Protection des Écoregions de Miombo au Congo
Audrey Gaughran, Executive Director SOMO
Radical system change is possible
The global economy is once more going through turbulent times: geopolitical rivalries and trade wars between major economies loom large; authoritarian regimes are on the rise; global aggregate debt levels are hitting new records; and rapidly rising energy and food prices are deepening inequality in countries around the world. Political action to meaningfully address the climate emergency and ongoing loss of biodiversity remains frighteningly weak.
Against this backdrop, the demand for radical change is growing and the voices calling for it are joining forces, pooling resources and becoming stronger. SOMO is part of this growing movement, calling for deep changes in the global economy. We believe an essential element of the change needed is eradicating the dominant corporate logic of ‘maximizing shareholder value’ or extracting as much profit as possible out of a company for shareholders. This is almost always at the expense of workers, communities or the planet. Despite this, in most companies globally it remains the key determinant for measuring a CEO’s success – not whether a corporation delivers high-quality goods and services that are produced in environmentally sustainable ways and under fair labour conditions, but has the company increased value for shareholders. Maximizing shareholder value is much easier to do for multinational companies (MNCs): they have a largely unregulated global arena in which to minimize costs and extract maximum value to create wealth for their owners or patrons.
MNCs have become vehicles to enable the domination and oppression of nature and people for the benefit of a small group of elites. Comparisons with their colonial-era antecedents like the British East India Company and Dutch East Indies Company, where merchants came together to exploit the resources of other regions of the world, may appear far-fetched but they are not. These companies played a key role in the expansion of colonialism, doing what MNCs still do today: leveraging the power of their home states to ensure access to the wealth of other countries. For centuries, this was often done through brutal oppression, sometimes with armies. Today, the approach is usually (though not always) more refined, accomplished via an edifice of deeply inequitable trade and investment laws that institutionalise and legitimise the economic dominance of powerful multinationals and states. Worse still, countries have even been convinced that they need to make themselves attractive to their exploiters. Almost all measures recommended to ‘attract foreign investment’ are measures that multinational companies want – from tax breaks to the removal of environmental and labour protections.
The world’s greatest and most pressing problems will not be solved with any justice and equity if the MNC construct is not radically and fundamentally changed. Efforts of civil society organisations working on corporate accountability have largely focused on trying to make companies behave better. Such efforts – and SOMO is part of some of them – are certainly important, but they do not suffice. Time and again we see that laws to change corporate behaviour are watered down, and regulators are starved of resources or captured by corporate interests. Efforts to get the cost of abusing people and nature factored into the business bottom line make the fatal mistake of agreeing that everything has to have an economic value or it is not worth respecting. The intrinsic worth of people and nature should never be given up to the altar of economics.
If we keep focusing on the symptoms and superficial treatments, we will never deal with the root causes or advance meaningful, and workable, alternatives to the current system. And we should be clear –meaningful alternatives will strike at the heart of neoliberal capitalism. We cannot solve the MNC problem within the current system. We need to dismantle it painstakingly and rebuild simultaneously.
Of course, our goals can appear idealistic and simplistic, and herein lies the challenge for civil society organisations and the academics with whom we work. The neoliberal system in which we live has wrapped its tentacles so completely around us all that any efforts to cut free will hurt millions, possibly billions, of people. Substantial parts of the economies of whole countries, from Ireland to Mauritius, have been built on enabling abuse and exploitation by MNCs. The livelihoods and pensions of people around the world are tied up in the system. Dismantling it will affect many, and the poorest and most vulnerable most of all. Unless there are vast safety nets, and a clear plan, replacing the system will harm a lot of people. We need a revolutionary kind of evolution, one where we first plan for, then deliberately cause, a major disruptive event.
Civil society must seize the agenda, articulate the plan and safety nets needed, and work for what will be laughed at, scorned, and denounced by policy makers, business leaders, and other elites. We have become too comfortable being at the table. We are, at times, part of the system, playing our appointed role. We have made the system too comfortable. We must find a new path: one that is not part of the system, and yet cannot be ignored by it.
This is at the core of SOMO’s mission. In this annual report we describe the work we have done in the last year, including some of our modest but important successes, such as when several European countries pulled out of an investment treaty that protects the fossil fuel industry (see the section on the Energy Charter Treaty) after SOMO, together with others, vigorously campaigned against accepting half-hearted reforms. This pushing back on false ‘solutions’ and demanding more profound change, marks an important milestone in the larger struggle for economic justice, to which we are fully committed.
The big fights for justice always seem crazy and impossible at the start, and sometimes for many years afterwards. But they are always the ones worth fighting. We know our options: radically change our economic system, or acquiesce in the destruction of critical ecosystems, and let millions die in climate chaos so MNCs can continue to make money for shareholders… which option is the more crazy?
There is a growing body of civic activists, NGOs, and academics working for radical change to the economy and the role of MNCs. SOMO is among them.
Our work
Our strategy in a nutshell
Deep and sustained collaborations for change
SOMO never works alone. Partnerships and alliance building are in our DNA. The multinational corporate problem cannot, by definition, be solved by any single organisation in a particular country. It is a problem that demands cross-jurisdictional cooperation. With our allies we will continue to advance norms and standards and support those seeking remedy and accountability.
International networks and alliances not only confront corporate-driven injustices, but have the power to imagine and build an alternative future, one where the economy serves people and not the other way around. If we continue to join forces and build our collective strength, we can reach a tipping point and reset the global economy together. This hope and belief animates SOMO’s work and underpins our 2021-2025 strategy.
Climate Justice and Corporate Power
A just energy transition is urgent and imperative. However, the vital changes needed are constrained by economic structures that not only impede urgent action, but which will, left unchecked, lead to deeper inequality, even in a green transition. At the centre of the challenge are multinational companies working to preserve shareholder value and profit maximisation.
When oil and gas extraction assets are stranded, the liability for pollution and damage is also likely to be abandoned. As part of our work on climate justice and corporate power, SOMO is working with partners in key countries to prevent irresponsible disengagement by fossil fuel companies. We are also working to prevent these companies offloading the costs of transition onto other actors, such as communities, state-owned companies and the public.
Challenging the Energy Charter Treaty
Protecting corporate profits over public interest
At the end of 2022 several European countries pulled out of the Energy Charter Treaty (ECT). This followed concerted campaigning by SOMO and many others, including Climate Action Network Europe. The ECT’s investor-state dispute settlement (ISDS) clause allows oil, coal and gas companies to sue governments if their profits are harmed by new laws or policies, including those designed to prevent climate chaos.
SOMO’s research has repeatedly exposed how ISDS clauses can have a chilling effect on governments’ efforts to protect human rights and the environment. Under ISDS countries can face stiff financial penalties, imposed by private and opaque tribunals where the financial interests of investors take precedence over the wellbeing of society and the planet.
In 2022, a new version of the ECT was promoted which did little to remove the problems within it. After sustained campaigning, the Netherlands, along with France, Germany, Spain and several others, announced their intentions to withdraw and forced a European Union (EU) re-think. By early 2023, it was clear that the whole of the EU would have to pull out. This would mean a massive step towards ending a treaty that has no place in a climate crisis world.
Securing justice in the energy transition – Colombia
The use of coal had steadily declined in recent years in Europe, but since Russia’s invasion of Ukraine, this trend has reversed. Panicked by skyrocketing gas prices, several European governments have allowed their coal-fired power plants to return to full capacity. Figures from energy data company Kpler show that about 40 million tons of coal were imported into the Netherlands in 2022. Until recently, much of that coal came from Russia, but following sanctions on Russian energy sources, European demand for coal from other countries, such as Colombia, soared to 7 million tons (37 percent increase). Of that, 2 million tons were imported from the conflict-ridden northern mining region of Cesar, four times as much as the previous year.
Meanwhile, no one is talking about the human rights implications. Coal producing regions of Colombia like Cesar are steeped in human rights abuses that occurred during the country’s deadly civil war. Largely unmediated, the abuses continue today. Mining and energy companies have benefited (and continue to benefit) from the violent displacement of people from their land. SOMO concluded back in July 2021 that these mining and energy companies are complicit in the continuation of human rights violations.
We are now working with communities who were driven from their land to make way for coal mining in Colombia to vigorously defend their rights. We know that now is the critical moment, to make sure that before the coal companies exit for good, there is accountability and remediation for human rights abuses of the past.
37%
rise in the European demand for coal since Russia’s invasion of Ukraine
Making better rules for business
During 2022 SOMO worked with allies across Europe to promote strong due diligence standards for business. In November 2022, several Dutch political parties submitted a draft of the Responsible and Sustainable International Business Act to the Dutch House of Representatives. The bill reflects many of the proposals of SOMO and the Dutch corporate accountability network, MVO Platform (which SOMO hosts). The bill would oblige companies to identify and address negative impacts in their own operations and throughout their value chains. SOMO also worked with partners in the European Coalition for Corporate Justice (ECCJ) to promote a robust corporate human rights due diligence law at the EU level.
Additionally, in 2022 advocacy by the international OECD Watch network (which SOMO also hosts) helped to secure agreement to revise provisions in the OECD Guidelines on Multinational Enterprises. We expect the revised Guidelines to be finalised in June 2023. The amended Guidelines represent a breakthrough and a major win for civil society on important corporate accountability topics such as climate change, indigenous rights, digital rights, and biodiversity, and will be a strengthened tool for civil society to hold corporations accountable.
Supporting an anti-monopoly movement in Europe
Decades of financial globalisation and neoliberal policies have created a favourable environment for the growth of monopoly power. The market power of the world’s largest corporations has been visibly increasing in terms of revenue, market capitalisation, and ownership of assets. For example, the top four companies in any given sector now hold a larger market share than a decade ago.
A company that has significant monopoly power will naturally reinforce its position in order to increase its advantage. If left unchecked, companies with monopoly power negatively affect labour rights and increase inequality in wage shares.
SOMO expanded its work to confront monopoly power in 2022 forming a strategic partnership with the Balanced Economy Project, a new organisation focused on constraining excessive concentrations of corporate and financial power. Together with the Balanced Economy Project we are building a network of CSOs, activists and academics to advance an anti-monopoly movement in Europe.
Reining in the power of Big Tech
A handful of tech companies have become global gatekeepers to the modern world. Companies including Google, Amazon, Facebook, Apple and Microsoft set the terms of communication for billions of internet users and have a sphere of influence that is rapidly expanding to encompass social and government institutions, other businesses, consumers, and citizens. There is an urgent need to disentangle the benefits of the services they provide from the risks of their dominance over public and private life.
In the short term, Big Tech requires measures such as more control on mergers and acquisitions and stronger protections for workers and smaller companies that become dependent on the platforms. This was the focus of SOMO’s work on the European Union’s Digital Markets Act (DMA), which was agreed in March 2022. SOMO played a leading role in advocacy at Dutch and EU level to widen the scope of the mergers about which Big Tech companies have to notify the European Commission. This was a critical win to prevent companies expanding into new areas such as health and food without any scrutiny.
If properly enforced, the DMA and the Digital Services Act (DSA), together with bold antitrust action, will be crucial to rebalance digital markets, increase protection of citizens and consumers and put an end to many of the harmful practices that big tech companies have engaged in over the years.
Labour rights and leather goods
Workers in the global leatherware industry often face harsh working conditions. Low wages, long working hours, and job insecurity are frequently reported in low-income production countries. The chemicals used in the processing of leather can be toxic and, for workers who are not provided with proper protection, exposure can lead to serious health problems.
Despite the well-known labour rights issues in the sector, an analysis of 100 leather goods companies, carried out by SOMO, found that less than one-third even published a supplier list. Supplier lists are a well-established tool in the apparel sector, allowing different groups – workers, investors and consumers – to link facilities along the supply chain to the brands and retailers. Without such lists, it is not possible to have any confidence that leather goods are not tarnished with labour rights abuses.
Among the 100 companies surveyed, the luxury goods companies in the sample performed below average. SOMO’s research shows that 35 out of the 44 luxury brands in the overall sample, including Armani, Versace, Michael Kors and Coach did not publish supplier lists that show where they source their leather jackets, trousers, shoes, belts, gloves, bags, and other leather goods. Only a handful of luxury brands gave some information on the origin of their leather products. Among these are Bally, Zegna and Fendi. But the information provided by these companies was far from complete.
SOMO’s analysis of supply chain disclosure makes clear that voluntary approaches are not working and raises serious questions about the overall due diligence of these companies. It underscores the need for mandatory supply chain due diligence which must include enhanced supply chain disclosure.
LegalNet: a networked approach to strategic litigation
In 2022 SOMO launched LegalNet – a new approach to leveraging strategic litigation as a tool to challenge corporate power. The project builds on the opportunity offered by strategic litigation to close gaps in the protection of human and labour rights. While individual legal cases can be ground-breaking and precedent-setting, change can also be case-specific, with the same issue having to be repeatedly litigated in slightly different cases, without leading to the much-needed wider systemic change.
LegalNet sees an opportunity to advance a new networked approach to strategic litigation. One that will draw on, and share, the expertise gained in the past decade amongst CSOs and lawyers. The approach established by the project starts with coalition building around a small number of human rights issues, and involves developing multi-jurisdiction, multi-procedure litigation strategies to advance shared, and relatively tightly framed, objectives. These strategies are then implemented by the respective coalitions. In December SOMO hosted a group of lawyers, activists, investigators and academics to look at litigation opportunities to support justice in the energy transition. This group identified several clear opportunities for a coordinated strategic litigation endeavour which will be collectively delivered over the coming years.
Shareholder remuneration up by 500% in 20 years
Over the last 20 years, Dutch listed companies have become increasingly financialised – a business model that involves increasing debt, stagnating investments and higher pay-outs to shareholders, both through dividend payment and share buybacks. From 2000 until the start of the COVID pandemic shareholder remuneration grew by a staggering 500%, while wages, expenditure on global suppliers and tax contributions all remained flat indicating a glowing imbalance. These developments have left most listed companies vulnerable when it comes to facing the challenges of the future. These are the main conclusions of the report ‘Shareholders First. How companies became dividend machines’, which SOMO published in June 2022. The developments highlighted in the report underline how the current corporate governance regime, which prioritises shareholders, is unsustainable.
500%
Increase in shareholder renumeration
Our online outreach
Publications
Long reads
Partners
Alliances and partnerships are critical to advance an agenda for fundamental change. Playing our role within an international ecosystem of like-minded actors is central to SOMO’s theory of change and our core values.
Much of our work is done as part of long-term partnerships, through joint research projects or with research by SOMO that supports activism and campaigns of partner civil society organisations (CSOs). We play an active role in numerous networks and host several international networks. We are committed to sharing knowledge, learning from others, and contributing to a transformative and justice-focused agenda. In 2022 we worked with partners from Europe, Asia, Africa, Latin America, and the MENA region. Many of these partnerships are long-standing, reflecting shared goals and joint work over several years.
Protection des Écoregions de Miombo au Congo
Action Labor Rights
ARISA
Action Against Impunity for Human Rights
InKrispena
Südwind
Al Haq
Civil Initiatives for Development and Peace
Conectas Direitos Humanos
INKOTA
Foundation for the Development of Sustainable Policies
African Resources Watch
Bangladesh Labour Foundation
Madhyam
Asociación Interamericana para la Defensa del Ambiente
National Organization for Working Communities
European Coalition for Corporate Justice
Community Empowerment and Social Justice Network
Asociación Montelimar Bendición de Dios
Fédération International des Droits de l’homme
Project on Organizing, Development, Education and Research (PODER)
Center for Environment, Human Rights and Development (CEHRD)
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2
Action Labor Rights
3
ARISA
4
Action Against Impunity for Human Rights
5
InKrispena
6
Südwind
7
Al Haq
8
Civil Initiatives for Development and Peace
9
Conectas Direitos Humanos
10
INKOTA
11
Foundation for the Development of Sustainable Policies
12
African Resources Watch
13
Bangladesh Labour Foundation
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Madhyam
15
Asociación Interamericana para la Defensa del Ambiente
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National Organization for Working Communities
17
European Coalition for Corporate Justice
18
Community Empowerment and Social Justice Network
19
Asociación Montelimar Bendición de Dios
20
Fédération International des Droits de l’homme
21
Project on Organizing, Development, Education and Research (PODER)
22
Center for Environment, Human Rights and Development (CEHRD)
Partner Profile
Centre for Environment, Human Rights and Development (CEHRD)
CEHRD was founded on August 15, 1999 by a group of conservationists, environmentalists, activists, and health workers in the Niger Delta region of Nigeria. The organisation was set up to respond to the serious problems plaguing the oil rich region, including widespread pollution, ill health and underdevelopment. CEHRD runs a range of programmes working directly with communities in the oil producing areas. The organisation also works with international allies, including SOMO, to challenge the negative impact of oil companies on the health and rights of the people of the Niger Delta. This includes investigations into oil pollution, supporting communities to seek justice through judicial remedy processes and advocacy with Nigerian regulators responsible for the oil industry.
As the European and US oil majors exit onshore oil production, for financial and climate reasons, CEHRD is working to ensure that they do so responsibly. SOMO and CEHRD have a partner agreement to work together on this issue.
Partner Profile
AL Haq
On 18 August 2022, the Israeli military raided the offices of SOMO-partner and Palestinian human rights organization Al-Haq in Ramallah and six other civil society organisations. The raids were the latest escalation in the ongoing repression of Palestinian civil society by Israel. In 2021 Israel designated six of the NGOs – Al-Haq, Addameer, the Bisan Center for Research & Development, Defence for Children International-Palestine, Union of Agricultural Workers Committees (UAWC), and the Union of Palestinian Women’s Committees (UPWC) – as terrorist groups.
In July 2022, nine European countries, including the Netherlands, released a joint statement declaring that “no substantial information was received from Israel that would justify reviewing our policy towards the six Palestinian NGOs on the basis of the Israeli decision to designate these NGOs as ‘terrorist organizations’.”
SOMO is determined to continue its corporate accountability work with Al-Haq, and continues to lobby European and other governments to publicly condemn the designations and harassment of the affected organisations, and to increase support to them.
NGO networks
We play a key role in dozens of different Dutch, European and international networks and as a network host. We promote the exchange of information and collaboration among different NGOs towards similar goals.
GoodElectronics
The GoodElectronics Network includes some 100 trade unions and other organisations, activists, researchers, and academics committed to improving protection of and respect for human rights, labour rights, and environmental sustainability in the electronics sector. The network urges companies and governments to take action to improve the entire electronics production cycle – from the mining of minerals used in electronic products to manufacturing, recycling, and electronics waste disposal. SOMO hosts the network and serves on its steering committee.
OECD Watch
OECD Watch is a global network of CSO organisations with more than 130 members in over 50 countries. Network members share a commitment to ensuring that business activity contributes to sustainable development and poverty eradication. Corporations are held accountable for their impacts, and victims of business-related abuse receive remedy. OECD Watch focuses specifically on the OECD Guidelines for Multinational Enterprises (the Guidelines) and the associated grievance mechanism, the system of National Contact Points. The OECD Watch network aims to improve the implementation and effectiveness of the Guidelines and their link to parallel initiatives on corporate accountability.
MVO Platform
Hosted by SOMO, the MVO Platform is a coalition of diverse Dutch organisations working to ensure that companies are accountable for the social, ecological, and economic consequences of their activities across their supply chains, and that the Dutch government takes a proactive role in fulfilling its responsibility to protect citizens from possible negative impacts of companies. MVO Platform members include Dutch labour unions, human rights groups, and environmental and consumer organisations, among others. The MVO Platform aims to influence policies of the Dutch government and stimulates, facilitates, and coordinates activities involving its members.
Tax Justice Netherlands
Tax Justice Netherlands raises awareness about the negative consequences of tax avoidance worldwide. The network and its members advocate a fair global tax system. The Dutch network is part of the Global Alliance for Tax Justice.
Lobbywatch
Lobbywatch NL is a coalition of organisations advocating greater transparency and better regulation of lobbying in the Netherlands. Our aim is to guarantee that Dutch policy-making is based on the public interest, rather than the demands of corporate lobbyists. Hosted by SOMO, the coalition includes Foodwatch, Milieudefensie (Friends of the Earth Netherlands), Open State Foundation, the Transnational Institute, Transparency International Nederland, and Wemos.
Organisational development
During 2022 SOMO largely completed a transition phase in its organisational evolution. The organisation embedded, and made progress on delivery of, its 2021 – 2025 strategy. In addition, during 2022 SOMO developed a five-year operational strategy (2022 – 2026) as a complement to the substantive strategy.
The operational strategy sets out priorities for SOMO’s organisational development in the areas of finance, fundraising, human resources and workplace wellbeing. The two documents form the basis for decision-making by SOMO staff and management. In addition SOMO carried out an organisational restructuring to align teams and staffing to the new strategy plans, and completed an overhaul of its approach to fundraising, leading to greater funding stability.
Governance structure
The governance structure of SOMO is set up as follows:
- The Supervisory Board
- The Executive Board (Executive Director)
- The Management Team
- The staff
In 2022 SOMO’s Supervisory Board consisted of the following people:
- Ronald Messelink (chair until July 2022). Ronald stepped down from the Supervisory Board in July 2022.
- Jasper Teulings is Director of Strategic Litigation at CIFF Climate. Jasper stepped down from the Supervisory Board in November 2022.
- Angela Wigger (chair since July 2022) is Associate Professor of Global Political Economy at Radboud University in Nijmegen.
- Claire Fernandez (member) is Executive Director of European Digital Rights (EDRi). Claire joined the SOMO Supervisory Board in April.
- Radboud van Delft (member) is a senior management consultant for civil society organisations, who previously served as Organisation Director at PAX for Peace and Greenpeace amongst others. Radboud joined the SOMO Supervisory Board in April.
The Executive Board consists of one person: the Executive Director, Audrey Gaughran. The Executive Board, under the guidance of the Supervisory Board, bears the ultimate responsibility for identifying and managing the risks associated with the organisational strategy and activities.
The day-to-day management of the organisation is in the hands of the management team. In 2022 the team was chaired by the Executive Director and included the programme manager Irene Keizer and interim transition and operations Manager, Jasja van der Zijde (who served on the management team from June to December 2022).
The staff of SOMO play a critical role in the management and running of the organisation. SOMO’s Statutes recognise the role of staff in making strategic decisions of the organisation. The staff meeting is an important decision-making body and decisions are taken by a qualified majority vote. During 2022 staff voted in favour of the new five-year operational strategy.
Supervisory Board report
The Supervisory Board held four regular meetings in 2022, two of which have included a staff segment with presentations on ongoing research. Throughout 2022, building the resilience of SOMO’s organisational, financial and human resource capacities have been focal points, alongside reviewing the risks. The Supervisory Board also acted as a sounding board for the Board on the completion of the transition process that started in 2020. It provided advice and guidance on the application of SOMO’s statutes to this transition, and on developing an operational strategy and ensuring financial strength. Supervisory Board members also offered specific support on recruitment of interim financial management capacity to enable SOMO’s management team to have the space to review staffing needs in Support Services. The Supervisory Board is very satisfied with the Board and the Management Team who have succeeded to rebuild continuity reserves and to increase the diversity of the funding sources in 2022.
There were several changes in the composition of the Supervisory Board of SOMO. Ronald Messelink (Chair), stepped down in July and Jasper Teulings (Member) in November. Their expert support and thoughtful insights, as well as commitment and passion for SOMO’s mission, have been invaluable for the development and successes of the organisation, and in particular for the transition period from 2020 to 2022. Ronald Messelink was succeeded as Chair of the Supervisory Board by Angela Wigger. Claire Fernandez and Radboud van Delft joined the Supervisory Board in in April, bringing significant expertise in organizational and financial management.
The Supervisory Board would like to thank the outgoing members, Ronald Messelink and Jasper Teulings, for the many years of dedicated service and for their wisdom, strategic insights and time commitment, and warmly welcomes the new members.
In March 2023 SOMO appointed Fernanda Hopenhaym to the Supervisory Board. Fernanda Hopenhaym is the Co-Executive Director of the Project on Organizing, Development, Education and Research (PODER), an organisation in Latin America dedicated to corporate accountability.
Finances
SOMO strengthened its financial position in 2022, with successful fundraising and improvements to financial management processes. The organisation benefited from a BUILD grant from the Ford Foundation of USD 1.3 million, as well as technical support from Ford Foundation to improve financial systems.
SOMO’s long-term funding strategy comprises four interrelated elements:
- diversifying our sources of income by deepening existing relationships and building new relationships with funders that are aligned with SOMO’s mission
- securing more general support, flexible and unrestricted funding, to ensure the structure of our funding is supportive of our work
- increasing multi-year, strategy-aligned funding
- building the organisation’s resilience, particularly by increasing our financial reserves
SOMO was again successful in its fundraising in 2022 by leveraging its new strategy to good effect. In 2022, SOMO secured funding contracts from several sources including general support from Open Society Foundations of USD 350,000 (EUR 351,303) and the following project funding:
- Civitates – Challenge the monopoly power of the Big Tech sector (EUR 30,000 for 18 months)
- CLUA (Climate and Land Use Alliance) – Leverage Brazil’s Organisation for Economic Co-operation and Development (OECD) accession to secure environmental and human rights reforms (USD 200,232/EUR 190,897 for 1 year)
- European Coalition for Corporate Justice (ECCJ) – Human Rights and Environmental Due Diligence legislation in Europe (EUR 25,000 for 1 year)
- Freedom Fund – ‘LegalNet’, a networked approach to strategic litigation for human rights (USD 88,110/EUR 85,030 for 1 year)
- Convening on strategic litigation and international economic and corporate law (USD 10,000/EUR 9,510 for 5 months)
- Humanity United Action – Mandatory human rights and environmental due diligence legislation and revisions to the Organisation for Economic Co-operation and Development (OECD) Guidelines (USD200,000/EUR 200,000 for 1 year)
- US Department of State Bureau Of Democracy, Human Rights and Labor (DRL) (EUR 1,336,858 for 3 years).
We have also invested in building strong relationships with donors that share our goals. As a result, in 2021 Ford Foundation invited SOMO to make a proposal for a BUILD grant. A BUILD grant provides five years of general operating support, combined with targeted organisational strengthening support. Ford awarded SOMO a Year 1 BUILD grant for 2022 (USD 1.3 million) and invited SOMO to develop a Year 2-5 proposal. Ford Foundation informed SOMO that they already reserved a budget of USD 1.7 million to support SOMO in 2023-2026.
As a result of successful fundraising SOMO was able to rebuild general reserves in 2022. These rose from EUR 10,870 to EUR 809,441, slightly more than anticipated in the 2022 budget. Additionally, SOMO has been able to create an organisational strengthening reserve of EUR 440,001 to support the organisation as it evolves. The organisation was also able to recruit new staff for priority strategic areas of work, including Big Tech and Strategic Litigation support. All of these developments increase organisational resilience and effectiveness.
SOMO has further diversified its sources of income and reduced the proportion of funding from the Dutch Ministry of Foreign Affairs (from 57% in 2021 to 45% in 2022).
SOMO Budget 2023
| Income | |
|---|---|
| Dutch Ministry of Foreign affairs | 2,633,191.00 |
| European Commission | 133,494.00 |
| Other governments | 823,107.10 |
| Private foundations | 1,601,316.00 |
| Other contributors | 262,000.00 |
| Professional services | 100,000.00 |
| To be raised | 400,000.00 |
| Total income | 5,953,108.10 |
| Expenditure | |
| Personnel Costs | 3,804,400.00 |
| Direct Project Costs | 1,600,000.00 |
| General expenses | 537,700.00 |
| Total Expenditure | 5,942,100.00 |
| Financial Income and expenses | |
| Interest income | - |
| Financial expenses | -10,000.00 |
| Total | -10,000.00 |
| Result after taxation | 1,008.10 |
Risk Management
SOMO has a risk management policy and maintains a risk register. Risks are discussed with the Supervisory Board at regular meetings. In 2022 SOMO’s risks were lower than preceding years. This was due to efforts in 2021 to resolve financial challenges, and successful fundraising which returned the organisation to a sustainable financial position, in particular the rebuilding of our general reserves.
Financial Risks
SOMO continued to face a shortage of human resources capacity in its Finance team in 2022. In 2021, the organisation took the decision to increase senior level capacity in the team to improve overall financial management. However, in common with other civil society organisations, we faced challenges in recruiting suitable senior expertise. During 2022 we were able to benefit from senior capacity on an interim basis. This allowed SOMO the breathing space to reform some systems and processes and strengthen overall financial controls. SOMO will continue to seek a permanent Finance and Operations Manager to join the Management Team in 2023, pursuing new strategies for recruitment. In the intervening period SOMO continues to retain high calibre temporary senior financial expertise.
IT and digital security
Digital security is constantly on our radar, including when working with partners. Ensuring that communications, personal data and sensitive information are secure is a priority for SOMO.
The main focus of the IT team in 2022 was on supporting a transition to a more flexible way of working and using the office and IT facilities. This includes increased development and use of our private cloud services to facilitate online, hybrid and offline working and collaborating.
Besides the ongoing switch of our back-end systems to more modern, open source systems, we also continued to assess how we can make the user-facing side of our IT less dependent on Big Tech firms and other multinationals.
Staff wellbeing
In 2022 SOMO decided to expand its Human Resources (HR) capacity from one to two staff members. SOMO also benefited from hiring senior specialist HR advisers on an interim basis to support the organisation in delivering on strategic HR projects including implementing the new SOMO structure and the use of deep democracy tools and processes in SOMO.
Organisation
At SOMO we endeavour to align our internal organisation with our core values. We are proud to be a non-hierarchical organisation where staff members jointly take decisions on strategic matters. In 2022, as noted above, SOMO developed a five-year operational strategy for the first time. This was done to ensure organisational development was fully aligned with the substantive strategy and to enable all staff to have a voice in operational matters. The strategy set out priorities including:
- Ensuring SOMO is a mission-oriented organisation where people work together towards agreed strategic objectives as formulated in the substantive strategy
- Providing a safe, healthy, and dynamic work environment
- Ensuring SOMO is financially healthy and resilient for the future
- Reinforcing strong and clear governance and oversight
The document was adopted by a vote of the full staff in July 2022.
In the second half of 2022 SOMO carried out a revision of structure and mandates. This resulted in the establishment of several new roles and some revision of team composition, to better align with SOMO’s substantive strategy. The structure revision clarified mandates of staff and teams, and continued to support SOMO’s non-hierarchical work culture, emphasising mandates based on job responsibilities rather than hierarchy.
SOMO aims to be a good employer and a reliable partner in cooperation. As a research organisation it is our first responsibility to be accountable for our research and network-related activities. As a watchdog organisation, we take responsibility to avoid causing harm in our work. Our Code of Conduct and Complaints Procedure are based on this principle. In 2022 we updated our Code of Conduct, and in 2023 all staff will be asked to sign the Code as part of ongoing efforts to ensure SOMO’s values are well embedded in work culture and practices, particularly as the organisation grows.
As part of our integrity system, as implemented through our integrity policy, we received a report from our external confidential advisor. This report showed that, in 2022, two reports were made to the confidential advisor by staff. SOMO’s Management Team discussed areas for improvement with the confidential advisor, and continues to implement action to increase workplace wellbeing and safeguarding. This included, in 2022, training on non-violent communication and the use of deep democracy approaches in the workplace. SOMO also commenced a process to improve annual appraisals and the feedback processes, which will continue into 2023.
SOMO is committed to addressing workplace stress, staff safety and wellbeing. In 2022, SOMO implemented its new project planning procedures, which aim at ensuring work is more strategic and that workloads of each person are manageable. Led by the new Project Management Unit, SOMO’s management team evaluates the likely workload of staff and, in dialogue with staff members, works to agree manageable commitments at the start of each year. This is also evaluated regularly and in 2022 SOMO engaged temporary staff in some project areas to ensure effective delivery and prevent stress-related illness that can be related to over-work.
SOMO strives to ensure that our suppliers and service providers are of the most sustainable nature possible. Wherever possible, SOMO chooses fair trade, green, organic, recycled or second-hand items.
SOMO’s travel policy takes climate change and sustainability into account. SOMO employees are reimbursed for commuting costs by public transport. For work-related travel, people are strongly discouraged to fly within a 700-kilometre radius from Amsterdam.
SOMO will be recertified in 2023 for two quality certificates: the international NEN-EN-ISO 9001:2015 certification and the Dutch Partos 9001:2015 certificate, which is a specific application of the ISO 9001:2015 standard for the development sector.
Financial statements 2022
Balance sheet as of 31st of December 2022
| Amounts in euros | 31/12/2022 | 31/12/2021 | ||
|---|---|---|---|---|
| Assets | ||||
| Fixed assets | ||||
| Intangible fixed assets | 24,386 | 50,295 | ||
| Tangible fixed assets | 219,211 | 237,915 | ||
| 243,597 | 288,210 | |||
| Current assets | ||||
| Receivables, prepayments and accrued income | ||||
| Trade debtors | 104,256 | 21,402 | ||
| Subsidy receivable | 627,330 | 107,770 | ||
| Taxation and social securities Receivables | 2,390 | 9,705 | ||
| Prepayments and accrued income | 45,504 | 132,677 | ||
| 779,480 | 271,554 | |||
| Securities | 1,422 | 1,403 | ||
| Cash and bank balances | 3,478,212 | 2,219,026 | ||
| Total assets | 4,502,711 | 2,780,193 | ||
| Liabilities | ||||
| Equity | ||||
| Continuity reserve | 809.441 | 10,870 | ||
| Designated reserve organisational strenghtening | 440,001 | - | ||
| 1,249,442 | 10,870 | |||
| Current liabilities, accurals and deferred income | ||||
| Creditors | 655,174 | 534,321 | ||
| Avanced payments/ advances received on subsidies | 1,212,520 | 711,122 | ||
| Taxation and social securities payable | 588,413 | 1,128,726 | ||
| Accruals and deferred income | 797,162 | 395,154 | ||
| 3,253.269 | 2,769,323 | |||
| Total liabilities | 4,502,711 | 2,780,193 | ||
Statement of Income and Expenditure 2022
| Amounts in Euros | 2022 Realization | 2022 Budget | 2021 Realization |
|---|---|---|---|
| Income | |||
| Government grants/contributions | |||
| Dutch Ministry of Foreign Affairs | 3,139.131 | 3,081,307 | 3,073,060 |
| European Commission | 382,449 | 403,750 | 165,141 |
| Other Government grants | 534,087 | 619,776 | 531,416 |
| Private foundations | 2,128,230 | 1,712,451 | 904,331 |
| Other contributions | 661,840 | 529,043 | 509,960 |
| 6,845,737 | 6,346,327 | 5,183,908 | |
| Professional services | 114,835 | 100,000 | 165,289 |
| Other income | 4,476 | - | 2,006 |
| Total income | 6,965,048 | 6,446,327 | 5,351,203 |
| Expenditures | |||
| Direct project costs | 2,523,690 | 2,057,853 | 1,380,908 |
| Personnel costs | 2,754,306 | 3,162,400 | 3,225,184 |
| General expenses | 384,065 | 546,574 | 576,946 |
| Total expenditure | 5,662,061 | 5,766,827 | 5,183,038 |
| Operation result | 1,302,987 | 679,500 | 168,165 |
| Financial income and expenses | |||
| Interest income | -11,951 | - | -7,137 |
| Financial expenses | -45,369 | -16,000 | -14,403 |
| -57,320 | -16,000 | -21,540 | |
| Result on ordinary activities before taxation | 1,245.667 | 663,500 | 146,625 |
| Correction previous years VAT | - | -850,000 | |
| Taxation on ordinary activities | -7,095 | - | -594 |
| Result after taxation | 1,238,572 | 663,500 | -703,969 |
The board of SOMO has decided to allocate the result after taxation 2022 as follows: EUR 798,571 to continuity reserves and EUR 440,001 to a designated reserve for organisational strengthening in 2023.
Accounting Principles for Financial Reporting
General accounting principles for the preparation of the financial statements
The financial statements have been prepared in accordance with Title 9, Book 2 of the Dutch Civil Code. For the preparation and presentation of the financial statements, SOMO uses the Guidelines for annual reporting of the Dutch Accounting Standards Board as well, especially Guideline 640 “Organisations not for profit”.
Valuation of assets and liabilities and determination of the result takes place under the historical cost convention. Unless presented otherwise, the relevant principle for the specific balance sheet item, assets and liabilities are presented at amortised cost price. Income and expenses are accounted for on accrual basis. Expenses are determined taking the mentioned valuation principle into account. Profit is only included when realised on balance sheet date.
Losses originating before the end of the financial year are taken into account when ascertained before preparation of the financial statements. The general accounting principles for the valuation of assets and liabilities and determination of the result are unchanged compared to last year. Comparative figures are, where appropriate, adjusted in terms of classification only for comparison purposes.
Principles of valuation of assets and liabilities
Fixed assets: Intangible and tangible fixed assets are presented at cost less accumulated depreciation and, if applicable, less impairments in value. Depreciation is based on the estimated useful life and calculated as a fixed percentage of cost. Depreciation is provided from the date an asset comes into use.
The following fixed percentages of cost are used for depreciation:
Intangible assets
- Software: 20% a year
Tangible fixed assets
- Rebuilding: 10% a year
- Computers and software: 20% a year
- Office equipment: 20% a year
Receivables: Receivables are included at face value, less any provision for doubtful accounts. These provisions are determined by individual assessment of the receivables.
Securities: The listed shares are valued at the market value as at balance sheet date, with which both realised and unrealised changes in value are directly accounted for in the profit and loss account.
Principles for the determination of the result
Government grants / contributions (allowances): Allowances are included in the statement of income and expenses in the year in which the subsidised expenses are realised.
Professional services: Revenues from professional services are recognised in proportion to the services rendered. The direct costs of these services are allocated to the same period.
Taxation: Corporate income tax is calculated at the applicable rate on the result for the financial year, taking into account permanent differences between profit calculated according to the financial statements and profit calculated for taxation purposes.
Notes to the balance sheet 31st December 2022
| Amounts in Euros | 2022 | 2022 Total |
|---|---|---|
| Intangible fixed assets | ||
| Purchase value at historical cost | 223,693 | 223,693 |
| Accumulated depreciation | 173,398- | 173,398- |
| Balance as of 1 January | 50,295 | 50,295 |
| Investments | - | - |
| Desinvestments | - | - |
| Depreciations | 25,909- | 25,909- |
| Depreciation desinvestments | - | - |
| Total movement bookyear | 25,909- | 25,909- |
| Purchase value at historical cost | 223,693 | 223,693 |
| Accumulated depreciation | 199,307- | 199,307- |
| Balance as of 31 December | 24,386 | 24,386 |
| Amounts in Euros | 2022 Renovations | 2022 Inventory | 2022 Total |
|---|---|---|---|
| Tangible fixed assets | |||
| Purchase value at historical cost | 271,753 | 207,539 | 479,292 |
| Accumulated depreciation | 70,480- | 170,897- | 241,377- |
| Balance as of 1 January | 201,273 | 36,642 | 237,915 |
| Investments | 4,500 | 14,500 | 19,000 |
| Desinvestments | - | - | |
| Depreciations | 22,101- | 15,603- | 37,704- |
| Depreciation desinvestments | - | - | - |
| Total movement bookyear | 17,601- | 1,103- | 18,704- |
| Purchase value at historical cost | 276,253 | 222,039 | 498,292 |
| Accumulated depreciation | 92,581- | 186,500- | 279,081- |
| Balance as of 31 December | 183,672 | 35,539 | 219,211 |
| Amounts in Euros | 31-12-2022 | 31-12-2021 |
|---|---|---|
| Assets | ||
| Trade debtors | ||
| Trade debtors | 107,256 | 21,402 |
| Provision for irrecoverable debts | 3,000- | - |
| Total trade debtors | 104,256 | 21,402 |
| Subsidy receivable | ||
| MoFA Human Rights Fund - Mind the Gap | 89,158 | - |
| EuropeAid - Decent Leather | 50,112 | - |
| Both ENDS - Fair, Green and Global Alliance | 46,232 | - |
| Ministry for Foreign Affairs of Finland - Going public | - | 40,687 |
| Business and Human Rights Resource Centre – Justice in the just transition (MFA Finland) | 27,516 | - |
| National Endownment for Democracy | 41,796 | 15,688 |
| Brot für die Welt - GoodElectronics | 1,000 | 1,000 |
| Brot für die Welt - Promoting human rights and accountability | - | 4,000 |
| Oxfam Novib - Fair Finance Asia (SIDA) | 21,338 | 6,574 |
| DRL - Promoting Labour rights in China | 193,740 | - |
| Brot für die Welt - Climate Change, ESG and Sustainable Finance in the G20 | 3,979 | - |
| Ford - general support | - | 3,641 |
| Civitates - A healthy public sphere | 3,000 | |
| Rijksdienst voor Ondernemen - Decent Leather cofinancing | 149,459 | 31,180 |
| Mondiaal OECD Watch | - | 5,000 |
| Total subsidy receivable | 627,330 | 107,770 |
| Taxation and social securities | ||
| Taxation (corporate tax) | 2,390 | 9,705 |
| Value added tax (VAT) | - | - |
| Total taxation and social securities | 2,390 | 9,705 |
| Prepayments and accrued income | ||
| Professional services to invoice | 21,939 | 39,568 |
| Partners Decent Leather | - | 57,886 |
| Other prepayments and accrued income | 23,565 | 35,223 |
| Total prepayments and accrued income | 45,504 | 132,677 |
| Securities | ||
| Stocks | 1,422 | 1,403 |
| Total securities | 1,422 | 1,403 |
| Cash and bank balances | ||
| Current accounts | 2,711,647 | 1,446,624 |
| Interest accounts | 767,854 | 770,247 |
| Money in transit | 1,289- | 2,155 |
| Total cash and bank balances | 3,478,212 | 2,219,026 |
| Amounts in Euros | Begin financial year 2022 | Movements 2022 | End financial year 2022 |
|---|---|---|---|
| Liabilities | |||
| Equity | |||
| Continuity reserve | 10,870 | 798,571 | 809,441 |
| Designated reserve organisational strenghtening | - | 440,001 | 440,001 |
| Total equity | 10,870 | 1,238,572 | 1,249,442 |
| Amounts in Euros | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Liabilities | ||
| Creditors | ||
| Creditors | 130,160 | 82,859 |
| Contract obligations project partners | 525,014 | 451,462 |
| Total creditors | 655,174 | 534,321 |
| Advanced payments/ advances received on subsidies | ||
| Oxfam Novib - Fair for All | 541.630 | 13,210 |
| Ministry for Foreign Affairs of Finland - Going public | 198,130 | - |
| Humanity United Action - Due Diligence advocacy | 193,125 | - |
| Climate and Land Use Alliance (CLUA) | 132,082 | 73,348 |
| Freedom Fund - Strategic Litigation | 55,400 | - |
| MVO Platform | 48,374 | 42,162 |
| University of Austria – RE-SOURCING | 25,839 | 32,955 |
| Swedwatch -OECD Watch | 14,412 | - |
| Stichting Media en Democratie | 3,528 | 3,528 |
| MoFA Human Rights Fund - Mind the Gap | - | 219,613 |
| Both ENDS - Fair, Green and Global Alliance | - | 63,458 |
| EuropeAid - Decent Leather | - | 181,778 |
| Mondiaal FNV - Decent Leather cofinancing | - | 3,770 |
| Adessium Foundation - From big tech to tech for all | - | 50,000 |
| Other | - | 13,903 |
| Total advanced payments | 1,212,520 | 711,122 |
| Taxation and social securities | ||
| VAT | 519,440 | 1,030,672 |
| Payroll tax and social securities | 68,973 | 98,054 |
| Total taxation and social securities | 588,413 | 1,128,726 |
| Other accruals and deffered income | ||
| Holiday pay | 97,501 | 89,868 |
| Holiday days | 138,074 | 106,955 |
| Prepayments profesional services | - | 31,537 |
| Audit fee | 62,975 | 30,500 |
| Salaries | 86,344 | 13,823 |
| Thirteenth month | 161,319 | - |
| Rent | 35,603 | 28,206 |
| Pension | 100,917 | 24,300 |
| Other accruals | 114,422 | 69,965 |
| Total other accruals and deffered income | 797,155 | 395,154 |
Prepayments and accrued income
For the development of project management software
SOMO joined the user platform of Matthat. Together with nine other organisations SOMO invests in the development of tailor made project management software. The user platform agreed with Matthat on a Return on Investment (ROI) in case Matthat is able to sell the software also to other clients.
Cash and bank balances
Except for one bank guarantee for the lease of our building (with the sum of EUR 19,147), all cash and bank balances are available for expenditure by SOMO.
SOMO only buys shares when this is necessary in the context of a project, for instance in order to be able to attend a general shareholders’ meeting. All dividend and currency profits are reserved as gifts for third parties. SOMO does not buy shares as an investing policy.
Subsidy receivables
For the subsidies of Oxfam Novib (MoFA Strategic Partnership 2021-2026) / Both ENDS (FGG – MoFA Strategic Partnership 2021-2026) / Oxfam Novib (SIDA) an auditors’ report is issued.
Equity
Continuity Reserve: In 2022 a grant has been awarded to SOMO which enabled the organisation to replenish the reserves to the level of 2021.
SOMO builds its continuity reserves in line with the Erkenningsregeling Goede Doelen, which recommends that continuity reserves are based on a risk assessment. SOMO prepared a risk assessment in order to determine the necessary level of continuity reserve. Most important risks are related to high donor dependency and litigation because of our projects. For this reason SOMO needs a continuity reserve of EUR 1,750,000.
SOMO has determined that it should have in place a continuity reserve of EUR 1,750,000.
Appropriated reserves:
SOMO has gone through substantial transition in 2022 as the organisation rebuilt financial stability and restructured the organisation to better deliver its five-year strategy. This is the crucial mid-strategy point where we need to lock in the gains we have made and build on the momentum we have gained in terms of funding and new and effective approaches to research and impact.
Because 2023 is such a crucial year and there remain several areas that need attention, SOMO is putting an organisational strenghtening reserve in place to ensure we have the resilience and flexibility we need at this inflection point. There are three key areas where the MT will use the organisational strenghtening reserve: increasing capacity of key support services; developing innovations in research and communications; and completing transition processes.
Contingent assets and liabilities
At the end of 2022, there is one bank guarantee for the sum of EUR 19.147. This relates to the lease for the building of SOMO at KNSM-laan 17 in Amsterdam.
SOMO has a defined benefit pension plan for its employees on retirement with the pension fund Zorg en Welzijn. SOMO pays two-third of the premium and one-third is paid by the employee. SOMO has no obligation to pay additional contributions to the pension fund other than higher future premiums. Therefore the premiums due until the end of the period are reported in the financial statements.
The contracts with project partners refer to short term debts generally one year, in a small number of cases, two years) for cooperation in joint projects or subcontracting in services delivery.
The financial commitment for the programmes SOMO conducts with consortium partners is on annual basis. For the period of the programme, SOMO signed a Memorandum of Understanding with the consortium partners. In the case of the programme commissioned by the Dutch Ministry of Foreign Affairs, SOMO also signed a Memorandum of Understanding with the project partners. Financial commitments have only been agreed on an annual basis. The cooperation for the whole program period is conditional on timely delivery of results and reporting.
Liabilities not shown in the balance sheet
A rent agreement was signed April 15th 2021 for the location KNSM-laan 17 in Amsterdam. The rent agreement is for a period of 5 year as from August 1, 2021. The annual rent for 2022 amounts to EUR 90,697.
Notes to Statement of Income and Expenditure 2022
| Amounts in Euros | 2022 Actuals | 2022 Budget | 2021 Actuals |
|---|---|---|---|
| Income | |||
| Government grants | |||
| Dutch Ministry of Foreign Affairs | |||
| MoFA Netherlands Human Rights Fund – Mind the Gap | 450,738 | 450,211 | |
| MoFA Netherlands – OECD Watch/ Gender | 7,539 | ||
| Both Ends - Fair Green and Global Alliance (Power of Voices Partnership) | 1,795,014 | 1,621,868 | |
| Oxfam Novib (Strategic Partnership Dialogue and Dissent) | 33,786 | ||
| Oxfam Novib - Fair4All | 893,379 | 934,656 | |
| Oxfam Novib (Facility support CSOs international CSR convenants) | 25,000 | ||
| Total Dutch Ministry of Foreign Affairs | 3,139,131 | 3,081,307 | 3,073,060 |
| European Commission | |||
| EuropeAid - Together for Decent Leather | 332,862 | 102,459 | |
| University of Austria – RE-SOURCING | 49,587 | 62,682 | |
| Total European Commision | 382,449 | 403,750 | 165,141 |
| Other Government grants | |||
| Ministry for Foreign Affairs of Finland - Going public | 161,183 | 440,687 | |
| DRL - Promoting Labour rights in China (USA) | 193,740 | ||
| Business and Human Rights Resource Centre – Justice in the just transition (MFA Finland) | 132,286 | ||
| Oxfam Novib - Fair Finance Asia (SIDA) | 46,878 | 84,481 | |
| Other | 6,248 | ||
| Total other Government grants | 534,087 | 619,776 | 531,416 |
| Total Government grants | 4,055,667 | 4,104,833 | 3,769,617 |
| Private foundations | |||
| Ford Foundation - General, project support & institutional strengthening | 1,323,316 | - | |
| Adessium Foundation - From big tech to tech for all | 100,000 | - | |
| Civitates - A healthy digital public sphere | 30,000 | - | |
| Open Society Initiative for Europe - Core funding | 351,303 | 425,242 | |
| Open Society Institute - IFF & Private debt restructuring | 7,225 | 61,268 | |
| Open Society Policy Centre – Pharma | |||
| Wemos - Pharma (Open Society Foundation) | 6,026 | 12,733 | |
| Brot für die Welt - GoodElectronics | 82,736 | ||
| Brot für die Welt - Reform global finance to serve people and planet | 20,000 | ||
| Brot für die Welt - Promoting human rights & accountability | 124,000 | ||
| Brot für die Welt - Climate Change, ESG and Sustainable Finance | 23,979 | ||
| Wellspring Philanthropic Fund | 23,388 | ||
| Ford Foundation - Ending Tax avoidance practices for multinationals | 82,302 | ||
| National Endowment for Democracy | 26,108 | 93,652 | |
| Climate and Land Use Alliance (CLUA) | 132,163 | 86,516 | |
| Freedom Fund - Strategic Litigation | 4,110 | 16,494 | |
| Total private foundations | 2,128,230 | 1,712,451 | 904,331 |
| Other contributions | |||
| Contributions of partners EuropeAid - Decent Leather | 102,909 | 17,456 | |
| Membership contributions OECD Watch | 42,079 | 31,504 | |
| Membership, and other contributions MVO Platform | 289,274 | 272,731 | |
| Membership contributions Tax Justice Nederland | 88,600 | 101,565 | |
| Mondiaal FNV contribution Decent Leather | 29,401 | 3,771- | |
| Rijksdienst voor Ondernemend Nederland | 92,648 | 67,515 | |
| Donations | 5,851 | 5,130 | |
| Other contributions | 11,078 | 17,830 | |
| Total other contributions | 661,840 | 529,043 | 509,960 |
| Professional services | |||
| Corporate research | 52,849 | 100,636 | |
| Sector research | 8,251 | 11,387 | |
| Country and policy research | - | - | |
| Quick Scans | - | - | |
| Supply chain research | 43,885 | 29,183 | |
| Trainings | 5,125 | 3,500 | |
| Consultancy | 4,725 | 13,075 | |
| Expert contribution | - | - | |
| Other services | - | 7,508 | |
| Total professional services | 114,835 | 100,000 | 165,289 |
| Expenditures | |||
| Direct project costs | |||
| Contracted work | 1,144,974 | 1,142,104 | |
| Travel costs | 119,581 | 15,557 | |
| Office expenditure | 246,665 | 129,910 | |
| Telephone and postage | 204 | 443 | |
| Printed matter | 36,026 | 74,681 | |
| Freelancers projecten | 785,102 | 313,020 | |
| Other direct project costs | 191,138 | 18,213 | |
| Total direct project costs | 2,523,690 | 2,057,853 | 1,693,928 |
| Personnel costs | |||
| Salaries | |||
| Gross wages | 1,712,273 | 1,959,000 | 2,082,394 |
| Social securities | 296,204 | 365,000 | 308,023 |
| Pension contributions | 244,247 | 270,000 | 252,761 |
| Change in debt holiday pay | 136,301 | - | 14,066 |
| Change in debt holiday days | 31,119 | - | 18,148- |
| Total salaries | 2,420,144 | 2,594,000 | 2,639,096 |
| Remaining personnel expenditure | |||
| Study | 27,920 | 50,000 | 19,556 |
| Insurance | 68,047 | 95,000 | 79,600 |
| Travel costs staff | 16,312 | 5,000 | 2,904 |
| Thirtheenth month | 161,319 | 148,000 | 5,055- |
| Freelance costs support staff | 82,573 | 185,000 | 217,445 |
| Uitzendkrachten | - | - | 5,000 |
| Recruiting costs | 36,144 | - | - |
| Other personnel costs | 48,127 | 67,500 | 53,030 |
| Total remaining personnel expenditure | 440,442 | 550,500 | 372,480 |
| Subtotal personnel costs | 2,860,586 | 3,144,500 | 3,011,576 |
| minus: received payments for illness | 106,280- | 22,000- | 99,412- |
| Total personnel costs | 2,754,306 | 3,122,500 | 2,912,164 |
| General expenses | |||
| Software and hardware | |||
| Software and development | 41,542 | 85,910 | 86,453 |
| Hardware | 1,013 | 9,680 | 8,847 |
| Systeem management ICT | 8,743 | 38,720 | 50,243 |
| Depreciation software and hardware | 13,191 | 14,000 | 15,423 |
| Depreciation development | 25,909 | 26,000 | 42,487 |
| Subtotal software and hardware | 90,398 | 174,310 | 203,453 |
| Housing expenses | |||
| Rent and energy | 105,447 | 93,890 | 84,240 |
| Insurance and taxes | 2,653 | 1,750 | 3,253 |
| Maintenance and cleaning | 14,793 | 14,820 | 15,360 |
| Depreciation rebuilding | 22,101 | 19,550 | 10,378 |
| Other housing expenditure | 5,787 | 12,105 | 35,924 |
| Subtotal housing expenses | 150,781 | 142,115 | 149,155 |
| Office expenses | |||
| Catering | 10,983 | 3,500 | 3,783 |
| Telephone and internet | 3,799 | 4,850 | 4,357 |
| Postage and dispatch | - | 650 | - |
| Printed matter | - | 1,820 | - |
| Office supplies | - | 3,030 | - |
| Contributions | 8,137 | 9,500 | 9,627 |
| Literature | - | 500 | - |
| Databank | 13,090 | 12,100 | 61,489 |
| PR and publicity expenditure | 2,282 | 44,450 | 8,917 |
| Translation/ interpreter expenditure | - | 300 | - |
| Depreciation equipment | 2,412 | 4,500 | 2,107 |
| Other offices expenses | 12,735 | 5,489 | |
| Subtotal office expenses | 53,438 | 85,200 | 95,769 |
| Organisation and administration expenses | |||
| Advice | 75,187 | 54,449 | 54,072 |
| Audit fee | 69,571 | 60,500 | 54,892 |
| Administration costs | 59,150 | 21,000 | 17,170 |
| Insurances | 9,925 | 9,000 | 9,525 |
| Fundraising | - | - | |
| Other general expenses | 4,913 | 7,090- | |
| minus charged for | |||
| Project costs organisational and administration expenses | 129,298- | - | |
| Subtotal organisation and administration expenses | 89,448 | 144,949 | 128,569 |
| Total general expenses | 384,065 | 546,574 | 576,946 |
Fundraising
Explanation donations
In 2022 SOMO received EUR 5.851 in donations (2021: EUR 5.130).
For the use of this income the following parameters apply:
1. Where a donation is received with a clear preference expressed as to how it is used, SOMO will use this income in the programme that best fits this preference.
2. In case SOMO receives general donations this income will be used to cover the general costs of programme delivery.
Personnel costs
On average in 2022, SOMO was employing 37 people (2021: 37) with an average FTE of 28,2 (2021: 32,2 FTE).
The freelance costs of personnel refer to people working for SOMO on a non-permanent basis for either projects and / or support.
SOMO has an insurance for long term sick leave. As such, amounts have been received for EUR 106.280 (2021: EUR 99.412).
Taxation on ordinary activities
SOMO is liable for corporate income taxes on the commercial activities only. These activities generate a small positive result, therefor CIT has been accrued.
Concerning the Wet normering bezoldiging topfunctionarissen publieke en semipublieke sector (WNT) below we set out in an overview the amounts paid (including long-term remunerations) to our executives. The Executive Director and Director of Programmes together are our management team and lead the organisation. In accordance with the regulations of the WNT therefore we set out the income of the employees who are involved in the management team. *Esther de Haan is designated as a top official because she previously held the position of Programme Manager and was part of the Management team until April 14th 2019. After that date she fulfilled the function of Senior Researcher.
Based on the WNT, the income of top officials in the (semi) public sector may not exceed the maximum of 100% of the minister’s salary. For 2022 the maximum amount is EUR 216,000 including taxable allowances and employer pension contributions.
Our Supervisory Board members are unpaid; they receive an attendance allowance of EUR 150 per year.
| Overview WNT 2022 | |||
|---|---|---|---|
| NORM WNT - general - per year | € 216,000 | ||
| Title | Executive Director | Programme Director | Senior researcher |
| Name | Audrey Gaughran | Irene Keizer | Esther de Haan |
| Contract | Employment Contract | Employment Contract | Employment Contract |
| Start and end date performance | January 1st 2022 - December 31st 2022 | January 1st 2022 - December 31st 2022 | January 1st 2022 - December 31st 2022 |
| No. of months performed 2022 | 12 | 12 | 12 |
| FTE | 1.0 | 0.9 | 0.9 |
| Renumeration | |||
| Gross salary paid | € 94,884 | € 71,326 | € 66,831 |
| Correction 2021 Gross salary | € 6,660 | € - | € - |
| Total amount invoices excl. VAT | |||
| Pension premium paid | € 14,410 | € 10,380 | € 9,386 |
| Total amount remuneration | € 115,954 | € 81,706 | € 76,217 |
| Individual remuneration maximum WNT | € 216,000 | € 194,400 | € 194,400 |
| Overview WNT 2021 | |||
| NORM WNT - general - per year | € 209,000 | ||
| Title | Executive Director | Programme Manager | Senior researcher |
| Name | Audrey Gaughran | Irene Keizer | Esther de Haan |
| Contract | Employment Contract | Employment Contract | Employment Contract |
| Start and end date performance | February 15th 2021 - December 31st 2021 | January 1st 2021 - December 31st 2021 | January 1st 2021 - December 31st 2021 |
| No. of months performed 2022 | 10.5 | 12 | 12 |
| FTE | 0.9 | 0.9 | 0.9 |
| Renumeration | |||
| Gross salary including thirteen month | € 77,622 | € 69,444 | € 69,491 |
| Total amount invoices excl. VAT | |||
| Pension premium paid | € 10,511 | € 9,780 | € 9,780 |
| Total amount remuneration | € 88,133 | € 79,224 | € 79,271 |
| Individual remuneration maximum WNT | € 164,588 | € 188,100 | € 188,100 |
Explanation of differences between realisation and budget 2022
The main difference between realization and budget 2022 is the higher result of almost EUR 600.000. SOMO received from two private foundations subsidies to strengthen the organisation and its financial position so that SOMO is able to further grow its impact on society.
Further the direct costs increased compared to budget because of the increase in activities performed by partners. Costs for personnel were lower than budgeted because fewer external staff were hired for support activities.
Organisation costs were lower than budgeted because IT-projects were postponed to 2023.
Overall this led to an increase of our reserves of EUR 1.238.572
Other information
Subsequent events
There are no subsequent events, which have a material effect on the situation as per December 31st, 2022.
Appropriation of result 2022
The result after taxation 2022 is EUR 1,238,572 positive (2021: EUR 703,376 negative). The Board of SOMO has decided to add EUR 798,571 to the continuity reserve and EUR 440,001 to the designated reserve ‘Organisational Strenghtening’.
Independent auditor’s report
About SOMO
The Centre for Research on Multinational Corporations (SOMO) is a critical, independent, not-for-profit knowledge centre on multinationals. Since 1973 we have investigated multinational corporations and the impact of their activities on people and the environment. We also provide custom-made services (research, consulting, and training) to non-profit organisations and the public sector. We strengthen collaboration between civil society organisations through our worldwide network. In these three ways, we contribute to social, environmental, and economic sustainability.
SOMO’s Vision and Mission
We envision a global economic, political, and legal system that is equitable, democratic, transparent, and environmentally sustainable.
Organisation
The outsized and harmful power of multinational companies and the structures that enable them stand in the way. A shift in power balance is urgently needed. To address this, SOMO investigates multinationals: we expose their impact, their structures, and the systems they operate in. We develop alternatives and carry out advocacy work.
We do that as part of a civil society movement in deep collaborations and alliances with partners all over the world, always seeing our role as part of an ecosystem of stakeholders. We deliver the knowledge that fuels far-reaching change.
Services
SOMO provides research, training, and advice to public interest groups and institutions, giving them the information and tools they need to achieve their goals. We design new corporate research methodologies and use diverse sources to shed light on corporate structures and strategies, global supply chains, financial flows, markets, and much more. SOMO’s corporate research specialists also provide research support to partners and colleagues, assisting them in answering questions, and mining and analysing data through financial terminals including Refinitiv Eikon, Orbis and LexisNexis.
Statutory bodies
