Concepts and principles

The OECD Guidelines are voluntary principles and standards for responsible business conduct, consistent with applicable laws and internationally recognised standards. They are not legally enforceable but complement domestic laws and regulations. The guidelines encourage international cooperation and aim to avoid conflicting requirements on multinational enterprises. They apply to all entities within a multinational enterprise and should not be used for protectionist purposes.

General policies

Enterprises should contribute to economic, environmental, and social progress, respect human rights, and encourage local capacity building. They should refrain from seeking exemptions from human rights, environmental, or labour regulations and uphold good corporate governance principles. Enterprises should also conduct risk-based due diligence to identify and mitigate adverse impacts, avoid causing or contributing to such impacts, and address them when they occur. They should engage with stakeholders and abstain from improper involvement in local political activities.

Disclosure

Enterprises should disclose timely and accurate information on material matters, including financial results, objectives, ownership, governance, and environmental and social impacts. They should apply high-quality standards for accounting and financial disclosure and undergo annual audits by independent auditors.

Human rights

Enterprises should respect human rights, which means avoiding infringing on the human rights of others and addressing adverse human rights impacts with which they are involved. They should carry out human rights due diligence, have a policy commitment to respect human rights, and provide for remediation of adverse human rights impacts.

Employment and industrial relations

Enterprises should respect workers’ rights to join trade unions and engage in collective bargaining. They should contribute to the abolition of child and forced labour and uphold non-discrimination in employment. Enterprises should provide necessary facilities and information to workers’ representatives, promote consultation and cooperation, and observe standards of employment not less favourable than those of comparable employers in the host country.

Environment

Enterprises should establish environmental management systems, collect and evaluate information on environmental impacts, and set measurable objectives for improvement. They should provide the public and workers with information on environmental impacts and engage in communication and consultation with affected communities.

Enterprises should assess and address environmental impacts throughout the lifecycle of their products and services, apply the precautionary approach, and maintain contingency plans for environmental emergencies. They should also seek to improve environmental performance, promote environmental awareness among customers, and provide environmental education and training to workers.

Combating bribery, bribe solicitation and extortion

Enterprises should not offer, promise, give, or demand bribes or other undue advantages. They should resist the solicitation of bribes and extortion and adopt internal controls and compliance programs to prevent and detect bribery. Enterprises should prohibit or discourage facilitation payments, conduct due diligence on agents, and enhance transparency in their anti-bribery efforts. They should also promote employee awareness and compliance with anti-bribery policies and refrain from illegal political contributions.

Consumer interests

Enterprises should act in accordance with fair business, marketing, and advertising practices and ensure the quality and reliability of their goods and services. They should provide accurate and clear information to consumers, offer access to dispute resolution mechanisms, and respect consumer privacy. Enterprises should also support consumer education, cooperate with authorities to combat deceptive practices, and consider the needs of vulnerable consumers and the challenges of e-commerce.

Science and technology

Enterprises should ensure their activities align with the science and technology policies of the countries where they operate and contribute to local and national innovative capacity. They should adopt practices that facilitate technology transfer, perform research and development in host countries, and grant licenses for intellectual property rights on reasonable terms.

Competition

Enterprises should comply with applicable competition laws and regulations, refrain from anti-competitive agreements, and cooperate with competition authorities. They should also promote employee awareness of competition laws.

Taxation

Enterprises should contribute to public finances by timely payment of taxes and comply with tax laws and regulations in the countries where they operate. They should treat tax governance and compliance as important elements of their risk management systems.

Implementation procedures of the OECD Guidelines for Multinational Enterprises

The OECD Guidelines are implemented through National Contact Points (NCPs) and overseen by the Investment Committee. NCPs promote the guidelines, handle inquiries, and contribute to resolving issues related to their implementation. The Investment Committee periodically reviews the guidelines and engages with non-adhering countries to promote responsible business conduct globally. It also clarifies the guidelines and reports to the OECD Council on related matters.