THE HAGUE, 29/03/07 - Economic Affairs State Secretary Frank Heemskerk does not want to compel bourse-listed companies in the Netherlands to justify their activities ethically. Yesterday, he rejected a plea by a Lower House minority to require annual reports to have a socio-ethical section.

Labour (PvdA), the Socialist Party (SP) and the leftwing Greens (GroenLinks) urged compelling companies to publish what they are doing about socially responsible business practices (MVO). The PvdA state secretary however wants "MVO achieved by dialogue." Legislation could actually discourage companies, according to Heemskerk, who hopes that companies "will go a step further" if they do not have any obligations imposed on them.

Heemskerk did promise that he will ask the Socio-Economic Council (SER) for advice on MVO. The cabinet will then produce a definitive view in the autumn. Heemskerk wants the SER to look at matters such as environmental friendliness, child labour and human rights from the beginning to the end of the production process, so that it will not just be the provider of the final product that carries the responsibility. Before products from distant countries reach the shops here, many companies have often been involved in their production, transport and trading, he observed.