Concepts and Principles
- The Guidelines are not legally enforceable, but provide the principles and standards of good practice in multinational enterprises¡¯ business activity and require voluntary compliance. The Guidelines are not intended to introduce differences of treatment against multinational enterprises, but to present the standards of business conduct equally applying to all multinational and domestic and large and small and medium sized enterprises.
General Policies
- Multinational enterprises should contribute to economic, social and environmental progress with a view to achieving sustainable development, respect the human rights of a host country¡¯s people, and encourage local capacity building through close co-operation with the local community.
- They should carry out risk-based due diligence to prevent or identify and resolve any adverse effect of business activities, and encourage their business partners to introduce the principles of responsible business conduct, and they are also encouraged to participate in social discussions with interested parties.
Corporate Due Diligence Process
Disclosure
- Enterprises are facing increasing demands for disclosure of sustainability information. They should disclose information on all material matters that can reasonably be expected to influence an investor¡¯s assessment of the enterprise¡¯s value. It is also important that they communicate credible information on their due diligence processes
and the impacts of their operations, products and services on people, planet and society.
Human Rights
- Enterprises should avoid causing or contributing to adverse human rights impacts and address such impacts when they occur. They should also seek ways to prevent or mitigate adverse human rights impacts that they are directly linked to by a business relationship. The Human Rights Chapter of the OECD Guidelines for Multinational Enterprises is fully aligned with the UN Guiding Principles on Business and Human Rights.
Employment and Industrial Relations
- Enterprises should avoid any unlawful employment and industrial relations practices and respect the right of workers to establish or join trade unions and organisations of their own choosing, including for the purpose of collective bargaining and negotiations. They should contribute to the effective abolition of child labour and to the elimination of all forms of forced or compulsory labour; be guided by the principle of equality of opportunity and treatment; and provide a safe and healthy working environment. The Employment and Industrial Relations Chapter of the Guidelines is fully aligned with the ILO Declaration on Fundamental Principles and Rights at Work.
Environment
- Enterprises should conduct due diligence to address adverse environmental impacts of their operations, products and services. This includes impacts such as climate change; biodiversity loss; degradation of land, marine and freshwater ecosystems; deforestation; air, water and soil pollution; mismanagement of waste, including hazardous substances. Enterprises should ensure that their greenhouse gas emissions and impact on carbon sinks are consistent with internationally agreed global temperature goals. They should assess and address social impacts in the context of their climate action and environmental management.
Combating Bribery and Other Forms of Corruption
- Adverse impacts on matters covered by the Guidelines are often enabled by means of corruption. Enterprises should have measures in place to prevent, detect and address bribery and other forms of corruption, including through their business relationships.
Consumer interests
- Enterprises should apply fair marketing practices and ensure the quality and reliability of their products. They should provide accurate, verifiable and clear information that is sufficient to enable consumers to make informed decisions. Any product and environmental or social claims that enterprises make should be based on adequate evidence.
Science, Technology and Innovation
- Technology has a profound impact on the matters covered by the Guidelines, including sustainable development, human rights, economic participation, the quality of democracy, social cohesion, climate change, the global business and labour landscape and market dynamics. Enterprises should conduct due diligence to prevent and address adverse impacts related to development, licensing, sale, trade and use of science, technology and innovation.
Competition
- Companies should carry out their activities in a manner consistent with all applicable competition laws and regulations, considering the competition laws of all jurisdictions in which the activities may have anti-competitive effects. Enterprises need to refrain from anti-competitive agreements, which undermine the efficient operation of both domestic and international markets.
Taxation
- It is important that enterprises contribute to the public finances of host countries by making timely payment of their tax liabilities. Tax transparency supports the integrity of a country¡¯s tax system and is an important way of ensuring and demonstrating that enterprises comply with the letter and spirit of tax laws. Corporate boards should adopt tax risk management strategies to ensure that the financial, regulatory and reputational risks associated with taxation are fully identified and evaluated.
