It happens every day - small and large violations of human rights. Working conditions that fall below expected standards, people who feel they have no power over their own lives. We all know it happens, but it's easy to close our eyes and think it doesn't concern us. Or our business. With the Norwegian Transparency Act, you no longer have this option - now you have to open your eyes and see the whole reality you're in. Whether you want to or not. The goal of the Norwegian Transparency Act is a better working day for everyone.
It concerns you too
"The most common thing we see now is that many people try to claim that the Transparency Act doesn't apply to them. In short, you could say that it applies to all large companies." Siri Engesæth at Factlines is quite clear; delaying this will only be punished. "No one expects you to magically reduce risk in every part of your chain, but you have to try! And you need to start that work now."
The aim of the Transparency Act is not to catch anyone, but to right wrongs. The focus on human rights and undignified working conditions is as important a sustainability effort as any other, because with social sustainability we lift the world's population together.
"No one should be disqualified by this new law," Engesæth continues, "the goal is rather to create a shift that means that those who have a human rights focus win, while those who cut corners have to show that they do!"
Must withstand the light
In practice, this means that all large companies must now be transparent about how they handle human rights and decent working conditions, including among their subcontractors. From July 1, 2022, information requests from the public must be answered within three weeks, and in one year, companies must publish a statement on how they work with human rights and decent working conditions on their website.
Annina Luterbacher of the law firm BAHR recommends that all companies anchor the focus and work on the topic throughout the business. You need to identify and assess where there are actual or potential consequences that the company is actively or inactively contributing to. "I recommend asking yourself a few simple questions: What does our supply chain look like? Which partners do we have? How are human rights respected in our ranks?"
"This is risk management on a par with what you already do in other areas of the company," she continues, "so most people already know how to do this."
Not too late
The fact that the Norwegian Transparency Act will come into force on July 1, 2022 may come as a bit of a surprise to some, but there's no reason to put off working on this, even if you're a little behind schedule now.
Luterbacher has clear advice for those who are about to start the work: "You must report on this work before June 30 each year and all findings must be presented in either the annual report or on your own website. In other words, it's time to get started. Make a plan for how to work with due diligence in the future, who is responsible for the work and anchor this in the board as soon as possible. Establish a good internal process for how requests for information are to be answered so that deadlines are not missed. The Consumer Authority describes in some general points on its website how to get started with the work."
"The biggest challenge is that many people put this off and don't start doing anything," says Siri Engesæth of Factlines. "Another aspect is that following up suppliers and customers in a responsible manner is difficult if you use old-fashioned tools such as email, PDFs and telephone. But just because it's cumbersome doesn't mean you can close your eyes and ignore what's being asked of you!"
Factlines has a comprehensive digital solution specialised in sustainability and transparency law. A SAAS solution, a web-based tool that enables users to get risk information directly from their suppliers in time to make good business decisions. "We provide the facts that enable you to deliver on the requirements."
And deliver - you have to!
"There is no way around it," Engesæth continues. "Excuses such as 'This doesn't apply to me', 'We're Norwegian' or 'This is a family business' are not enough - transparency requirements must be followed!"
And strictly speaking - the purpose of the Norwegian Transparency Act is to highlight human rights and ensure that all workers, all over the world, have better working conditions. No matter what.
If you can, through your openness, contribute to this - that's a good thing, isn't it?
