The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct

Abstract

ECONOMY. The international business environment has experienced significant structural changes over the past three decades. As govern-ments opened markets, businesses embraced new opportunities, leading to an unprecedented period of economic growth and inter-connectedness. In particular, multinational enterprises (MNEs) – through job creation, human capital development, efficient capital distribution, and technology, knowledge and skills transfers – have significantly contributed to development and economic growth of both home and host countries. RESPONSIBLE BUSINESS CONDUCT MATTERS. Responsible business conduct is an essential part of an open international investment climate. MNE activities often span multiple countries and many cultural, legal, and regulatory environments. This complexity, coupled with the intensely competitive nature of international business, presents MNEs and their stakeholders with unique and specific challenges. Although many MNEs demonstrate a respect for high standards of business conduct, some may neglect the appropriate principles and standards of conduct in an attempt to gain undue competitive advantage. This may be particularly true in environments where regulatory, legal, and institutional frameworks are underdeveloped or fragile. More and more enterprises are responding by committing to responsible business practices, promoting dialogue, and engaging with stakeholders. Addressing societal concerns while advancing enterprise interests can be mutually supportive. MARKET INTEGRITY IS ESSENTIAL. Building a healthy business environment is in the interest of all stakeholders and demands effort by all. Governments have a responsibility to protect inter-nationally recognised fundamental rights and to improve the functioning of markets through good governance, fair regulations, and transparency. Businesses have a responsibility to adopt respon-sible business practices that take into account both the bottom line and the impact of their activities on society. Labour and civil society have to be involved proactively and constructively and have a key role to play in ensuring accountability. International organisations can provide a forum for dialogue, peer learning, standard setting, analysis, and best policy recommendations. The 2008 global crisis has demonstrated in no uncertain terms that markets need integrity – they need to work for people and not the other way around.