•
rights and environmental due diligence. Benchmarking due diligence against national
requirements is difficult, given the difficulties of obtaining copies of existing or
emerging legislation, and could result in benchmarking against out-dated laws.
Due diligence should also cover risks that business relationships pose to human rights
(see Table 4 below). While all companies – international and local – operating in the
sector, including suppliers, have their own standalone responsibility to respect human
rights, they must also assess and address the impacts business partners cause that
are directly linked to their operations, products or services. 45
Business Relationships in the ICT Sector in Myanmar
Companies will need to carry out careful due diligence on the background, ownership,
policies and practices of potential business partners, including whether they are, or have
been, subject to any current or former US sanctions lists involving Myanmar. 46 As many of
the larger Myanmar companies are involved in other sectors, it will be relevant to look
across operations to understand how they conduct their business in those other sectors.
Finding the right business relationships in Myanmar will therefore require enhanced due
diligence throughout the life of the particular relationship:
•
•
•
•
•
Before entering into the relationship: Carry out due diligence on business partners
and their policies and practices for addressing environmental, social, human rights
impacts and corruption; including identifying directorships in other companies held by
business partners.
Documenting the terms of the relationship: Include contractual requirements on
meeting relevant international standards.
Supporting the relationship: Provide advice, training, and capacity building on how
business partners or entities in the value chain should responsibly conduct
themselves. A relationship provides the opportunity to promote better corporate
governance and share policies and practices on managing environmental, social and
human rights impacts. 47
Monitoring the relationship: Include requirements ranging from self-assessment and
reporting, visual inspections, to third party monitoring, depending on the business
relationship’s level of risk.
Ending the relationship: Include provisions to escalate and permit termination of the
contract if for example there are findings or credible allegations of severe human
rights violations or failure to take the required corrective actions.
45 UN
Guiding Principle 11, Commentary: “The responsibility to respect human rights is a global standard of
expected conduct for all business enterprises wherever they operate. It exists independently of States’ abilities
and/or willingness to fulfil their own human rights obligations, and does not diminish those obligations.”
46 See: http://www.treasury.gov/ofac/downloads/prgrmlst.txt and an overview of current US
sanctions: http://burma.usembassy.gov/sanctions-overview.html
47 See, IHRB, “State of Play: The Corporate Responsibility to Respect Human Rights in Business
Relationships” (Dec 2013).
CHAPTER 1: INTRODUCTION
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1