Table of Contents

Acronyms …..2
1. Introduction …..3
2. UN Guiding Principles on Business and Human Rights …..43. National Action Plan (NAP) on Business and Human Rights …..5
4. National Action Plan on Business and Human Rights of Government of Nepal …..6
5. Overview of Preparation of National Action Plan (NAP) …..86. NAP Framework Agreed by Government of Nepal …..9
7. Re lection on Nepal's NAP Formulation …..10
8. CSOs Roles for effective NAP …..12
9. Effective Implementation of NAP : Way-Forward …..13
10. References …..15f

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Acronyms

B+HR-NAP: Business and Human Rights National Action Plan
CSOs:

Civil Society OrganizationsFNCCI:

Federation of Nepalese Chambers of Commerce and Industry

MoLESS:

Ministry of Labour, Employment, and Social Security

NAP:

National Action Plan

NFN:

NGO Federation of Nepal

NHRC:

National Human Rights Commission

NHRI:

National Human Rights Institutions

SMEs:

Small and Medium Enterprises

UNDP:

United Nation Development Program

UNWG:

United Nation UN Working Group

UPR:

Universal Periodic Review

UNGPs:

United Nation Guiding Principles on Business and Human Rights2

1. Introduction
The introduction of business and human rights re lects a fundamental shift in theunderstanding of the relationship between corporations and society. Historically, thefocus was primarily on economic growth and pro it generation, often at the expense ofhuman rights considerations. However, in recent decades, there has been a growing
recognition of the signi icant impact that business activities can have on the enjoymentof human rights, both positively and negatively.
Business and human rights refer to the framework that seeks to ensure that businessenterprises respect and promote human rights in their operations, products, andservices. This framework is grounded in international human rights law and standards,
including the Universal Declaration of Human Rights and the International Labour
Organization's core conventions. It acknowledges the responsibilities of both states andbusinesses in upholding human rights, with the understanding that corporations have a
responsibility to respect human rights throughout their operations, supply chains, andbusiness relationships.
The introduction of business and human rights has led to the development of various
initiatives and mechanisms aimed at promoting corporate responsibility andaccountability. These include the UN Guiding Principles on Business and Human Rights,
which provide a global standard for preventing and addressing adverse human rights
impacts associated with business activities. Additionally, there has been a proliferationof corporate social responsibility initiatives, codes of conduct, and multi-stakeholder
initiatives aimed at promoting responsible business practices.
In conclusion, the introduction of business and human rights represents a signi icant
paradigm shift in the way we understand the role of corporations in society. Itemphasizes the importance of integrating human rights considerations into businessdecision-making processes and underscores the shared responsibility of states,
businesses, and other stakeholders in promoting respect for human rights in thecorporate sector.

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2. UN Guiding Principles on Business and Human Rights
The UN Guiding Principles on Business and Human Rights (UNGPs) represent alandmark framework that sets out the roles and responsibilities of states and businesses
in respecting and protecting human rights in the context of economic activities.
Endorsed by the UN Human Rights Council in 2011, the UNGPs were developed byProfessor John Ruggie, the UN Special Representative on Business and Human Rights,
through extensive consultations with stakeholders worldwide.
The UNGPs are structured around three pillars: the state duty to protect human rights,
the corporate responsibility to respect human rights, and the need for access to remedy
for victims of human rights abuses.
Firstly, the UNGPs emphasize the primary obligation of states to protect against humanrights abuses by business enterprises operating within their jurisdiction. This includes
ensuring effective laws, regulations, and enforcement mechanisms to prevent humanrights violations by businesses, as well as providing access to remedies for those
adversely affected.
Secondly, the UNGPs outline the corporate responsibility to respect human rights, which
entails that businesses should act with due diligence to avoid infringing on the humanrights of others and address any adverse impacts that may arise from their operations.
This responsibility extends throughout a company's entire value chain, including
subsidiaries, suppliers, and business partners.
Lastly, the UNGPs underscore the importance of providing access to effective remedy for
individuals and communities who have been harmed by business activities. This
involves establishing accessible and effective grievance mechanisms, both judicial andnon-judicial, to ensure that victims can seek redress and obtain justice for human rights
violations.
Overall, the UNGPs provide a comprehensive framework for promoting corporate
respect for human rights, fostering greater accountability, and advancing the protectionof human rights in the context of business activities globally. They have become widely
recognized as the authoritative standard for guiding the behavior of both states andbusinesses in the ield of business and human rights.

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3. National Action Plan (NAP) on Business and Human Rights
National Action Plan (NAP) on Business and Human Rights serve as strategic
frameworks adopted by governments to promote and safeguard human rights in thecontext of business activities within their jurisdictions. These NAP are developed withthe aim of implementing the principles outlined in the UN Guiding Principles on
Business and Human Rights (UNGPs) at the national level.
The introduction of NAP on Business and Human Rights marks a signi icant step
towards enhancing the accountability of both states and businesses in upholding humanrights standards. These plan typically outline a series of measures and initiatives to beundertaken by governments, businesses, civil society organizations, and otherstakeholders to prevent, mitigate, and address human rights abuses linked to corporate
activities.
NAP typically encompass several key components. Firstly, they identify and analyze
human rights risks and impacts associated with business operations within the country.
This involves conducting assessments of existing laws, regulations, and policies
governing business conduct, as well as identifying gaps and areas for improvement.
Secondly, NAP set out a range of measures aimed at enhancing the protection of humanrights in business operations. These may include legislative reforms, regulatory
measures, capacity-building initiatives, and awareness-raising campaigns to promoteresponsible business conduct and ensure access to remedy for victims of human rights
abuses.
Thirdly, NAP often include mechanisms for monitoring, reporting, and reviewing
progress in the implementation of the plan. This involves establishing robust monitoring
frameworks, engaging with stakeholders to solicit feedback, and periodically evaluating
the effectiveness of the measures undertaken.
Overall, the introduction of NAP on Business and Human Rights re lects a growing
recognition of the need for concerted efforts to address the human rights impacts ofbusiness activities. By adopting these plan, governments signal their commitment to
upholding human rights standards and promoting responsible business conduct,
thereby contributing to the realization of a more just and sustainable global economy.

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4. National Action Plan on Business and Human Rights
Government of Nepalof

The launch of the National Action Plan on Business and Human Rights by the Nepal
government marks a signi icant milestone in promoting responsible business practices
and strengthening human rights standards in the country. This initiative forms a vital
component of the government's overarching strategy to foster economic development
while ensuring the protection of citizens' rights and the environment. Nepal's adoptionof this strategic framework places it as the second country in South Asia and the 41st
globally to embrace human rights principles in business operations. The ive-year plan,
set to conclude in 2028, underscores the government's long-term commitment to
upholding human rights within the business sphere.
During the launching programme of the national action plan, Minister for Labour,
Employment and Social Security emphasized that respecting human rights is not solely
the responsibility of the government but also of the private sector. The of icials
highlighted the signi icant impact of businesses on the lives of individuals in Nepal,
emphasizing the importance of ensuring that businesses uphold human rights across all
their operations.
The development of the action plan is the culmination of a longstanding collaboration
between the ministry and the UNDP in Nepal, with support from the governments ofJapan and Norway. Aligned with national provisions and international human rights
standards, such as the UN Guiding Principles on Business and Human Rights, the action
plan outlines the expectations and obligations of both the government and businesses in
Nepal to respect, protect, and ful ill human rights across various thematic areas.
Representatives from the Japanese embassy and UNDP stressed the importance ofcollaboration and coordination among stakeholders for the successful implementationof the action plan. They expressed optimism that the plan would enhance standards andpractices regarding business and human rights, contributing to socially sustainableglobalization.
The action plan aims to support companies in managing human rights risks within theiroperations and supply chains, aligning with global trends towards responsible businessconduct. Its adoption by the Nepal government signals to investors that Nepal iscommitted to fostering an environment conducive to responsible business practices.
Initially identi ied as a key action under the national human rights action plan
introduced in 2020, the government has established a task force to oversee theimplementation of the action plan. This collaborative effort involved some level of

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consultation and feedback collection from businesses, civil society organizations,international experts, and other stakeholders to ensure the plan's quality andeffectiveness. Through this participatory approach, Nepal aims to promote responsible
business practices and advance human rights protection in its business landscape.

75. Overview of Preparation of National Action Plan (NAP)

The Ministry of Labour, Employment, and Social Security (MoLESS) commenced theendeavor to formulate the B+HR-NAP (Business and Human Rights National ActionPlan) in September 2020, intending to bring it to fruition within a two-year timeframe.
However, the progression of the process encountered setbacks attributed to various
factors, prominently including the disruption caused by the coronavirus pandemic.
In the initial stages, a small team was assembled by the Ministry of Labour, Employment,
and Social Security in 2020 to spearhead the development efforts. However, it was notedthat the composition of this team lacked inclusivity, potentially hindering acomprehensive representation of all relevant stakeholders.
UNDP Nepal has assumed a supportive role in facilitating the NAP process, contributing
resources and expertise to advance the formulation and implementation of the plan.
Throughout the preparatory phase, a level of consultation was maintained with theFederation of Nepalese Chambers of Commerce and Industry (FNCCI), albeit at amoderate level, to gather insights and perspectives from the business community.
The engagement of the National Human Rights Commission (NHRC) in the NAP process
was observed to be partial, indicating potential gaps in the integration of human rights
perspectives in the formulation of the plan.
Inter-governmental agencies have shown a relatively lower level of awareness andengagement with the ongoing NAP process, suggesting the need for enhanced
communication and collaboration to ensure alignment with broader national objectives
and policies.
Despite the absence of a formal mechanism for direct engagement, Civil Society
Organizations (CSOs) and Small and Medium Enterprises (SMEs) have actively
participated in advocacy efforts through initiatives organized by the B+HR Network.
These efforts have aimed to raise awareness and advocate for the inclusion of theirperspectives in the NAP development process.
Furthermore, the B+HR Network, a multi-stakeholder holder plate-form on responsible
business and business and human rights has actively advocated for their demands to beconsidered and has been integrated into the of icial process and international
mechanisms, underscoring their commitment to ensuring the comprehensive
implementation of the NAP. Additional information can be accessed through theprovided link: https://globalNAP.org/country/nepal/.

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6. NAP Framework Agreed by Government of Nepal
The framework for addressing business and human rights issues has been accepted by
the Government of Nepal, signaling its commitment to promoting responsible businesspractices and protecting human rights within the country.

97. Re lection on Nepal's NAP Formulation
A. Initiation of NAP
During the initiation of the NAP, there was a lack of engagement from Civil Society
Organizations (CSOs), National Human Rights Institutions (NHRIs), and individual
Government entities. CSOs did not take the lead in providing initial support for thedevelopment of the NAP; instead, the Ministry of Labour, Employment, and Social
Security initiated the process with the facilitation support of UNDP. Additionally,
NHRIs and academic institutions refrained from participating in research activities,
organizing multi-stakeholder dialogues, and undertaking other awareness-raisingand capacity-building efforts. The absence of government initiatives and mechanisms
further hindered CSO participation. Nonetheless, the B+HR Network played a pivotal
role in organizing awareness and advocacy campaigns for CSOs and SMEs, whilesome business houses engaged in consultations facilitated by UNDP.

B. NAP Development StageThe Government's approach to formulating the NAP has been notably de icient inseveral critical aspects. Firstly, there has been a conspicuous absence of policyoriented research to underpin the development of the NAP framework. This lack offoundational research hampers the effectiveness and comprehensiveness of the plan.
Moreover, the absence of a baseline assessment further exacerbates this issue, as it
inhibits the government's ability to accurately gauge progress and identify areas
requiring intervention. Additionally, the government has failed to mandate theinvolvement of external experts, National Human Rights Institutions (NHRIs), or
independent research institutions to conduct assessments and identify gaps in the
NAP. This failure to leverage external expertise diminishes the plan's capacity toaddress complex challenges comprehensively. Furthermore, there has been a notablede iciency in formal processes to consult Civil Society Organizations (CSOs) during
the preparation of the NAP. While informal consultations have been organized by
UNDP, they have involved limited participation from CSOs. Although some businesses
were included in these consultations, the overall lack of robust engagement with
CSOs underscores a signi icant gap in the inclusivity and effectiveness of the NAP
development process.
C. NAP Drafting Stage
The consultation and revision of a draft version are essential steps before its
publication and inalization, yet this critical process was overlooked in thedevelopment of the NAP. A broader consultation involving workers, including NGOs,

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media representatives, and Small and Medium Enterprises (SMEs), should ideallyoccur prior to Cabinet endorsement, yet this crucial step was also omitted. It isimperative that the NAP is grounded in successful pre-existing laws and initiatives
that have demonstrated their ability to implement the UN Guiding Principles
effectively. However, the NAP drafting process failed to adhere to an inclusive
approach that would have incorporated the perspectives of small-scale businesses,
Civil Society Organizations (CSOs), and the informal sector. This oversight highlights
a signi icant gap in the inclusivity and effectiveness of the NAP development process,potentially compromising its ability to address the diverse needs and realities of all
stakeholders involved.
D. Implementation Phase
The National Action Plan (NAP) outlines the recommendations provided by the UN
Working Group (UNWG) regarding the process and institutional setup for
implementing and monitoring the NAP. It is crucial that the modalities of this process
are clearly articulated in the NAP document, ensuring transparency andaccountability. Additionally, the roles and responsibilities of multi-stakeholder
entities involved in the implementation and monitoring should be clearly de ined to
avoid ambiguity and ensure effective collaboration. The overarching aim of Phase 4 isto ensure that the measures outlined within the respective NAP are effectively
implemented within the designated timeframe. However, it is concerning that the
NAP fails to explicitly mention processes for involving non-governmental
stakeholders in monitoring and providing feedback. Non-governmental stakeholders
play a vital role in ensuring accountability and transparency in the implementation
process. Their perspectives, comments, and recommendations should be actively
sought and incorporated into the NAP implementation framework to enhance its
effectiveness and legitimacy. Unfortunately, the absence of provisions for suchengagement in the NAP raises questions about its inclusivity and may hinder its
ability to achieve its intended outcomes.
E. Update of NAP
This stage recognized as the Update Phase, elaborates on the continuous evaluation
and re inement process for National Action Plan (NAP), emphasizing the imperativeof addressing pertinent governance gaps in each iteration, integrating stakeholder
feedback comprehensively, and taking into account the strides made in previous
implementation periods. However, the noticeable omission of any reference to the
Nepal NAP within the update is indeed conspicuous and merits attention.

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8. CSOs Roles for effective NAP
Efforts aimed at creating awareness and capacity-building initiatives play a pivotal rolein fostering an environment conducive to promoting business and human rights, as wellas advancing the objectives outlined in the National Action Plan (NAP). These initiatives
target a diverse range of stakeholders, including rights-holders, state actors, andbusinesses, with the aim of enhancing their capacity to uphold and advocate forbusiness and human rights principles. Civil Society Organizations (CSOs) serve as key
intermediaries in this process, playing instrumental roles in various capacities. They
facilitate the referral of complaints from rights-holders to appropriate remedy channels
and act as vital connectors, linking rights-holders with essential service providers.
Furthermore, CSOs extend support to rights-holders and victims of human rights abusesin accessing legal aid, thereby facilitating their access to justice mechanisms.
Additionally, CSOs play a critical role in monitoring business practices to ensurecompliance with human rights standards. This monitoring function is particularly
evident in the Universal Periodic Review (UPR) process, where many CSOs actively
contribute their insights and observations to state monitoring mechanisms. By engaging
in these multifaceted activities, CSOs contribute signi icantly to the broader goal ofpromoting and protecting human rights within the business sphere, thus reinforcing theprinciples outlined in the NAP.
The involvement of Civil Society Organizations (CSOs) in promoting business andhuman rights encompasses several key activities. Firstly, CSOs play a crucial role infacilitating the organization of business assessments and due diligence processes,
ensuring that businesses uphold human rights standards in their operations. Secondly,
through collaboration with both government entities and businesses, CSOs leverage
their technical expertise to provide support in developing human rights policies andsafeguarding frameworks. This collaborative effort aims to foster a culture of respect forhuman rights within both public and private sectors. Furthermore, CSOs operate on
national and international levels to establish platforms that amplify civil society voices
on business and human rights issues. These platforms serve as arenas for sharing
expertise, experiences, and networks among various CSOs within the coalition, thereby
strengthening collective advocacy efforts. Finally, CSOs engage in advocacy and policy
dialogue initiatives aimed at in luencing the development and enforcement of laws andregulations by governments to effectively implement National Action Plan (NAP) for
business and human rights. Through these multifaceted endeavors, CSOs contributesigni icantly to promoting accountability, transparency, and respect for human rights inthe business sector.

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9. Effective Implementation of NAP: Way-Forward
Based on the provided statement, here are some recommendations for the effective
formulation and implementation of a National Action Plan (NAP) for business andhuman rights:
A. Comprehensive Stakeholder Engagement: Actively involve diverse stakeholders,
including civil society organizations (CSOs), marginalized communities, businesses,
and government agencies, throughout the NAP development and implementation
processes. This ensures that a wide range of perspectives are considered and fosters
buy-in from all relevant parties.
B. Transparency and Accountability Mechanisms: Establish transparent processes
for collecting, analyzing, and publishing stakeholder inputs to identify priorities for
the NAP. Implement robust accountability mechanisms to track progress and ensure
adherence to human rights principles by all stakeholders, including businesses andgovernment agencies.
C. Baseline Assessment and Needs Analysis: Conduct a thorough baseline
assessment of Nepal's legislative and regulatory framework concerning businessconduct, utilizing a neutral organization to provide an unbiased evaluation. Identify
gaps and shortcomings in existing policies and regulations and prioritize addressing
them in the NAP.
D. Accessibility to Remedies: Ensure accessibility to mechanisms for redress, remedy,
and accountability for communities adversely affected by business activities. This
may include establishing legal aid services, ombudspersons, or other channels for
affected individuals and communities to seek justice and restitution for harm causedby business operations.
E. Meaningful Participation: Overcome barriers to meaningful participation ofcommunities and key affected populations by creating regular dialogue andcollaboration platforms. Facilitate ongoing engagement between stakeholders toaddress pressing issues and ensure that their voices are heard in decision-making
processes.
F. Alignment with International Standards: Align the NAP with international
standards and frameworks such as the UN Guiding Principles on Business andHuman Rights, the Sustainable Development Goals, and the Paris Agreement on
Climate Change. Ensure that expectations for businesses to ful ill their
responsibilities under these frameworks are clearly articulated in the NAP.

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G. Implementation, Monitoring, and Review: Incorporate a comprehensive
implementation plan, monitoring, review mechanisms, and reporting mechanisms
into the NAP framework. Establish a regular progress review led by the government,in collaboration with inter-governmental working groups and multi-stakeholder
steering committees, to evaluate and adjust NAP initiatives over time.
H. Prioritize Marginalized Groups: Prioritize addressing the impacts of businessactivities on marginalized groups in the NAP. Consider expanding the mandate of the
Human Rights Commission to enhance oversight of business practices and ensure
greater protection for vulnerable communities.
By implementing these recommendations, Nepal can effectively promote human rights
protection and corporate accountability in its business landscape through the NAP.

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10. References
Survey : Data collected with 45 CSOs, 12 SMEs, 7 Business houses and their
Associations (Google forms were created and sent to the respondents with both closed
and open-ended questions to selected institutions.
Desk Review : Organized review of data, reports, tools, or other resources developed by
UNDP and Ministry of Labor, Employment and Social Security
Multi-stakeholder interaction and meeting: Organized 4 national consolations andone international consultation
Collection secondary sources : Review of reports, books and analysis of internet
sources the review of data, reports, tools, or other resources developed by yourorganization (https://globalNAP.org/country/Nepal/)
Organize Interview: Organized 5 Key Informant Interviews (KII)
Online open data sources15