OECD GUIDELINES FOR MULTINATIONAL CORPORATIONS THE OECD The Organization for Economic Cooperation and Development (OECD) was established in 1961; its headquarters is in Paris, France. The OECD is an international, inter-governmental organization composed primarily of relatively wealthy countries in Western Europe, North America, and East Asia.

• The OECD’s official mission is to promote policies that will improve the economic and social well-being of people around the world.

• The OECD covers economic and social issues including macroeconomics, trade, development, education and science and innovation.

Membership The 34 OECD member countries are: Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. THE GUIDELINES The OECD Guidelines for Multinational Enterprises are a set of recommendations for multinational companies. The Guidelines provide principles and standards for responsible business practices in areas such as employment, human rights, the environment, and anti-corruption for multinational enterprises operating in or from countries that adhere to the Guidelines. The Guidelines were adopted in 1976 and were last updated in 2011. The Guidelines are supported by all 34 OECD Member countries and also by Argentina, Brazil, Colombia, Egypt, Latvia, Lithuania, Morocco, Peru, and Romania. Scope of the Guidelines The Guidelines provide voluntary principles and standards for responsible business conduct across a wide range of topics. The substance of the Guidelines in a few key areas is summarized below:

• Human Rights: Companies should respect human rights and seek ways to prevent or mitigate adverse human rights impacts that result from their business operations.

• Employment and industrial relations: Businesses should respect the rights of workers to establish or join trade unions and other representative organizations. Companies should also contribute to the struggle to end all forms of forced labor as well as child labor.

• Environment: Companies should take into account the need to protect the environment, public health and safety. Businesses should conduct their activities in a manner that contributes to the broader goal of sustainable development.

• Combating bribery: Companies should not offer, promise or give undue material advantage to public officials or the employees of business partners. Businesses should develop methods to combat bribery and corruption and to avoid contributing to public corruption in the countries and communities in which they operate.

Current Status of the Guidelines

• Although the Guidelines are non-binding recommendations to multinational enterprises that operate in or are based in the countries that have adopted the Guidelines, as seen below a number of countries have made binding commitments to promote and implement the Guidelines.

• Currently the Guidelines are applicable to companies from the countries that are member of the OECD or have agreed to abide by the Guidelines, regardless of where in the world the alleged violation has occurred.

• In 2011, the Guidelines were updated, adding significantly to their human rights and supply chain responsibility provisions.

o Multinational companies are expected to conduct their operations so as to avoid human rights impacts not just by their own direct activities, but also by those of their suppliers, contractors, and other business partners.

o The new Guidelines help ensure that companies respect human rights and avoid contributing to conflict through their purchasing decisions and practices.

Infrastructure Countries that adhere to the Guidelines must establish a National Contact Point (NCP). The NCP does 3 things:

1) Promotes the Guidelines 2) Answers inquiries, and 3) Helps to resolve disputes between parties – known as “Specific Instances” – involving

the Guidelines. • If a person or group believes that a multinational company has violated the

Guidelines, they may file a Specific Instance complaint with the NCP in the country where the violation occurred. If that country does not have a NCP (like Cambodia or Burma), then the complaint may be filed with NCP of the country where the company is based.

• The NCP is expected to work with the concerned parties to find a solution, if it is determined that the dispute is related to the Guidelines and the NCP’s involvement could contribute to positive dispute resolution.

The Guidelines allow each country to organize the NCP in the manner it prefers, so long as it is consistent with the Guidelines. National Incorporation of the OECD Guidelines Although the OECD Guidelines are non-binding, some countries have gone further than others in implementing them.

• Slovenia requires that foreign investors that participate in public tendering abide by the Guidelines.

• Slovakia requires all foreign investors to commit to compliance with the Guidelines before they are awarded government incentives.

• Norway’s export credit agency, GIEK, can impose special terms and conditions on its grantees to ensure that projects are implemented in accordance with national and international environmental standards, such as the OECD Guidelines.

• The Netherlands requires applicants for export credit guarantees to certify that they will do their best to comply with the Guidelines.