STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND
HUMAN RIGHTS FOR MALAYSIA
IV.
MALAYSIA’S CURRENT INTEGRATION OF HUMAN RIGHTS IN BUSINESS
25. The integration of human rights in economic and business activities in Malaysia has certainly
begun. Over fifty Malaysian companies, including small and medium enterprises, are participants
of the UN Global Compact, and thereby commit to adhere to the UN Global Compact’s Ten
Principles, which include human rights.21 Over a hundred and twenty Malaysian companies are
members of the Roundtable on Sustainable Palm Oil (RSPO) and thereby commit to follow the
UN Universal Declaration on Human Rights.22 Fourteen of these Malaysian RSPO members are
certified against the RSPO principles and criteria, which require them to respect human rights and
have a human rights policy statement.23
26. The Commission welcomes the steps taken by the Government to foster the integration of human
rights in business activities by supporting good corporate governance. These steps include the
following:
(a) Bursa Malaysia has in December 2014 launched the FTSE4Good Bursa Malaysia Index, which
requires companies to achieve a specified FTSE4Good ESG Rating in order to be included in
the index.24 The FTSE4Good ESG Rating includes human rights criteria.25 To date, twenty-four
Malaysian firms have been selected for inclusion in the FTSE4Good Bursa Malaysia Index.26
(b) The Companies Commission of Malaysia (SSM) has, through its best practice circular on
corporate responsibility disclosure and reporting, highlighted international corporate
governance standards and tools that have human rights principles and performance indicators,
such as the Global Reporting Initiative (GRI) Sustainability Reporting Framework, the ISO
26000, the UN Global Compact and UNICEF’s Children’s Rights and Business Principles.27
(c) Bursa Malaysia’s sustainability guide for directors recommends the integration of human
rights in businesses’ sustainability strategies for their operations.28
(d) Bursa Malaysia’s corporate governance guide for listed companies recommends that businesses
require employees to report human rights abuses in their internal whistle-blowing policies,
and draws attention to how environmental, social and governance reports are increasingly
focused on, among other things, human rights.29
27. The Commission also welcomes the steps taken by the Government to integrate human rights into
its international economic activities. During negotiations on the TPP Agreement, and prompted by
NGO advocacy, MITI consulted the Commission on human rights issues arising from the proposed
agreement.
28. Non-governmental organisations (NGOs) have also played an important role. Civil society activism
and public pressure have shone the spotlight on the human rights impacts of business activities.
The Commission has received complaints regarding human rights abuses that implicate companies.
Complaints have also been made regarding the operations in Malaysia of foreign transnational
corporations or their Malaysian subsidiaries to the OECD National Contact Points (NCPs) of their
home countries.30 These NCPs apply the OECD Guidelines on Multinational Enterprises (OECD
Guidelines), which include a chapter on human rights standards.31
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