[ARCHIVED CONTENT] DTI - Europe & World Trade

Welcome to the website of the UK National Contact Point for the OECD Guidelines for Multinational Enterprises.

This site contains information on the Guidelines, adhering countries and other national contact points.

first issued the guidelines in 1976 and they are a voluntary framework of "principles of good conduct" for international companies in their cross-border business activities.

The Guidelines are aimed at promoting and developing a sustainable approach to business conduct.
They contain recommendations by governments to help ensure that Multinational Enterprises (MNEs) act in harmony with the policies of countries in which they operate and with the principles of corporate social responsibility.
They are the only comprehensive, multilaterally-endorsed code of conduct for MNEs.
They establish non-legally binding principles covering a broad range of issues in business ethics including employment and industrial relations, environment, information disclosure, competition, financing, corruption, taxation and science and technology.
Although the guidelines are not legally binding, OECD governments are committed to promoting their observance.
They are supported by both the business community and labour federations.
Other Non-Governmental Organisations have also been heavily involved in the latest review of the guidelines and will have a greater input into their implementation than previously.
The guidelines have been reviewed periodically. The last review was launched in 1998 as part of this regular process to update the Guidelines in the light of changing social, economic and political conditions. It focused particularly on their more effective implementation and wider dissemination.
The revised texts were formally agreed at the OECD Ministerial on 27 June 2000.

The OECD Guidelines for Multinational Enterprises are divided into texts (containing recommendations for business and actions for National Contact Points) and commentaries (giving details of the reasoning behind the text and how recommendations/actions might be achieved). Links to the full texts for these are below;

Under the Guidelines, adhering countries are required to establish a National Contact Point (NCP) to handle inquiries and discuss with concerned parties all matters covered by the Guidelines. The role of the NCP is two-fold, to promote the Guidelines and also to contribute to the resolution of issues that arise relating to their implementation. For example, should an individual or body have concerns about a company's behaviour in an area related to the Guidelines they should raise it with the NCP in the country where the action has occurred. If this is not possible, due to the country in question not adhering to the Guidelines and therefore not having an NCP, the matter may be raised with the NCP from the country where the Multinational Enterprise is based. The UK NCP is an inter-departmental body based in the International Investment Policy Unit of the Department of Trade and Industry.

If you wish to raise an issue concerning corporate behaviour in relation to the Guidelines the various procedures are set out below. Before reading the details please bear the following in mind:

These procedures follow the provisions of the Guidelines.
They apply to all issues arising in the UK or involving the activity of a UK MNE in an adhering country.
For issues arising in non-adhering countries where a UK MNE is deemed responsible, the UK NCP will take steps to develop an understanding of the issues involved and follow these procedures where relevant and practicable. This is due to possible difficulties, for example, in obtaining all pertinent information. However, this does not mean that the Government has different expectations of UK MNEs operating in non-adhering countries.
The general principle for the UK NCP is transparency. However in handling these procedures a balance needs to be struck between openness and confidentiality to build confidence in the Guidelines. There are specific examples where confidentiality is important such as the protection of sensitive information submitted to the NCP or the identity of a �whistle-blower�. Information and views provided during the proceedings by a party involved will, therefore, remain confidential, unless that party agrees to their disclosure. However, the results will be transparent, unless preserving confidentiality would be in the best interests of effective implementation of the Guidelines.
As we, and other NCPs, gain experience of handling issues, the UK NCP may be able to elaborate further, for example on the kind of information which has proved useful in considering complaints about MNE behaviour.

If the corporate activity you are concerned about takes place in the UK then the UK NCP is the appropriate NCP to contact;
If the activity takes place in another adhering country then it is for that country�s NCP to consider.
If the activity takes place in a non-adhering country, but the MNE or relevant part of the MNE deemed responsible is headquartered in the UK, then the UK NCP may be the appropriate contact (explained below).

Given the global and often complex structural and operational nature of many MNEs, it is not always clear which particular part of an MNE is responsible for any specific activity. This is important, as it determines which NCP will deal with any specific issue. Generally speaking, responsibility for the Guidelines rests with those exerting control or influence over the entity. The UK NCP is happy to assist in determining this in consultation with appropriate parties such as the company involved, trade unions and other NCPs.

Clearly the more information we have, the easier it will be for the NCP to follow up comments received. As a basic requirement we will need to know:

All this will help us to determine whether to pursue the issue further. Please contact us for further guidance.

In deciding whether to pursue an issue, the NCP will consult the company in question and also any other interested parties, as appropriate. The NCP will take into account:

the identity of the party concerned and its interest in the matter (the NCP will not determine the validity of an issue on the identity of the originator alone);
whether the issue is material and substantiated;
the relevance of applicable law and procedures;
how similar issues have been, or are being, treated in other domestic or international proceedings;
whether the consideration of the issue would contribute to the purposes and effectiveness of the Guidelines.

Then if having consulted others as outlined above, the NCP decides that the issue:

Does not merit further consideration, we will contact the originator explaining why this is the case.

Does merit further consideration, we will contact the originator and seek to contribute to its resolution. This will take the form of discussions with the company and could include interested parties such as: the originator; relevant authorities; trade unions and other NGOs; experts; consultations with other NCPs; or seeking guidance from the OECD Committee on International Investment and Multinational Enterprises on issues related to the interpretation of the Guidelines. It may involve face to face meetings, requesting and circulating to the parties involved for comment various documents or independent expert opinion, etc.

Who is involved in discussions will depend on the nature and subject of the issue. For example in dealing with an environmental issue experts consulted are likely to be different from when dealing with a labour issue. The important criterion is that any organisation or individual involved in these discussions should have an interest in the issue and/or some expertise to offer. The NCP will promote informed discussions, for example by encouraging the dissemination to the parties involved of expert papers; originator evidence; and company responses (or extracts from them). Information and views provided during the proceedings by a party involved will remain confidential, unless that party agrees to their disclosure.

The aim of these discussions is to reach agreement with all parties on the issue raised and for the company to take any appropriate action to resolve it. If no agreement can be reached the NCP will, with the agreement of the parties involved, offer, or facilitate access to, consensual and non-adversarial procedures to assist in dealing with the issue.

In the event of no agreement being reached, the NCP will issue a statement and, if appropriate, make recommendations on the implementation of the Guidelines. This may also apply if a company refuses to enter into discussions.

Like other parties concerned, the NCP will abide by all confidentiality provisions contained in the Guidelines and consult all concerned parties on the handling of any issue. This includes making public the results of any procedures, unless preserving confidentiality is in the best interests of effective implementation of the Guidelines.

Non-confidential information about an issue may be posted on this web-site and may feature in the UK NCP annual report. Again parties concerned will be consulted first.

Should you have any concerns about the procedures used by the NCP they can be raised in the OECD Committee on Investment and Multinational Enterprises (CIME) via the Business and Industry Advisory Committee (BIAC) or the Trade Union Advisory Committee (TUAC). In the first instance you may wish to contact the Confederation of British Industry (UK member of BIAC) or Trades Union Congress (UK affiliate to TUAC).

DTI Publications Orderline
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All adhering countries, including the UK, are required to produce an annual report on their activities.

Australia	Hungary	Norway
Austria	Iceland	Poland
Belgium	Ireland	Portugal
Canada	Italy	Slovakia
Czech Republic	Japan	Spain
Denmark	Korea	Sweden
Finland	Luxembourg	Switzerland
France	Mexico	Turkey
Germany	Netherlands	United Kingdom
Greece	New Zealand	United States

The NCPs held a very productive second Annual Meeting in Paris. The greater experience gained from dealing with "specific concerns" (about 15 have now been raised) led to an open and frank discussion of the issues encountered. Subjects discussed included how NCPs should cooperate better, whether the Guidelines applied to trade as well as investment, how the Guidelines applied to domestic companies, and how they fitted in with domestic legal procedures. The following day a Roundtable was held on supply chain issues with participation from NCPs, Business, Unions and NGOs.

The Government of Slovenia accepted an invitation to adhere to the OECD Declaration on International Investment and Multinational Enterprises (which includes the OECD Guidelines) to become the 36^th adhering country. This follows an examination of her investment policies by OECD members in December 2001. The official OECD press release can be accessed via the following web reference: http://www.oecd.org/daf/investment�

OECD Working Party on the Declaration on International Investment and Multinational Enterprises (Formerly Working Party on the Guidelines) 3 December 2001

National Contact Points met at the OECD to discuss Guidelines issues, the meeting now covers other aspects of the OECD Investment Declaration hence its change of name.. Lithuania and Estonia attended for the first time following their adherence to the Guidelines (and other parts of the OECD Investment Declaration) in September 2001. At the meeting it was agreed that the Annual NCP Meeting in 2002 would look at the Guidelines and supply chain issues. The Italian Delegation circulated some draft �rules of procedure� for examining any concerns brought to their NCP which stimulated lively debate between NCPs on how best to approach this. It was agreed that discussion this kind and also discussing NCP experiences in dealing with concerns was to the benefits of all NCPs.

The NCP exhibited on the DTI stand at the conference exhibition with the aim of further publicising the Guidelines among the companies and other exhibitors.

The UK NCP gave a presentation as part of the TUC Seminar entitled "Managing Multinationals The OECD Guidelines for Multinational Enterprises". It was attended by about 30 Trades Unions. The NCP explained its role and the Government's view on the Guidelines. Issues raised by Unions included the role of the Department for International Development in promoting the Guidelines in developing countries; supply chain issues; link between the Guidelines and export credit cover; and the possible role of local unions in the UK NCP's consideration of concerns raised about multinational activities in developing countries. The new TUAC booklet on the Guidelines entitled "The OECD Guidelines on Multinationals - A User's Guide" was also made available. More details are available from the TUAC website (see "Links" section).

The UK NCP gave a presentation at a Conference entitled "A European Framework for Corporate Social Responsibility" run by the European Business Foundation. About 30 business representatives attended. The presentation covered what the Guidelines aim to do, what they cover, why the Government thinks companies should use them and the role of Government in promoting and implementing them. We stressed the government backing, their comprehensive nature, and their use as a positive tool in developing company codes. In the ensuing discussion questions included the relationship between the Guidelines and other international codes; the number and kinds of concerns that had been raised with NCPs; the availability of information on how companies had used the Guidelines; how did NCPs ensure they were being implemented; and the role of BIAC and TUAC. We got the impression that awareness of the Guidelines was pretty low but that interest was high.

OECD Committee for Investment and Multinational Enterprises: 18-19 September 2001

The Guidelines featured as an agenda item in this meeting. There was a full airing of member governments' views on linking the Guidelines to export credits. It was agreed that flexibilities will remain for governments, but CIME emphasises the voluntary nature of the Guidelines. Delegates also discussed TUAC ideas on using the Guidelines to promote good corporate conduct in Burma. In connection with this it was agreed that the Secretariat would prepare a short factual paper on multinationals and conflict zones for the next meeting in December.

Annual Meeting of the National Contact Points for the OECD Guidelines: 18 June 2001

This was the first annual review of the NCPs under the revised Guidelines. The meeting was preceded by consultations with civil society i.e. the Business and Industry Advisory Council, Trades Union Advisory Council and NGO representatives (ANPED and Oxfam). The meeting was followed, on 19 June, by a Roundtable on Global Instruments for Corporate Responsibility.

Most NCPs had submitted their annual reports and the meeting reviewed the progress made during the last year and there was discussion over the format and content of the Chairman's annual report to CIME. The major topic of discussion was the advisability of linking the Guidelines with other Government policies such as export credits.

The UK NCP attended the first annual conference of the SIGMA project on 31 May to promote the Guidelines and distribute the NCP booklet. The SIGMA Project is aimed at developing practical guidance, standards and appropriate tools to help organisations manage sustainability. It is a partnership between the British Standards Institution, the Institute of Social and Ethical AccountAbility and Forum for the Future and is funded by the UK Department of Trade and Industry. For further information on SIGMA click here.

EC Conference on Management Tools for Implementing the OECD Guidelines: 11 May 2001

The UK NCP took part in a Conference on "Best business practices for Corporate Social Responsibility: Management tools for implementing the OECD Guidelines for Multinational Enterprises". It was organised by the European Commission to allow European firms, trade unions, non-governmental organisations and other interested parties to exchange experiences on their socially responsible practices at EU level. It was aimed at being the start of an ongoing dialogue at European Union level on implementing voluntary commitments of good corporate behaviour as expressed in the Guidelines. For further information on the Conference click here.

It was becoming clear at this meeting that there is a wide disparity of NCP activity amongst adhering countries. Many NCPs are coming under pressure to link Guidelines to other government policy instruments. A few cases are now being brought to NCPs. A format was agreed for annual NCP meeting on 18 June and a roundtable on corporate responsibility on 19 June which will look at other international CSR initiatives and how they might complement the Guidelines.

The Government has become the first member of the Organisation for Economic Cooperation and Development (OECD) to produce a booklet promoting the organisation's guidelines for Multinational Enterprises (MNEs).

Launched today, the DTI booklet will be sent to business leaders and key Non-Governmental organisations to raise awareness of the guidelines and encourage their use amongst UK inward and outward investors. The guidelines establish principles of good conduct for international companies.

The booklet also explains the role of the UK's National Contact Point (NCP). The NCP is the Government body based in the DTI that promotes awareness of the guidelines and ensures their effective implementation and development.

Following a meeting this morning with the CBI and TUC to discuss promotional and implementation measures, Minister for Trade Richard Caborn said: "It is essential that the Government elaborates on its implementation of the guidelines at a national level and this booklet is an excellent start to that process.

"I hope that other OECD countries will follow the UK lead. If we can encourage investors to use the Guidelines we can help ensure that the benefits of foreign investment and globalisation are felt more widely."

The DTI has worked closely with the Confederation of British Industry, the Trades Union Congress, and Non-Governmental Organisations including Friends of the Earth and Oxfam in drafting the booklet. This cooperation is intended to continue in implementing and promoting the guidelines.

CBI Deputy Director General John Cridland said: "This booklet will be a useful contribution to wider awareness and understanding of the Guidelines both within the business community and beyond".
TUC General Secretary, John Monks said: "We welcome the Guidelines and the publication of the booklet, which represent a significant opportunity to promote good business practice and to address the wider impacts of company activity."

Oxfam Senior Policy Adviser, Tricia Feeney said: "Oxfam GB warmly welcomes the initiative taken by the Government to produce this booklet. It is a positive step in promoting awareness of the guidelines."

Press releases and statements from the OECD, other adhering countries, business, unions and certain NGOs can be found here.

To have a strong, positive impact on multinational enterprise (MNE) contributions to economic, environmental and social progress, and to ensuring that the benefits of foreign investment are felt more widely, particularly in developing countries. That is why the UK supported their adoption and why we are pressing for full and consistent implementation by the National Contact Points of all adhering countries.

The UK is a strong supporter of the Guidelines, which are the only multilaterally endorsed and comprehensive code that governments are committed to promoting. We believe that they provide a definition of responsible business conduct and provide a framework for its implementation. They fit well with our wider policy on corporate social responsibility.

What plans does the UK have to promote the implementation of the Guidelines?

Proper implementation of the Guidelines is the key to their success. We are promoting the Guidelines primarily through the UK National Contact Point. Business, unions and NGOs have all expressed their views on UK implementation of the Guidelines. We are pleased that the fruitful working relationship established between all stakeholders in the UK during the negotiations continues.

It is in business' interest to develop robust managerial systems that support responsible conduct particularly with current scrutiny by civil society. The Guidelines have an important contribution to make to this in setting out government expectations. A voluntary approach allows flexibility for different businesses to reach same goals. It is also likely to be more effective than a binding approach where MNEs would be under duress.

What are the main improvements in the new texts of the revised Guidelines?

This review has made more far-reaching changes to the Guidelines than ever before.

Other new areas are those on combating corruption and consumer protection, while the areas of labour relations and general business practice have been updated.

Both the UK and OECD consulted closely with all stakeholders during the negotiations. This continued during the implementation stage. It is understood that the role of business is to follow the Guidelines, while the unions and NGOs can help the NCP by alerting us to problems. All three have a major role in working to publicise the Guidelines as widely as possible.

What role will the Minister for Corporate Social Responsibility have under the Guidelines?

Douglas Alexander MP is the Minister for Corporate Social Responsibility and his role is to coordinate the Government's work on corporate responsibility across all government departments. The Guidelines relate strongly to this work. The Minister for Trade, Baroness Symons, has lead responsibility for the Guidelines as they are an OECD investment instrument, however Mr Alexander and other government departments will have a major role to play in promoting their successful implementation, not least because a number of areas covered by the guidelines fall outside DTI lead-responsibilities, e.g. taxation and environment.

These are a range of government, business, trade union, and non-governmental organisation websites which give other perspectives on the OECD Guidelines for Multinational Enterprises and on Corporate Responsibility more generally. We would be interested to hear of any other web-sites covering these issues. Please contact uk.ncp@dti.gsi.gov.uk with details.

These sites are relevant to the Guidelines or more general business and corporate social responsibility (CSR) matters. Where there is actual reference to the Guidelines we have tried to include the specific URL.

We are interested to hear your views on the Guidelines, particularly practical experience of their use and where improvements may be made.

If you have any comments or questions please contact (providing your name, contact details and who you represent):