A/HRC/14/29 that lack of clarity in legislation and policy is the major obstacle to holding companies accountable for their human rights impacts, a range of human rights principles should be embedded in company law. Precise requirements with regard to transparency, disclosure, monitoring, and auditing requirements can be embodied in regulations governing financial markets to curb corporate misconduct. Governments should also monitor compliance with human rights obligations by corporations located on their territory, for example in relation to their overseas impacts. This could be achieved through the creation of an independent body mandated to undertake the monitoring function. The Corporate Responsibility Coalition proposed a United Kingdom Commission for Business, Human Rights and the Environment, a body mandated to ensure compliance by United Kingdom companies with human rights standards and with the power to investigate, sanction and provide remedy to victims. Furthermore, Governments can influence companies’ behaviour by making their support subject to companies’ compliance with human rights standards. A rigorous verification of the company’s human rights records should be carried out by the Government, especially when public funds are used to support companies, as in the case of export credit agencies. 20. Ed Potter (Director, Global Workplace Rights, The Coca-Cola Company) observed that the precondition for policy coherence is to close the gaps between the application of human rights and respect for the rule of law in theory and in practice. On the basis of an analysis of national corporate law conducted under the Special Representative’s mandate, it emerged that most countries are signatories to major human rights instruments but few translate human rights into national law directly applicable to businesses. Mr. Potter suggested that to achieve policy coherence, it is essential that Governments put in place cross-departmental human rights and business strategies. He gave an example of this approach, mentioning the negotiation of bilateral trade agreements by the Government of the United States where trade, State, labour, commerce and other departments worked together. On the matter of States’ extraterritorial obligations, he stressed that, on the one hand, home States should guide and inform companies as they invest in places where policies may be less rigorous and engage with companies on the challenges of working in those areas. On the other hand, host States should have clear and comprehensive legal guidelines that are equitably applied and invest in labour inspection and judiciary systems to help ensure a level playing field. Summary of discussion 21. During the discussion from the floor, participants underlined the causes of domestic policy incoherence and proposed complementary and creative solutions. Representatives from national human rights institutions (NHRIs) noted that, as independent and impartial promoters of the respect for human rights, NHRIs could play an important role in ensuring compliance by the State with its duty to protect, although reform is needed in the legal mandates of some NHRIs to ensure that they are not restricted in their ability to take effective action on corporate-related human rights issues. NHRIs were described as uniquely placed to promote policy coherence and facilitate dialogue. It was also noted that, collectively, NHRIs are building capacity for effective engagement in business and human rights through the establishment of a working group on business and human rights. 22. Another NHRI representative expressed the view that the real cause of governance gaps is the doctrine which is based on the assumption that States should not intervene in control and supervision of the market or ensure that human rights are observed. States should assume their proper role in providing services and goods in a manner that ensures the observance of fundamental rights. States should monitor what companies are doing with regard to human rights, and human rights instruments should be used to make sure that companies can be held accountable for human rights violations. 6 GE.10-12935