STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA respect human rights throughout their operations. iii. The Government build on existing standards and guidance. For example, the Government could revise the Malaysian Code of Corporate Governance 2012 to introduce human rights criteria in line with the Guiding Principles. The Government could also build on Bursa Malaysia’s Guide for Directors on Business Sustainability, which recommends that companies integrate human rights into their sustainability strategies, by issuing more specific and concrete guidance on how businesses can do so. Relevant Government bodies include: MOSTI, Securities Commission, and Bursa Malaysia Guiding Principle 4 States should take additional steps to protect against human rights abuses by business enterprises that are owned or controlled by the State, or that receive substantial support and services from State agencies such as export credit agencies and official investment insurance or guarantee agencies, including, where appropriate, by requiring human rights due diligence. (7) Ensure that GLCs lead by example and respect and promote corporate respect for human rights 67. Malaysia’s GLC Transformation Program demonstrates the important and unique role that GLCs play in driving Malaysia’s development. As enterprises that are owned, and in some cases, managed by the Government, GLCs also set standards for other companies in Malaysia to follow. 68. GLCs often operate in contexts with significant human rights risks. GLCs are often directly or indirectly involved in economic development projects, which may pose greater human rights risks when they leave a large physical imprint. GLCs also operate in industries that by their nature have significant human rights challenges, such as the extractives sector. Some GLCs also operate in conflict-affected areas or have business activities that link them to armed conflict. It should be noted that while these contexts perhaps present more significant human rights risks than others, human rights risks occur across all operational contexts. 69. These challenges are opportunities for action. GLCs can demonstrate leadership in respecting human rights through the measures they take to address their human rights risks and impacts, such as: § § § § § 23 Implementing human rights due diligence, including human rights impact assessments (Guiding Principle 17) Reporting on their human rights policies and processes, and human rights risks and impacts (Guiding Principle 21). Notably, other countries have legislated for their State-owned enterprises to report on social and human rights issues, whether or not these enterprises are listed companies.72 Establishing operational-level grievance mechanisms to address business-related human rights abuses arising from their operations (Guiding Principles 22 and 29) Adhering to internationally recognised standards for responsible business conduct, such as the Guiding Principles, the OECD Guidelines and the UN Global Compact Participating in multi-stakeholder or non-governmental initiatives, including those relating to their specific industries, that aim to promote corporate respect for human rights