Information to companies about responsible business conduct in different countries

A group of Finnish missions abroad has published a concise package of information about responsible business conduct (RCB) in their target countries. Each mission has prepared an RCB report to give companies an easy access to information about the business environment in their target country, covering topics such as rights in work life, protection of the environment and prevalence of child labour. All reports are available in the Team Finland online service Market Opportunities.

From voluntary to mandatory responsible conduct

A key element of responsible business conduct is that companies strive to prevent and stop adverse effects their own business activities and those of their partners have on people and the environment.

The European Commission has been monitoring the progress of RCB and has found it slow. France and Germany are the only EU Member States that have made responsible business conduct mandatory for companies. On one hand, the Commission wants to avoid a patchwork of national regulations. On the other hand, it wants to advance the adoption of responsible practices. For this reason, the Commission has proposed a directive on corporate social responsibility(Link to another website.) (Opens New Window) and a regulation on prohibiting products made with forced labour​(Link to another website.) (Opens New Window). The Commission is in the process of negotiating the proposals with the Member States.

Information is an asset when responsible conduct is being implemented

The mandatory nature of responsible business conduct means that companies should be aware of the effects their activities, such as purchasing practices, have on subcontractors. Customers, too, should be aware of how subcontractors ensure sufficient safety at work, how they process hazardous waste and whether their employees have freedom of association.

In the first place, companies usually raise these questions with their business partners. However, companies will not be able to ask the right questions of their suppliers if they do not understand the operating environment in the country.

The information available online about operating environments is fragmented and often difficult to understand. This is a challenge particularly for smaller companies who do not have a designated person responsible for RCB. In addition, companies may find it difficult to assess the reliability of information.

The RCB reports by Finland’s missions abroad are one way to ease the burden of companies. They help companies understand and identify possible pitfalls in responsible conduct and adopt measures to avoid them. The country-specific reports on the website Market Opportunities(Link to another website.) are based on publicly available information.