Step-by-step plan: International responsible business conduct
As an entrepreneur, you probably do business internationally, either directly or indirectly. From suppliers to logistics; chances are you work with foreign parties. The government then expects you to engage in international responsible business conduct (IRBC). Follow this step-by-step plan for IRBC.
What is international responsible business conduct?
If you do business across borders, the government expects you to take into account the impact of your activities on people, the environment, and society. We refer to this as international responsible business conduct (IRBC), also known as social corporate responsibility (SCR). This applies to your own business and to the businesses and activities within your supply chain.
Consider, for example:
- human rights
- working conditions
- child labour
- corruption.
- damage to the environment
Not only in the Netherlands but especially in your international chain. More and more consumers, governments, and large companies want sustainable and fair products.
What is due diligence?
With IRBC you use 'due diligence'. This is an ongoing process. You assess the risks to people and the environment, prevent or minimise negative impacts, and fix any damage where necessary. This applies not only to your own business but also to your international supply chain.
OECD Guidelines on Responsible Business Conduct
The Organisation for Economic Co-operation and Development (OECD) has Guidelines for Multinational Enterprises on Responsible Business Conduct. These set out what governments expect from businesses.
Due diligence in 6 steps
OECD also has guidelines to help you carry out due diligence in your business. You repeat the 6 steps over and over again.
Draw up a policy on international responsible business conduct. Set out in this policy how your business assesses and addresses risks to people, the environment, and the climate. Also take into account the risks within your supply chain. Set out who makes the decisions and who carries out the actions. Ensure that your employees are familiar with the policy, for example through training.
Review the OECD guidelines for IRBC.
IRBC as a condition for subsidies or loans
Would you like to apply to the government for a subsidy or loan for international business? Then you must demonstrate that you comply with the OECD guidelines. You must record your IRBC policy in an annual report or other public document.
> Read what the Netherlands Enterprise Agency expects of entrepreneurs
Check national legislation
Some countries already have their own IRBC laws and regulations. Germany, France, and the United Kingdom, for example. These laws and rules may also apply to you if you are active in those markets. Are you a supply chain partner of companies in these countries? If so, they may ask you for your company's IRBC policy.
First, identify the key businesses and activities in your supply chain. Investigate where negative impacts on people or the environment might arise. Determine which impacts are the most serious and tackle those first. Use the MVO's Risk Checker to assess risks by country and product.
Combat forced labour in your supply chain
From 14 December 2027, the Forced Labour Regulation (FLR) will apply. With this new EU law, you can no longer put products on the EU market if they have been made wholly or partly with forced labour or forced child labour. The law applies to all businesses, sectors, and products.
It does not matter where the products come from. You must be able to show that you apply due diligence in your supply chain.
Set out in your IRBC policy how you will prevent, end, or minimise any possible negative consequences. To do this, make a plan with goals and actions. For example, what you will do if a supplier does not respond to your complaints. Make sure you involve all stakeholders when creating your plan.
Regularly review the results of your IRBC policy. Make a schedule for this and monitor results at regular intervals. You can do this with, for example:
- self-assessments
- risk analyses
- audits
- a complaints proceedure.
This will allow you to adjust and adapt your policy if necessary.
Publish your iIRBC policy, for example on your website. You should set out what your business is doing to address sustainability risks. In this way, you are being accountable for how your business operates. And others can learn from your experiences.
Make sure that people can lodge a complaint with your business. Investigate the complaint and work to set things right if your business has caused or contributed to any damage. This may, for example, mean apologising, offering compensation, or taking steps to make sure it does not happen again.