Corporate Accountability for Human
Rights:
Using the OECD Guidelines for
Multinational Enterprises as a Tool
Trocaire Development Review
November 11 2009
Hannah Grene
What is the role of business in respecting
human rights?
Traditionally, international law applies to
states -both rights and responsibilities.
Human rights law gives rights to
individuals; but duties remain with state
What duties do business have?
Ruggie report, 2008: ‘Protect, Respect
and Remedy’.
What is the role of business in respecting
human rights?
Weaknesses in orthodox view where all
responsibility rests with the state
situations where the corporation is wealthier
than the host state, leading to an imbalance
of power;
Businesses taking advantage of conflict to
gain control of natural resources (eg DRC)
Businesses operating in states involved in
human rights violations (eg Burma)
Filling the gap?
Various international mechanisms have been
created to hold companies responsible
Include voluntary codes of conduct and
industry specific initiatives eg Kimberly
Process
The OECD Guidelines are one of these tools.
The OECD Guidelines for Multinational
Enterprises
‘adhering states undertake to ensure that
their corporations respect certain standards in
their activities, whether at home or abroad’
In existence since 1976, specifically human
rights since 2000.
Unlike Global Compact and other codes of
conduct, it does have a grievance
mechanism, provided by a system of National
Contact Points (NCPs)
OECD National Contact Points as a nonjudicial grievance mechanisms
Weaknesses: can be frustrating, as no real
‘teeth’ and therefore often no results.
Strengths: OECD NCPs have sometimes
successfully acted as mediators
Strengths: Official condemnation of a
company by a government agency - leverage
for a public/divestment campaign.
The way forward? - Three
recommendations
1. For the OECD Guidelines to function
properly, there must be more input from the
OECD Investment Committee (the central
body which oversees them). This requires:
•
•
•
a push by the reform minded NCPs (UK, NL)
impetus from the Ruggie team
pressure from civil society
The way forward? - Three
recommendations
2. National Contact Points must be given
more ‘teeth’.
•
29 states report linking OECD Guidelines
to export credit agreements, overseas
investment guarantees and inward
investment programmes. BUT only 2
actually make observance a condition for
funding.
The way forward? - Three
recommendations
3. NGOs and interested parties should
raise a specific instance as part of a
public campaign.
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•
•
No cost
Not a huge commitment; no specific
format for raising complaints, so can use
general campaign research and literature.
May not make a difference, but will at
least test the system.