In a significant move towards bolstering global standards for ethical business practices, the Biden-Harris Administration has just unveiled the United States’ second National Action Plan (NAP) on Responsible Business Conduct.
This comprehensive plan underscores a dedication to fortifying human rights and labour rights, promoting green energy initiatives, combating corruption, safeguarding human rights defenders, advancing gender equality, and ensuring technology is used in a manner consistent with human rights principles.
President Biden, widely recognised as the most pro-worker president in history, has made it a cornerstone of his administration to foster a sustainable global economy that prioritises the needs of workers and communities. Together with Vice President Harris, their administration is committed to upholding high labour standards, amplifying workers’ voices in decision-making processes, and enforcing regulations against unfair labour practices both domestically and internationally.
The release of this Action Plan reflects a comprehensive effort across the entire administration to enhance responsible business conduct through collaborative efforts with various stakeholders, economic incentives, regulatory measures, and other initiatives.
While addressing a wide spectrum of responsible business conduct issues for U.S. businesses operating worldwide, the NAP places particular emphasis on the expectation for businesses to uphold human rights, including through robust due diligence practices in an ever-evolving risk landscape.
Outlined in the NAP are four key priority areas aimed at promoting and incentivizing responsible business conduct and accelerating the implementation of effective human rights due diligence practices:
1. Establishment of a Federal Advisory Committee on Responsible Business Conduct: The Department of State will lead this committee, fostering collaboration with private sector entities, affected communities, labour unions, civil society groups (including human rights defenders), academia, and other relevant stakeholders to shape policies, programmes, and initiatives related to responsible business conduct.
2. Strengthening Respect for Human Rights in Federal Procurement Policies and Processes**: Several departments, including Health and Human Services, Homeland Security, Justice, and Defence, will implement measures to enhance human rights protections within federal procurement processes, including identifying options to address human trafficking violations by federal contractors, piloting human trafficking risk mapping processes, and evaluating membership in international initiatives for private security providers.
3. Strengthening Access to Remedy**: Various departments, including State, Labour, and Treasury, will take steps to enhance access to remedy for individuals and communities impacted by business activities, including reforms to the U.S. National Contact Point, funding innovative access to remedy systems, and advocating for effective remedy mechanisms at multilateral development banks.
4. Providing Resources to Businesses: The Department of Labour will establish an online repository called the Responsible Business Conduct and Labour Rights InfoHub to disseminate resources aimed at advancing labor rights outcomes in business operations and value chains. Additionally, various departments will release guidance on tribal consultation, engagement with indigenous and affected communities, and conducting human rights due diligence in investments.
This NAP represents a significant milestone in the Biden-Harris Administration’s commitment to advancing responsible business conduct both domestically and globally. In addition to the outlined priority areas, the plan includes a range of additional actions across various sectors, including technology, climate, workers’ rights, and anti-corruption measures, further underlining the administration’s comprehensive approach to promoting ethical business practices on a global scale.
