Responsible business conduct in the financial sector

 

Promoting responsible business conduct (RBC) in the financial sector is vital to building a sustainable global economy. In the past the financial sector has developed due diligence systems aimed at financial risk, however the use of due diligence to prevent or mitigate environmental and social risks is a new, yet growing, expectation within this industry.
 

The due diligence processes recommended by the Guidelines can help financial institutions evaluate the risks of adverse impacts and respond to them appropriately. However, the inherent complexities in the sector such as extensive and complex business relationships, the rapidity of transactions, and operations which do not fit neatly into the model of suppliers and buyers in a supply chain make application of the Guidelines challenging. Questions remain around practical application of effective due diligence systems with regard to minority ownership stakes, passive investment strategies and index funds.
 

In this context, the OECD is engaging in a multi-stakeholder process to develop a guidance that will clarify the potential approaches for application of due diligence for RBC in the financial sector.

 

Aligning fiduciary duty and responsible business conduct in institutional investments 

09/06/2016 - The 2016 Global Forum on Responsible Business Conduct included a session on how financial institutions and financial service providers are using their significant leverage to promote responsible business among their clients and in their own operations.

 

 

 

  
DOCUMENTS AND LINKS

Dutch Banking Sector agreement on international responsible business conduct regarding human rights, 2016

 

The force of finance for responsible business: How the financial sector could and should contribute to responsible business conduct, Roel Nieuwenkamp, 2016

 

Expert letters and statements on the application of the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights in the context of the financial sector, 2014

 

Scope and application of ‘business relationships’ in the financial sector under the OECD Guidelines for Multinational Enterprises, 2014 

 

Due diligence in the financial sector: adverse impacts directly linked to financial sector operations, products or services by a business relationship, 2014
  

CONTACT

For more information please email tyler.gillard@oecd.org or barbara.bijelic@oecd.org

 

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