The OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises are recommendations on “responsible business conduct” that have been adopted by governments in the OECD (and some outside it). New Zealand joined the OECD in 1973 and became a signatory to the guidelines when they were first adopted by the OECD in 1976. Today 42 countries have adopted them.

The Guidelines are one of the few international instruments that allow unions and other non-governmental organisations to hold multinational companies accountable for their behaviour. The Guidelines cover disclosure, human rights, employment and industrial relations, environment, combating bribery, consumer interests, science and technology, competition and taxation. While they are non-binding, the Guidelines offer an opportunity to “name and shame” and to threaten the reputation of poorly-behaving multinationals. They apply to all entities of a multinational company including business partners, suppliers, sub-contractors and franchises.

Governments that have signed the Guidelines are required to set up a National Contact Point (NCP) to promote them. In New Zealand the National Contact Point is the Ministry of Economic Development. It is the NCP that is also required to consider any allegations of a breach of the Guidelines by a multinational company headquartered in a signatory nation.

Bill Rosenberg (CTU) and Paul Tolich (EPMU) represent unions on the Liaison Group for the New Zealand NCP.

The Trade Union Advisory Council of the OECD (TUAC) has identlfied 136 cases submitted by trade unions under the Guidelines since 2000 and has a website providing information on the Guidelines.

For further information please contact Bill Rosenberg at the CTU.