Guyana is making commendable progress in the adoption of Responsible Business Conduct (RBC), according to a recent report by the US State Department. In its 2024 Investment Climate Report, the agency noted Guyana’s increase in foreign investments over the years which is now driving businesses to align with international standards.
The report emphasized the growing expectations for businesses in Guyana to refine their supply chains, bolster health and safety protocols, and adhere to standard labour practices.
Although Guyana does not have a specific policy to encourage RBC norms, many companies are adhering to the Organisation for Economic Co-operation and Development (OECD) guidelines.
“Guyana does not have a policy to encourage RBC. Most companies conform to their business responsibilities as outlined by the Organization for Economic Co-operation and Development (OECD),” the report said. Notably, the OECD defines RBC as “making a positive contributions to economic, environmental and social progress with a view to achieving sustainable development and avoiding and addressing adverse impacts related to an enterprise’s direct and indirect operations, products or services.”
The report pointed out that Guyanese consumers are becoming more aware of RBC principles as public sensitization grows. Furthermore, it noted that local companies increasingly adopting RBC principles, are driven by the need to remain competitive, especially in sectors like oil and gas that prioritize these standards.
The Ministry of Labour in Guyana plays a crucial role in this transition, regularly conducting sensitization sessions to enhance awareness and understanding of workplace legislation among both workers and businesses. These efforts ensure compliance with the country’s labour laws, fostering a safer and more equitable working environment.
To date, business support organizations view Guyana as an attractive destination for investment, bolstered by government policies, designed to encourage Foreign Direct Investment (FDI). The report highlighted the government’s open stance towards investments across all economic sectors, underlining that Guyanese law does not discriminate against foreign investors.
A significant aspect of this investment-friendly environment was the Local Content Act, enacted in 2022. This legislation mandates foreign in the oil and gas sector to hire Guyanese personnel and procure local materials.
Furthermore, the report detailed several initiatives aimed at creating a more conducive business environment. These include the introduction of an electronic single window system to streamline permit applications and the development of legislation to modernize the financial sector. Such measures are expected to enhance efficiency and transparency, making it easier for businesses to operate and thrive in Guyana.
The Government of Guyana has expressed hope that large multinational companies will lead the way on RBC practices, setting an example for smaller local firms to follow, particularly in the extractive industries sector.
