The National Contact Point (NCP): OECD Guidelines for Multinational Enterprises

The sphere of action for the OECD Guidelines

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The OECD Guidelines offer a code of conduct for the following fields:

• General policies
  Following an explanation of concepts and principles, a "general policies" chapter summarises the objectives of the Guidelines and the most important, fundamental instructions for corporate conduct. These basic recommendations - e.g. to act in the interest of sustainable development, to uphold human rights and to promote local capacity building - summarise the responsibilities of companies in an accessible way.
• Disclosure
  The Guidelines call for disclosure of information as an important confidence-building measure. Companies should inform the public not only about their financial performance, but also about social and environmental issues and foreseeable risks at an early stage and on a regular basis.
• Human rights
  Regardless of their size, sector, operational context, ownership and structure, enterprises are expected to respect human rights. In this chapter, the Guidelines underline the companies' responsibilities in the area of human rights and provide clear criteria for fulfilling their obligations. Companies are called on to comply actively with due diligence and to counter any threat to or violation of human rights.
• Employment and industrial relations
  This chapter covers internationally recognised core labour standards laid down by the International Labour Organization (ILO): the freedom of association and free collective bargaining, the abolition of all forms of forced and child labour, and the elimination of discrimination in working life. Companies and employee organisations should work together constructively and promote the conclusion of effective agreements on wages and working conditions. Firms considering changes in their commercial operations should discuss the potential employment effects of these changes in advance with workers' representatives and government authorities. In addition, where possible, they should employ local workers and enhance their skills.
• Environment
  In terms of environmental protection, companies are called on to introduce efficient internal environmental management systems and transparent environmental reporting processes, to comply with the precautionary principle, and to have effective contingency plans in place should damage to the environment occur. In addition, enterprises should constantly strive to improve their environmental performance.
• Combating corruption
  In order to prevent corruption, companies should not offer, promise, grant or demand bribes directly or indirectly, and should reject any demands for bribes. In addition, they should actively combat corruption and promote transparency (e.g. management control systems).
• Consumer interests
  To take consumer interests properly into account, companies are called on to engage in fair business, marketing and advertising practices and to guarantee the safety and quality of the goods and services they provide. This includes aspects such as appropriate product information and the protection of personal data.
• Science and technology
  With regard to science and technology, the Guidelines recommend that companies use procedures that foster the transfer and rapid dissemination of technology and expertise while giving appropriate consideration to the protection of intellectual property rights.
• Competition
  To protect competition, the Guidelines call on companies to observe the rules of fair competition and not to form anti-competitive cartels. Firms are expected to comply with the competition rules of the respective countries in which they operate.
• Taxation
  Finally, in the field of taxation, companies should contribute to the public finances of their host countries through the timely payment of their tax liabilities, comply with the tax rules and regulations of the countries in which they operate, and co-operate with tax authorities.

The Guidelines are an important benchmark for corporate conduct when it comes to foreign investment. They can make a significant contribution to the general benefits deriving from direct investment and to sustainable development, particularly in developing countries. Therefore, it is crucial to increase companies' awareness and understanding of these non-binding recommendations and the manifold benefits they provide.