OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES

The UK National Contact Point (NCP)

Beijing 28 May 2015

The benefits

• Government – successful mechanism for addressing complaints

• Companies – show responding to complaints, trade on good reputation, manage risks of damage to reputation

• Complainants – issues are addressed. Can be quicker than legal process.

UK National Contact Point

• Located in department for Business, Innovation and Skills; partly funded by Department for International Development.

• 2 ½ people with support from legal and communications team

• In 2008 the UK NCP underwent a major restructuring, following a public consultation. Four significant changes were introduced:

• Steering Board• Timeframes• Mediators• Publication

Steering Board

• Monitors the operation of the UK NCP, ensuring that procedures are followed and providing advice on implementing and promoting the Guidelines and the power to review cases.

• Representatives of relevant government departments (the Foreign Office, DFID, Export Credit Guarantees Department, UKTI and DWP) plus four external members (representing UK businesses, trades unions and NGOs). Unpaid / Voluntary 3 year term

• Meets four times a year and minutes of meetings are published on the NCP website.

Evidence

• Quality of material provided in the complaint is important

• Can take time to verify• Limited by own resources• Can be legal, and technical• Important for process to work well - trust• Especially for mediation

UK NCP - Mediation• Can be cheaper (and quicker) option than court cases

• Requires a working partnership and trust between the parties. • Neutrality of the mediator (not a member of the UK NCP). • Neutrality of the venue

• A clear process - Defined time scale (approx. 6 months allowed for mediation).

• What is in it for the company?• Complaint resolved without damage to company’s reputation • UN Guiding Principles - The corporate responsibility to respect human

rights, that is, to act with due diligence, avoid infringing rights and address adverse impacts with which they are involved

• What is in it for the complainant?• Tangible changes made on the ground to benefit the local community. • UN Guiding Principles - The need for greater access to effective remedy,

both judicial and non-judicial

UK NCP - Mediation

• UK NCP offers Mediation when it accepts a case at the Initial assessment stage. Both sides have to agree and the UK NCP pays for all costs.

• UK NCP uses the Advisory, Conciliation and Arbitration Service (ACAS). Shortlist based on relevant experience, e.g. employment issues, regional knowledge or language skills.

• The UK NCP does not take part in the mediation process. Both sides to select a mediator from the shortlist. The mediator agrees a signed Terms of Reference.

• NCP will make a final statement. Will include a final determination in the event that mediation fails.

Media interest

• Growing levels of interest. Each case is different

• Complainants make the most use of the media

• UK NCP never comments on an ongoing case

• Important for NCP to be impartial and fair

Cases - Environment

World Wildlife Fund (WWF) & SOCO International Plc:

 •WWF’s complaint alleged that SOCO’s oil exploration activities in Virunga National Park (Democratic Republic of Congo - DRC) alleged that SOCO’s activities harmed the environment.

 •The UK NCP accepted the complaint in 2014 and used external mediation between the two parties, which resulted in an agreement and a joint statement.

 •As part of the statement, SOCO agreed that they will not undertake or commission any exploratory or other drilling within Virunga National Park unless UNESCO and the DRC government agree that such activities are not incompatible with its World Heritage status.

Cases - Human Rights

Americans for Democracy and Human Rights in Bahrain (ADHRB) & Formula One:

 •ADHRB questioned the human rights compatibility of organising the Formula One (F1) Grand Prix with a global audience in Bahrain.

 •It believes that Bahrain is a country widely criticised for its human rights violations such as the right to privacy, freedom of expression and association, as well as arrest and torture. ADHRB argued that Formula One have not conducted substantial due diligence and have not mitigated the human rights impacts linked to their operations in Bahrain.

 •The UK NCP accepted the complaint and is currently using external mediation between the two parties. A mediated agreement has been reached and a final statement by the UK NCP is expected shortly.