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8. Breaches of international
norms
For institutional investors, violations of international
standards by companies in their portfolios represent
both a reputational and an investment risk. This is why
Ethos is conducting an engagement campaign against
violations of international standards that targets
companies that commit serious and/or systemic
violations of international minimum standards of good
conduct in the areas of human and labour rights, the
environment and anti-corruption. The ten principles of
the UN Global Compact and the OECD Guidelines for
Multinational Enterprises serve as the normative basis.
The selection of companies is based on the existing Ethos
process for identifying controversies. The objective of
the dialogue is defined as follows:
• Elimination and proven remediation of the
violation and improvement of the management
processes to avoid a new violation.
If the objective is not achieved within a reasonable
period, Ethos recommends the exclusion of the company
in question from the investment universe.
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