OECD Guidelines for Multinational Enterprises
New challenges for global industrial relations - Actively shaping international social policy
The OECD Guidelines for Multinational Enterprises set out recognised principles for responsible business conduct in the context of foreign investment, including in the areas of human rights, labour and social issues, the environment, anti-corruption, taxation and consumer interests. Their special status derives from the fact that the governments of OECD member countries have committed themselves to promoting the Guidelines and have established National Contact Points (NCPs) to monitor compliance with these commitments. In addition to the OECD countries, Egypt, Argentina and Brazil, among others, have already endorsed the Guidelines. The task now is to advance the worldwide dissemination of the Guidelines beyond the boundaries of the OECD.
Gaining Additional Countries for the Adoption of the OECD Guidelines
In a globalised economy, the OECD Guidelines for Multinational Enterprises play a particularly important role in promoting fair competition through corporate social responsibility. Their practical, business-oriented approach strengthens responsible corporate conduct. The task now is to promote the Guidelines worldwide, beyond the OECD member states, as recognised principles for responsible business conduct in the context of foreign investment. In particular, further developing and emerging economies should be encouraged to adopt the Guidelines in order to establish responsible framework conditions for international trade.
The OECD Guidelines alone are, of course, not capable of ensuring a level playing field across the world. Fundamental environmental and social standards must be implemented and enforced by states. However, the Guidelines have the potential to support these efforts, and this potential should be utilised more effectively. Alongside the OECD Guidelines, there are a number of other reference texts and guiding frameworks that companies use as points of orientation for responsible business conduct. These include, in particular, the International Labour Organization’s (ILO) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy and the UN Guiding Principles on Business and Human Rights. Although the implementation of these frameworks is not legally binding, many companies have developed their own processes and measures to promote the effective global application of these standards, or have joined existing sector initiatives such as amfori, Chemie or the German Partnership for Sustainable Textiles (Textile Alliance). Networks and initiatives such as the regional Global Compact Networks, the National Contact Points (NCPs) established under the OECD Guidelines, and the activities of the ILO also contribute to the dissemination and implementation of these reference frameworks.
NCP Procedures for the Development of Constructive Solutions
The National Contact Points established under the OECD Guidelines are responsible for promoting the Guidelines and assisting in cases of disagreement or complaints relating to their implementation through mediation and conciliation. The Guidelines are the only internationally agreed standard supported by such an implementation mechanism. The NCP procedure was created to facilitate the constructive resolution of issues arising in connection with international investment and not to generate legal disputes. The NCP structure must not be misused for general campaigning purposes. Such use would constitute a misuse of the Guidelines, which are intended to encourage and promote fair conduct. The OECD Guidelines therefore rightly require parties to act in “good faith” within NCP procedures and provide for the protection of the confidentiality of the process. In Germany, the National Contact Point is located within the Federal Ministry for Economic Affairs and Climate Action.
