Govt soon to finalize National Action Plan on Business & Human Rights
Published: Feb 19, 2020
By TIOLCorplaws News Service
NEW DELHI, FEB 19, 2020: TWO decades after the government had announced at the Business and Human Rights Forum in Geneva in November 2018 that it will develop National Action Plan on Business & Human Rights, the MCA is in the final stages of formulating a National Action Plan on Business and Human Rights (NAP). In February 2019, the government published a draft NAP on Business and Human Rights. The draft notes that during the drafting process, the Ministry of Corporate Affairs (MCA) organised several meetings/multi-stakeholder consultations with relevant Ministries of the Government of India, the National Human Rights Commission (NHRC), the Securities and Exchange Board of India (SEBI), domain experts, and other relevant stakeholders
The obligation to draft a NAP stems from India's endorsement of the United Nations Guiding Principles (UNGPs) on Business and Human Rights adopted in the UN Human Rights Council (UNHRC). A country's NAP is expected to demonstrate how these principles are already being implemented, what the gaps are, and how they shall be addressed. The UN Working Group on Business and Human Rights (UNWG) has prepared a ‘Guidance on National Action Plans on Business and Human Rights' which has prescribed four criteria for developing a NAP.
First, it needs to be founded on the UNGPs. Second, it needs to be context-specific and address the country's actual and potential business related human rights abuse. Third, a NAP needs to be developed in an inclusive and transparent manner. Fourth, the NAP processes needs to be regularly re-viewed and updated. Currently, about 45 countries, including India, are either drafting or have finalized their NAP.
Further, the three principles on which India's NAP are articulated are:
I. State Duty to Protect
II. Corporate Responsibility to Respect
III. Access to Remedy.
The following have been recommended as key contents for an NAP:
- Section 1: Statements of commitments to implement the UNGPs.
- Section 2: Background and context to the NAP. How the NAP relates to other existing Government policy strategies such as national development plans, CSR strategies, national plans implementing International Labour Organisation convention and recommendations.
- Section 3: Government's expectations from businesses, including expectations that businesses respect human rights throughout their operations based on UNGPs and other guidance documents.
- Section 4: Government response clarifying how it Government currently addresses adverse business-related human rights impacts and outline commitments for further activities.
The Ministry has been taking various initiatives for ensuring responsible business conduct by companies. The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business, 2011 (NVGs) have been revised and released as National Guidelines for Responsible Business Conduct to align with United Nations Guiding Principles on Business & Human Rights (UNGPs) and Sustainable Development Goals (SDGs). The Committee on Business Responsibility Reporting (BRR) constituted by this Ministry to formulate BRR formats for listed and unlisted companies is finalizing its report. Further, a Zero Draft of the NAP has already been published to showcase the considerable progress made by the country in the field of Business & Human Rights which has been formulated after placing it in the public domain for inputs, sharing it with relevant Ministries for comments, and consultations with relevant stakeholders. All these measures shall culminate in the NAP document.
The Ministry is currently undertaking rigorous consultations with all stakeholders to finalize the document at the earliest. In this regard, comments/ inputs are invited from all to inform the NAP development process and contribute towards preparation of a document reflecting the vision and aspirations of Indian Businesses that strive to be responsible, sustainable, uphold and respect human rights. All comments may be sent to csrcell@mca.gov by March 10, 2020.