OECD GUIDELINES FOR MULTINATIONAL CORPORATIONS THE

OECD
The Organization for Economic Cooperation and Development (OECD) was established in
1961 its head!"arters is in #aris$ %rance& The OECD is an international$ inter'governmental
organization composed primaril( of relativel( wealth( co"ntries in )estern E"rope$ *orth
+merica$ and East +sia&
• The OECD,s official mission is to promote policies that will improve the economic
and social well'being of people aro"nd the world&
• The OECD covers economic and social iss"es incl"ding macroeconomics$ trade$
development$ ed"cation and science and innovation&
Membership
The -. OECD member co"ntries are/ +"stralia$ +"stria$ 0elgi"m$ Canada$ Chile$ Czech
1ep"blic$ Denmar2$ Estonia$ %inland$ %rance$ 3erman($ 3reece$ 4"ngar($ 5celand$ 5reland$
5srael$ 5tal($ 6apan$ 7orea$ 8"9embo"rg$ :e9ico$ the *etherlands$ *ew ;ealand$ *orwa($
#oland$ #ort"gal$ <lova2 1ep"blic$ <lovenia$ <pain$ <weden$ <witzerland$ T"r2e($ the
=nited 7ingdom$ and the =nited <tates&
THE GUIDELINES
The OECD 3"idelines for :"ltinational Enterprises are a set of recommendations for
m"ltinational companies& The 3"idelines provide principles and standards for responsible
b"siness practices in areas s"ch as emplo(ment$ h"man rights$ the environment$ and anti'
corr"ption for m"ltinational enterprises operating in or from co"ntries that adhere to the
3"idelines& The 3"idelines were adopted in 19>6 and were last "pdated in ?@11&
The 3"idelines are s"pported b( all -. OECD :ember co"ntries and also b(
+rgentina$ 0razil$ Colombia$ Eg(pt$ 8atvia$ 8ith"ania$ :orocco$ #er"$ and 1omania&
Scope of the Guie!i"es
The 3"idelines provide vol"ntar( principles and standards for responsible b"siness cond"ct
across a wide range of topics& The s"bstance of the 3"idelines in a few 2e( areas is
s"mmarized below/
• Hum#" Ri$hts% Companies sho"ld respect h"man rights and see2 wa(s to prevent or
mitigate adverse h"man rights impacts that res"lt from their b"siness operations&
• Emp!o&me"t #" i"ustri#! re!#tio"s% 0"sinesses sho"ld respect the rights of
wor2ers to establish or Aoin trade "nions and other representative organizations&
Companies sho"ld also contrib"te to the str"ggle to end all forms of forced labor
as well as child labor&
• E"'iro"me"t% Companies sho"ld ta2e into acco"nt the need to protect the
environment$ p"blic health and safet(& 0"sinesses sho"ld cond"ct their activities in
a manner that contrib"tes to the broader goal of s"stainable development&
• Comb#ti"$ briber&% Companies sho"ld not offer$ promise or give "nd"e material
advantage to p"blic officials or the emplo(ees of b"siness partners& 0"sinesses sho"ld
develop methods to combat briber( and corr"ption and to avoid contrib"ting to p"blic
corr"ption in the co"ntries and comm"nities in which the( operate&
Curre"t St#tus of the Guie!i"es
• +ltho"gh the 3"idelines are non'binding recommendations to m"ltinational
enterprises that operate in or are based in the co"ntries that have adopted
the 3"idelines$ as seen below a n"mber of co"ntries have made binding
commitments to promote and implement the 3"idelines&
• C"rrentl( the 3"idelines are applicable to companies from the co"ntries
that are member of the OECD or have agreed to abide b( the 3"idelines$
regardless of where in the world the alleged violation has occ"rred&
• 5n ?@11$ the 3"idelines were "pdated$ adding significantl( to their hum#"
ri$hts and
supp!& ch#i" respo"sibi!it& provisions&
o :"ltinational companies are e9pected to cond"ct their operations so as to
avoid h"man rights impacts not A"st b( their own direct activities$ b"t also b(
those of their s"ppliers$ contractors$ and other b"siness partners&
o The new 3"idelines help ens"re that companies respect h"man rights and
avoid contrib"ting to conflict thro"gh their p"rchasing decisions and practices&
I"fr#structure
Co"ntries that adhere to the 3"idelines m"st establish a N#tio"#! Co"t#ct Poi"t (NCP)* The
*C# does - things/
1) #romotes the 3"idelines
?) +nswers in!"iries$ and
-) 4elps to resolve disp"tes between parties B 2nown as C<pecific 5nstancesD B
involving the 3"idelines&
• 5f a person or gro"p believes that a m"ltinational compan( has violated the
3"idelines$ the( ma( file a <pecific 5nstance complaint with the *C# in the
co"ntr( where the violation occ"rred& 5f that co"ntr( does not have a *C# (li2e
Cambodia or 0"rma)$ then the complaint ma( be filed with *C# of the co"ntr(
where the compan( is based&
• The *C# is e9pected to wor2 with the concerned parties to find a sol"tion$ if it is
determined that the disp"te is related to the 3"idelines and the *C#,s
involvement co"ld contrib"te to positive disp"te resol"tion&
The 3"idelines allow each co"ntr( to organize the *C# in the manner it prefers$ so long as it
is consistent with the 3"idelines&
N#tio"#! I"corpor#tio" of the OECD Guie!i"es
+ltho"gh the OECD 3"idelines are non'binding$ some co"ntries have gone f"rther than
others in implementing them&
• <lovenia re!"ires that foreign investors that participate in p"blic tendering
abide b( the 3"idelines&
• <lova2ia re!"ires all foreign investors to commit to compliance with the
3"idelines before the( are awarded government incentives&
• *orwa(,s e9port credit agenc($ 35E7$ can impose special terms and
conditions on its grantees to ens"re that proAects are implemented in
accordance with national and international environmental standards$ s"ch as
the OECD 3"idelines&
• The *etherlands re!"ires applicants for e9port credit g"arantees to certif(
that the( will do their best to compl( with the 3"idelines&