Responsible business conduct

Responsible business conduct ensures that companies and investors operate in line with the needs of society. It means that innovation, investment, and operations are carried out responsibly and meet the highest quality standards across the entire value chain, wherever in the world.
Responsible business conduct is about taking responsibility for a company’s activities and working to limit negative impacts on people, the environment, and society. Business operators should strive to respect international guidelines, including those on human rights, labour rights, the environment, climate issues, and anti-corruption.
This applies to all companies, their value chains, and the way their products are used and disposed of. Companies are responsible for ensuring that no negative impacts occur on people, the environment, and society due to the actions of suppliers, customers, or other business partners.

The Department of Trade and Markets at the Ministry of Industries serves as Iceland’s contact point, NCP, for the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.
NCP assists companies and stakeholders in taking appropriate measures to strengthen compliance with the Guidelines and provides a platform for resolving issues that may arise in relation to these Guidelines.

The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are recommendations from governments on responsible business conduct, regardless of where they operate. They cover, among other things, human rights, labour rights, the environment, climate, and anti-corruption.
The objective of the Guidelines is to promote economic, social, and environmental well-being and to reduce negative impacts from business activities. The Guidelines provide a common framework that helps companies and other stakeholders align expectations and foster sustainable development.

OECD Guidelines for Multinational Enterprises on Responsible Business Conduct in English

• Enterprises are facing increasing demands for disclosure of sustainability information. They should disclose information on all matters that can reasonably be expected to influence an investor’s assessment of the enterprise’s value. It is also important that they communicate credible information on their due diligence processes and the impacts of their operations, products and services on people, planet and society.

• Enterprises should avoid causing or contributing to human rights violations and address such impacts when they occur. They should also seek to prevent or mitigate adverse human rights impacts arising from business relationships. The Human Rights chapter of the Guidelines is fully aligned with the UN Guiding Principles on Business and Human Rights.

• Enterprises should carry out due diligence to address the adverse environmental impacts of their operations, products and services. This includes impacts such as climate change, biodiversity loss, degradation of terrestrial, marine and freshwater ecosystems, deforestation, air, water and soil pollution, and waste management, including hazardous substances. Enterprises should ensure that their greenhouse gas emissions are consistent with internationally agreed global temperature goals, and they should take social impacts into account in their climate action and environmental management.

• Enterprises should apply fair marketing practices, ensure the quality and reliability of their products and services, and provide accurate, verifiable and clear information that enables consumers to make informed decisions. Any product, environmental or social claims should be based on adequate evidence.

• Technology has wide-ranging impacts on sustainable development, human rights, democracy, social cohesion, climate, and labour markets. Enterprises should conduct due diligence to prevent and address adverse impacts related to the development, use and trade of technology and innovation.

• Enterprises should carry out their activities in accordance with applicable competition laws and refrain from agreements or practices that undermine fair competition in domestic or international markets.

• Enterprises should make timely payment of taxes in the countries in which they operate and contribute to public finances. Tax transparency is important to support trust in the tax system and to demonstrate compliance with both the letter and spirit of the law. Corporate boards should adopt tax risk management strategies to reduce financial, regulatory and reputational risks associated with taxation.

To submit a complaint (Specific Instance) to the OECD National contact point (NCP) in Iceland regarding responsible business conduct, a complaint form must be completed.
The complaint should include:

• Contact details of the complainant, including name, ID number, email address and phone number.
• On whose behalf the complaint is submitted.
• Name, address and other relevant information about the enterprise, authority or institution concerned.
• Grounds for the complaint, including a description of events, conduct and the role of the enterprise in question. The complaint should also reference the relevant chapter(s)
• Copies of any documents supporting the complaint. If assistance or guidance is needed regarding the complaint procedure, an email should be sent to [email protected]. The Department of Trade and Markets at the Ministry of Industries is the OECD NCP in Iceland for responsible business conduct.

The Procedural rules are intended to provide a fair, transparent and efficient system for the submission and handling of complaints by the Icelandic NCP under the OECD Guidelines for multinational enterprises on responsible business conduct. The Procedural Rules shall be interpreted in accordance with the OECD Guidelines and any other relevant international guidance and practices applicable to National Contact Points (NCPs) in relation to the Guidelines.
Link for Procedural Rules.

The Steering group on Responsible Business Conduct serves as a forum for dialogue and consultation on the implementation, application, and promotion of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

Members of the Steering Group:

• Harpa Theodórsdóttir, Chair, Ministry of Industries
• Halldór Oddsson, Icelandic Confederation of Labour
• Hugrún Elvarsdóttir, Federation of Icelandic Industries
• Magnús Dige Baldursson, Ministry of the Environment, Energy and Climate
• María Guðjónsdóttir, Ministry for Foreign Affairs
• Rósa Guðrún Erlingsdóttir, Prime Minister’s Office
• Þröstur Olaf Sigurjónsson, Festa – Centre for Sustainability

Regular meetings are held with all OECD National Contact Points (NCPs) from 52 countries. These meetings provide a platform to discuss how to strengthen responsible business conduct worldwide, to review the situation in each country, and to address cases being submitted to the NCPs. OECD NCPs for responsible business conduct are established in 52 countries.

NCP operate in 52 countries.
Iceland also cooperates closely with other NCPs in the Nordic and Baltic countries:

NCP from Iceland, Nordic countries and the Baltics gathered in Reykjavík.

• Presentation for master’s students in auditing
  EU sustainability reporting requirements and introduction to the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.
  Target audience: Master’s students specialising in auditing and sustainability reporting.

• Press release

  Launch of the new website and publication of the Icelandic translation of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (2023).
  Target audience: General public, business community, academia, civil society, and media.

• Presentation to the Department of fisheries and the Department of tourism

  Introduction to the OECD Guidelines for multinational enterprises on responsible business conduct, with emphasis on sector-specific relevance.
  Target audience: Government officials, policy staff, and stakeholders in fisheries and tourism.

• Presentation for Icelandic embassies (in cooperation with the Ministry for Foreign Affairs)
  The OECD Guidelines for multinational enterprises on responsible business conduct and the role of National contact points.
  Target audience: Icelandic embassies and diplomatic staff.