oecd guidelines for multinational enterprises

Sustainable Development, Inclusive Growth and the OECD
Guidelines for Multinational Enterprises
CSR Summit 2014
April 15, 2014
• Global Trends in Responsible Business
• OECD Guidelines for Multinational
• Priority areas and the way forward
Global Trends
• Moving beyond
• RBC as a crucial
part of a healthy
• Market integrity
is essential
RBC: Convergence and Coherence
• Two core instruments
– OECD Guidelines for Multinational Enterprises
– UN Guiding Principles on Business and Human Rights
• Clearer and stronger principles and standards
• Understanding of baseline responsibilities
• More predictable business environment
• Historical opportunity to turn ideas into action
OECD Guidelines for Multinational
• Most comprehensive and only government-backed
international corporate responsibility instrument in existence
• Addressed to MNEs operating in or from adhering countries
• 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;
enhance contribution to sustainable development
• Updated in 2011
Who adheres?
• 46 governments from all regions of the world
– 34 OECD members
– 12 non-OECD members
• Use the Guidelines an essential component of
open trade and investment policies
Who adheres?
Unique Implementation Mechanism:
National Contact Points
• Main responsibility is to further the
effectiveness of the Guidelines by:
– undertaking information and promotion
– contributing to the resolution of issues that
arise in the implementation of the Guidelines
in specific instances;
– reporting on their activities.
Specific Instance Process
Specific Instances
Goal: successful resolution of issues
• More than 300 considered since 2000
– 50 under active consideration
– 36 new in last implementation period
• Trends:
– Human rights, labour and
environment predominant issues
– Most frequently cited sectors:
extractives, manufacturing, financial services
– Concern non-adhering countries (63% in 2013)
• New Database
Unique Implementation Mechanism:
Proactive Agenda
• Helps business identify and respond to risks of adverse impacts
associated with particular products, regions, sectors, or industries
• Characteristics:
Adds value
Avoids duplication
Relies on a multistakeholder process
No new normative framework
• Three projects ongoing
Due diligence in the financial sector
Stakeholder engagement and due diligence in the extractive sector
Responsible investment in agricultural supply chains
Responsible supply chain management in the textiles sector (tbc)
To sum up…the Guidelines are:
• Comprehensive
• Government-backed
• Unique implementation mechanism
– National Contact Points
– Proactive Agenda
• Comprehensive approach to due diligence
and responsible supply chain management
• Good practice for all
• Regularly updated
Way Forward
NCP Peer Learning and Capacity Building
– Focus on thematic issues: mediation and peer learning
– Regional NCP coordination
Outreach and Communication
– Cooperation with emerging economies and partner organisations (UN GC, OHCHR,
Enhancing the role of the OECD
Global Forum on Responsible Business Conduct
New Working Party on Responsible Business Conduct
New “RBC In” Publication Series
Central hub for information
Implementation of the proactive agenda
Thank you!