STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA private sector development. 80. The Commission commends the Government for its current public procurement principles of public accountability, transparency, value for money, open and fair competition and fair dealing.77 However, respect for human rights in public procurement should also be included among the Government’s public procurement principles. Some examples of initiatives by other States that have taken measures to ensure respect for human rights in public procurement among others include the following : § § § § The Netherlands has included social criteria based on the ILO Core Conventions in its public procurement78 The U.S. Ending Trafficking in Government Contracting Act 2013 prohibits in all federal contracts acts that directly support human trafficking, and requires compliance and certification measures to help prevent trafficking and related acts79 Denmark’s NAP on business and human rights commits to publishing guidelines on responsible procurement in the public sector80 Finland’s NAP on business and human rights commits to amending national legislation on public contracts to take into consideration social criteria in public procurement.81 81. Other measures that States may adopt to integrate human rights into their public procurement practices include: § § § § § Issuing guidance on responsible procurement to government agencies at the federal and state levels, including social and human rights criteria in tender specifications and contract award criteria,82 including social and human rights considerations in contractual terms relating to obligations of sub-contractors and the termination, contractual penalties and termination of the contract, requiring government agencies to assess and report on the sustainability of their supply chains, which in turn prompts suppliers to report on their environmental and social impacts,83 and excluding companies or their bids on human rights grounds. For example, U.K. public procurement rules allow public bodies to exclude tenderers from bidding where there is information showing grave misconduct by the company in the course of its business or profession, which might arise where there are breaches of human rights.84 82. Recommendation: The Commission therefore recommends that the Government study the ways in which it can effectively ensure respect for human rights in public procurement, and adopt effective measures to do so. Guiding Principle 7 Because the risk of gross human rights abuses is heightened in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by: (a) Engaging at the earliest stage possible with business enterprises to help them identify, prevent and mitigate the human rights-related risks of their activities and business relationships; (b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence; (c) Denying access to public support and services for a business enterprise that is involved 26

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