This chapter first explains the relevance of responsible business conduct (RBC) in the ECOWAS region and the key elements of RBC. It then gives an overview and analysis of policies and initiatives relevant for RBC in ECOWAS at regional and national levels, as well as access to remedy and stakeholder awareness of RBC.
Sustainable Investment Policy Perspectives in the Economic Community of West African States (ECOWAS)
6. Promoting and enabling responsible business conduct
Abstract
In ECOWAS, policy makers, businesses and civil society have made important steps to foster responsible business conduct (RBC) at both national and regional levels as well as in the extractive and agriculture sectors. Moreover, the ECOWAS institutions have already frameworks and policies in place which build a basis for further uptake and promotion of RBC. However, countries and enterprises have moved forward at different speeds on the RBC agenda. Many related initiatives are still at early stages and gaps remain to implement concrete action and to build capacity on international standards on RBC and risk-based due diligence. This chapter first explains the relevance of RBC in the ECOWAS region and the key elements of RBC. It then gives an overview and analysis of policies and initiatives relevant for RBC in ECOWAS at regional and national levels, as well as access to remedy and stakeholder awareness of RBC.
Promoting RBC to drive trade, investment and sustainable development
In the past decade, different terms such as Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) have been used to reflect the expectation that businesses should consider non-financial impacts as part of their core business considerations and not as an add-on. RBC is more specific in that it sets out an expectation that all businesses – regardless of their legal status, size, ownership structure or sector – avoid and address negative consequences of their operations, while contributing to sustainable development where they operate. This means considering impacts on people, planet and society such as corruption, environmental, labour or human rights risks within business activities throughout the entire supply chain. Enabling RBC is a key component to attract quality investment, to foster trade and to ensure that business activities contribute to broader value creation and sustainable development.
Relevance of RBC for ECOWAS and its Member States
The importance of enabling and implementing RBC has been recognised internationally from a business, trade and investment perspective. From the business side, enterprises have confirmed that implementing RBC practices and considering risks beyond financial materiality can benefit their own business. Among others, the implementation of due diligence and higher sustainability requirements has proven to make supply chains more resilient to external shocks and crises. For instance, in response to an OECD firm-level survey on RBC in Latin America, 75% of firms indicated that having responsible practices in place such as due diligence has helped them navigate the COVID‑19 crisis, notably by mitigating risks (OECD, 2021[1]). A global study by the World Benchmarking Alliance found similar results (WBA, 2021[2]).
In ECOWAS, the implementation of RBC is especially key to the region’s economic development given the strategic importance of the mining and agri-food industries for the sustainable development and creation of quality jobs in the region. The food economy, for instance, represents 35% of West Africa’s GDP, accounts for 66% of the region’s total employment and 10% of total exports. While ECOWAS is home to important natural resources and an abundant labour supply, the integration in global value chains and added value of exported goods remains low compared to other world regions due to persisting barriers and vulnerabilities across supply chains such as low productivity, environmental shocks, and unofficial fees (AUC/OECD, 2022[3]). In the face of these constraints, RBC is an important opportunity to increase ECOWAS’ integration in sustainable value chains.
Enabling and implementing RBC can help to gain and maintain export market access, especially in sectors which are subject to environmental, labour and human rights risks such as the minerals, agricultural and garment sectors. This importance is further reinforced by increasing global and regional expectations related to RBC. In the ECOWAS region these expectations are driven notably by regulatory developments in key exports markets such as the EU. These developments will likely impact businesses in ECOWAS, since the EU is West Africa’s biggest export market, accounting for 20% of exports in 2020 (EC, 2022[4]; ECOWAS, n.d.[5]). Moreover, the ongoing implementation process of the African Continental Free Trade Area (AfCFTA) represents a key opportunity to further mainstream RBC in trade relations given the potential socio‑economic impacts of a single continental market (UNECA/ FES, 2022[6]).
From an investment perspective, there is evidence that RBC policies including labour standards, tenure rights over natural resources, human rights, anti-corruption and integrity have high potential to attract quality investment. An OECD survey on FDI decisions found that strong and effective laws governing RBC represented the policy area which had the strongest positive effect encouraging investment in foreign agri-food markets (Punthakey, 2020[7]). Regional analysis of panel data across ECOWAS countries has further confirmed that RBC practices, such as improving the efficacy of anti-corruption measures can be instrumental in attracting FDI and its beneficial effects on economic growth (Asante et al., 2022[8]).
The elements of RBC
Globally, there has been a steady rise in expectations on RBC which is reflected by investors and consumers demanding companies to report and act on RBC, and by a rise in benchmarking and lawsuits against companies regarding human rights and environmental impacts. Provisions on RBC are included increasingly in international trade and investment agreements as well as national and regional development strategies, laws, and regulations.
International instruments on RBC
Global expectations on RBC are set out and aligned in three main international instruments – the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (MNE Guidelines), the UN Guiding Principles on Business and Human Rights (UN Guiding Principles), and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (Box 6.1).
The MNE Guidelines are the most comprehensive international standard on RBC, providing a set of recommendations to businesses across sectors on responsible conduct in all areas of business ethics, such as governance and disclosure aspects, human rights and labour rights, the environment and climate change, bribery, corruption, consumers’ interest or taxation. The MNE Guidelines are part of the OECD Declaration on International Investment and Multinational Enterprises, which, to date, has 51 adherents. All these governments have set up a National Contact Points for Responsible Business Conduct (NCP). The NCPs are agencies established by governments with a twofold mandate: promoting the MNE Guidelines and related due diligence guidance, and handling cases (referred to as “specific instances”) as a non-judicial grievance mechanism.
Box 6.1. Overview of main international instruments on RBC
International convergence on RBC principles and standards
The three main instruments that have become key reference points for responsible business, are the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the UN Guiding Principles on Business and Human Rights (UNGPs), and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. They are aligned with and complement each other and set global expectations with regard to responsible conduct. Some of the key areas on which these instruments converge include:
Framework for all companies. International corporate responsibility standards set the expectation that all companies – regardless of their size, sector, operational context, ownership and structure – avoid and address the adverse impacts and contribute to the sustainable development of the countries in which they operate.
Common understanding of impact. The instruments set out that the impact of business activities goes beyond the impact on the company itself and refers to the impact business activities may have on human rights – including labour rights – the environment and society, both positive and negative. The instruments establish a common understanding that enterprises can cause, contribute to, or be directly linked to adverse impacts, and they provide a framework for how enterprises should avoid and address them.
Conducting due diligence. Businesses should undertake due diligence to identify, prevent and mitigate their actual and potential negative impacts and account for how those impacts are addressed. This process involves meaningful consultation with potentially affected groups and other relevant stakeholders.
Responsibility throughout the supply chain. Responsible business covers not only impacts that a company may cause or contribute to through its own activities but also those impacts directly linked to an enterprise’s operations, products or services through its business relationships. This includes business partners, entities in the value chain such as subsidiaries, suppliers, franchisees, joint ventures, investors, clients, contractors, customers, consultants, financial, legal and other advisers, and any other non-state or state entities.
Access to remedy. As part of their duty to protect against business-related adverse impacts, states are expected to take appropriate steps to ensure, through judicial, administrative, legislative or other appropriate means, that when such abuses occur within their territory and/or jurisdiction those affected have access to effective remedy. In addition, where companies identify that they have caused or contributed to adverse impacts, they are expected to address them through providing remedy, and they should provide for or co‑operate in this remediation through legitimate processes.
Source: OECD (2023[9]); OECD (2018[10]); OECD (2015[11]); EC (2023[12]); UN-OECD-EU-ILO-SDJW (2019[13]).
Risk-based due diligence
Conducting risk-based due diligence stands at the heart of RBC and means identifying, preventing and mitigating actual and potential adverse impacts, and accounting for how these impacts are addressed. Unlike many traditional corporate risk management and compliance systems that focus on the company’s primary risks, such as financial, market, operational or reputation risks, due diligence considers not only the risks to the company, but also risks that companies can cause, contribute to or to which they are linked along the whole supply chain (OECD, 2018[10]).
The OECD Due Diligence Guidance for RBC establishes a six‑step process to conduct due diligence that can be translated and used by any enterprise, irrespective of its size, location or sector of its operations (Figure 6.1). This process consists of (1) embedding RBC into the enterprise’s policies and management systems, (2) identifying and assessing adverse impacts in operations, supply chains and business relationships, (3) ceasing, preventing or mitigating adverse impacts, (4) tracking implementation and results, (5) communicating how impacts are addressed, and (6) providing for or co‑operating in remediation when appropriate. Beyond this cross-sectoral Due Diligence Guidance, the OECD has also developed guidance to provide tailored recommendations in specific sectors, including agriculture, minerals, extractives, garments and footwear, and finance.
Governments around the world are increasingly translating a risk-based due diligence approach into law to enable RBC. Currently 75% of OECD countries have already introduced or are in the process of introducing some sort of regulation embedding requirements of risk-based due diligence including disclosure laws, conduct requirements, and product and trade bans. Several governments such as France, Germany, Switzerland and Norway have been among the first ones to introduce comprehensive legislation, which make it mandatory for companies to carry out effective due diligence processes. At the regional level, the EU adopted a legislative proposal on mandatory due diligence in 2022: the Corporate Sustainability Due Diligence Directive establishes a due diligence duty including both EU and non-EU companies (OECD, n.d.[14]; EC, 2022[4]).
Figure 6.1. The risk-based due diligence process and supporting measures
Source: OECD (2018[10]).
Promoting RBC in ECOWAS and its Member States
Implementing responsible business practices requires an enabling policy environment at both national and regional level. Policy makers should establish conditions that effectively drive, support and promote responsible business practices. This means putting in place, maintaining and effectively enforcing a legal framework in all relevant areas where business intersects with people, planet and society as laid out in the OECD Recommendation on the Role of Government in Promoting Responsible Business Conduct (OECD, 2023[15]).
Policies and initiatives relevant for RBC at the ECOWAS regional level
Overarching policies at ECOWAS level
ECOWAS members have jointly committed to promoting international standards of RBC in relation to international investment in their countries and have established legal frameworks to guide and harmonise policies among Members States with respect to RBC, notably in the ECOWAS Investment Policy (ECOWIP) and the ECOWAS Investment Code (ECOWIC).
The ECOWAS Investment Policy (ECOWIP, 2017) establishes harmonised regional investment-climate policies for the Member States to maximise the economic and social benefits of regional integration in West Africa in line with global best practices. The ECOWIP includes a Chapter 12 dedicated to RBC and the protection of the environment, which is based on the OECD Policy Framework for Investment (ECOWAS, 2018[16]). It refers to international best practices and RBC standards covering all types of businesses “regardless of their legal nature, size, ownership structure, or sector of the economy in which they operate”. It acknowledges the shared responsibility of states and enterprises to promote RBC. The policy principles and strategies in Chapter 12 of the ECOWIP highlight the importance of promoting RBC for sustainable development aligned with the OECD standards for RBC along three objectives: first, “promote sustainable and inclusive economic and social development”; second, “avoid and address any materially adverse impacts (e.g. environmental degradation) caused by business activities”; third, “prevent or mitigate negative effects directly linked to the operations, products, or services of business entities”. Among other recommendations and in line with the OECD Policy Framework for Investment, Chapter 12 highlights several ways how governments can enable RBC including regulation, facilitation, co‑operation, promotion and exemplification (ECOWAS, 2018[16]).
The ECOWIP represents the foundation of the ECOWIC, which provides the legal framework for the implementation of the investment policy. The ECOWIC lays out rules and principles that govern the admission of international investments within the community and provides guidelines for their exploitation. Various articles of the ECOWIC refer to or are linked to RBC, notably in Chapter 6 “Environment and Sustainable Development”, in Chapter 8 “Development, Objectives and Social Responsibility”, and in Chapter 9 “Corruption and Unethical Practices”. Article 34 of the ECOWIC refers directly to Corporate Governance and Responsible Business Conduct. It requires investors in ECOWAS territory to promote and engage in responsible business practices in line with internationally recognised standards. This includes environmental and human rights protection, labour and employment rights including the elimination of child labour (Article 30) and combatting corruption (Article 38). Article 27 explicitly requires investors doing business in ECOWAS to carry out and publish pre‑investment environmental and social impact assessments. Member States are further meant to adopt RBC policies and international environmental standards (ECOWAS, 2018[17]). Despite these clear requirements relating to RBC, it remains an open question whether the ECOWIC provisions are implemented effectively at national level in the Members States (AfDB, 2020[18]).
Thematic policies and initiatives at ECOWAS level
Beyond the ECOWIC and ECOWIP, the Community has put forward a range of policies relating to the role of government in promoting RBC. These policies address the key areas of RBC, notably human and labour rights, children’s rights, climate and environment, as well as anti-corruption in line with key international standards and commitments. An overview of the ECOWAS frameworks relevant to RBC is listed in Table 6.1.
Table 6.1. ECOWAS policy frameworks related to RBC
With respect to human and labour rights, ECOWAS has developed several frameworks and initiatives. ECOWAS does not have its own legal instrument but refers to the provisions of the African Charter on Human and People’s Rights under Article 4g of the revised ECOWAS Treaty. The ECOWAS Child Policy and Strategic Plan of Action (2019‑30) as well as the Child Protection Systems Strengthening Strategic Framework in 2017 aim to end child labour in all its forms by 2025 in line with the SDGs (ECOWAS, 2019[19]). ECOWAS also set up a Gender Development Centre in 2003 and adopted a Gender Policy in 2004 to develop policies and advocacy on gender equality and to address issues such as sexual harassment in the workplace (ECOWAS, 2022[20]). Moreover, ECOWAS collaborates on the promotion of RBC with relevant human and labour rights organisations in the region, notably the Network of National Human Rights Institutions of West Africa, as well as the UN OHCHR and ILO regional offices in West Africa.
ECOWAS has lately increased its focus on climate change and the environment, but few of the relating policies and initiatives provide concrete guidance for private sector involvement. In 2008, ECOWAS adopted its Environmental Policy, which provides a common framework for natural resource management and guidance to address environmental problems. The 2022 ECOWAS Regional Climate Strategy creates a coherent basis for long-term climate action and is aligned with the African Union (AU) strategy on climate change, the Paris Agreement and the ECOWAS Vision 2050 as well as the African Union Vision 2063 (ECOWAS, 2022[21]). The strategy’s action plan for 2022‑30 aims among others at strengthening ECOWAS co‑operation to lower GHG emissions and foresees the elaboration and implementation of a CSR policy for the ECOWAS Commission. ECOWAS has further been involved in various initiatives and partnerships to address deforestation, notably by adopting in 2013 the Convergence Plan for the Sustainable Management and Utilization of Forest Ecosystems in West Africa and by collaborating in its implementation. The plan aims to mobilise political, institutional, financial and technical support to address transboundary forest issues across the ECOWAS Member States (FAO, 2019[22]).
In the area of governance, ECOWAS has made efforts and commitments to promote and strengthen the fight against corruption. The ECOWAS Protocol on the Fight Against Corruption was adopted in 2001 and provides guidance to address and prevent acts of corruption both in the public and private sectors. Among others, each Member State is required to establish a specialised and independent anti-corruption agency. Moreover, the protocol aims to harmonise and co‑ordinate national anti-corruption laws and policies (ECOWAS, 2001[23]). At the initiative of ECOWAS, the Network of National Anti-Corruption Institutions in West Africa was created in 2010, which serves as a forum for exchanges and consultation between national anti-corruption institutions in ECOWAS countries (NACIWA, n.d.[24]).
Sectoral policies and initiatives at ECOWAS level
In addition to having developed policies relevant for RBC in the areas covered by the OECD MNE Guidelines, ECOWAS has also elaborated sector-specific policies and initiatives to promote RBC in key economic sectors. Minerals and agriculture, in particular the oil, gold, cocoa beans and natural gas production are the most important sectors for the socio‑economic development in West Africa contributing strongly to investment and exports (OEC, 2020[25]). These sectors and commodities are especially vulnerable to structural issues such as high rates of informal employment, conflict, child labour and deforestation.
According to the ILO, informal employment in West Africa represents over 90% (ILO, 2021[26]). For instance, informality is a prevalent issue in artisanal and small-scale gold mining, with makeshift sites created by “gold rushes” proving particularly challenging to formalise (OECD, 2022[27]). Artisanal gold has also been used to circumvent West African exchange‑control regulations and the requirement to repatriate foreign currency in transnational schemes involving tax evasion, money laundering and fraud (OECD, 2018[28]; ARM, 2016[29]). Artisanal and small-scale mining has also been targeted by armed groups to extract rent and finance their operations, especially in the Sahel (ICG, 2019[30]; ISS, 2021[31]; OECD, 2020[32]). Along with informality, child labour remains prevalent in ECOWAS, in particular in the agricultural sector. In the region, 26% of children aged 5‑11 were engaged in economic activity in 2020 (ILO, 2022[33]). Furthermore, environmental issues, such as deforestation are a long-standing issue closely linked to the agricultural sector (AUC/OECD, 2022[34]). For instance, the cocoa production has proven to cause forest loss and degradation of the region’s biodiversity (Sassen et al., 2022[35]).
ECOWAS has recognised the responsibility to address these issues through various policies and initiatives. In the mining sector, for instance, the Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector requires companies to engage local communities before and during operations in the mining, oil and gas industries as laid out in Article 16.3 (ECOWAS, 2009[36]). ECOWAS has also been engaged with the African Minerals Development Centre hosted by the AU on various policy, research and capacity-building activities to implement the Africa Mining Vision, which aims at the sustainable exploitation of mineral resources (AU, n.d.[37]). Moreover, the Inter-Governmental Action Group against Money Laundering in West Africa, an ECOWAS institution established in 1999, as well as the Liptako-Gourma Authority, created in 1970 and promoting mining and agricultural development and security co‑operation in Burkina Faso, Mali and Niger have included the OECD Guidance for Responsible Mineral Supply Chains as part of their recommendations (OECD, 2018[28]).
In the agricultural sector, ECOWAS adopted a 2025 Strategic Policy Framework for its Agricultural Policy in 2017, which seeks to promote agricultural development and the sustainability of food systems in West Africa. While it does not refer to RBC directly, this framework sets out concrete objectives and targets, which relate to business conduct in the sector, notably animal health, food and nutrition security, and climate change adaptation (ECOWAS, 2022[38]; ECOWAS, 2017[39]).
The development of these regional policy frameworks and concrete targets in the minerals and agricultural sectors are an important step towards tackling adverse impacts which are linked to business conduct, such as child labour or deforestation. However, these issues continue to be highly prevalent in ECOWAS and the key challenge remains to implement and enforce concrete reforms effectively driving responsible business practices.
Policies and initiatives relevant for RBC at the national level
Beyond policies and initiatives at the regional level, ECOWAS Member States have also taken measures at the national level that are relevant for RBC. Overall, the 15 ECOWAS Member States, have adhered to several international instruments in areas covered by the OECD MNE Guidelines, such as human rights, labour rights, the environment and governance.
As shown in Table 6.2, all ECOWAS Member States have ratified key climate and governance related agreements such as the Paris Agreement, as well as the UN Convention against Corruption. However, regarding human and labour rights frameworks there remain gaps in the adherence. For instance, not all ECOWAS countries have adhered to all Core UN Conventions on Human Rights nor to all Fundamental ILO Conventions.
Beyond the adherence and ratification of international instruments, strong national policies and strategies are needed to enable and implement RBC. Over the last years, National Action Plan (NAPs) on Business and Human Rights and/or on RBC have been adopted by several countries worldwide to promote an overarching policy framework on RBC and mainstream responsible business expectations across relevant policies.
The development of NAPs in ECOWAS has been limited so far and has stemmed either from a government initiative or from a human rights institution with the support of civil society. Currently, Ghana, Nigeria and Liberia are in the process of developing a NAP (see Table 6.3). In November 2022, Ghana announced its commitment to launch a NAP by July 2023. The Commission on Human Rights and Administrative Justice and academic institutions in Ghana have engaged in conducting research, organizing multi-stakeholder dialogues and other awareness raising and capacity building efforts to help initiate a NAP process. In 2022, the Ghana Institute of Management and Public Administration (GIMPA) undertook a national baseline and gaps assessment of Business and Human Rights in Ghana in collaboration with GIMPA and the Danish Institute for Human Rights (GIMPA, 2022[40]). In Nigeria, efforts to develop a NAP have been led by the National Human Rights Commission of Nigeria (NHRC) and civil society since 2012. A draft NAP was published in 2017. The draft NAP is a working document and anticipates that it will be updated with further inputs to reflect varying regional and geopolitical considerations within the country (NHRC, 2017[41]).
In some ECOWAS Member States the commitment to develop a NAP has been included in other government policy measures. This has been the case in Liberia. The government’s Pro-Poor Agenda for Prosperity and Development, published in 2018, includes a commitment to develop and implement a NAP. The first step was to include an action point in this regard in the 2013‑18 National Human Rights Action Plan (Government of Liberia, 2018[42]). In 2019, the Ministry of Justice has chaired a National Steering Committee on Business and Human Rights, which is leading the development of the NAP. The Office of the High Commissioner for Human Rights has provided support to this process in Liberia through capacity-building of stakeholders and awareness-raising activities (OHCHR, 2022[43]).
Table 6.2. Adherence/ Ratification of key international RBC-related frameworks in ECOWAS
Note: ■ = Ratified / member / developed; □ = Not ratified / not member.
Table 6.3. Development of National Action Plan on Business and Human Rights in ECOWAS
In addition to these first developments of NAPs, ECOWAS governments have different RBC-related policies and frameworks in place, notably in the extractive and agricultural sectors with respect to environmental and labour issues. For instance, in the extractive sector, most national mining codes include provisions on the protection of the environment (e.g. in Burkina Faso, Guinea, Mali, Niger, Togo). Most governments have also adopted national policies on labour issues in supply chains such as child labour and forced labour. Moreover, several ECOWAS Member States have introduced laws regarding social and environmental impact assessments of public and private investment projects, such as in Cabo Verde (FAO, 2022[44]). An overview of relevant policies across countries is listed in Annex 6.A.
Apart from national policies relating to RBC issues, ECOWAS countries, like their counterparts in other regions, have concluded several bilateral trade and investment agreements. These agreements increasingly include expectations on RBC and related areas such as human rights, climate change and sustainable development (Gaukrodger, 2021[45]). For instance, the 2016 Morocco-Nigeria bilateral investment treaty includes provisions on the protection of human rights and on CSR (Zugliani, 2019[46]; UNCTAD, 2016[47]). A further example which includes all ECOWAS Member States is the new Partnership Agreement between the EU and members of the Organisation of African, Caribbean and Pacific (ACP) States (Post-Cotonou agreement), which aims to guide the political and economic relations between EU and ACP countries. The negotiations were concluded in 2021 but the agreement has not been formally signed yet. The agreement explicitly states that signatories shall promote RBC and prioritises climate change, the environment, and sustainable development. It further references the OECD Guidelines for MNEs on RBC and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as the UNGPs and the ILO Tripartite Declaration (EC, 2022[48]).
Access to remedy for business-related adverse impacts in ECOWAS
An essential pillar of RBC across international standards is providing access to effective remedy. As part of their duty to protect against business related adverse impacts, States are expected to take appropriate steps to ensure, through judicial, administrative, legislative or other appropriate means, that when such abuses occur within their territory and/ or jurisdiction those affected have access to effective remedy (UN-OECD-EU-ILO-SDJW, 2019[13]).
At the regional level the ECOWAS Community Court of Justice can play a role in providing access to remedy for business related adverse impacts. Operational since 2000, the Court is mandated with resolving disputes related to the ECOWAS treaty, protocols, and conventions including complaints alleging human rights violations including by businesses in the ECOWAS Member States. It can hear cases even if domestic remedies have not been exhausted, including cases still pending before the national courts, which is an exception among international tribunals. It has adjudicated several significant cases relating to business and human rights, such as the right to equal pay for equal value (Ukaigwe, 2016[49]) and is recognised as an innovative mechanism for environmental jurisprudence within Africa. For instance, the Court has ruled on a case relating to the environmental impact of oil companies in Nigeria and another case on the human rights impact of an iron ore project in Guinea (Debevoise & Plimpton, 2021[50]; ECOWAS, n.d.[51]; FES, 2022[52]; UNDP, 2022[53]). The Court is further one of the few international judicial bodies, which has explicitly cited international RBC standards in its jurisprudence, notably the UN Guiding Principles on Business and Human Rights.
Beyond this legal mechanism, a non-judicial grievance mechanism accessible for stakeholders in ECOWAS are the National Contact Points for RBC. Any trade union, civil society organisation or community can file a complaint with this mechanism for alleged violations of the OECD Guidelines for Multinational Enterprises on RBC by businesses operating in or from one of the 51 countries that have adhered to this instrument. While none of the ECOWAS Member States has adhered to the Guidelines, several cases have been filed for harm that occurred in the ECOWAS region. Between 2001 and 2022, 21 specific instances have been submitted in relation to business operations in ECOWAS host countries. Most of them concern the mining sector and are linked to environmental, human rights and employment issues.
ECOWAS stakeholders’ awareness of RBC and related initiatives
In parallel to the policies and initiatives taken by ECOWAS and its Member States, businesses and civil society in the region have started to develop or participate in initiatives relevant for RBC. These actions are still at an early stage and need to be further mainstreamed. At the same time, increased uptake of RBC practices requires stronger support from governments to establish enabling policies and regulatory environments promoting RBC.
Across ECOWAS Member States, initiatives by civil society actors, and businesses have increased their focus on promoting responsible business conduct. There is a broad range of Civil Society Organisations active in ECOWAS Member States. advocating to drive forward the RBC agenda notably with respect to the environment and human rights. Some organisations have set up specific programmes to raise awareness on RBC. In Liberia, for instance, the Sustainable Development Institute works on a project to promote corporate governance and social responsibility (SDI Liberia, n.d.[54]). Moreover, several organisations are developing RBC-related projects in the mining sector such as the Wassa Association of Communities Affected by Mining in Ghana, Actions Mines Guinée in Guinea, the Fédération des Femmes Minières du Mali and Lumière Synergie pour le Développement in Senegal (see list in Annex 6.A).
Several businesses, notably in the minerals and agricultural sector, have started to engage or collaborate more actively in initiatives to promote responsible supply chains. For instance, 173 companies in the ECOWAS region are participating in the UN Global Compact regional networks, which aim to foster sustainable development in the areas of human rights, labour, environment and anti-corruption (UNGC, 2021[55]). Several companies and industry initiatives in West Africa have started programmes which aim to promote formalisation and address issues such as corruption, illicit trade, child labour and deforestation. For instance, the cocoa sector in Côte d’Ivoire and Ghana has seen an increased focus on voluntary sustainability standards, certifications and corporate initiatives implemented by a broad range of stakeholders since the mid‑2000s (Ingram et al., 2018[56]; AUC/OECD, 2022[3]). In the gold mining sector in Burkina Faso, the Responsible Mining Alliance has worked directly with miners to support the creation of legal mining activities (ARM, 2019[57]). Moreover, some companies operating in ECOWAS have adopted policies aligned with the OECD due diligence framework. In Burkina Faso, Côte d’Ivoire and Mali and Niger, business and civil society representatives have already been engaged in trainings on the OECD Guidance for Responsible Mineral Supply Chains (ARM, 2022[58]).
Moreover, ECOWAS stakeholders are increasingly involved in African continental initiatives on RBC as well. For instance, various representatives from ECOWAS countries including civil society, business and trade unions participated in the first ever African Business and Human Rights Forum in Accra, Ghana in October 2022 to discuss challenges and opportunities for promoting RBC in Africa. However, the general awareness about RBC standards and due diligence approaches remains limited in the region. Case studies on the implementation of due diligence processes in minerals supply chains in Burkina Faso and Nigeria found that the level of knowledge and understanding of international due diligence frameworks and supply chain traceability was very low (BGR, 2022[59]).
While awareness about the relevance and the elements of RBC has increased among stakeholders in West Africa, ECOWAS and its Member States have set out concrete policies to promote RBC in line with international standards. Yet, there is still a way to go in the implementation and enforcement of these policies and in building the capacity of companies to carry out due diligence. This will require a joint effort between governments, business and civil society. By effectively promoting RBC, ECOWAS can seize the opportunity to strengthen sustainable value chains, to attract quality investment and to take the next steps towards sustainable development.
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