STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA 70. GLCs can also use their influence, leverage and resources to promote corporate respect for human rights, such as by ensuring respect for human rights in: § § Business activities they provide support and services to (Guiding Principle 4) Their supply chains and procurement practices (Guiding Principle 6) 71. The GLC Transformation Manual, which sets out non-binding policy guidelines for GLCs, contains the Silver Book and the Red Book. The Silver Book requires GLCs to make contributions to society. The Red Book relates to procurement, and requires, among other things, that GLCs enhance transparency and eradicate corruption in their procurement practices. These are initiatives that the Government should build on to ensure that GLCs respect human rights. 72. Recommendations: The Commission therefore recommends that the Government incorporate guidelines on implementing the corporate responsibility to respect human rights in the Silver Book, and guidelines on socially responsible procurement in the Red Book. The Government should provide for measures to ensure adequate compliance with these guidelines. The Government should also consider using other regulatory tools to require or encourage GLCs to respect human rights. Relevant Government bodies include: Prime Minister’s Department, Ministry of Finance, and MOSTI (8) Ensure respect for human rights in the business activities the Government provides support and services to 73. The Government should reserve in the NAP a role for its agencies that provide support and services to businesses. Examples of such agencies include Agro Bank Malaysia, the EXIM Bank and other Malaysian development finance institutions. These State-linked agencies have important economic leverage enabling them to ensure that the businesses they support respect for human rights. Moreover, their financial relationships would render them directly linked to businessrelated human rights abuses that arise in the business activities they support, exposing them to reputational and operational risks. 74. Around the world, similar agencies have adopted various measures to prevent and remedy adverse human rights impacts linked to the business activities they support. The U.S. Overseas Private Investment Corporation, the Japan Bank for International Cooperation and the Japan International Cooperation Agency are examples of the national agencies that have done so.73 Further, the OECD “Common Approaches” relating to States’ export credit agencies request member States to undertake their own due diligence before supporting companies with export credits.74 The measures adopted include: § § implementing environmental and social safeguard policies requiring officers to conduct due diligence and impact assessments when screening, approving and monitoring the activities of businesses that request for its support, and establishing citizen-driven grievance mechanisms to address complaints by persons or communities harmed by business activities linked to the agency’s support. 24