OECD Guidelines For Multinational Enterprises

OECD Guidelines for Multinational Enterprises in Global Commerce Policy

In this regard, oecd guidelines for multinational enterprises is: a set of voluntary guidelines in the form of recommendations for the behaviour of multinational enterprises (MNEs) first adopted by OECD member countries in 1976 and last revised in 2000. The guidelines are not intended to distinguish between MNEs and domestic enterprises. Rather, they are meant to reflect good practice for all. Chapter II contains a range of general policies (contribute to economic, social and environmental progress in host countries, respect for human rights, encouragement of local capacity- building, encourage human capital formation, support and uphold good corporate principles, etc.). Chapter III recommends that enterprises should ensure disclosure of timely, regular, reliable and relevant information regarding their activities, structure, financial situation and performance. Chapter IV on employment and industrial relations asks enterprises, among other things, to respect the right of employees to be represented by trade unions, to contribute to the effective abolition of child labour and the elimination of all forms of forced or compulsory labour, not to discriminate among employees on grounds of race, colour, sex, religion, etc., and to provide employee representatives with assistance in developing effective collective agreements. Chapter V asks enterprises to take due account of the need to protect the environment , public health and safety and to contribute to the wider goal of sustainable development. Chapter VI asks companies neither to offer nor to accept bribes. Chapter VII on consumer interests recommends taking all reasonable steps to ensure the safety and quality of goods and services. Chapter VIII aims to promote the transfer and rapid diffusion of technologies and know-how and to perform science and technology development work in host countries. Chapter IX asks enterprises to conduct their activities in a competitive manner. Chapter X stresses the important contribution of enterprises to public finances of host countries by paying their taxes on time. See also Draft United Nations Code of Conduct on Transnational Corporations and ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy.[1]

OECD Guidelines for Multinational Enterprisesin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “OECD Guidelines for Multinational Enterprises” entry (OAS)

See Also