OECD Watch welcomes the recent update of the OECD Guidelines for Multinational Enterprises. This submission is a supplement to the OECD Watch May 2011 statement on the update. The earlier statement details the improvements and shortcomings of the “new” OECD Guidelines. This submission outlines OECD Watch’s vision for effective implementation and enforcement of the updated Guidelines, and elaborates on recent developments among NCPs.

OECD Watch welcomes the changes to the OECD Guidelines that confirm and broaden the scope of the instrument to the global activities and all business relationships of MNEs. The new text introduces valuable provisions on human rights, business relationships, workers and wages, and climate change. However, the updated procedures for the implementation of the OECD Guidelines do not provide
adequate assurances, mandatory oversight and peer review mechanisms to ensure consistent, coherent and effective NCP performance. Responsibility rests firmly with individual NCPs and adhering governments to demonstrate real political will to uphold corporate accountability best practice via the state.

This update comes with an obligation and opportunity for the OECD and adhering countries, to strengthen the effectiveness of this unique instrument for promoting responsible business conduct in the
global context. The update provides an ambitious agenda for the OECD Investment Committee and the Secretariat, individual NCPs, enterprises and civil society organisations.

As such, OECD Watch recommends active stakeholder engagement to pursue a pro-active agenda to ensure the fullest implementation of the OECD Guidelines by enterprises throughout their activities and relationships. In its submission OECD Watch also outlines recommendations to adhering governments and NCP and calls on enterprises implement the new provisions of the updated Guidelines.

Read the submission here.