| Implementation of t The OECD Guidelines for Multinational Enterprises |
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| 2009-05-14 09:39 |
Institutional set-up
The institutional set-up of the Guidelines consists of three elements: i) the National Contact Points, ii)the OECD's Committee on International Investment and Multinational Enterprises (CIME), and iii)the advisory Committees of business and labour federations, BIAC and TUAC.
The National Contact Points (typically a government office in a Member country) serve to gather information on experience with the Guidelines, to promote them, to handle enquiries, discuss matters related to the Guidelines and assist in solving problems which may arise between business and labour in matters covered by the Guidelines.
The CIME's responsibilities in the field of the Guidelines include: providing clarifications on the interpretation of the Guidelines, reviewing and exchanging views on them and responding to requests from Members, BIAC or TUAC on aspects of the Guidelines.
BIAC and TUAC can request consultations with the National Contact Points on issues related to the Guidelines and can raise such issues at the CIME. They also have a task in informing their member federations about the Guidelines' development and in seeking their members' input in Guidelines follow-up procedures.
Follow-up procedures
The Guidelines are drafted in general terms, so as to apply to the whole OECD area, with its diversity of legal systems and practices towards MNEs. Consequently, clarifications may be necessary in individual cases.
If a party is under the impression that, in an individual case, the Guidelines have not been observed, but is unclear about the Guidelines applicability, that party should approach the National Contact Point. Member Governments and labour and business organisations (through BIAC and TUAC), may raise such issues. The National Contact Point should the contact the enterprise, either directly, or through the appropriate business federation, to inform it that a Guidelines issue has been raised. The Contact Point and business and labour representatives should try to resolve the issue at the national level. If entities of the enterprise in another country are involved, the contact point should contact its counterparts in that country to exchange information and try and resolve the matter. The National Contact Point in the country where the enterprise has its headquarters should also be informed.
If no solution can be found through the National Contact Points, and a clarification seems necessary, the issue can be submitted to the CIME for consideration. Final responsibility for clarifications lies with the Committee, although matters discussed by the National Contact Points may involve questions of the scope and meaning of the Guidelines in specific circumstances. Whenever a Contact Point gives its opinion as to the relevance of the Guidelines to matters at had, it should keep in mind the international character of the Guidelines and the overriding necessity of avoiding conflicting national interpretations. Where there is any doubt or where there are divergent views as to the consistency of an interpretation under consideration by a Contact Point with clarifications adopted by the OECD, the matter should be brought to the attention of the Committee before the Contact Point gives the final answer.
In order to speed up such proceedings, these matters can be referred directly to the CIME's Working Group on Investment Policies and the Guidelines for preliminary consideration. After considering the question, and consulting with BIAC and TUAC, the CIME may then provide a clarification about how the Guidelines would apply in a situation like the one in question.
However, the Committee's examination of the need for, and eventual provision of, a clarification refers to how the Guidelines would apply as concerns the issue raised. It is not a judgement on the behaviour of an individual enterprise and thus does not refer to it by name.
This being said, the enterprise concerned may express its views orally or in writing on Guidelines issues involving its interests. Such an enterprise may, alternatively, use the offices of BIAC for this purpose.
Labour and business organisations may, though BIAC and TUAC, submit cases that raise issues for clarification, but an attempt should be made first to resolve the issues at the national level.
Experience with the Guidelines
In the two decades of their existence, the OECD Guidelines have proven to be a respected point of reference for a great majority of enterprises. The Guidelines are a voluntary instrument. However, they carry the weight of a joint Recommendation of OECD governments. Alongside with national laws, the Guidelines form part of a legal infrastructure which promotes responsible behaviour of MNEs. In addition, their language has influenced considerably the other codes of conduct for multinational enterprises, such as the ILO Tripartite Declaration and the Code of Conduct for Transnational Corporations of the United Nations.
As with any internationally negotiated instrument, the Guidelines have sometimes been criticised, either for being too general or too detailed. Some have argued, for example, that they do not go far enough in ensuring that MNEs comply with national law and practice, while others have suggested that the Guidelines go beyond those standards in some areas. Another area of debate involves the follow-up, which some say needs to be made stronger, while others argue that it is too juridical.
When Guidelines issues arise the onus of attempting a settlement is particularly on the National Contact Point; hence, the effectiveness of the Guidelines depends to a large degree on that of the Contact Points. This effectiveness differs from country to country. The functioning of the National Contact Points is crucial in this context.
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