A/HRC/32/45
49.
Some States specify particular areas of implementation, for instance requiring Stateowned enterprises to take action to prevent abuse of human rights abroad and through their
business relationships. This is in line with the commentary to guiding principle 2, which
states that “there are strong policy reasons for home States to set out clearly the expectation
that businesses respect human rights abroad, especially where the State is involved in or
supports those businesses.” Norway’s White Paper on “Diverse and value-creating
ownership” requires Norwegian companies to be familiar with the Guiding Principles and
to “respect universal human rights as they are defined in international conventions, in all
their undertakings, and in their dealings with suppliers and business partners.” The Finnish
National Action Plan on Business and Human Rights states that, “in State ownership
steering, companies are required to observe human rights responsibly and transparently
both in their own organizations and in subcontractor chains, in full accordance with the
Guiding Principles.” Ghana requires “business enterprises controlled by the State … to
comply with provisions for human rights due diligence relating to their activities in other
jurisdictions where they operate.”
50.
State expectations can be focused on specific areas of human rights to which the
State wishes to give greater impetus. For instance, Portugal requires State-owned
enterprises to adopt gender equality plans.34
51.
More importantly, several States require their enterprises to act as role models for
sustainability and human rights. Sweden’s Ownership Policy states that “State-owned
enterprises shall act as role models with regard to sustainable business,” which
encompasses the requirement to comply with relevant guidelines, including the Guiding
Principles and the OECD Guidelines for Multinational Enterprises. In Norway, Stateowned enterprises are expected to work systematically on their corporate social
responsibility and be exemplary in their respective fields. The definition of corporate social
responsibility includes human rights and makes explicit reference to the Guiding Principles.
Switzerland recognizes that it is the special responsibility of the State to safeguard human
rights through State-owned enterprises and notes in particular that “federal enterprises are
required to play an exemplary role”. Although France does not distinguish between the
human rights obligations of private and State-owned enterprises, it expects State-owned
enterprises to “set an example”.
52.
All the above examples are consistent with the strong policy rationale of
guiding principle 4 that States should lead by example. Therefore, a logical additional
step that States could take would be to require State-owned enterprises to lead by
example in relation to human rights.
53.
A key reason for setting high expectations is linked to the ultimate rationale for State
ownership, namely that “the State exercises the ownership of SOEs in the interest of the
general public”.35 For the Swedish Government, State-owned enterprises are owned
collectively by the Swedish people and are therefore important assets for the entire country.
Governing State-owned companies is a task that imposes considerable responsibility, which
must be performed in an active and professional manner with value creation as an
overarching objective.
54.
A further driver for States is managing reputational risk, especially when Stateowned enterprises are globalized companies involved in complex value chains and
34
35
Companies (p. 25), which apply to the 22 State-owned companies under the Chilean Public
Companies System.
Portugal, Council of Ministers resolution 49/2007.
See OECD, Guidelines on Corporate Governance of State-Owned Enterprises, p. 19.
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