Human rights in practice - Reflections on developing human rights regulation in the Nordics
What is the role of regulation in improving human rights? Is increasing companies' responsibility the right way forward? How is regulation likely to evolve in this area on European Union and national levels?
On Nordic Business Ethics Initiative’s EthicsTalk LIVE in January 2022, our partner Salla Tuominen discussed legal and practical questions related to improvement of human rights together with Parul Sharma, CEO, Academy for Human Rights in Business, Annika Ramsköld, Vice President of Vattenfall’s Corporate Sustainability department and Greg Priest, Head of Human Rights and Social Impact at Inter IKEA Group. The virtual event was moderated by Anna Romberg and Niina Ratsula of Nordic Business Ethics Initiative. Please find below remarks on the regulatory environment and upcoming regulation in the area of human rights.
Upcoming EU regulation
Soft guidelines and instructions with the objective to improve human rights have existed for a while, but they have been less efficient in making a difference. Despite certain national laws, legislation in the area remains fragmented and typically only covers businesses of certain size. There is a growing pressure and expectations for developing EU level regulation affecting human rights. Last year, the European Parliament adopted a resolution on corporate responsibility and accountability. It was heavily stressed that even though organizations do need to respect human rights and the environment, it is up to governments and states to protect human rights and the environment, and this responsibility cannot be outsourced to private actors. On a more positive note, the upcoming regulatory regime will apply to all organizations regardless of their size or field of operation. This is something new in human rights regulation.
Will there be a new law on corporate social responsibility in Finland?
The Nordic countries are following the EU legislation closely and Norway is the first one to implement the law during 2022. In Finland, the current government programme includes a study on possibilities to enact a new law on corporate social responsibility. Studies have been conducted on legal frameworks and on the current situation concerning Finnish companies and human rights. It appears that human rights are respected and recognized but there is plenty of work to be done in embedding them into business operations. Additionally, companies are initiating plans to improve their communications and reporting on human rights.
In line with the EU level regulation, the core of planned Finnish regulation is the requirement that Finnish companies excercise duty of care as well as practices of handling the due diligence. It has not been decided whether a new law would be enacted or whether certain currently available laws would be amended and supplemented. An assessment report on the subject is expected from the Finnish Ministry of Economic Affairs and Employment during February 2022. In Salla Tuominen’s opinion, harmonization of the legal spectrum would be beneficial, especially with view of multinational companies operating on several jurisdictions.
Full recording of the EthicsTalk LIVE virtual event of 31 January 2022 is available here.
To discuss this or other compliance and business law topics, please contact Salla Tuominen. Salla is a corporate partner in DLA Piper Finland and passionate about good governance. She is the representative of our Nordic offices in DLA Piper's Sustainability and Environmental, Social and Governance steering group.
At DLA Piper, we are committed to making businesses better by helping clients and communities transition to and thrive in a more sustainable future. Together with Nordic Business Ethics Initiative we promote a transparent dialogue on challenges and opportunities related to business ethics and compliance.
