The Voice of OECD Business CSR for Competitiveness of Business OECD Guidelines for Multinational Enterprises BIAC experience and contribution Riga, 7 November 2013 Hanni Rosenbaum, Senior Policy Manager Business and Industry Advisory Committee to the OECD

Who we are BIAC is the official Business and Industry Advisory Committee to the OECD, advising the Organisation on a wide range of issues (investment, CSR, trade, tax, education, labour, environment, etc.) BIAC members: business and employers’ organisations in OECD countries Observers from 9 non-OECD countries as well as over 30 international sectoral organisations

The OECD Guidelines for Multinational Enterprises (MNEs) Updated in 2011, the OECD MNE Guidelines are one of the most comprehensive international CSR instruments and a key international reference. BIAC was closely involved in the update process, which has increased the expectations put on business in several respects. BIAC has accepted the final text and supports effective implementation of the Guidelines.

Key business considerations Voluntary Guidelines A set of non-binding recommendations on responsible business conduct by governments to multinational enterprises operating in or from adhering countries.

Key business considerations Global engagement 45 Countries adhere to the MNE Guidelines – BIAC encourages further outreach and global engagement to create a level playing field. The success of the updated Guidelines will, to a large extent, depend on their ability to contribute to a global level playing field for business, in particular as the global economy is increasingly integrated.

Key business considerations The broader investment context As part of the Declaration on International Investment and MNEs, they aim to balance the promotion of an open investment climate with responsible business conduct. They are part of a mutual commitment: Adhering Governments commit themselves to promote an open and predictable investment climate, e.g. by ensuring national treatment. Companies are recommended to apply the CR standards elaborated in the Guidelines.

Effective implementation BIAC supports an effective implementation of the updated Guidelines and is committed to constructively assist affiliated companies to follow the recommendations of the updated Guidelines, Not only a burden, but should protect against unrealistic expectations and contribute to a level playing field

National Contact Points Promotional activities, increase awareness Handle inquiries Mediation and conciliation platform for resolving issues that may arise from alleged non-observance of the Guidelines.

Key business considerations for NCPs 2 BIAC surveys While the NCP procedure has in a number of cases led to a meaningful stakeholder dialogue and a solution of the disagreement, the fundamental nature of the NCP procedure and certain provisions of the procedural guidance are sometimes disregarded.

Key business considerations for NCPs Recognition of the specific nature of the NCP as a mediation platform - not a semi-legal process Willingness of all parties to enter into meaningful dialogue Good faith as an essential element to build trust Acceptance of a specific instance is not a verdict NCP should be a facilitator for solutions

Key business considerations for NCPs NCP should be a forum for discussion between stakeholders with a view to resolving an issue in a constructive and forward-looking manner. All stakeholders should have an attitude that makes a constructive and future-oriented solution possible, based on an atmosphere of mutual trust and dialogue.

The Proactive Agenda BIAC is involved in the proactive agenda, which aims to promote the effective observance of the Guidelines by helping enterprises identify and respond to risks of adverse impacts associated with particular products, regions, sectors or industries. However, it should not lead to sector guidance that would go beyond the agreement reached during the 2011 update.

Proactive Agenda projects Due diligence in the financial sector Stakeholder engagement in the extractive sector Responsible investment in agricultural supply chains Work on Bangladesh and the textiles sector to be further discussed with ILO OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas

BIAC support to its members Assist members with the implementation of the Guidelines. Help raise awareness of the Guidelines among our members and their member companies. Foster closer cooperation with non-adhering countries to promote adherence to the Guidelines to create a truly level playing field.  

For further information, please contact rosenbaum@biac. org www. biac For further information, please contact rosenbaum@biac.org www.biac.org http://www.biac.org/mne_guidelines.htm