Due Diligence Check

Risk analysis support in the

PPP-application process

MVO Nederland

Marjolein van Gendt

11/10/2012

PEOPLE

PLANET

PROFIT

MVO Nederland Mission:

“Stimulate and support Dutch companies to implement CSR”

NETWERK: > 2000 BEDRIJVEN MET MVO-AMBITIE

KNOWLEDGE, TOOLS & NETWORKS

7

IMVO VOUCHERS

Renee Pater, Brood!, Uganda

11/10/12 WWW.VERLEGTGRENZEN.NL

8

“The productivity of our Ugandan employees is

very low. Of the eight hours that need to be

worked only five hours are used effectively. How

do we solve this?

International sustainability issues

Freedom

of

association

Living

wage

Working

hours &

overtime

Scarcity

of

resources

Health

&

safety

Bribery

&

corruption

Freedom

of

speech

Discrimination Social

turmoil

Sustainable

energy

Energy

efficiency

Dangerous

substances

Forced

labour

Waste

disposal

Dormitories

Migrant

workers

Emissions

CO2, NOx

etc.

Water

pollution

Water

scarcity Home

labour

UN Environm. Treaties

ILO norms

UDHR

Ruggie framework

OECD guidelines

ISO 26000

GRI

Global compact

INTERNATIONAL STANDARDS FOR CSR

Sector & theme specific

guidelines

OECD GUIDELINES

11

1. GENERAL POLICIES

2. DISCLOSURE

3. HUMAN RIGHTS

4. EMPLOYMENT AND INDUSTRIAL RELATIONS

5. ENVIRONMENT

6. COMBATING BRIBERY, BRIBE SOLICITATION AND EXTORTION

7. CONSUMER INTERESTS

8. SCIENCE & TECHNOLOGY

9. COMPETITION

10.TAXATION

GLOBALISATION: COMPLEX SUPPLY CHAINS

Components of Responsible Purchasing

Comply with

local laws

&

Comply with

international

guidelines

Risk analysis

Ask questions

& do research

Report on policies

and performance

Draw up a code of

conduct for suppliers

Train your

procurement officers

Investigate your supply chain

Cooperation

within supply chain

Auditing

& monitoring

Join supply chain

initiatives

Laws & regulations Policies & organisation Control & monitoring

Dutch companies must actively investigate whether international CSR is applicable to them

and which mitigating actions can be taken.

DUE DILIGENCE CHECK

11 OCTOBER, 2012 14

A proactive CSR-policy helps entrepreneurs prevent abuse.

Advantageous for companies, since it prevents negative effects like damage to a company’s

image, claims, etc.

The Due Diligence Check assists in assessing which risks are most prominent in a company’s international supply chain and its own activities. It also provides

advice on how to mitigate those risks.

Components of Responsible Purchasing

Comply with

local laws

&

Comply with

international

guidelines

Risk analysis

Ask questions

& do research

Report on policies

and performance

Draw up a code of

conduct for suppliers

Train your

procurement officers

Investigate your supply chain

Cooperation

within supply chain

Auditing

& monitoring

Join supply chain

initiatives

Laws & regulations Policies & organisation Control & monitoring

16 11/10/12

PRODUCT/COUNTRY RISK-INFORMATION

Product specific Bangladesh

Thailand

Country

specific

Corruption: costly and unnecessary

licence and permit requirements.

Reports of corruption in the awarding

of public and private tenders are

frequent. [19]

UNESCO Natural World Heritage Site:

mangrove forest Sundarbans [49]

Corruption is reportedly a

significant problem in Thailand,

both within the private and public

sectors, but it is mainly found in

the intersection between business

and government where demands

for facilitation payments are

widespread. [19]

SITC 034

Fish, fresh

(live or

dead),

chilled or

frozen

Drift net fishing causes a

large amount of unintended

by-catch. Nets should not be

longer than 2.5 km. [18]

Slavery in deep-sea fishing. Mainly

occurs for sardines, mackerel,

cuttlefish, squid, anchovies and

“trash fish” (used to make fish

sauce). Not a problem for tuna and

shrimp. [21]

SITC 611

Leather

Health risks (leukaemia, lung

cancer) for labourers

because of the use of

chemicals and glue in the

production process; bad

labour conditions; child

labour. [22]

Pollution of ground water near

tanneries leads to health problems for

humans as well as animals and plants,

and to less fertile agricultural grounds;

chemicals like chromium cause cancer;

low wages. [22]

17 11/10/12

REPORT PROVIDED

1. Risk Report

2. What can be done?

• Country specific mitigating actions • Product specific mitigating actions • Generic advice on project-relevant

OECD guidelines topics

• Which raw materials / semi-

finished products / products?

–> own production as well as

supply chain

• From which countries?

• Additional questions on OECD

Guideline topics

To do:

• If before 09 Nov: Answer online questionnaire

• If after 09 Nov: Use online tool (Beta-version)

MVO NEDERLAND

NIEUWEKADE 9

3511 RV UTRECHT

M.VANGENDT@MVONEDERLAND.NL

WWW.MVONEDERLAND.NL

THANK YOU

Questionnaire url or reference to tool:

http://www.mvonederland.nl/content/webform/vragenlij

st-due-diligence-check