|Due diligence in the financial sector in Norway|
|Supporting NCP(s)||Korea, Republic of (South)|
|Description||Specific instance notified by the NGOs, the Cotton Campaign, Anti-Slavery International, and KTNC Watch, regarding the activities of Daewoo International, its parent company POSCO and the entity Norges Bank Investment Management (NBIM), as a minority shareholder, in Norway.|
|Date||3 Dec 2014|
|Industry sector||Financial and insurance activities|
Read the combined initial assessment and final statement by the Norwegian NCP concluding the specific instance - 2 July 2015
Read the press release
In December 2014, the Norwegian NCP received a request for review from the NGOs the Cotton Campaign, Anti-Slavery International and KTNC Watch alleging that the Korean company Daewoo International, its parent company POSCO and the entity Norges Bank Investment Management (NBIM) had breached the human rights provisions of the Guidelines. The allegations were based on the assumption that Daewoo International and POSCO, domiciled in the Republic of Korea, did not comply with the Guidelines. The NGOs had asked NBIM to contact the companies with a view to getting them to stop their alleged undesirable activities which were stated to include violations of labour rights in their Uzbekistan subsidiaries.
The request to the NCP concerned NBIM’s handling, investigations and follow-up of the alleged violations. It also raised questions about what type of due diligence can be expected of a minority shareholder, and questions of principle concerning the application of the Guidelines in relation to financial institutions.
During the initial assessment process, the NCP referred to an earlier specific instance involving Forum for Development and Environment and NBIM, at the conclusion of which, the NCP issued recommendations for NBIM on how to comply with the Guidelines. The NCP found that these recommendations should be maintained.
After completing its initial assessment, the NCP concluded that it would not further the purpose of the OECD Guidelines to undertake a new consideration of the same questions of principles concerning the financial sector’s compliance with the Guidelines so shortly after the last consideration, and at the same time as the ongoing process at the OECD on specifying expectations of the financial sector vis-à-vis the Guidelines, including of minority shareholders. Accordingly, the NCP concluded the specific instance without further examination. The detailed reasons for this decision are published in the NCP's combined initial assessment and final statement. Access further documentation on the NCP's website.