1. The OECD Guidelines for Multinational Enterprises

2. What are the OECD Guidelines for Multinational Enterprises?
Recommendations by governments to MNEs operating in or from the following countries:
the 30 OECD countries, Argentina, Brazil, Chile, Estonia, Lithuania, Slovenia and Israel
Apply to corporate activities worldwide

3. OECD member countries Australia Korea Austria Luxembourg
Belgium Mexico
Canada Netherlands
the Czech Republic New Zealand
Denmark Norway
Finland Poland
France Portugal
Germany the Slovak Republic
Greece Spain
Hungary Sweden
Iceland Switzerland
Ireland Turkey
Italy the United Kingdom
Japan the United States

4. What are the OECD Guidelines for Multinational Enterprises?
Not legally binding, but not voluntary either
Governments are legally obliged to set up National Contact Points (NCPs) to deal with specific problems regarding the Guidelines in individual MNEs

5. The contents of the Guidelines
I Concepts and Principles
II General Policies
III Disclosure of Information
IV Employment and Industrial Relations
V Environment
VI Combating Bribery
VII Consumer Interests
VIII Science and Technology
IX Competition
X Taxation

6. I Concepts and Principles
3. «A precise definition of multinational enterprises is not required for the purposes of the Guidelines.
(……)
The Guidelines are addressed to all the entities within the multinational enterprise (parent company and/or local entities).»

7. II General Policies
2. «Respect the human rights of those affected by their activities consistent with the host government’s international obligations and commitments.»

8. II General Policies
4. «Encourage human capital formation, in particular by creating employment opportunities and facilitating training opportunities for employees.»

9. II General Policies
10. «Encourage, where practicable, business partners, including suppliers and subcontractors, to apply principles of corporate conduct compatible with the Guidelines.»

10. III Disclosure
Ensure that timely, regular, reliable and relevant information is disclosed regarding activities, structure, financial situation and performance
Apply high quality standards for disclosure, accounting, audit and for non-financial information such as social reporting

11. IV Employment and Industrial Relations
Covers all Core Labour Standards
Provide facilities to employee representatives
Ensure occupational health and safety in their operations
Employ local personnel and provide training

12. IV Employment and Industrial Relations
6. «In considering changes in their operations which would have major effects upon the livelihood of their employees…. provide reasonable notice of such changes… co-operate with the employee representatives and appropriate governmental authorities so as to mitigate to the maximum extent practicable adverse effects.»

13. IV Employment and Industrial Relations
7. «….while employees are exercising a right to organise, not threaten to transfer the whole or part of an operating unit from the country concerned nor transfer employees from the enterprises’ component entities in other countries…»

14. V Environment
Reflects the principles and objectives in the Rio Declaration in Agenda 21
Includes provisions on education and training for workers on environmental health and safety

15. VI Combating Bribery
Not give or demand a bribe or make illegal contributions to political parties
Enhance transparency, and management control systems that discourage bribery

16. VII Consumer Interests
Provide accurate and clear information regarding goods or services
Apply transparent procedures to address consumer complaints and to resolve consumer disputes

17. Chapter VIII-X VIII Science and Technology
Adopt practices that permit transfer and diffusion of technologies and know-how in the countries where they operate
IX Competition
Refrain from anti-competitive activities like fixed prices and output restrictions
X Taxation
Comply with tax laws and regulation and provide information to authorities

18. Background
The Guidelines were first approved a reaction to the excessive influence by MNEs over governments
Negotiations in the UN over a binding code failed
Several cases on the Guidelines were resolved during the first 10 years after their adoption

19. Background The Guidelines were revised in 1979, 1982, 1984 and 1991
Political climate changed in the mid-1980’s and they fell into disuse
The failure of MAI and the fact that corporate conduct was again on the agenda in the end of the 1990’s led to renewed interest in the Guidelines

20. The review of the Guidelines 1998-2000
Took place in consultation with trade unions, business and NGOs
Resulted in major improvements:
- global applicability of the Guidelines;
- reference to the supply chain;
- stronger language on human rights;

21. The review of the Guidelines 1998-2000
- two new chapters on bribery and consumer interests;
- reinforced chapter on environment; and
- enhanced implementation procedures

22. Implementation
The OECD Council decided in June 2000 that every adhering country shall:
Set up a National Contact Point (NCP) to promote and implement the Guidelines
Trade unions, business and other interested parties shall be informed of the availability of the NCP
NCPs shall meet annually and report on their activities

23. Implementation NCPs are expected to work by four principles:
Visibility
Accessibility
Transparency
Accountability

24. Procedural Guidance A Institutional Arrangements
NCPs can be organised differently (tripartite, quadripartite or government office)
NCPs shall develop and maintain relations with representatives of trade unions, business and NGOs

25. Procedural Guidance B Information and Promotion
NCPs are responsible for raising awareness of the Guidelines including informing prospective investors of them
NCPs shall respond to enquiries about the Guidelines

26. Procedural Guidance C Implementation in Specific Instances
NCPs shall try to resolve issues that arise concerning the Guidelines in individual companies
In doing that, NCPs will:
- assess whether the case raised merits further examination and respond to the parties raising it;

27. Procedural Guidance
- offer a forum for discussion and assist the parties involved to deal with the issue in an efficient and timely manner;
- offer conciliation and mediation;
- if the parties do not reach an agreement, issue a statement and make recommendations;

28. Procedural Guidance - maintain confidentiality of the proceedings; and
- make publicly available the results of the procedures
D Reporting
NCPs shall report annually on their activities

29. How do you raise a case with a National Contact Point?
1. Contact national trade union centre and/or global union federation to discuss how to proceed
2. Inform other relevant trade union organisations (TUAC and the national centre in the country where the company is based)
3. Submit the case to the pertinent NCP(s)

30. A submission to a NCP should include:
Accurate description of the case
Basic facts about the company
name and contact details, where it is headquartered, responsible manager etc
Which paragraph(s) the company is/are in breach of

31. Suggested action for the NCP to take, eg to convene a meeting with the parties involved
Attachment of any supportive evidence