A/HRC/32/45 Contents Page I. II. Introduction ...................................................................................................................................... 3 A. Background, aims and outline of the report ............................................................................ 3 B. Defining State-owned enterprises ........................................................................................... 4 C. State-owned enterprises: state of play ..................................................................................... 4 D. Scope and limits of the report ................................................................................................. 6 Normative and policy framework underpinning State action in relation to State-owned enterprises ............................................................................................. 7 A. State duty to protect against abuse by State-owned enterprises .............................................. 7 B. State-owned enterprises as business enterprises: the corporate responsibility to respect human rights ........................................................................................................... 9 Link between corporate governance and human rights ........................................................... 10 Leading by example: operationalizing the requirement to take additional steps ............................. 12 A. Setting expectations ................................................................................................................ 12 B. Mechanisms to set and manage expectations: ownership arrangements ................................. 14 C. Relationship between the State and company boards ............................................................. 15 D. Oversight and follow-up mechanisms .................................................................................... 16 E. Capacity-building ................................................................................................................... 17 F. Requirements of human rights due diligence .......................................................................... 17 G. Requirements of disclosure, transparency and reporting ........................................................ 18 H. Ensure effective remedy ......................................................................................................... 19 Conclusions and recommendations ................................................................................................. 20 A. Conclusions ............................................................................................................................ 20 B. Recommendations ................................................................................................................... 21 C. III. IV. 2