Using the OECD Guidelines for Multinational Enterprises

A Toolkit for NGOs

The Organization for Economic Cooperation and Development (OECD), set up in 1961, has a stated aim of building strong economies in its member countries, improving efficiency and market systems, expanding free trade and contributing to development in industrialized and developing countries. In 1976 the OECD adopted a set of voluntary guidelines for companies. These guidelines are basically a set of recommendations on standards for responsible corporate behavior. They have been reviewed periodically (most recently in 2000) and cover a broad range of issues (ex. employment and industrial relations, the environment, bribery, taxation, consumer interests). The governments of the 30 OECD member countries are supposed to encourage companies in their countries to observe this code of conduct, officially known as the "OECD Guidelines for Multinational Enterprises," anywhere they operate.

OECD Member Countries
Austria
Belgium
Canada
Denmark
France
Germany
Greece
Iceland
Ireland
Italy
Luxembourg
the Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
Japan
Finland
Australia
New Zealand
Mexico
Czech Republic
Hungary
Poland
South Korea
Slovak Republic

Each member country is supposed to set up a "national contact point" (a government official, government office, a body that includes representatives of several government agencies or even a body that includes representatives of employee organizations, the business community and other interested parties) to make the Guidelines more effective. Any "interested party" can file a complaint regarding alleged violations of the OECD Guidelines with the national contact points. Who should file the complaint and with which contact point depends on the specific circumstances of the case.

Friends of the Earth Netherlands (Milieudefensie) has put together a toolkit that presents the advantages and disadvantages of the OECD Guidelines and explains how the complaint procedure connected with the Guidelines can be used. Useful appendices include the full text of the Guidelines and a listing of all the national contact points.

This clearly-written publication is a valuable resource for any NGO, trade union, or others interested in exploring the possibilities for using the OECD Guidelines to push for more responsible corporate behavior. Because the Guidelines are a code endorsed by 30 countries, they do seem to have some potential to be a tool in pressuring multinational corporations. However, the language used in the code is weak, as are the implementation mechanisms. The Friends of the Earth publication highlights these and other important issues connected with the Guidelines and their strategic importance to those seeking to hold corporations accountable to strong labor and environmental standards.

The toolkit (available in English, Spanish, or French) can be downloaded from the Internet <www.milieudefensie.nl/accountability>. To order a free hard copy of this publication please contact:
Friends of the Earth Netherlands
Milieudefensie
P.O. Box 19199
100 GD Amsterdam
the Netherlands
Tel. 31-20-550-7300
Fax: 31-20-550-7310
E-mail: accountability@milieudefensie.nl