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Corporate News - 23/12/2016

Adoption of the « First national action plan on Responsible Business Conduct in the US

The USA adopted on Friday December 16th, 2016 a National Action Plan (NPA) that would dramatically push forward the integration of social responsibility risks into American companies’ behaviour.

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The objectives of the action plan, supported by the US government, consist in promoting the integration of social responsibility risk factors into the strategy and behaviour of American companies or companies operating in the US.

The ambition of this plan is that companies fully integrate international standards defining the social responsibility of the organisations : “OECD Guidelines for Multinational Enterprises”, “UN Guiding Principles on Business and Human Rights” and “Global supply chains and Decent work” (ILO)

The Supply Chains’ topic remains at the heart of the social responsibility issues. Though it will be one of the themes discussed during the nest G-20 summit, chaired by Germany.

The implementation of “Responsible Business Conduct” act could increase US Companies and of those having business relationships with companies registered in the US’s level of commitment, the integration, within their strategies and operations, of objectives concerning the respect of fundamental human rights including the rights of indigenous peoples and the fundamental labor rights, as defined by ILO, anti-corruption, land tenure and property rights and transparency in business behaviour.

Vigeo Eiris will give special attention to this initiative. The American NPA objectives clearly converge towards the normative framework, assumptions and methodology used by the agency to measure companies’ behaviour and risks on the domains targeted by the « Responsible Business Conduct » plan.

Indeed, Vigeo Eiris covers 4,000 listed issuers (among those hundred of American companies) and around 170 sovereign States on responsibility and risks in their behaviour regarding the major frameworks on social responsibility. The adoption of this plan could improve the score of the United States in Vigeo Eiris Sovereign Sustainability Rating scoring base.

Download the full Action Plan

Keywords : ESG, Methodology, USA