OECD Guidelines for Multinational Enterprises
The OECD Guidelines for Multinational Enterprises are a code of conduct for globally responsible business practices and make recommendations from governments to the economic Represent are part of the Declaration on International Investment and Multinational Enterprises of the OECD, further questions about the investment climate and promote treated foreign investment.
Content
In ten chapters, the Guidelines recommendations for responsible corporate behavior with respect to transparency, labor relations, the environment, corruption, consumer protection, technology transfer, competition and taxation. They relate to international agreements such as the Universal Declaration of Human Rights and the ILO core labor standards and emphasize the concept of sustainable development and the precautionary principle.
Validity and control
The Guidelines are valid worldwide and aimed its head office to all transnational corporations in a signatory state. So far, the guidelines have been signed by the 30 OECD countries and beyond, of Argentina, Brazil, Chile, Estonia, Israel, Latvia, Lithuania, Peru, Slovenia and Romania.
With the signing of the Guidelines to any government committed to establish a National Contact Point (NCP ). The contact points are designed to promote the implementation of the Guidelines and are primarily responsible for the information on the principles and for the processing of complaints. If you think a group of the Guidelines, at the respective contact point an appeal may be brought. This checks the request and forwards upon acceptance of the complaint to conciliation a. If this fails, the contact point shall make a public statement and recommendations regarding the application of the Guidelines. Any additional sanction mechanisms do not exist.
The contact point is to be settled with a government entity, in practice usually a department in the Ministry of Economy. The procedural instructions call for the integration of all interested groups and allow for the composition of the contact point, to include representatives of business, labor organizations and other interested parties in these organs. You also define four key criteria for the work of the contact points: visibility, accessibility, transparency and accountability.
In Germany, the National Contact Point is located in the Ministry of Economy. So far, nine complaints were made: one each against Continental, TotalFinaElf, WestLB, Adidas, Ratiopharm, BP, HC Starck and two against Bayer.
History
The OECD adopted the Guidelines for the first time in 1976. According to the 1998 failed negotiations for a Multilateral Agreement on Investment (MAI ), they were revised and expanded extensively with the participation of business organizations, trade unions and NGOs. Worldwide there have been since the revision of the Guidelines so far 130 complaints that have been raised by trade unions and NGOs. Unions themed especially conflicts in labor relations, now majority- labor law violations in non -OECD countries. The NGO complaints mostly concern violations of human rights, trade union issues and environmental offenses by companies in developing countries and are often associated with supplier relationships.
Positive aspects and shortcomings
Compared to other voluntary instruments for corporate social responsibility ( CSR ) should be emphasized that the OECD Guidelines are quite comprehensive and relate to a number of international agreements, they contribute to a greater involvement of the States in the corporate regulation. The guidelines also apply to all companies from the signatory States, even if have not explicitly known to the guiding principles of the company. They are everywhere in the world regardless of where companies from these countries to act and the responsibility for the suppliers is also recognized. It is highlighted that there is a complaint mechanism, this is also applicable relatively easily and without financial risk or extensive legal expertise.
The disadvantage however, that the Guidelines are not legally binding, but for the company are voluntary. It is also to evaluate a disadvantage that the OECD Guidelines apply only to companies from the signatory States, and thus do not capture a number of international companies. In the context of the Guidelines no sanctions are provided with a contentious history of the appeals process, there is also no revision mechanism. In addition, especially trade unions and NGOs criticize a lack of implementation of the Guidelines in much: they complain, especially their lack of awareness and the lack of transparency of the process - many contact points give the names of the companies against which a complaint has been submitted, no award or reject complaints without indication from reasons. The vague wording in some sections of the OECD Guidelines have the further consequence that can not be clearly established violations in part.