit will in the proposal for a new Transparency Act §§ 6, 7 reach more companies and to a greater extent ensure compliance and 10. For violation fee, there is in addition a with the rules. claim for guilt and that the offense has occurred repeatedly. Under the Public Administration Act, there is no obligation to provide binding prior statements. In the Ministry's assessment, The committee emphasizes that fines and fees should not such a requirement should not apply either imposed before the companies have had time to set for guidance The Consumer Agency shall comply into what the law requires and establish new routines. the Transparency Act. See proposal for the Transparency Act § 8. 9.3.2 The views of the consultative bodies 9.3 More about the supervision 9.3.2.1 The purpose of the audit, the duty to provide information and the negotiation model, etc. 9.3.1 The Ethics Information Committee's proposal The Norwegian Consumer Agency agrees with the committee The Ethics Information Committee proposes that the Consumer that section 35 of the Marketing Act should be amended to state that Authority and the Market Council shall control that supervision of the Transparency Act shall ensure transparency the provisions of the Transparency Act are complied with. basic human rights and working conditions. It is proposed that this control be exercised in accordance with the rules in the Marketing Act §§ 32 With regard to the Ethics Information Committee to 41 which applies to the Norwegian Consumer Agency and the proposal to allow the Marketing Act § 34 on the duty to provide Market Council's enforcement of other regulations. The Ethics information and local control to apply Information Committee referred to §§ 32 to 42, but investigations of violations of the Transparency Act, provides because of. amendments to the Marketing Act in connection with The Confederation of Norwegian Business and Industry (NHO) expression Prop. 8 LS (2019–2020) correspond to this in for this provision to go further than that §§ 32 to 41. The committee proposes to amend the Marketing which is necessary. NHO also gives more generally Act § 35 to clarify that the purpose expression that the ministry should go through with the Consumer Agency's enforcement of the Transparency the provisions referred to in the Marketing Act to see if they fit. Act is to ensure any access to information from The Norwegian Consumer Agency on companies on basic human rights and working conditions. on the other hand, it is positive that supervision of the Transparency Act shall be carried out in accordance with the The reference to the Marketing Act means, among other rules of the Marketing Act. things, that the control must take place professionally With regard to the requirement that the Norwegian Consumer Agency independent authorities, cf. section 32. Furthermore, it provides shall use the negotiation model in its business, this is not The Norwegian Consumer Agency has broad authority to explicitly commented on demand information, examine premises and seize material the consultative bodies. Several agencies highlight which is relevant for detecting breaches of the Transparency however, the importance of dialogue between supervision and Act, cf. section 34. The Norwegian Consumer Agency shall use the activities covered by the regulations. IN the action model in its supervisory activities, cf. section 36. NHO's response to the consultation refers to the discussions that took place first paragraph. That is, the audit must try to get done around the new Norwegian Food Safety Authority's role in å traders to voluntarily align themselves with enforce the law on good commercial practice in the grocery the regulations through dialogue and negotiations. For the user chain, see Prop. 33 L (2019–2020). There it was authority can request written confirmation of among other things emphasized that the Norwegian Food Safety Authority should that the illegal relationship shall cease or grasp work according to the negotiation model. decision. It is also proposed with regard to an appeal against the Consumer Authority's decision pursuant to the Transparency Act same solution as in the Marketing Act. This 9.3.2.2 Sanctions and other measures to ensure compliance means that the Market Council processes complaints The Consumer Agency's decision and that the Market Council's All the consultative bodies that have commented are decisions can not be appealed, cf. section 37. agree that violations of the Transparency Act should The committee proposes that the Norwegian Consumer could lead to administrative reactions. It is Agency and the Market Council should be able to make decisions on bans,however, divided opinions on what reactions injunctions, coercive fines and infringement fines, as well as to be applied to the various offenses. decisions against employees, cf. the Marketing Act Equinor, Kongsberg Gruppen, Norsk Hydro, § 39. Coercive fines and infringement fines shall Statkraft, Telenor and Yara International believe Machine Translated by Google 2020–2021 95 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the sanction rules are well weighed against the purpose of the law. The Rainforest Fund believes that a legalization of the The main organization Virke supports that it is only obligations in the UNGP and OECD guidelines should also rejection of requirements for information that must be able to involve a sanction option in the event of non-compliance sanctioned, not the quality of, for example, the business measures or lack of effect of measures. Forum for assessments. The Norwegian Journalists' Team supports development and environment, The future in our hands - both the proposal that the control authorities should be able to the main organization, the Oslo local team and Trondheim impose coercive fines and infringement fines so that student groups, the Rainforest Fund and Spire believe it is they have a real means of pressure on businesses crucial for the effect of the law that non-compliance with the which does not act in accordance with the law. requirement of due diligence, risk-taking measures and the BDO believes that there are weaknesses in enforcement creation of damage leads to and the sanctions, and that this in combination with appropriate sanctions. The future of ours Increased reporting requirements can distort competition. hands point to the possibilities of sanctions The authority points out that companies that comply with the being implemented not only has significance in it law will have increased costs associated with it some case, but will also have an aggravating effect on reporting, while companies that do not correct companies that are in the starting pit for, or have arrived by law, does not carry much risk of becoming a long way in the work with due diligence and follow-up. discovered and / or sanctioned. BDO emphasizes that What can be considered a the evaluation of the UK Modern Slavery Act in particular minimum level for due diligence assessments and follow-up, highlights the lack of enforcement and should, according to Framtiden in our hands and Regn sanctions, and the body therefore believes it should skogfondet, be clarified in regulations or set at stricter reactions to breaches of duty are introduced than another way. Hope for Justice also believes that what the Ethics Information Committee has proposed. By sanctions must be linked to non-compliance impose severe sanctions combined with of the duty to act if a breach has been discovered extensive and effective enforcement, BDO assumes that human rights. several players will loyally comply with the rules, YWCA-YMCA believes that there should be opportunities or that rogue players disappear from the market for sank against companies that do not due to the sanctions imposed. The instance shows respects and follows fundamental human rights, including to that it is especially important to catch the disloyal the UN Universal Declaration of the players who start up again to avoid all sanctions imposed. human rights, the UN Convention on Civil Liberties and political rights, the UN Convention on Economic, Social Amnesty International Norge (Amnesty), and Cultural Rights and the ILO Changemaker, Joint Council for Africa, YWCA-YMCA core conventions on fundamental rights and principles in and Save the Children thinks it is insufficient that working life. only non-compliance with the information obligations can be Amnesty indicates that efficiency considerations dictate sanctioned. According to the authorities that companies' central bodies, such as governing and In particular, breaches of the duty to carry out sanctioning general manager, should to a greater extent be held liable due diligence assessments should be sanctioned. Amnesty for breaches of the law's obligations. refers to efficiency considerations and that NHO believes that a possible coercive fine must Experience from adjacent areas indicates that the possibility triggered by violation of a specific decision and not of sanctions is important for companies violation of the law itself, as the committee's proposal compliance with the requirements of the law. According to the YWCA-YMCA may indicate. NHO points out that the duty subjects on in case of breach of decent work should be considered this way can get to know what they have to deal with whether the company knew about or should have known to, so that they can avoid coercive fines. At the same about the breach it. If the answer is yes and this does not come way and with the same reasoning, NHO believes appear in the publication of the due diligence assessment, it should be a decision of the supervisory authority that the company should be held liable for incorrect information may be grounds for infringement fine. Further and sanctioned. According to Amnesty NHO refers to the principle that the least intrusive sanction and the Rainforest Fund , the sanctions must be proportionate should be chosen, and that this with regard to, among other things, what is indicates that coercive fines should be the primary means of reasonable to demand of the company in question under the action for the supervisory authorities. According to NHO facts, the gravity of the offense and violation fee should just be applicable there frequency. According to Changemaker, the sanctions must coercive fine has not worked. be strong enough for companies to correct The Norwegian Consumer Agency believes that one should be included according to the law. reference to the Marketing Act § 42 on the imposition of infringement fines, as the bill Machine Translated by Google 96 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) get § 13 third paragraph deals with infringement fines. NHO call in light of the bill's general references to points out that legal persons cannot different human rights. Amnesty nevertheless believes that exhibit intent or negligence, and that violation the considerations that justify the principle of legality, the which should be able to be sanctioned should therefore be consideration of predictability, can nevertheless qualified in another way, for example by grading adequately taken care of. Amnesty shows that materiality and repetitions. imprisonment can be made conditional on repeated Norwegian Institute for Human Rights (NIM) or gross violations committed intentionally or grievously is unsure of what magnitude one is looking for negligent, and that the date of entry into force may on coercive fines and infringement fines, and postponed for a reasonable time through transitional think this is something to be aware of in it provisions. This will ensure a good balance between further work on the law. The size of the fine and considerations of predictability and considerations of efficiency fees, in addition to how this is used in practice with regard to compliance, according to the instance. Amnesty believes flexibility, guidance etc. can no one will risk imprisonment if you step on it also have something to say against legal requirements and procedural errors in difficult trade-offs between different human rights. claim. An opportunity to sanction a violation with a penalty will also Equinor, Norsk Hydro and Telenor believe that give rise to a corporate penalty the law will be strengthened and clarified if further as a possible means of sanction, in that the entry will be rules on the imposition of coercive fines and the imposition of determined in accordance with the Criminal Code's provision on infringement fines are made as part of the work corporate punishment is that a "penalty order" has been violated. with the bill. Asking the Ministry to assess this by regulation NIM shares the committee's view that implementation later gives, according to the authorities, uncertainty to can be made flexible, and that it can be done with advantage companies and to the control and enforcement authority. discretion and flexibility are shown in connection with inspection and sanctioning, especially in an initial phase. In addition to coercive fines and infringement fines In the instance's view, the use of sanctions will Amnesty believes that the supervisory authority should have also depend on the quality of the guide competence to issue orders for exclusion which is given. Its better guidance, its bigger rooms from official business delegations abroad and for possible sanction, and vice versa, according to access to public financial support schemes for instances. The future in our hands means it will a given period of time, as well as the cessation of illegal be unreasonable if sanctions can be imposed on companies custody, redress for victims of business-related that do not carry out due diligence assessments in a human rights violations and a ban on satisfactory manner immediately after the law enters into run business for individuals. force. The instance proposes BDO points out that the rules on corporate penalties can therefore a run-in phase for the business community: the be as good an instrument as an infringement fee and a companies have a multi-year, however defined period of time coercive fine. According to Amnesty, BDO to incorporate the requirements of the law before sanctions can and the Rainforest Fund should the due diligence obligations put into use. seen in connection with the Ministry of Justice and Emergency Management's ongoing study of the rules on including corporate penalties. Amnesty mentions that 9.3.3 The Ministry's assessments should be considered whether parent companies should be able to be held responsible for offenses committed in subsidiaries. 9.3.3.1 The purpose of the audit, the independence Amnesty and the Rainforest Fund further believe that of the audit and the negotiation model mv. a law requiring due diligence in business should be sanctioned with a penalty provision The Ministry agrees with the Ethics Information Committee in in line with the objective of effective compliance. that the supervisory rules in the Marketing Act National and international experience indicates, should be applied in the enforcement of the law of according to Amnesty, that pure expectations or legal requirements transparency. However, the Ministry believes that some without adequate sanctions not enforced of the provisions of the Marketing Act nevertheless as effective as intended. Amnesty also refers to does not apply to the Norwegian Consumer Agency's enforcement of that experiences from the work against corruption, money the Transparency Act. The Ministry therefore proposes that laundering and the introduction of the Privacy Ordinance the visual rules to a greater extent be stated directly in the shows that the business community is quickly incorporating new routines Transparency Act, in order to make it clear which rules which is punishable. On the other side applies to the Norwegian Consumer Agency's supervision of the law. Amnesty points out that the principle of legality in the starting The Ministry agrees with the committee and For the User point dictates caution with criminal sanctions Inspectorate that it is necessary to Machine Translated by Google 2020–2021 97 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) make what considerations the enforcement of the Transparency consumer protection co-operation in Norwegian law, see Prop. 8 Act shall take care of, and proposes that this be specified in LS (2019-2020) point 10. the Transparency Act. In the Ministry's assessment The committee's proposal further means that the Consumer the wording should be simplified compared to Agency will be able to make decisions with temporary effect, cf. the committee's proposal and reflect the main purpose the Marketing Act § 39 other with the law that is to promote business joint. This option was introduced on 1 July 2020 respect for fundamental human rights as a result of the implementation of the Regulation on and decent working conditions, cf. discussion in point consumer protection co-operation, see Prop. 8 LS (2019– 7.1.3. 2020) point 9. The rationale for this rule is The Ministry also considers it important that the Norwegian Consumer Agency should be able to stop quickly that enforcement is done by professionally independent people breach of consumer protection rules where there is a risk of authorities and therefore supports the committee's proposal serious harm to consumers' interests. After that the Marketing Act § 32 shall apply to The Ministry's assessment does not want such conditions Control by the Norwegian Consumer Agency and the Market Council apply at the Consumer Agency's audit with new transparency law. This means that neither under the Transparency Act. It is therefore not needed the ministry or government can instruct to make decisions with temporary effect under the Transparency these bodies in individual cases or in general law interpretation. Act, and the Ministry therefore proposes no For more information, see Prop. 93 L (2016– provision in the Transparency Act on this. 2017) section 6.1 for a more detailed discussion of the See proposal for the Transparency Act § 9. Consumer Authority's and the Market Council's independence. The Ministry agrees to the control of 9.3.3.2 Duty to provide information, on-site inspection The Transparency Act should take place in accordance with the and seizure negotiating model in the Marketing Act, as proposed by the committee and several of the consultative bodies wish. This means that Following the Ethics Information Committee's proposal, the the Norwegian Consumer Agency must try to get the companies User Inspectorate is given broad authority to map the facts, to voluntarily follow the regulations. In the first among other things by requiring information, including handling through information, see section 9.2.3 on confidential information and the duty to provide guidance. If this does not succeed, must examine premises, cf. the Marketing Act § 34. the audit enters into dialogue and negotiates with the companies Section 34 of the Marketing Act has since the committee above to get them to adjust. In these negotiations, the Norwegian submitted its report been expanded and clarified, among other things Consumer Agency cannot accept solutions that are in conflict other with a clear legal basis to seize with the requirements of the Transparency Act. The Norwegian documents and objects. The powers to search premises and to Consumer Agency still has no absolute seize use the Consumer Agency very rarely. The ministry does duty to negotiate. For example, where the company must be not believe either assumed to know the rules well, it is The Norwegian Consumer Agency will have a particular need for or not necessary for the Authority to negotiate before a decision is capacity for such intrusive investigative steps in the enforcement made. For more information, see Prop. 93 L of the Transparency Act. (2016–2017) section 4.2 where the negotiation model in the However, there may be a need for a far-reaching duty to Marketing Act is explained in more detail. provide information that also includes confidential information. The Ministry therefore proposes that a similar provision as The committee's proposal also means that the Norwegian Consumer Agency can obtain written confirmations Marketing Act § 34 first and fourth paragraphs that the illegal relationship shall cease, cf. the Marketing Act § the first and second sentences are included in the Transparency Act. 36 second paragraph first sentence before the first alternative. The Marketing Act § 34 fourth paragraph third point states that The Ministry believes this can the Norwegian Consumer Agency shall also have access to be an appropriate tool to get companies to comply with the certain types of information from providers of requirements of the Transparency Act, e-network or e-services, despite the fact that the information is and proposes that a similar provision be included in subject to a qualified duty of confidentiality the Transparency Act. However, the Ministry proposes according to the Criminal Procedure Act § 118, which does not seem not a provision that the Norwegian Consumer Agency can relevant to the Norwegian Consumer Agency's supervision of Obtain written confirmation of that business the Transparency Act. Similar to the rules in the Marketing Act, shall offer remedial measures to affected consumers, the Ministry proposes that the Consumer Agency should be as this provision does not seem relevant to the supervision of able to impose a coercive fine on anyone who the Transparency Act, and in principle is due to the does not fulfill the duty to provide information. implementation of a regulation on Machine Translated by Google 98 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The Ministry would like to emphasize that the duty to provide of the information obligations in the Transparency Act. This to information does not take precedence over the right of confidentiality that followsdifference from the Marketing Act where it as of the protection against self-incrimination and the requirement of a starting point shall be determined coercive fine for fair trial, cf. Article 6 (1) of the ECHR. violation of any prohibition and injunction decision as The protection against self-incrimination means that companies The Norwegian Consumer Agency takes action, cf. the Marketing Act can be exempted from providing information such as § 41. This shall ensure that the decisions are complied with. makes them risk sanctions that are considered Determination of a coercive fine may be omitted if punishment after the ECHR. This includes both sanctions that special reasons dictate it. Several consultative bodies have are considered penalties under Norwegian law, but had objections to the breach of duty also administrative sanctions, such as to perform due diligence assessments should not have infringement fine. Self-incrimination protection is consequences. further discussed in Prop. 62 L (2015–2016) The Ministry agrees with the committee that For the User point 22. Authority should be able to control everyone See proposal for a Transparency Act § 10. the provisions of the Transparency Act, including the provisions that require companies to make due diligence assessments. This means that 9.3.3.3 Sanctions and other measures to ensure the authority must be able to make decisions for breaches compliance this requirement. All the consultative bodies seem to share this assessment. The question is about breaking one Introduction decisions must have consequences or not. As shown According to the Ethics Information Committee's proposal, the above, it is proposed to impose on the Norwegian Consumer Agency a User Inspectorate shall be able to make decisions on duty of care that is more comprehensive than that injunctions, fines, coercive fines and infringement fines. Several which follows from the Public Administration Act. About the companies Consultative bodies believe punishment can be a good thing nevertheless does not follow the rules, the Consumer Agency instrument to ensure effective compliance with will try to get through dialogue and negotiations the Transparency Act. Before the various reactions are them to voluntarily align themselves. If not assessed, the ministry wants to give a brief account of them If this is successful, the Authority will make a decision in the case. various measures. In the Ministry's assessment, serious companies will either An injunction or prohibition decision must be followed, however comply with the Authority's decision it has no immediate consequences if or appeal it to the Market Council. Before the decision is violated. To ensure compliance it is minority of businesses that do not address It is common for breaches of public law rules to have by order of the Authority or exercising its right of appeal, consequences. These consequences can, for example, be in it should, in the Ministry's assessment, be able to the form of fines, fines, fines or imprisonment. Imprisonment, a reaction is imposed. Otherwise, the law and the view of the which is the most serious reaction, can only be imposed by law may distort competition the courts. The administration may impose a coercive fine that the enterprises that do not carry out or and a fine. The difference between these two reactions is that conducts very deficient or fictitious business assessments, will have lower costs compared to the companies that loyally coercive fines trigger a payment obligation in the event of a breach follow on a specific decision that is aimed at the company, while an up the requirements of the Transparency Act. The Ministry therefore infringement fee must be paid proposes that the Norwegian Consumer Agency should be able to impose violation of law. This means that the companies will to a much coercive fine for violation of any decision. In addition greater extent know and be ready to a coercive fine for violation of prohibition and over that they risk a coercive fine. Violation fee is considered injunction decision, the Ministry proposes that the Consumer a penalty under the European Agency should be able to impose a coercive fine for the Convention on Human Rights (ECHR). After breach of written confirmations. The Public Administration Act's use of terms is considered an In contrast to the rules of the Marketing Act infringement fee as an administrative sanction, and that however, the ministry suggests that it should not special requirements are set for such administrative decisions, be any requirement that the Norwegian Consumer Agency as cf. the Public Administration Act § 43 the following. main rule must provide coercive fines at all injunction and prohibition decisions. This assessment should be left to the Norwegian Consumer Agency in each individual Coercive fine case. As far as the ministry is aware The Ethics Information Committee suggests that it can only This is common for administrative law laws such as a decision is made on a coercive fine in the event of a violation Machine Translated by Google 2020–2021 99 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) imposes obligations on the business community, cf., for example, section calling. It will mainly be legal persons and their financial 73 of the Pollution Control Act. activities that are affected by a possible infringement fee, See proposal for a Transparency Act §§ 11-13. which in general, it makes it less worrying to sanction offense. The Norwegian Consumer Agency has extensive experience Infringement fee with imposing an infringement fee, and will therefore As mentioned in the introduction, the violation fee be able to handle such matters in a good way an administrative sanction under the Public Administration Act and legally sound manner. When it and punishment after the ECHR. This is because it is a serious applies to any breach of the deadlines to sanction with a so-called penal purpose, that is respond to information requirements must be able to be it like punishment should feel like an evil and sanctioned with an infringement fee, the ministry has act as a deterrent. There are therefore special requirements been unsure of what has been the committee's for kind and for imposing this reaction both intention. However, the Ministry believes that repeated clear according to the ECHR and in the Public Administration Act. I Prop. 62 L violations of the deadlines to (2015–2016) section 7.4.3, the Ministry of Justice and answer information requirements should also be sanctioned Emergency Preparedness has given its recommendations for whenwith infringement fines. According to the Ministry's the legislature should use this form of reaction. The assessment, infringement fines can be used, for example, if The first thing that should be considered is whether there a company consistently does not comply with the deadlines are less intrusive measures that can be used to for achieve the purpose. Whether a violation is to be sanctioned answer information requirements, and the content of the should, as a starting point, be assessed on the basis of it information requirements clearly indicates that the information should some obligation. Furthermore, it is a prerequisite that there could be granted within the deadlines in the provision. is an administrative body that can Several consultative bodies have stated that enforce the rules, and it must be legally justifiable to impose other breaches of the Transparency Act should also result an administrative sanction. In this lies an assessment of sanctions, in particular breaches of the duty to carry out whether the rules business assessments. For the ministry it is raises difficult legal questions or evidence questions, the somewhat unclear whether the consultation bodies use the nature of the sanction in question and term sanction in line with the use of the term in the Public scope, who is affected by the sanction, if Administration Act or whether they consider coercive fines as a there are individuals or companies, and which adequate reaction. As explained above, prerequisites for the administrative body to ensure the ministry proposes that it should be possible to impose it a reassuring treatment of the cases. coercive fine for breach of any obligation after The Ministry shares both the Ethics Information the Transparency Act, including breaches of the duty to Committee and the consultative bodies' views that it is perform due diligence assessments. Whatever you mean need for enforcement of the Transparency Act, and that ministry it is appropriate to delimit this includes an opportunity to impose a violation fee for the authority to impose an infringement fine violating the provisions of the law. the information obligations. The obligation to carry out If the only reaction is decision with determined business assessments allows for more discretionary coercive fine triggered by violation of the decision, assessments, which indicates that it should not this can lead to businesses covered by a violation fee is imposed for violation of the law, choose not to follow the rules of the law until they these provisions. In addition, businesses can receives a decision or a notice of decision. In that case who have not performed due diligence assessments, ha the law will to a small extent achieve the purpose that is to difficulties in complying with the information obligations, promote all companies' respect for fundamental human which can be sanctioned with an overriding fee. rights and decency working conditions. The Ministry proposes a provision in The committee proposes that only the duty to provide the Transparency Act, which gives the Norwegian Consumer information should be sanctioned with an overriding fee. In Agency home flour to impose infringement fines in the event of a breach the Ministry's assessment the information obligations in the law, in line with the committee's is it legally justifiable to impose suggestion. Corresponding provisions are also proposed, administrative sanctions in the event of a breach of the duty such as the Marketing Act § 42 second and third to provide information. The provisions provide a clear joints which, among other things, provide guidelines on the size of obligation to provide information about the company's work the infringement fee and rules for payment deadlines. with basic human rights and With regard to NHO's remark that legal persons cannot decent working conditions and due diligence show intent or negligence Machine Translated by Google 100 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) business, the Ministry agrees with this and proposes companies and create new ones that continued the illegal therefore that it should only be a claim of guilt for business. Another problem was that behind the men did not natural persons. Violation fee for violation necessarily hold formal positions in these companies. On the on the Transparency Act will usually be directed at legal persons, basis of the input in the consultation, the Ministry maintains for but can also be directed at natural persons the battle on a co-responsibility for breach of persons, see the section on participation below. See proposal for the Transparency Act § 14. the Transparency Act. For a more detailed account of co-responsibility, it is referred to Ot.prp. No. 34 (1994–1995) point 3.2. Other sanctions and complicity See proposal for a Transparency Act § 11 second paragraph. Several consultative bodies believe that the law should be sanctioned with penalties, or at least that this alternative should Transitional arrangement be considered by the ministry. In Justice and the Ministry of Emergency Management's recommendations in Prop. The Ministry agrees with the Ethics Information Committee and 62 L (2015–2016) section 7.4.3 emphasizes the importance of the consultative bodies that companies choosing the least intrusive instrument imposed duties should be given a period where they can and that the breach can actually be enforced. As become familiar with the rules of the law and create internal explained above, the Ministry proposes that companies should guidelines, without risking public law reactions. This can be be able to be fined and fined in the event of a breach of the solved through different effective dates on the substantive rules Transparency Act. and the enforcement rules. Entry into force is determined by The duty subjects who risk these reactions, conducts economic activities, and economic resources should the government in the cabinet, see the bill § 15. therefore be sufficient to obtain the companies to comply with the regulations. If it turns out that the businesses anyway 9.4 Processing of complaints does not adjust, it may be considered to increase the fines or fees. Any penal provision must be enforced by the prosecution 9.4.1 The Ethics Information Committee's proposal and The Ethics Information Committee proposes that rejection and the courts. These organs have a lot to do rejection of information requirements can be appealed to For do and it is uncertain whether the prosecution the User Inspectorate, which decides the appeal case. The selection has the capacity to prosecute violations of the law of proposes a deadline for complaints of three weeks from the time transparency. In the Ministry's assessment, that is why the refusal has reached the information seeker, not appropriate to sanction violations cf. the committee's bill § 12. The appeal scheme is the Transparency Act with punishment. inspired by the Public Access to Information Act and the Environmental The Ministry believes that coercive fines and over-entry Information Act. fees in combination with guidance and publication of decisions are effective means to ensure that the companies comply with the Transparency Act. 9.4.2 The views of the consultative bodies The Ministry therefore believes that it is not either Bergen Municipality, the Consumer Council and the Business Council the need for other instruments proposed by the consultative The main organization supports the establishment of a complaint bodies, such as, among other things, exclusion from business scheme. Amnesty International Norway (Amnesty) delegations or public support schemes or business bans. and the Rainforest Fund believes that the right of appeal should also include insufficient or incomplete information, in addition to None of the consultative bodies have had specifics rejection and rejection of information requirements. According comments on the proposal that it should be possible to correct to the authorities, it must be clearer what is to be regarded as decisions on prohibitions, injunctions, coercive fines and sufficient fulfillment of the duty to provide information. infringement fine against employees, cf. the Marketing Practices Act § 39 third paragraph. However, some consultative bodies Amnesty, Save the Children and the Rainforest Fund mention the importance of being able to believes that inadequate implementation of the duty to direct sanctions against the general manager and chairman of the board, conduct due diligence assessments should be able to as well as ensuring that the system catches junk players who appealed by consumers, individuals and organizations. In shut down and restart to avoid addition to safeguarding consumers' rights, already imposed sanctions. Responsibility for participation is it, according to the Rafto Foundation and the Rainforest Foundation, was introduced in the Marketing Act to avoid that crucial that even those who are vulnerable to become victims businesses circumvent decisions by closing down for human rights violations and environmental damage, both Machine Translated by Google 2020–2021 101 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) in and outside Norway, has real access to information, and that The Ethics Information Committee did not propose negatively affected individuals and local communities have corresponding rules for the Consumer Agency's decisions in access to adequate complaints and redress mechanisms. appeals. The committee proposed that the Norwegian Consumer Agency can determine a possible coercive fine if the companies do not comply Bergen Municipality questions whether For the User with the information obligations. It is unclear whether the proposal Inspectorate, with its role vis-à-vis the user market, is the most implies that natural complaint body for professional customers from the The Norwegian Consumer Agency may impose a coercive fine on corporate market the processing of complaints about rejected information and from public clients. The instance asks requirements. questions about whether the OECD's contact point will be one The Ministry agrees that the Norwegian Consumer Agency more appropriate appeals body. should enforce the right to information and companies' processing The Consumer Council points out that a joint appeal board of information requirements, and if for both the Environmental Information Act and the Ethics necessary to make decisions requiring companies to provide Information Act, with a joint secretariat and such information under threat of coercive fines. With this proposal, systems, could be both efficient and economical. there is no need a private law enforcement of information requirements and appeal system corresponding to that which follows from Section 19 of the Environmental Information Act. Anyone who 9.4.3 The Ministry's assessments has rights under the Transparency Act will be able to advise the The rules on the right to complain about lack of information are User Inspectorate of a breach of these rights. taken from the Environmental Information Act. For purposes of It will be up to the Norwegian Consumer Agency to decide the proposed Transparency Act, the Environmental Information what issues it addresses with the companies. Where the Act has no rules on public enforcement. Rejection of requirements Norwegian Consumer Agency chooses to downgrade one for environmental information can be appealed to the Appeals case, this decision can be appealed to the Market Council, cf. Board for environmental information, and a the Marketing Act § 37 other decisions in this tribunal are a special coercive basis pursuant to joint. In the Ministry's assessment, this will the Enforcement Act, cf. the Environmental Information Act § 19. be a better and more resource efficient way to This means that appeals ensure compliance with the regulations on. The Ministry therefore can have the claim enforced through the registration authorities does not follow up on the proposal for a separate one by imposing an obligation on the company on an ongoing basis appeal scheme for refusal of information requirements. fine if they do not hand over or prepare it requested the information. Machine Translated by Google 102 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 10 Financial and administrative consequences 10.1 Introduction 10.2 Consequences for the business community The Transparency Act shall contribute to promoting companies' The proposal for a transparency law will entail financial respect for basic human rights and decent working conditions. and administrative consequences for the companies that are The law imposed obligations through the law. At the end of November requires companies to carry out due diligence assessments 2020, the Ministry commissioned Oslo Eco nomics and KPMG and to publish a statement to carry out one the cautionary assessments, and provide consumers, trade impact assessment that concretizes and quantifies the unions, organizations, journalists, the public financial and administrative consequences for various clients and others entitled to information from companies in the business sector the companies on how they work with human rights and as a result of the Ethics Information Committee's proposal working conditions in the companies, the supply chains and to the Transparency Act. The impact assessment was to build with business partners on the Ethics Information Committee's assessments, however black. clarify how the costs will vary based on The law will, in the Ministry's assessment including business size, industry, context and maturity. The contribute to the companies working more actively for Ministry received the impact assessment on 5 January 2021. to prevent and deal with negative consequences human rights and decent working conditions in connection To map the current situation, Oslo Eco nomics and KPMG with the production of goods and have, among other things, looked at existing ones delivery of services, no matter where in the world the supply regulations in Norway and in other countries, existing chain goes, from the raw material stage to the finished product. voluntary schemes, and expected developments in the EU. The law will also contribute to more openness in a global and This has given them a basis for assessing where complex business world, making it easier to much new a transparency law will require of the companies. make ethical purchasing and investment decisions and They have also interviewed representatives of to test the companies' work in this field. different businesses. As a result of the impact assessment The law will, in the Ministry's assessment, do being carried out within 5 weeks, it is easier to compare companies' production and trading however, Oslo Economics and KPMG have been practices, and will be able to contribute to have to make simplifications and generalizations. to strengthen the competitiveness of companies such as It is therefore emphasized in the report that there is uncertainty already strives for ethically sustainable production. Increased associated with the cost estimates, and that these focus on ethical trade will also lead to consequently must be considered as rough estimates. that companies' costs of making demands on The Ethics Information Committee proposes that the human rights and working conditions are borne supervisory authorities be given an active duty to provide guidance. of several players. In the long run, the law could lead to more The Ministry's bill also includes one ethical production of goods and services sold active duty to provide guidance, cf. section 9. Oslo Economics in Norwegian shops. and KPMG therefore has in the calculation of costs The bill will, together with other measures for the companies assumed that guidance is provided contribute positively to Norway's work to achieve the UN's to the companies free of charge and without restriction. This sustainable power goals, in particular goal no. 8 on decent work and includes courses, guidance materials economic growth, and goal no. 12 on responsible for use and and individual counseling. It is assumed that production. this will help to reduce the companies' costs of fulfilling the various obligations in the bill. The public sector's costs for guidance are not calculated by Oslo Economics and KPMG and will come in addition, see further discussion in section 10.3. Machine Translated by Google 2020–2021 103 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Oslo Economics and KPMG assume that 8,830 the average cost is expected to be 73,300 companies will be covered by the Transparency Act's NOK in year 1, and thereafter at NOK 67,300 annually from definition of «larger companies». This includes 270 year 2 as a result of the bill. large enterprises, cf. the definition in the Accounting Act § Among the large companies, it is assumed that 1-5, and 8,560 medium-sized enterprises which Maturity will vary and affect costs. neither considered large nor small according to the 30 percent of the large companies are expected in definitions in the Accounting Act § 1-5 and § 1-6. The to a large extent to meet the requirement to perform due financial and administrative costs of each business will vary. diligence assessments today, and is therefore not expected to For medium-sized businesses have financial and administrative consequences the industry risk will be of great importance for the economic as a result of the bill. consequences. Businesses in low-risk co-industries are Large companies that are expected to have a higher expected to have a low cost estimate, cost estimates as a result of the bill, include companies that while companies in high-risk industries are expected currently do limited with to have a high cost estimate. For large companies, it will be work in this area. These businesses are expected to have the company's maturity that to set aside significant resources to plays on the cost estimate. Maturity relates here to whether meet the requirements that follow from the bill, estimated at the business already 1 dedicated man-year, ie approximately 850,000 performs similar assessments and is ready to fulfill the bill's kroner annually. obligations. Large mature companies are expected to have Large companies that are already doing a part in a low cost estimate, while area, but not sufficient to meet the legal requirements, is large companies with little maturity are expected expected to fall midway between the low and a high cost estimate. The following costs are high cost category, and is expected to have to related to the duty to perform and account for business use approx. half a man-year, ie about 450,000 assessments and the duty to provide information NOK annually to fulfill the obligations in the bill. for large and medium-sized businesses. In total, the financial and administrative consequences Medium-sized businesses that are expected to have one for the 8,830 «larger companies» that are imposed low cost estimate as a result of the bill, is obligations under the bill are calculated to: for example, service companies such as consulting amount to approx. NOK 700 million in the start-up year, and companies, real estate companies, construction and some about. 630 million in year 2. These figures are limited retail trade, as well as high-risk companies in the supply to the direct costs to businesses of chain that work there with due diligence assessments in fulfill the obligations arising from the bill. The whole or in part in that is, the positive effects of the bill are not day. For these, the average cost is expected included. That the companies work actively to be 24,600 kroner in year 1, and then 10,600 with human rights and decent working conditions and are NOK annually from year 2 as a result of the bill. open about conditions in their business and Medium-sized businesses that are expected to have one supply chain, may, in the Ministry's assessment, provide high cost estimate as a result of the bill, benefits for the companies, including in typically includes stores / online retailers that offer form of better reputation, and more motivated with workers. has a number of different high-risk products such as electronics, IT equipment, textiles, toys and the like The Ministry emphasizes that the estimates from many suppliers and a higher number of producers. For Oslo Economics and KPMG are approximate estimates. these, the average cost is expected to For some businesses, the financial and be at 125,000 kroner in year 1, and then on the administrative consequences exceed the cost estimates NOK 123,000 annually from year 2 as a result of the bill. in the report. This is especially true Norwegian parent companies with subsidiaries abroad that Medium-sized companies that sell a limited range of are covered by the parent company's obligations under high-risk products and have few delivery doors are assumed the law. to fall in the middle between the two mentioned categories. Reference is made to further discussion in the impact The same applies, among other things, to companies that assessment from Oslo Economics and KPMG. The impact do not target consumers. The category includes, for assessment also includes an assessment of example, wholesalers, retailers, import companies and what financial and administrative consequences an some suppliers extension to the environmental impact will have for the public sector in various industries. For these for companies, see the impact assessment, chapter 6. Machine Translated by Google 104 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 10.3 Consequences for the public sector from the past and that the supervision has sufficient resources to be able to carry out their tasks The proposed Transparency Act means that the Consumer in a good way. Among other things, this is important to Authority is given responsibility for supervision and guidance help reduce the cost to businesses the law. The duty to provide guidance means that the Consumer as a result of new law, see section 10.2. Additional expenses for Authority must, among other things, hold courses on the duties the state related to the new transparency law is covered within in the law, prepare guidance material that, for example, the ministry's current budget framework. concretizes human rights as Although the OECD contact point is not added the duties of the law include, and provide businesses with near new or changed tasks as a result of the proposal more assistance with how to proceed to to the new Transparency Act, it can nevertheless, in the meet the requirements of the law. Ministry's assessment, be expected that the Act will entail The duty to supervise will mean that the Consumer Agency financial and administrative consequences for must check that the businesses covered by the law fulfill the the point of contact. Firstly, as a result of several law's duties. It is important requests for assistance from companies to the point of contact that the companies in the start-up phase receive sufficient to meet OECD guidelines. with time to familiarize themselves with what the law requires and to This is due to the fact that the proposal for a transparency law in establish good routines. It may therefore be relevant largely based on the international guidelines, which can make with different dates of entry into force of the Act companies more aware of these and of the right to receive duties and enforcement provisions. Regardless, in the start-up guidance from the contact point. It is emphasized phase, the Consumer Agency's supervisory work will to a large extent be more characterized by guidance. The inspectorate while the role of the contact point is to assist companies in must nevertheless be able to comment on the company's complying with OECD guidelines, fulfillment of its obligations, both in order to - in line with and that these guidelines will be adhered to purpose of the Transparency Act - ensure that businesses of the Transparency Act. Specific requests for guidance related works actively to prevent and deal with negative consequences to the obligations of the Transparency Act will therefore have to for fundamental human rights and decent working conditions, be referred to the Norwegian Consumer Agency. The Ministry and to presupposes close co-operation between the Norwegian User ensure access to information for the general public. The Inspectorate and the OECD's contact point so that the guidance will eventually, after the law has worked for a period, with the Transparency Act is as great as possible. It is expected that the Norwegian Consumer Agency spends must harmonize with established practice at the OECD more resources on supervision. internationally and Norway's OECD contact point. The tasks given to the Norwegian Consumer Agency It is therefore also natural to expect that the contact point must require the Authority to acquire new and solid competence in set aside some resources for interaction an area in which the Authority has no experience. and dialogue with the Norwegian Consumer Agency. Machine Translated by Google 2020–2021 105 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) 11 Comments on the bill conclusions, verify the businesses, and thus Re Section 1 help promote corporate respect for The section states the purpose of the law and the factual nature of the law basic human rights and decent working conditions. scope. The main purpose of the law is to promote corporate respect for fundamental human rights It is referred to in more detail in section 7.1.3 and and decency 7.2.3. working conditions. The objective scope of the law is with this basic human rights Re Section 2 and decent working conditions. The terms are defined in § 3 letter b and c. The second purpose of the Act, The section states the law's objects of duty and geographical which is also an important tool to achieve scope. the main purpose of the law, is to ensure the public access The first paragraph states that the Act applies to larger to information on how businesses companies, see the definition of «larger companies» in § 3 deals with negative consequences for fundamental human letter a and the note to this rights and decent people the provision. It further follows from the first point that the working conditions. This includes both what companies do law applies to larger companies that are to prevent and limit the risk resident in Norway, regardless of whether these for negative consequences, and what businesses offers goods and services in Norway or abroad do to stop and limit actual negatives Norway. The second sentence indicates that the law also applies consequences that the business has revealed. major foreign companies offering goods It is specified in the purpose provision that and services in Norway, and which are taxable the law applies to basic human rights and decent working Norway according to Norwegian internal legislation. The conditions «in connection geographical scope of the Act must be seen in connection with with the production of goods and the supply of services ». corresponding scope of the Accounting Act, see This clarification should not be construed as the Accounting Act § 1-1, and the indication of accounting a delimitation related to who is affected by entities in the Accounting Act § 1-2. the negative consequences. The law applies to negative The law applies without objective and personnel restrictions consequences regardless of whether these affect in that it is not limited to specific internal or external conditions. The clarification must goods, services or industries. For example, will clarify that the law applies to negative consequences that The law includes both the seller of consumer goods are related to the company's production and the one that provides input factors to industry or is of goods and delivery of services, from the raw material stage supplier to the public sector. to the finished product, and that the law does not apply to The second paragraph gives the King the competence to negative consequences that the product or service may decide that the law shall apply in whole or in part have in future stages, ie after the business companies in Svalbard, Jan Mayen and the Norwegians has sold the product or provided the service. This balance sheet. the delimitation also appears from the definition It is referred to in more detail in section 7.3.3. of «supply chain» and «business partner» in § 3 letter d and e, respectively. Re Section 3 By "the general public" is meant anyone, for for example consumers, organizations, trade unions, The first paragraph, letter a , defines «larger companies». journalists, investors, public clients and businesses. The law The definition corresponds to which enterprises are covered shall, by giving by the obligation to prepare the annual report pursuant to public access to information, do it section 3-1, second paragraph, of the Accounting Act, easier for the individual groups and the individual and includes large enterprises and other enterprises such as the individual to meet ethical buying and investing requests are not defined as small in the Accounting Act. Rain- Machine Translated by Google 106 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Section 1-2 of the Companies Act specifies which types of business rights in working life as set out in who are required to keep accounts in accordance with the Accounting Act, the internationally recognized human rights, and shall also form the basis for the subjects of duty under among other things enshrined in the ILO's core conventions, cf. the law here. That is, businesses ILO Declaration on Fundamental Principles and which are not accountable under the Accounting Act, will rights in working life (1998). ILO agenda for not be considered a major business under Decent work sets four strategic objectives: to facilitate the definition. Whether an accountable business is regarded employment that provides one as a larger business must weigh their specifics against the wages to live on, secure workers' rights, to improve and criteria set out in streamline social protection schemes and promote tripartite the definition. The rule in the Accounting Act § 1-6 cooperation. The concept the fourth paragraph is given corresponding application in the "Decent working conditions" thus includes assessment, so that the parent company is to be regarded as larger also safeguarding health, environment and safety companies if the conditions are met for the parent company the workplace and a salary that allows for and subsidiaries seen as a unit regardless of whether the workers to support themselves and their families subsidiaries are registered in ("Salary to live on"). This follows from the ILO's declarations Norway or abroad. on fair globalization (2008), the Global Job Pact (2009) and Letter b indicates a definition of "fundamental human the ILO's 100th anniversary declaration rights". The definition includes the internationally recognized about the working life of the future (2019), and is among them human rights which, based on the Universal Declaration of purposes mentioned in the preamble to the ILO's constitution Human Rights from 1948, are expressed in («the provision of an adequate living wage […] the protection of the worker against sickness, the conventions listed in the provision, as well as others disease and injury ”), and as the three parties to the ILO deemed relevant to it the force of their membership is obliged to over hold. UN some business. Listing of the provision Sustainability Goal No. 8 is a long way off includes the most central human rights conventions, but is maintain the same conditions by promoting lasting, nevertheless not exhaustive, inclusive and sustainable economic growth, cf. «among other things». Other relevant international full employment and decent work for all. instruments covered by the definition are Examples of relevant conventions on health, 1989 United Nations Convention on the Rights of the Child environment and security is ILO Convention No. 155 on (Convention on the Rights of the Child) and ILO Convention No. 169 safety and health in the working environment and ILO about indigenous peoples and tribal peoples in independent states of Convention No. 187 on frameworks for the promotion of 1989 (Indigenous Peoples Convention). The Human Rights safety and health at work. Articles 6 and 7 i Act shall strengthen the position of human rights in The UN Convention on Economic, Social and Cultural Norwegian law and incorporates, among other things, the Rights, which is covered by the definition of European Convention on Human Rights, in addition "Basic human rights" provides guidance on decent pay. to some of the conventions mentioned above. The rights in these conventions will be relevant Letter d defines the term «supplier chain». The definition "Fundamental human rights" by definition. Examples of includes anyone, for example businesses and individuals, human rights such as in the chain of covered by the definition, is the right to life and personal suppliers and subcontractors who supply liberty and security, freedom of expression, the right to or produces goods, services or other input factors that are private life, the prohibition of slavery and the slave trade, the right part to of the company's delivery freedom of association, prohibition of child labor, prohibition of services or production of goods. The supplier chain thus against forced labor, the right to work and to the righteous includes everyone who is involved in the process of moving and good working conditions, non-discrimination and and processing a product from equal treatment for equal work, right to rest and leisure, the raw material stage of a finished product. This can be reasonable limitation of working hours and both suppliers and subcontractors, but regular paid holidays. This will be an important part of the also business partners of these, as long as their supervisory and supervisory body's task input factors are included in the company's (ie to compile an overview of relevant human rights conventions the subject of the duty) production. "Input factors" means and human rights raw materials, components, services and covered by the definition, see the notes to transport and other. Return schemes and other § 8. disposal could also be part of the supply chain as a result Letter c indicates a definition of «decent of the circular economy. working conditions ». The definition includes basic The definition of «supply chain» is intended to Machine Translated by Google 2020–2021 107 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) correspond with the corresponding terminology in the EU principles of business and human rights (UNGP). That the Regulation on Conflict Minerals (EU / 2017/821) Article 2 due diligence assessments as letter c. The definition is together with the definition of consequences of this provision, shall be performed in line «business partner» in letter e, intended with OECD guidelines is important that it does not to correspond to the definition of "business associates" in the parallel systems are being developed, one national with OECD's guidelines for multinational companies. this law and one internationally with the UNGP and OECD guidelines. What is required after Letter e defines «business partner» as this provision to perform satisfactorily anyone who delivers goods and services directly to due diligence assessments, will therefore depend on what the business, but which is not covered by the definition of as expected in accordance with international principles «supply chain» in letter d. The definition includes actors who and the guidelines. The Act's provision on business are in a contractual relationship with the business, cf. «direct». assessments must therefore be interpreted in line with Examples of the principles and guidelines in force at any given time. This actors covered by the definition of «business partner» are the means that the businesses consulting firm that develops must use any revised guidelines from the OECD in its work the websites of the business, the company that washes with due diligence assessments. the company's business premises, the company as delivers office chairs and supplies to the business, A due diligence assessment performed after and advertising agencies. These players do not deliver this law, shall be linked to basic but human rights and decent goods or services that are part of the business working conditions. production of goods and services that they offer, and The duty is materially limited compared to is therefore not part of the supply chain after the international principles and guidelines letter d, but they still have a direct connection to the business. which goes further by applying to other areas as well, The definition is together such as the environment, bribery and corruption. with the definition of «supplier chain» in letter The OECD's guide for due diligence assessments for d, intended to correspond to the definition of «business responsible business explains how companies can perform relations» in the OECD's guidelines for multinational due diligence assessments in line with companies. OECD guidelines. OECD's guide for due diligence The first sentence of the second paragraph is given by the Ministry assessments for responsible business - An introduction competence to determine in more detail in regulations what provides a brief introduction to the method of due diligence which are regarded as "basic human rights" as defined in the assessments, and clarifies the responsibility of companies to first paragraph, letter b and act responsibly. The supervisors "Decent working conditions" in the first paragraph letter from the OECD provides companies with a holistic approach c. The second sentence gives the ministry competence to due diligence assessment as a method and to stipulate in regulations exceptions from the subjects of duty, includes explanations, tips and illustrated examples of due ie enterprises that fall within the definition diligence assessments in the first paragraph, letter a, but which nevertheless shall not up to the companies can use as an aid for is considered a subject of duty under the law. to perform due diligence assessments in accordance with the It is referred to in more detail in section 7.2.3, provisions here. There are also sector supervisors who provide 7.3.3 and 7.4.3. concrete and practical advice adapted to different industries. This is the OECD's guide for due diligence assessments for responsible supply chains in the textile and footwear Re Section 4 sector, OECD's guide for responsible supply chains in the The section regulates companies' duty to agriculture and food sector, OECD's sector guide for perform due diligence assessments. institutional investors, OECD's guide there for conflict minerals The first sentence of the first paragraph states that the and OECD's guide for companies must carry out due diligence assessments in line meaningful dialogue of interest in the extractive industry. with the OECD's guidelines for multinational companies. The guides are dynamic documents that can be Careful assessments as a method stand changed, or replaced with new supervisors. The companies central to the OECD guidelines, and acts both must use the version that applies there at the time they carry about investigating and managing risks in the company itself, out the due diligence assessments. To map risks and prioritize and about risk for employees and others human rights affected by the business. Careful assessments risk areas, companies can also use in accordance with the OECD's guidelines will also be in line the product-based high-risk list of DFØ as with UN guidelines guidance. However, the list is not exhaustive. Machine Translated by Google 108 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The first paragraph, letters a to f, lists what the activity for consequences that have not yet resulted in one assessments must contain, and is intended actual consequence. Examples of negative consequences to comply with the steps in the OECD Guide for basic human rights due diligence assessments for responsible business. and decent working conditions are forced labor, Businesses should only go through the steps that child labor, wage discrimination for equal work are relevant based on their own business. I.e or work with equal value, fail to respect if a business, for example, after mapping the risk of negative employees' right to create at their own choice consequences for fundamental human rights and decent or join unions, discrimination of workers in employment or occupation on the basis working conditions according to letter b do not reveal of, for example, race, color, gender, language and religion, any risk, it is also not necessary to implement measures gender-based violence or harassment, payment of wages and monitor the result, cf. letter c and that do not cover the basics d. the needs of workers and their families and According to letter a , the companies must anchor restriction of people's access to clean water, see accountability in the companies' guidelines. This The OECD's guide for due diligence assessments for applies regardless of whether the company uses the term responsible business pages 38 and 39. "Guidelines" or other terms for their control documents, The due diligence assessments shall include negatives routines, etc. It is the actual content of the instrument that consequences that are to varying degrees associated with is decisive. The step the business. By "cause" is meant that the activity alone is shall ensure that the companies have guidelines for sufficient for the influence to take place. how they work with basic human rights and decent working An example is if a company discriminates against women conditions so that or ethnic minorities in employment. this is incorporated into ordinary business operations. By "contributed to" is meant an activity that causes, According to the OECD's guide for due diligence for facilitates or encourages one responsible business, this is about another device causes negative consequences. prepare, approve and communicate guidelines for It does not include minor or trivial contributions. One accountability and plans for due diligence assessments example is if a business puts a lot that clarify the company's obligations in accordance with short lead times for delivery of a product, to the principles in the OECD's guidelines for multinational despite knowing from similar products in the past that the companies. They must production time is not feasible, apply to the company's own operations, supply chain and and at the same time limits the use of well-known other business partners. The subcontracting. These actions increase is also about anchoring the company's guidelines for the risk of excessive use of overtime by the producer. If accountability in the company none were carried out management and control systems, so that they are measures to reduce the risk of injury incorporated into ordinary business operations. Simultaneous occur, the dealer may have contributed to the excessive legal guidelines for the independence, autonomy and legal use of overtime at the manufacturer. With «directly status of companies must be taken into account related to »refers to the relationship between the structure that may be relevant through national laws and consequence and the company's products, services regulations. It's also about or business through a business partner or supply chain. incorporate expectations and guidelines around The wording «direct» responsible business in all agreements with suppliers and limited to contractual relationships, such as direct business partners. OECD Guide for purchasing. An example is if a business due diligence assessments for responsible business buys cobalt used in the products, and which sets out several practical measures that companies can recovered through child labor, the activity may be directly implement to fulfill this point, linked to the negative impact, ie child labor. In this case, see pages 22–24. See also questions and answers related to the business has not caused or contributed to it point on pages 56–60. According to letter b , the companies must map negative consequence itself, but it can still and assess the actual and potential negative consequences be a direct connection between the company's products for fundamental human rights and the negative consequence and decent working conditions. The term «negative through the business connections involved in the company's consequences »include actual and potential cobalt purchases, ie with smelters, dealers, and the mining negative consequences for the individual's rights. By company that uses potential consequences is meant risk child labor. The terms «supply chain» and Machine Translated by Google 2020–2021 109 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) «Business partner» is defined in § 3 respectively Based on the information acquired about first paragraph letters d and e, see notes to actual and potential negative consequences, the provisions. With "business" the companies must make priorities for the most important is understood to be the same device that is rated as risks and the negative consequences subject of duty according to the definition in § 3 first paragraph aiming for follow-up measures. The prioritization must be letter a. The understanding of the terms «caused», made on the basis of severity and probability. Priority must "Contributed to" and "directly related to" correspond be given where it is not possible to correct based on what is laid down in the OECD's guide up all potential and actual negative consequences for due diligence assessments for the responsible business life, immediately. Once the most important consequences have see in particular pages 70 and 71. been identified and managed, the business should go Where the impact is demonstrated is not significant. further in dealing with less significant consequences. The Negative consequences can appear both OECD's guide for due diligence assessments for responsible within and outside the company's business operations, business and industry sets out several practical measures supply chain and business partners. Negative consequences that companies can implement for example to meet this point, see pages 25–28. See also local people or indigenous peoples are therefore also included, questions and answers related to the point on pages 61–73. as long as the negative consequence can be linked According to letter c , the companies must implement to the business' business, supply chain or a business appropriate measures to stop, prevent or limit partner. negative consequences based on the companies' According to the OECD's guide for due diligence priorities and assessments according to letter b. assessments for responsible business and industry, letter b is about According to the OECD's guide for due diligence assessments to do an overall analysis to map everyone for responsible business, this is about stopping areas of the business, all operations and for directional activities that cause or contribute to negatives connections, including the supplier chain, where there is consequences, based on the company's assessment the most likely risk and where it of the connection with the negative impact, cf. is highest. Key elements can be information about risk letter b. The companies shall further prepare related to industry, geography, products and companies, and implement plans that are suitable for preventing and including known risk reducing potential (future) negative consequences. The the business has met before or is likely to meet. The companies must also prepare both and implement plans to analysis should make it possible stop, prevent for the business to prioritize the most important risk areas or reduce actual or potential negatives for further mapping. For companies with less spread in consequences that are directly related to the company's business areas, business activities, products such an overarching analysis may not be necessary before or services. The company's prioritization of proceeding to the step of risk should form the basis of these plans. map and prioritize specific impacts. Appropriate follow-up measures on risk associated with According to the OECD's guide, the companies must supply chain or business partner can start with the most prominent risk areas be 1) maintaining a business relationship while risk-reducing which are mapped and carry out repeatedly and measures are in progress, 2) temporary break in the increasingly thorough assessments of priorities business relationship while operations, suppliers and business partners follows up on ongoing risk-reducing measures, to map and assess actual and potential or 3) terminate the business relationship, either after negative consequences. The companies should assess you failed attempts to mitigate and reduce damage, how they are involved in the actual or where the company does not consider mitigation as possible, potential negative consequence that has been mapped, to or due to the severity of the injury. One determine the correct follow-up. I.e The decision to end the relationship should be taken into consideration the companies must consider in particular whether i) they have to potential social and economic consequences. These caused or potentially can cause negative plans should describe in detail what measures the company consequences, whether ii) they have contributed to or can will implement, as well as expectations of suppliers and contribute to negative consequences, or if iii) negative business partners. consequences are or can be directly linked to the company's The OECD's guide for due diligence assessments for business activities, Responsible business sets up several practical ceilings that products or services through a supplier chain or business companies can implement to partner. fulfill this point, see pages 29–31. See also questions and answers related to the point on pages 74–81. Machine Translated by Google 110 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) According to letter d , the companies must follow Appropriate recovery measures depend on the specific on the implementation and results of the business conditions, including the type of damage and its extent. Any measures according to letter c. According to the OECD's guide for existing national and international standards should be due diligence assessments for responsible business considered this is about monitoring implementation and or laws around what is suitable recovery. the results of the company's measures to map, assess, According to the supervisor, the businesses, where it is prevent, reduce and, when it is appropriate, provide for or cooperate with required, support damage recovery, including legitimate redress schemes, through which interested with business associates. The businesses should parties and rightholders can appeal, and then use the experience from the monitoring to make sure they are handled by the company. It may, improve these processes in the future. The supervisor According to the supervisor, be particularly helpful in referring one sets out several practical measures that companies can alleged damage to a legitimate complaints system in implement to fulfill this point, situations where there is disagreement about whether the business see page 32. See also questions and answers related to has caused or contributed to damage, or where it point on pages 82–84. is disagreement about the type and extent of recovery According to letter e , the companies must communicate to be given. The OECD's guide for due diligence with affected stakeholders and have rights regarding how assessments for responsible business establishes several negative consequences have been handled in accordance practical measures that companies can implement to fulfill with letters c and d. According to the OECD's guide this point, see pages 34 and 35. for due diligence assessments for responsible business life See also questions and answers related to the point at basically includes this step of communicating externally, side 88–91. both with the general public and The second paragraph states that the due diligence assessments with affected. However, the step must be seen in connection shall be carried out regularly and be in proportion to the with the duty to report in § 5, which sets minimum size of the business, the nature of the business, the context requirements for which key information the business takes place within, as well as the severity of, to be made public. Step net therefore only includes and the likelihood of negative consequences. The provision information for those who are thus regulates that the business assessments must be affected or potentially affected by the negative consequences. adapted to each individual Such communication can be natural where the companies business and be risk-based, proportionate, and repetitive. have caused or contributed What is expected of the companies will therefore vary. This to the negative consequences. Whether communication also follows from with those affected is appropriate depends the international principles and guidelines. that is, on the companies' connection to the negative ones "Business size" means that the due diligence assessments the consequences. By "stakeholders" is meant for must be adapted to the resource situation in such as workers, workers' representatives, trade unions, the business. By "nature of business" and "context" is meant representatives of local communities, civil society industry and which goods and services organizations, investors and the company offers, as well as where in the world the industry and trade associations. The concept company's production takes place, including the challenges "Licensees" also includes the licensees' representatives. and risks that exist there. It is referred to the OECDs The OECD's guide for due diligence assessments for supervisor for due diligence assessments for responsible responsible business and industry sets out several practical business life pages 46 and 47 which give examples of how measures that companies can resource constraints in the business can implement to fulfill this point, see page handled and how due diligence assessments can 33. See also questions and answers related to the point at adapted to the context of the business. The company's side 85–87. due diligence assessments should be in proportion to the According to letter f , the companies must ensure severity of, and the likelihood of, negative consequences. or cooperate on recovery and compensation The due diligence assessments must therefore where this is required. According to the OECD's guide for be risk-based. Mapping and assessment of due diligence assessments for responsible business negative consequences require an overall analysis of own This is about when the business is mapping business, supply chains and for directional partners. that it has caused or contributed to actual damage, Important initial assessments the damage shall be dealt with by providing for, or can be, for example, whether the operating area or the cooperating on, recovery and compensation. This production process is particularly risky, or whether the step thus depends on the companies' connection to the the environment creates particular risk. A central part of negative consequences. What kind the activity is to prioritize the risk of closer assessment Machine Translated by Google 2020–2021 111 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) call and handling. When the actual or potential call especially where there is a risk of serious negatives negative consequences are serious, it will require consequences for human rights. The companies are obliged more comprehensive assessments and measures. The to account for this at this point probability of negative consequences will be a supplementary is less comprehensive than that of companies factor in the assessment. That the due diligence rings should due diligence assessments should include. The companies' be performed regularly means that the process due diligence assessments must include is continuous and must be evaluated constantly so that all "actual and potential" negative consequences, cf. section The business can learn from what worked and what did not 4, first paragraph, letter b, while the duty to report is linked worked, and improve the processes. to actual negative consequences and the "significant" risk of The third paragraph gives the ministry the competence to negative consequences. By "risk" is meant the severity of stipulate in more detail in regulations how the companies are the negative to carry out due diligence assessments the consequences are or could be for them the provision. affected and the likelihood of negative consequences. What It is referred to in more detail in section 8.2.3.1 to is to be considered «significant 8.2.3.5. risk »must be assessed concretely. Letter c states that the statement must contain information about measures such as the business Re Section 5 has implemented or plans to implement to The section regulates the obligation to publish one stop actual negative consequences and to account of the due diligence assessments after limit significant risk of negative consequences. Letter c may § 4, what the report shall contain, as well as where and when include information about it shall be published. systems for receiving and handling complaints, as well The first paragraph states the companies' duty to information on how the business corrects publish a statement, and regulate the content of the negative impact and provides any compensation statement. The provision sets out minimum mum or redress. Other relevant information may requirements. It's up to the businesses though be information about stakeholder dialogue with particularly they will publish a more thorough statement vulnerable groups, for example indigenous groups. than what the provision states. There may also be information about industry collaborations Letter a indicates that the statement must contain to solve the challenges. Measures and opportunities for a general description of the company's organization, area of influence will vary depending on, among other things, the operation, guidelines and routines for structure of the supply chain. The provision states deal with actual and potential negative consequences for also that the statement should contain a mention of fundamental human rights the result or expected results of measures such as and decent working conditions. Relevant information in such the business has implemented or plans to a description is a general discussion of implement. This means that the businesses how the business is organized, what kind of products and as a minimum must explain how chosen services the business offers, markets measures have contributed to or are expected to contribute to the business operates in, how the business Limit risk or correct actual negatives has anchored the work on human rights consequences. and decent working conditions in internal guidelines and The second paragraph stipulates that the statement must not routines, as well as information on notification channels and include information about someone's personal circumstances and complaint mechanisms that will help to operational and business matters that may be exempted from the uncover negative consequences. duty to provide information, cf. section 6, second paragraph, Letter b states that the statement shall contain information books c and d, as well as classified information in accordance on actual negative consequences for fundamental human with the Security Act, and information that is protected in accordance with rights the Copyright Act, cf. section 6, fourth paragraph. It is referred to and decent working conditions, and significant risk comments on these provisions. As before for the negative consequences that the business has the duty to provide information in general, it will not be revealed through their due diligence assessments. opportunity to exempt information about actual The purpose is to give the public access to the company's negative consequences on basic but human rights in risk mapping and the risk areas that the company has chosen connection with the business and to focus on in its supply chain as the business is known their due diligence assessments. According to principle with, cf. section 6, third paragraph. The duty to account for 21 of the UN Guiding Principles on Business and due diligence assessments no longer extend human rights are expected to be formally reported than the parent company's actual opportunities after Machine Translated by Google 112 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) national legislation to access information Re Section 6 from foreign-registered subsidiaries that do not offers goods and services in Norway. The section regulates the public's right to information and The third paragraph regulates how the statement consequently the companies' duty to respond to be published. The first sentence stipulates that on information requests about the business the report shall be published on the company's website. The dealing with negative consequences due to existing human duty to publish the statement rights and decent on the website applies regardless of whether the company working conditions. also chooses to include the report in the annual report as part The first sentence of the first paragraph indicates that «any» of the report on corporate social responsibility pursuant to the is entitled to information. By "anyone" is meant everyone Accounting Act § 3-3 c. It is assumed that the companies who want information, such as consumers, trade unions, covered by organizations, journalists, the law, to a large extent, has websites. Businesses such as investors and public clients. Information seekers may have still do not have this, must make the statement easy different reasons for wanting available otherwise. As the statement is published on the information. The provision does not require that the information company's website will seeker has a special reason to receive be sufficient to meet the Accounting Act's requirements for the information, and must therefore not provide one reporting on corporate social responsibility justification for why it requests information. a reference to where is included in the annual report The information requirement must be submitted in writing, for the information is publicly available, cf. example via e-mail, web form or physical letter Accounting Act § 3-3 c fifth paragraph. It is specified in the which, for example, is sent to the head office or second sentence of the provision that the same shall apply to which is delivered directly in store. the report on due diligence assessments pursuant to this Act. The first sentence indicates the main rule that information seekers are entitled to information about The first sentence of the fourth paragraph regulates when how the company handles negative consequences on basic the report is to be published. The provision states human rights that the report shall be updated and published by 30 June and decent working conditions. The term «negative each year. This corresponds to consequences »includes both the influence that makes the main rule in the Accounting Act related to the deadline for applicable within and outside the business determination of the annual report, cf. the Accounting Act business, supply chains or for directional partners, as long as § 3-1 cf. § 1-7. The statement must otherwise be updated the impact is linked if there are significant changes in the company's risk to these. Information about negative consequences assessments. This must be seen in connection with section 4, affecting, for example, local people or second paragraph, which stipulates that due diligence indigenous peoples, will therefore be covered by the duty to provide assessments must be carried out regularly. Accounting due information. diligence assessments may reveal a The starting point for the duty to provide information is the changed risk picture which provides a basis for updating the companies' due diligence assessments pursuant to section 4. Det statement more often than once a year. The companies will means that the information requirement may go further than then not wait until the next annual update, but will update the what follows from the duty to report pursuant to § 5. information continuously. The wording "significant changes" It further means that a requirement for information can indicates that deal with information that follows from the various steps in a there is a certain threshold for when new information for drer due diligence assessment pursuant to § 4 first update. What to consider joint. The company will therefore often sit on the information "Significant changes" must be considered specifically. that the information seeker requests, so that The second sentence stipulates that the statement shall the information requirement will not require further work signed by the board and general manager in line with to obtain the information. A request will the rules in the Accounting Act § 3-5. It is referred to however, could require the business to obtain remarks to the Accounting Act § 3-5. information that the business does not possess when Subsection 5 gives the ministry the competence to it receives the information request, even if it has stipulate in more detail in regulations how the companies are performed good due diligence assessments. For example to account for the due diligence assessments. in the case of information about a production situation that the It is referred to in more detail in section 8.2.3.6. company has not prioritized focus on, or in the case of unforeseen circumstances incidents that have occurred at a production site, see further discussion in section 8.3.3.2. Surrounded by Machine Translated by Google 2020–2021 113 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The duty to provide information will vary depending on the acid use related to answering the information requirement, information requirement and, among other things, the size must be seen in the light of the principle of proportionality. IN of the business to which the requirement is addressed. The In some cases, information requirements related to one bigger the business, the more you can expect in the first place separate product or service could be answered with of the business when it comes to answering information information on identified risks and measures implemented. requirements. Some companies will still be able to In other cases, the information requirement may be refer to importers, wholesalers or suppliers answered adequately with information about the uncovered for various issues, where these can be expected risk, and that no measures have been implemented. This because has an overview of the supply chain. the principle of risk-based approach and proportionality on The information requirement can relate to both general which the duty to perform due diligence assessments is information or information related to one based, means that companies do not a special product or a special service that the company is required to implement measures related to all risks offers, cf. the second sentence. A requirement can for which is revealed. If the business reveals for example, deal with general information about the Many risk areas the business may want company's work, systems and measures to stop, had to prioritize certain risk areas as they should prevent or reduce negative consequences work on with others. The duty to provide information does on basic human rights and not require companies to implement decent working conditions. It will typically be able to measures, but can still uncover conditions that are off be the organization of the work in the company, such severity that they should be prioritized in future due business guidelines and routines, and diligence assessments. systems for due diligence assessments. Information on how The second paragraph indicates when the company can refuse one the company as a whole works there to prevent negative information requirements. After letter a can a requirement consequences and rejected if it does not provide a sufficient basis how the company works to make demands to identify what the requirement is. It can be to and follow up health, environment and safety, and measures that the requirement is formulated in a way that makes the to promote worker representation and warning channels, companies unable to identify the issue. The can be important in an overall presentation. The information it must be possible to understand the conditions requirement may also relate to information on which negative question about. Claims that are incomprehensible can be rejected. consequences the companies have identified and which However, this is a narrow exception. The information seeker measures the company has implemented or plans to can be "anyone" implement. for example, a consumer, an organization, or a journalist, which means that the information requirements That the information requirement may be related to one will be differently worded and more or less a special item or a special service may, for example, involve clearly worded depending on who is asking further information about information. A consumer such as not where a raw material comes from and what the business is formulates itself as clearly as a journalist, should do to take care of the working conditions at the production this exemption provision does not deprive the right to site. The right to information does not give companies an information. It must be possible to expect companies in the obligation to name a specific place of production. The public event of unclear information requirements to enter into dialogue should still be able to get coverage with the information seeker to try to clarify and correct information about the human and labor law what the information seeker wants information about, before conditions without the place of production having to the reason for refusal is used. stated. For example, by providing information about where According to letter b , a claim can be rejected if it in the world and under what conditions and context the is "obviously unreasonable". This is a narrow ceiling production is, what potential and actual negative provision. Corresponding provision is consequences the company may have included in the Environmental Information Act § 17 first paragraph uncovered and how the business is working to letter b. The provision is included as a security, for example take care of the working conditions at the production site. against harassing claims or claims Specific information requirements for specific goods and which undermines the business in an inappropriate way. Services will often involve the businesses The aim of the provision is, among other things, to must provide additional information than the information that Avoid large financial and administrative burdens the company has obtained through for the businesses. The assessment of what is performed due diligence assessments to be able to answer obviously unreasonable, involves a balancing of the information requirement in a satisfactory manner. the public's interest in access to issues such as What can be expected from the companies' res covered by the purpose of the law, and the workload for Machine Translated by Google 114 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) the business. Information requirements can, for example, be Competitors can take advantage of the information. In rejected if they concern insignificance, preparation for the law on the protection of trade secrets or the business must use disproportionate it is mentioned that supplier lists in certain cases can resources to obtain and compile information to answer the constitute trade secrets, cf. Prop. 5 LS requirement. This reason for refusal (2019–2020) point 5.1.5. Although the definition of must, however, be seen in the context of the company's right trade secrets pursuant to the Business Secrecy Act § 2 first to extend the deadline for responding to the information paragraph are not identical requirement by two months if the quantity with the indication of information that is protected or type of information requested do so Pursuant to the Public Administration Act § 13 first paragraph disproportionately burdensome to answer the information no. 2, the Ministry assumes that information such as requirement within three weeks, cf. section 7, second paragraph, otherwill be protected as trade secrets under the Trade Secrets dot. Act normally According to letter c , a claim can be rejected if it will also be covered by the duty of confidentiality pursuant to the requested information applies to information Public Administration Act § 13 first paragraph no. 2, see Prop. 5 LS about someone's personal relationship. Businesses must (2019-2020) point 5.1.7. customize the information so that personal circumstances The third paragraph indicates cases where the information not stated. If this is not possible, can whatever is to be published. This applies to information about the information requirement is rejected. The provision must be actual negative consequences for fundamental human rights understood in the same way as a corresponding provision in such as business the Public Administration Act § 13. By personal matters is meant know. See further discussion in section 8.3.3.4. information about a person that it is common to The fourth paragraph states that the Copyright Act has would keep to himself. The information may for a rank where the right to information under the Act came example apply to the characteristics of a person or more in conflict with copyright. The provision is assumed to something the person has done that is suitable to characterize have little significance in practice. The the person. The information can include further states that classified information in accordance with apply genetic or other sensitive biometric the Security Act shall never be published as part of answering conditions, state of health, outlook on life, political views and an information requirement. sexual orientation. The duty of confidentiality does not apply The right to information no longer extends information about birth number, nationality, place of than the parent company's actual opportunities after residence, marital status, occupation, employer or national legislation to access information workplace. from foreign-registered subsidiaries that do not According to letter d , a claim can be rejected if it offers goods and services in Norway. requested information applies to information Subsection 5 gives the ministry competence in on technical devices and procedures regulations to lay down further rules on the right to or other operating or business matters such as that information and the companies' right to refuse will be of competitive importance to withhold for the sake of an information requirement. the person to whom the information relates. It is referred to in more detail in section 8.3.3.1 to Businesses need to adapt the information so that 8.3.3.4. operating and business conditions are not stated. If this is not possible, the information requirement may Re Section 7 rejected. The provision must be understood in the same way as the corresponding provision in the Public Administration The section sets out case processing rules for the companies Act § 13. Information on operating or business matters will that are to respond to information requirements include information that directly relates to exercise according to § 6, including how the companies should of business activities, such as information about answer information requirements, deadlines for answering production methods, product, contract terms, the requirements and the right to demand an extended marketing strategies, analyzes, forecasts justification for refusal of information requirements. or strategies related to the business. However, the late The first paragraph stipulates that the enterprises shall delimitation lies in the condition of answer information requirements in writing. This must be seen in that it must be of competitive importance connection with § 6 first paragraph which regulates that to keep the information secret. In order for the information to a request for information must also be submitted in writing. be subject to a duty of confidentiality, it must Rejection of information requirements shall also be in other words could lead to financial loss or be in writing. The provision further regulates the quality of reduced profit for the business if the information becomes the answer given. The answer should cover it known, either directly or by conc information seeker requests, and shall be Machine Translated by Google 2020–2021 115 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) learned in an understandable way. This means that the information is the supervisory authority. Unlike the Environmental Information must provide a comprehensive, correct and comprehensible picture of Act, this Act does not contain any right to what is in demand. What it takes to satisfy the requirements may get a complaint of refusal processed in private law. One vary based on the companies' assumptions and based on whom Inquiries from the information seeker to the Consumer Authority the request are therefore not treated as a private legal complaint, but are in comes from, cf. the principle of proportionality. reality a tip from the information seeker that the company, in the The workload must be weighed against the public's need for information seeker's assessment, has refused information information. See also note to requirements in violation of the law. The Norwegian Consumer § 6. The companies may refer information seekers Agency can to publicly available information if the answer based on the information seeker's inquiry take the information seeker may here meet the quality requirements up the matter with the business if the audit set out in the provision. To refer believes there is a basis for this, cf. section 9 on control information seeker for public information will and enforcement. could be practical in cases where the information The first sentence of the fourth paragraph determines access already written down and made available, for and the deadline for the information seeker to request one example through the account of due diligence assessments, cf. further justification for the refusal from the company. This is not § 5. a complete and comprehensive review of arguments and trade- The second paragraph sets deadlines for the companies offs, but a brief account of what makes to meet information requirements. The main rule is that an information request must be answered within a reasonable time the business believes there is a legal basis for refusing and no later than within three weeks after the information the information requirement. The second sentence stipulates requirements have been received by the company, cf. the first sentence.the companies' deadline of three weeks to give the information If reference can be made to existing information, or where seeker a more detailed justification. The justification must be answers can be given without further investigation, the wording given in writing. indicates «within a reasonable time» Subsection 5 gives the ministry the competence to that answers are given within a few days. The second point is lay down detailed rules in regulations on how an exception rule which in special cases extends the companies must process information requirements. the deadline for providing information is two months after that See section 8.3.3.5 and the information request has been received. The exception rule can 8.3.3.6. among other things, apply where it is talk about larger amounts of information such as Re Section 8 to be handed over or compiled, and where to Answering the information requirement requires time and effort The section regulates the Consumer Agency's duty to business beyond what would be normal at guide the companies about the obligations of the law. First information requirements. However, there is a narrow rule of sentence emphasizes that the Consumer Agency through thumb, cf. the wording "disproportionately bids defully". The third general information, advice and guidance shall sentence stipulates that the companies, when applying an work for the rules of law and the Norwegian Consumer Agency extended deadline in another point, shall inform the information decisions pursuant to the law are followed. The provision seeker about the extension, the reasons for the extension and entails a clarification of the Norwegian Consumer Agency's when the information seeker can expect to receive the information. duty of guidance that extends beyond the duty of guidance in the Public Administration Act § 11 as such Information on extended processing of the information requirement referred to in the second sentence. The duty to provide guidance in shall be given to the information seeker within three Section 11 of the Public Administration Act imposes on the Norwegian Consumer Agency weeks after the information request is received. The information to provide individual guidance to the companies. It must be given in writing. general guidance can include, among other things The third paragraph lays down case processing rules prepare information writing, arrange courses, for which applies if the enterprises reject an information requirement example of due diligence assessments, prepare pursuant to section 6, second paragraph. First sentence guidance material which, for example, specifies which human stipulates that the companies are obliged to refer to the home rights conventions and page in order to reject the information requirement, as well as to specific rights that the obligations of the law deal with, inform about the right to demand further justification for the and give companies general tips and advice on how to proceed refusal and the deadline for this. The company must also inform to meet the requirements of the law. that the Norwegian Consumer Agency It is referred to in more detail in section 9.2.3. Machine Translated by Google 116 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Re Section 9 Re Section 11 The section regulates who is to supervise The section states what kind of decisions the Consumer Agency and with the duties of the Transparency Act and what should be the Market Council can make, ie prohibitions and the starting point for the supervision of the law. First paragraph injunction decision pursuant to section 12, decision on coercive fines The first sentence stipulates that the Norwegian Consumer Agency is pursuant to section 13 and decisions on infringement fines pursuant to the inspection body under the Transparency Act. Second point § 14. The section also regulates the right to indicates which considerations are to be leading for For the user direct decisions against employees. It corresponds to the Marketing supervision's supervision of the law, ie to promote Act § 39 first, third and fourth paragraphs. companies' respect for basic human rights and decent working See section 9.3.3.3 for further discussion. conditions. This must be seen in connection with the purpose of the Act pursuant to § 1. Re Section 12 The second paragraph regulates the Consumer Agency's case processing, and stipulates the starting point that The section stipulates the right to stipulate for bid and order decisions The Consumer Agency shall try to get the businesses to align and corresponds to section 40 of the Marketing Act. themselves with the obligations of the law, the so-called negotiation model. This principle will See section 9.3.3.3 for further discussion. stand strong in the Consumer Agency's supervision of the Transparency Act. The provision corresponds to the Marketing Act § Re Section 13 36 first paragraph. The first sentence of the third paragraph states what the The first paragraph regulates the right to determine Norwegian Consumer Agency can do if a business acts in coercive fine to ensure that confirmations pursuant to § 9 contravention of the provisions of the Act. The Consumer Agency can third paragraph and decisions pursuant to section 12 are complied with. then obtain written confirmation The provision complies with section 41 of the Marketing Act, but with that the illegal relationship shall cease, or the difference that a coercive fine may "be imposed" to ensure that make a decision. The Norwegian Consumer Agency can make decisions in decisions are complied with, in contrast to the Marketing Act where all matters. The provision corresponds to the Marketing Act § 36 second paragraph first sentence. Other the main rule is that a coercive fine «must» be determined. The sentence stipulates that the Market Council is the appeal body There is thus no requirement that the Norwegian Consumer Agency for the Consumer Agency's decision. Detailed rules shall stipulate coercive fines for all injunctions and for injunctions. for which decisions the Market Council shall consider This is instead up to the Consumer Authority itself to decide. The appears from the Marketing Act § 37, which is granted second and third paragraphs correspond application pursuant to the fourth paragraph of the provision. the Marketing Act § 41 second and third paragraphs, and The fourth paragraph stipulates that the Marketing Act regulates that a coercive fine may be determined as a rules on the Norwegian Consumer Agency and the Market Council lump sum or current fine and that it can independence in § 32, organization in § 33, the Market Council's a coercive fine is linked to the obligation to provide information tasks pursuant to § 37 and further rules on pursuant to section 10. The fourth paragraph stipulates that finally in The Norwegian Consumer Agency and the Market Council stipulated in a the case of a ceiling on payment of a coercive fine, there is a coercive basis regulation to section 38 shall apply to the Norwegian Consumer Agency and for disbursements. The fifth paragraph stipulates regulatory authority The Market Council's control of the Transparency Act. for the Ministry to issue further rules on the imposition of coercive See section 9.1.3 and fines in regulations. 9.3.3.1. See section 9.3.3.3 for further discussion. Re Section 10 Re Section 14 The section regulates the Consumer Agency's and the Market The first paragraph regulates the right to impose an infringement fee Council's right to demand information. First for breach of the duty to provide information in § 5 and § 6, and paragraph corresponds to the Marketing Act § 34 first breach of the deadlines for providing information in § 7. It is only the joint. The second paragraph corresponds to the Marketing Act duty to provide information § 34 fourth paragraph first and second sentence and states which may be sanctioned with an infringement fine, that information may be required independently of the duty of ie not the content and quality of the information provided. Here, confidentiality. however, the Consumer Agency will See section 9.3.3.2 for further discussion. could use a decision with a coercive fine if this considered appropriate. Violation bids can only be imposed for repeated violations. Machine Translated by Google 2020–2021 117 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The second paragraph states the guilt claim for imposition of Re Section 15 infringement fine. An approximate one is set up strict liability for enterprises in the first sentence. The The date of entry into force of the Act is determined by means that infringement fines can be imposed on companies The King in Council. It is possible for different provisions to without any individual having shown guilt, in line enter into force at different times. with the Public Administration Act § 46. The second It may be relevant that the substantive provisions come into sentence sets out guilt claims for natural persons which force at an earlier time than means that the violation must have occurred intentionally the provisions on enforcement and sanctions. or negligent. Different dates of entry into force may give companies time The third and fourth paragraphs correspond to the to adjust before sanctions are applicable. Marketing Act § 42 second and third paragraphs, and stipulate elements that must be emphasized when assessing the size of the infringement fee, as well as rules for payment Ministry of Children and Family Affairs deadlines. The fifth paragraph stipulates regulatory authority for recommends: the Ministry to issue further rules on the calculation of infringement fines in regulations, for example to stipulate an That Your Majesty approves and writes upper limit for infringement fines in line with the Public during a submitted proposal for a proposition to the Storting Administration Act § 44. on the Act on Business Transparency and Work See section 9.3.3.3 for further discussion. with basic human rights and decent working conditions (the Transparency Act). We HARALD, King of Norway, confirms: The Storting is asked to make a decision on the Act on Business Transparency and Work with Basic Human Rights and Decent Working Conditions (the Transparency Act) in accordance with an attached proposal. Machine Translated by Google 118 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) Suggestion to the Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (the Transparency Act) in the workplace, and which provides a salary to § 1 Purpose of the Act live off. The law shall promote companies' respect for d) By supply chain is meant anyone in the chain basic human rights and decent working conditions in of suppliers and subcontractors such as connection with production supplies or manufactures goods, services or of goods and the provision of services, and ensure public other input factors that are part of a company's delivery access to information on how companies deal with negative of services or production of consequences for fundamental human rights and decent goods from the raw material stage to finished product. e) By business partner is meant anyone who working conditions. delivers goods or services directly to the business, but which is not part of the supplier chain. § 2 Scope of the Act The law applies to larger companies that are The Ministry may issue regulations on what resident in Norway, and which offers goods and considered fundamental human rights services in or outside Norway. The law also applies after the first paragraph letter b and decent working for larger foreign companies offering conditions according to the first paragraph letter c. The Ministry goods and services in Norway, and which are taxable in may issue regulations on exemptions from larger companies Norway under Norwegian domestic law. after the first paragraph letter a. The King may prescribe that the law completely or shall partly apply to businesses on Svalbard, § 4 Duty to perform due diligence assessments Jan Mayen and the Norwegian bilandene. The companies must carry out due diligence assessments in line with the OECD's guidelines for § 3 Definitions multinational companies. With due diligence assessments a) By larger enterprises is meant enterprises is meant to which is covered by the Accounting Act § 1-5, or a) anchor accountability in the direction of the business which on the balance sheet date exceeds the limits lines for two of the following three terms: b) map and assess factual and potential 1. sales revenue: NOK 70 million negative consequences for basic 2nd balance sheet total: NOK 35 million human rights and decent working conditions that the 3. average number of employees in the accounting company has either caused or contributed to, or that year: 50 man-years. are directly related to Parent companies shall be regarded as larger to the company's business activities, products or companies if the conditions are met for the parent company services through supplier chains or business partners subsidiaries seen as a unit. b) With basic human rights c) implement appropriate measures to stop, prevent means the internationally recognized human rights that or limit negative consequences based follow from, among other things, the UN on the company's priorities and assessments according 1966 Convention on Economic, Social and Cultural to letter b Rights, UN Convention on the Rights of the Child d) monitor the implementation and results of civil and political rights from 1966 and the ILOs measures by letter c core conventions on fundamental rights and principles e) communicate with affected stakeholders and in working life. licensees on how negative consequences are handled c) By decent working conditions is meant work according to letters c and d which safeguards basic human rights under letter b f) arrange for or cooperate on recovery and health, environment and safe and compensation where this is required. Machine Translated by Google 2020–2021 119 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) The due diligence assessments shall be carried out a) the requirement does not provide a sufficient basis for regularly and be in proportion to the size of the business, the identify what the requirement is nature of the business, the context in which the business takes b) the claim is manifestly unreasonable place, and the severity of c) the requested information concerns information about and the probability of negative consequences for someone's personal circumstances basic human rights and decent working conditions. d) the requested information relates to information on technical facilities and procedures or other operating or business The Ministry may issue regulations on the obligation to matters which it will be of competitive importance to keep perform due diligence assessments. secret for reasons of § 5 Duty to account for due diligence assessments to the information concerned. The enterprises shall publish a report on the due diligence The right to information about actual negatives assessments pursuant to section 4. The report shall at least Consequences for basic human rights that the company is contain familiar with apply a) a general description of the business regardless of the restrictions in the second paragraph. organization, area of operation, guidelines and The right to information does not include information that routines for dealing with actual and potential is classified under the Security Act or negative consequences for basic protected by copyright law. human rights and decent working conditions The Ministry may issue regulations on the right to information and the companies' right to refuse b) information on actual negative consequences and significant an information requirement. risk of negative consequences that the business has revealed through § 7 The companies' processing of information requirements their due diligence assessments Information pursuant to § 6 shall be provided in writing and be c) information on measures that the company has comprehensive and understandable. implemented or plans to implement to The company must provide information within a reasonable stop actual negative consequences or time and no later than three weeks after the information request limit the significant risk of negative consequences, and the has been received. If the amount or result or expected results of these measures. the type of information requested makes it disproportionately burdensome to respond to the information requirement within § 6 second paragraph letters c and d, third and fourth three weeks, the information shall be provided paragraph applies correspondingly to the obligations after the first within two months after the claim is received. The business joint. must then no later than within three weeks after that The report must be made easily accessible the information request has been received, inform the applicant the company's website, and can be included in the statement on in writing of the extension of the deadline, corporate social responsibility in accordance with the Accounting Act the reasons for the extension and when the information § 3-3 c. The companies shall state in the annual report where can be expected. the report is available. If the company refuses an information request, it must The report must be updated and published by 30 June inform about the legal basis for the refusal, the access and the each year and otherwise if necessary deadline for claiming changes in the company's risk assessments. It further justification for the refusal and about the Consumer must be signed in accordance with the rules in the Accounting Agency as a supervisory and guidance body. Act § 3-5. Anyone who is refused an information request, The Ministry may issue regulations on the obligation to may, within three weeks of the rejection being received, claim to account for due diligence assessments. get a more detailed reason for the refusal. The justification must be given in writing, as soon as possible and at the latest § 6 Right to information within three weeks after the request for further Everyone has the right to a written request justification was received. information from an enterprise on how the enterprise handles The Ministry may issue regulations on activities actual and potential negative consequences according to § 4. treatment of information requirements. This includes both general information and information related to a § 8 Guidance special goods or services that the business offers. The Consumer Agency shall, through general information, advice and guidelines, work to ensure that A request for information can be rejected if the rules of the law and decisions pursuant to the law become Machine Translated by Google 120 2020–2021 Prop. 150 L Act on Business Transparency and Work on Basic Human Rights and Decent Working Conditions (Transparency Act) followed. In other respects, the rules on the duty to provide guidance Lawsuits against the Market Council's or the Consumer in the Public Administration Act § 11 apply. Authority's decision must be filed within six months from the party received notification of the decision. Deadlines § 9 Control and enforcement calculated in accordance with the rules in the Courts of Justice Act §§ 148 and The Norwegian Consumer Agency supervises that the 149. Refreshment may be granted for oversight of provisions of the law are complied with. The audit is based on the deadline according to the rules in the Disputes Act §§ 16-12 to 16-14. the consideration of promoting companies' respect for basic human rights and decent working conditions. § 12 Prohibition and injunction decisions Prohibitions can be imposed and orders given to The Consumer Agency shall, on its own initiative, or after ensure that §§ 4 to 7 are complied with. inquiries from others, seek to influence companies to comply with the law, including by § 13 Decision on coercive fines negotiate with the companies or theirs To ensure that confirmations or decisions pursuant to § 9 organizations. third paragraph and § 12 are complied with, it may be determined If the Consumer Agency finds that a business is acting in a coercive fine that must be paid if the confirmation or decision is violation of the law, the Consumer Agency may obtain written not complied with. confirmation that it The coercive fine can be determined as an ongoing one illegal relationship shall cease, or make decisions. fine or as a lump sum. In determining the coercive fine, emphasis The Market Council processes complaints about the Consumer shall be placed on the fact that Inspectorate's decision. it should not pay to violate the decision. In other respects, section 32 of the Marketing Act applies, In order to ensure that orders pursuant to section 10 are complied with, § 33, § 37 and regulations issued pursuant to § 38 corresponding a coercive fine may be imposed which shall be paid if the order is to control and enforcement pursuant thereto not complied with. Other the law. paragraph first sentence applies correspondingly. The final decision on the payment of a coercive fine is § 10 Duty to provide information coercive basis for disbursement. Everyone is obliged to provide the Norwegian Consumer The Ministry may issue regulations on the imposition of Agency and the Market Council with the information to these authorities coercive fine. requires to be able to perform their chores after the law. The information may be required in writing § 14 Decision on infringement fines or orally, within a set time limit. At the same will conditions as In the event of repeated violations of §§ 5, 6 or 7, mentioned in the first and second sentences can everyone an infringement fee such as that may be imposed types of information and carriers of such information to which the decision is addressed shall pay. required to be handed over. An enterprise may be fined when The duty to provide information pursuant to the first paragraph applies the violation is committed by someone who has acted regardless of confidentiality. This still applies on behalf of the company. Natural persons may be fined for not a duty of confidentiality as mentioned in the Criminal Procedure Act intentional or negligent violations. §§ 117 to 120, with the exception of § 118 first paragraph first dot. In determining the amount of the fee, it shall emphasis is placed on the seriousness, extent and § 11 The Consumer Agency's and the Market Council's decisions effects. The Norwegian Consumer Agency and the Market Council The infringement fee is due for payment four may, where they find that intervention is warranted for reasons such as weeks after the decision is made. Final decision on mentioned in § 9 first paragraph second sentence, make a simple violation fee is a coercive basis for disbursement. decision on: The Ministry may issue regulations on the measurement of a) prohibition or injunction pursuant to section 12 infringement fine. b) coercive fines pursuant to section 13 c) infringement fee pursuant to section 14. § 15 Entry into force A decision pursuant to letters a and b is valid for five years where, The law applies from the time the King decides more. The unless otherwise stated in the decision. The decision can King may enforce the individual provisions at different times. maximum valid for ten years. The decision can be renewed. Decisions pursuant to the first paragraph may also be directed against contributors. Machine Translated by Google Machine Translated by Google Ordering publications The ministries' security and service organization www.publikasjoner.dep.no Phone: 22 24 00 00 The publications are also available at www.regjeringen.no Print: The Ministries' Security and Service Organization - 04/2021 K T TRY MR AND AND JØ KK I M L A K 2 41 04 4 D and p M and d ia