- Professional News
- 12 June 2012
The Danish Parliament adopts new CSR initiatives
As part of the Government’s action plan for Danish businesses’ corporate social responsibility, “Responsible Growth”, the Danish Parliament has today adopted the Act on the Creation of a New Mediation and Grievance Mechanism for Responsible Business Conduct and extended the CSR reporting requirement.
Mediation and grievance mechanism
The mechanism will make it possible to submit complaints against companies displaying conduct contrary to internationally recognised principles, such as the UN Global Compact, the UN guiding principles on business and human rights and the OECD guidelines for multinational enterprises. On the basis of a complaint or on its own initiative, the mediation and grievance mechanism will deal with violations relating to Danish businesses, organisations and public authorities, irrespective of where the violations appear to have taken place.
Denmark is the first country to put such grievance mechanism into statutory form. The grievance mechanism is non-judicial, but hopes are to influence business conduct through mediation.
The specific rules applicable to the activities of the mediation and grievance mechanism will be fixed upon promulgation.
Reporting requirements with respect to human rights and climate
In addition, the CSR reporting requirement laid down in s. 99 a of the Danish Financial Statements Act is altered to expressly include an account of the business policies implemented to respect human rights and reduce climate impact. Approx. 1,100 of the largest Danish businesses are subject to the Act.