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
WWW.MVONEDERLAND.NL
THANK YOU
Questionnaire url or reference to tool:
http://www.mvonederland.nl/content/webform/vragenlij
st-due-diligence-check