The OECD Guidelines for Multinational Enterprises and the Increasing Relevance of the System of National Contact Points

Abstract

The importance of multinational enterprises (MNEs) has developed with expanding global trade and international investments flowing under the process of globalisation. With the related growing influence of corporations on economy and society has come increasing human rights problems, particularly for MNEs operating in third world countries. The OECD produced in 1976 the most prominent interstate document on corporate social responsibility – the OECD Guidelines for Multinational Enterprises. This article examines significant developments to date and explores the role of the Guidelines. It is divided into four parts, starting with an outline of the nature and content of the Guidelines. An examination of structure and functioning of National Contact Points (NCPs) follows. The next chapter explores NCPs “in practice,” providing two case studies of recent disputes according to the Guidelines handled by the Swiss and Dutch NCPs. This part is intended to prove the growing relevance of the system in mitigation of business activities. Finally, the article offers some concluding remarks about the Guidelines and their increasing relevance in protecting societal values and human rights today.

Keywords: OECD, National Contact Point, Responsible Business Conduct, Business and Human Rights

JEL Classification: K33