RESPONSIBLE BUSINESS MATTERS Sustainable Development, Inclusive Growth and the OECD Guidelines for Multinational Enterprises CSR Summit 2014 April 15, 2014 Prague

Global Trends in Responsible Business Conduct OECD Guidelines for Multinational Enterprises Priority areas and the way forward AGENDA

Forum for experience sharing and peer learning Established in governments 250 committees in specialised policy areas senior government officials secretariat staff Official voices of business, trade unions and NGOs reflected The OECD

Moving beyond growth RBC as a crucial part of a healthy business environment Market integrity is essential Global Trends

Two core instruments – OECD Guidelines for Multinational Enterprises – UN Guiding Principles on Business and Human Rights Clearer and stronger principles and standards Understanding of baseline responsibilities More predictable business environment Historical opportunity to turn ideas into action RBC: Convergence and Coherence

Most comprehensive and only government-backed international corporate responsibility instrument in existence today Addressed to MNEs operating in or from adhering countries Purpose is to ensure business operations: – are in harmony with government policies; – strengthen the basis of mutual confidence with host societies; – help improve foreign investment climate; – enhance contribution to sustainable development Updated in 2011 OECD Guidelines for Multinational Enterprises

New human rights chapter consistent with UN Guiding Principles on Business and Human Rights A new and comprehensive approach to due diligence and responsible supply chain management, including in business relationships Important changes to many specialised chapters, such as: Employment and Industrial Relations; Combating Bribery, Bribe Solicitation and Extortion; Environment; Consumer Interests; Disclosure; and Taxation. Clearer and reinforced procedures to strengthen the role of NCPs, improve their performance and foster equivalence Inclusion of a proactive agenda to assist enterprises in meeting their responsibilities as new challenges arise New provisions on Internet Freedom and Stakeholder Engagement 2011 Update

NOT COVERED BY ANY OTHER RBC INSTRUMENT NEW Concepts and Principles General Policies Disclosure Human Rights Employment and Industrial Relations Environment Combating Bribery, Bribe Solicitation and Extortion Consumer Interests Science and Technology Competition Taxation Scope

46 governments from all regions of the world – 34 OECD members – 12 non-OECD members Use the Guidelines an essential component of open trade and investment policies Who adheres?

Main responsibility is to further the effectiveness of the Guidelines by: – undertaking information and promotion activities; – contributing to the resolution of issues that arise in the implementation of the Guidelines in specific instances; – reporting on their activities. Unique Implementation Mechanism: National Contact Points

Initial Assessment – Analyze if the issues raised merit further examination Good Offices – Consult with the parties and other NCPs concerned. – Seek advice from relevant stakeholders and the OECD Investment Committee if necessary. – Offer and facilitate access to consensual and non- adversarial means to resolve the issues. Publicize Results - issue a statement if: – Specific instance does not merit further examination. – No agreement is reached or a party is unwilling to participate in the procedure. – Agreement is reached. Specific Instance Facility

Specific Instance Process

Goal: successful resolution of issues More than 300 considered since 2000 – 50 under active consideration – 36 new in last implementation period Trends: – Human rights, labour and environment predominant issues – Most frequently cited sectors: extractives, manufacturing, financial services – Concern non-adhering countries (63% in 2013) New Database Specific Instances

Helps business identify and respond to risks of adverse impacts associated with particular products, regions, sectors, or industries Characteristics: – Adds value – Avoids duplication – Relies on a multistakeholder process – No new normative framework Three projects ongoing – Due diligence in the financial sector – Stakeholder engagement and due diligence in the extractive sector – Responsible investment in agricultural supply chains – Responsible supply chain management in the textiles sector (tbc) Unique Implementation Mechanism: Proactive Agenda

Comprehensive Government-backed Unique implementation mechanism – National Contact Points – Proactive Agenda Comprehensive approach to due diligence and responsible supply chain management Good practice for all Regularly updated To sum up…the Guidelines are:

NCP Peer Learning and Capacity Building – Focus on thematic issues: mediation and peer learning – Regional NCP coordination Outreach and Communication – Cooperation with emerging economies and partner organisations (UN GC, OHCHR, GRI, ILO, IFC, UN ESCAP) Enhancing the role of the OECD – Global Forum on Responsible Business Conduct – New Working Party on Responsible Business Conduct – New “RBC In” Publication Series – Central hub for information Implementation of the proactive agenda Way Forward

mneguidelines.oecd.org Thank you!