2nd presentation by Cristina Tebar-Lless at the workshop in China on responsible business conduct
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This presentation by Cristina Tebar-Less was made during workshop on responsible business conduct held on 28 May 2015 in Beijing, China. This workshop was held to exchange experiences and share information with the Chinese authorities, businesses and other stakeholders on responsible business conduct, The OECD Guidelines for Multinational Enterprises and National Contact Points for the Guidelines. For more information, visit: http://mneguidelines.oecd.org/china-rbc-workshop-2015.htm
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2nd presentation by Cristina Tebar-Lless at the workshop in China on responsible business conduct
- 1. THE OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES May 2015 Beijing Cristina Tebar Less Head of RBC Unit, OECD
- 2. OECD Guidelines for Multinational Enterprises (1) • A comprehensive legal instrument to promote responsible business conduct • Recommendations from governments to multinational enterprises operating in or from their countries • Aim to enhance business contribution to sustainable development • Cover all areas of “business ethics”: disclosure, human rights, employment and industrial relations , environment , bribery, consumer interests, taxation, etc.
- 3. • Adopted in 1976, updated regularly to keep up to date, last update in 2011 • Aligned with all major international instruments for RBC (UNGP, core ILO Conventions, etc.) • Part of OECD Declaration on International Investment, open to non-OECD countries • Currently 46 adhering governments representing all regions of the world • Endorsed by business, trade unions and civil society organisations OECD Guidelines for Multinational Enterprises (2)
- 4. Responsibilities of adhering governments • Implement the Guidelines and encourage their use by companies (domestic and foreign) • Provide a policy environment that supports and promotes responsible business conduct • Establish National Contact Points to further the effectiveness of the Guidelines
- 5. • Maximise positive impacts, minimise adverse impacts of company operations • Carry out due diligence to identify, prevent and mitigate actual and potential adverse impacts • Not only impacts related to a company’s own operations but also directly linked to the company’s operations, products or services by a business relationship (including through supply chain). Responsibilities of companies
- 6. • The most comprehensive international instrument on RBC-covers all areas of business ethics • Global reach through supply chains • Endorsed by stakeholders • Harmonised (not competing) with other instruments • The only RBC instrument with an implementation mechanism (NCP) The Guidelines in short
Editor's Notes
- Since 2011, clearer and stronger principles and standards on what constitutes responsible business conduct have emerged around two core instruments: 1) OECD Guidelines for Multinational Enterprises and 2) the UN Guiding Principles on Business and Human Rights. The result has been a clearer understanding of the baseline standards for how businesses should understand and address the risks of their operations and how governments should support and promote such responsible business practices. The Guidelines encourage the positive contributions that businesses can make to economic, environmental and social progress in home and host countries and to minimise the difficulties that can arise from their business activities. They are the most comprehensive and the only government backed international corporate responsibility instrument in existence today, covering all areas of business ethics, like human rights, environment, disclosure, labour relations, anti-corruption, etc. A new human rights chapter consistent with UN Guiding Principles on Business and Human Rights was included in the 2011 update. Purpose is to ensure business operations are in harmony with government policies, strengthen the basis of mutual confidence with host societies, help improve foreign investment climate, and enhance contribution to sustainable development
- The Guidelines are not just an OECD instrument. In addition to the 34 OECD members, 12 non-OECD governments adhere. This includes major emerging economies like Brazil, as well as 4 MENA countries. Adherents account for about 82% of global foreign direct investment outflows and 62% inflows (2007-2013) These Guidelines are more than just recommendations on paper. Their effectiveness is derived in that adhering governments also place concrete obligations on themselves. Each adhering country is obliged to set up National Contact Points, which are tasked with promoting the Guidelines and providing mediation services to resolve any issues from non-observance of the Guidelines. This effectively makes the Guidelines the only international corporate responsibility instrument with a built-in grievance mechanism, allowing access to remedy in a constructive way as opposed to often heavy legal procedures.