STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA both internationally recognised, and both have human rights chapters. However, the ISO 26000 provides only non-binding guidance and has no certification mechanism. 48. In addition, the OECD Guidelines apply to Malaysian companies that operate internationally, and complaints may be brought to a Malaysian NCP for a Malaysian company’s overseas human rights impacts. As mentioned above, overseas investment by Malaysian companies is increasing, including in countries known for weak governance. Complaints have been made to overseas grievance mechanisms regarding the domestic and overseas adverse human rights impacts of Malaysian enterprises.49 49. Adhering to the OECD Guidelines will therefore have the advantages of (i) moving beyond voluntary self-regulation to a more active approach to fostering corporate respect for human rights, and (ii) providing a Malaysian mechanism for overseeing the domestic and overseas human rights impacts of Malaysia’s multinational enterprises and addressing complaints regarding these impacts. 50. Recommendation: The Commission therefore recommends that the Government adhere to the OECD Guidelines for Multinational Enterprises in order to more actively promote corporate respect for human rights and to provide a non-judicial grievance mechanism for domestic and overseas business-related human rights impacts. Relevant Government bodies: MITI Operational Principles Guiding Principle 3 In meeting their duty to protect, States should: (a) Enforce laws that are aimed at, or have the effect of, requiring business enterprises to respect human rights, and periodically to assess the adequacy of such laws and address any gaps; (b) Ensure that other laws and policies governing the creation and ongoing operation of business enterprises, such as corporate law, do not constrain but enable business respect for human rights; (c) Provide effective guidance to business enterprises on how to respect human rights throughout their operations; (d) Encourage, and where appropriate require, business enterprises to communicate how they address their human rights impacts. (3) Prioritise the strengthening of law enforcement capacity and anti-corruption measures 51. Challenges in law enforcement have reportedly caused or contributed to Malaysia’s business and human rights issues. For example, in relation to the abuse of migrant workers, one apparent contributing factor is the serious shortage of labour inspectors and insufficient number of labour inspections conducted to ensure that businesses comply with safeguards in labour laws.50 As another example, in relation to logging activities, findings by authorities that EIA reports were not submitted when required indicate gaps in enforcement of EIA requirements.51 In addition, 17

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