The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are recommendations by governments for businesses to align their activities with sustainable development and conduct due diligence to avoid adverse impacts on people, planet and society.
Which topics do the Guidelines cover?
- The Guidelines cover the full range of sustainability impacts that enterprises may have on people, planet and society: human rights; employment and industrial relations; environment; bribery and other forms for corruption; consumer interests; science, technology and innovation; competition; and taxation.
What is Responsible Business Conduct Due Diligence?
- Enterprises should avoid causing or contributing to adverse impacts on the matters covered by the Guidelines. They should also seek ways to prevent or mitigate impacts by their business relationships. Due diligence is the process by which enterprises should identify, prioritise, prevent, mitigate and account for how they address such impacts. Due diligence should include meaningful stakeholder engagement.
What are business relationships?
- Business relationships include relationships with entities that are directly linked to an enterprise¡¯s operations, products or services including by supplying products or services used by the enterprise or receiving products or services from the enterprise.
How do the Guidelines relate to laws and regulation?
- The Guidelines are voluntary standards for responsible business conduct. Matters covered by the Guidelines may be the subject of domestic law and international commitments or may go beyond what enterprises are legally required to do. The OECD recommends that governments put in place a legal and regulatory framework to enable Responsible Business Conduct in the areas covered by the Guidelines. When engaging in public advocacy, enterprises should ensure that their lobbying activities are transparent and consistent with their commitments and goals on matters covered by the Guidelines.
Korea NCP (¡°KNCP¡±) expects both multinational enterprises operating in Korea and Korean companies advancing abroad to voluntarily and actively observe the Guidelines.
