1. Corporate Accountability for Human Rights: Using the OECD Guidelines for Multinational Enterprises as a Tool Trocaire Development Review November 11 2009 Hannah Grene Trocaire Development Review November 11 2009 Hannah Grene

2. What is the role of business in respecting human rights?  Traditionally, international law applies to states -both rights and responsibilities.  Human rights law gives rights to individuals; but duties remain with state  What duties do business have?  Ruggie report, 2008: ‘Protect, Respect and Remedy’.  Traditionally, international law applies to states -both rights and responsibilities.  Human rights law gives rights to individuals; but duties remain with state  What duties do business have?  Ruggie report, 2008: ‘Protect, Respect and Remedy’.

3. What is the role of business in respecting human rights? Weaknesses in orthodox view where all responsibility rests with the state  situations where the corporation is wealthier than the host state, leading to an imbalance of power;  Businesses taking advantage of conflict to gain control of natural resources (eg DRC)  Businesses operating in states involved in human rights violations (eg Burma) Weaknesses in orthodox view where all responsibility rests with the state  situations where the corporation is wealthier than the host state, leading to an imbalance of power;  Businesses taking advantage of conflict to gain control of natural resources (eg DRC)  Businesses operating in states involved in human rights violations (eg Burma)

4. Filling the gap?  Various international mechanisms have been created to hold companies responsible  Include voluntary codes of conduct and industry specific initiatives eg Kimberly Process  The OECD Guidelines are one of these tools.  Various international mechanisms have been created to hold companies responsible  Include voluntary codes of conduct and industry specific initiatives eg Kimberly Process  The OECD Guidelines are one of these tools.

5. The OECD Guidelines for Multinational Enterprises  ‘adhering states undertake to ensure that their corporations respect certain standards in their activities, whether at home or abroad’  In existence since 1976, specifically human rights since 2000.  Unlike Global Compact and other codes of conduct, it does have a grievance mechanism, provided by a system of National Contact Points (NCPs)  ‘adhering states undertake to ensure that their corporations respect certain standards in their activities, whether at home or abroad’  In existence since 1976, specifically human rights since 2000.  Unlike Global Compact and other codes of conduct, it does have a grievance mechanism, provided by a system of National Contact Points (NCPs)

6. OECD National Contact Points as a non- judicial grievance mechanisms  Weaknesses: can be frustrating, as no real ‘teeth’ and therefore often no results.  Strengths: OECD NCPs have sometimes successfully acted as mediators  Strengths: Official condemnation of a company by a government agency - leverage for a public/divestment campaign.  Weaknesses: can be frustrating, as no real ‘teeth’ and therefore often no results.  Strengths: OECD NCPs have sometimes successfully acted as mediators  Strengths: Official condemnation of a company by a government agency - leverage for a public/divestment campaign.

7. The way forward? - Three recommendations 1.For the OECD Guidelines to function properly, there must be more input from the OECD Investment Committee (the central body which oversees them). This requires: a push by the reform minded NCPs (UK, NL) impetus from the Ruggie team pressure from civil society 1.For the OECD Guidelines to function properly, there must be more input from the OECD Investment Committee (the central body which oversees them). This requires: a push by the reform minded NCPs (UK, NL) impetus from the Ruggie team pressure from civil society

8. The way forward? - Three recommendations 2.National Contact Points must be given more ‘teeth’. 29 states report linking OECD Guidelines to export credit agreements, overseas investment guarantees and inward investment programmes. BUT only 2 actually make observance a condition for funding. 2.National Contact Points must be given more ‘teeth’. 29 states report linking OECD Guidelines to export credit agreements, overseas investment guarantees and inward investment programmes. BUT only 2 actually make observance a condition for funding.

9. The way forward? - Three recommendations 3.NGOs and interested parties should raise a specific instance as part of a public campaign. No cost Not a huge commitment; no specific format for raising complaints, so can use general campaign research and literature. May not make a difference, but will at least test the system. 3.NGOs and interested parties should raise a specific instance as part of a public campaign. No cost Not a huge commitment; no specific format for raising complaints, so can use general campaign research and literature. May not make a difference, but will at least test the system.