AT A GLANCE

 

Comparing the:

Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights

with the

The Organization for Economic Cooperation and Development Guidelines for Multinational Enterprises

Attribute

Norms

OECD Guidelines [1]

Purpose:

-> Provide soft law norms for transnational corporations (TNCs)[2] and other business enterprises[3] to promote and protect human rights on an international scale. These Norms may be viewed as a basis for the potential development of a treaty, establishing and confirming the rudimentary obligation of States, individuals and corporations to respect, ensure respect for, prevent abuses of, and promote human rights.

-> Promote voluntary guidelines to improve the international investment climate and enhance the contributions made by multinational enterprises (MNEs)[4] to sustainable economic growth through operational recommendations, while strengthening relationships between governments and MNEs. The Guidelines are non-binding, and seek to strengthen relationships between governments, MNEs, and the societies in which they operate.

Scope:

 

 

Who: TNCs, all other business enterprises, and their officers.

 

 

What:

-> Both documents cover non-discrimination, equal opportunity, the abolition of child labor, employee representation, corruption, consumer and environmental protection.

 

->The Norms additionally address national sovereignty and security of persons. The Norms are broad statements within specific areas, which enable almost universal application to TNCs and business enterprises of any size, scope, or reach.

Who: OECD member governments, NGOs, labor associations, and MNEs.

 

What:

->Both documents cover non-discrimination, equal opportunity, the abolition of child labor, employee representation, corruption, consumer and environmental protection.

 

->The Guidelines additionally address specific disclosure requirements, competition, taxation, and science and technology.

Implementation:

 

Document Status:

-> The Norms are to be viewed as soft law norms, beginning as recommendations, and later building as the basis of a possible treaty; differing from a company code of conduct that might be changed or altered easily. Intended to establish soft law, the Norms interpret human rights obligations. The Norms also set forth basic implementation approaches.

 

 

Specific Methods/Techniques:

-> TNCs and business enterprises: are to adopt, disseminate and implement internal rules of operation in compliance with the Norms. They must also perform self-evaluations, record claims of Norm violations, incorporate the principles into contracts with their business partners, and provide reparations to those negatively affected.

 

-> Governments: should implement the Norms by using them as a model for legislation or administrative provisions for enterprises acting in their country, perform monitoring including labor inspections, and utilize their national courts for determining responsibility for violations.

 

-> U.N.: should monitor implementation of the Norms by creating State reporting requirements and additional implementation techniques, by receiving complaints and giving businesses opportunity to reply, by possibly engaging a group of experts to take action for failure to comply, and by raising concerns about continued human rights abuse by TNCs and business enterprises. In addition, the U.N. may use the Norms to develop procurement standards.

 

-> NGOs: perform monitoring and reporting on the efforts and potential violations of the Norms.

 

-> The Sub-Commission’s Working Group on the Working Methods and Activities of Transnational Corporations: receive information concerning the possible negative impact of the activities of TNCs and other business enterprises on human rights, and particularly affecting the implementation of the Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights. The Working Group will invite any TNCs or other business enterprises concerned, to provide whatever comments they may wish to provide within a reasonable time. In addition, the Working Group shall study submitted information and transmit comments and recommendations to the appropriate parties. Finally, the Working Group will also consider other methods to encourage full implementation of the Norms.

Document Status:

-> The Guidelines are voluntary and non-binding with a few preliminary methods of implementation. Companies develop their own codes of conduct based on the Guidelines with an emphasis on shared social values and strengthening mutual investment. The Guidelines are to be implemented regionally, within the member states.

 

 

Specific Methods/Techniques:

-> MNEs: are recommended to observe the Guidelines wherever they operate, taking into account relevant domestic laws. They should contribute to economic and social progress while respecting and promoting awareness of human rights through their business activities and transactions.

 

 

 

-> National Contact Points (NCP)[5]: are to promote the Guidelines, handle inquiries and discussion, and contribute to problem solving when such needs arise. The NCPs are to meet annually to share experiences and report to the CIME (see below).

 

-> Committee on International Investment and MNEs (CIME)[6]: provides clarifications and recommendations periodically or at the request of an adhering country. The CIME also periodically reports to the Council on matters relating to the Guidelines and with reports from the NCPs.

 

 

 

Source:

 

 

-> Drafting:

In 1999, the Working Group on the Working Methods and Activities of TNCs started developing the Norms based on human rights standards. The Working Group prepared a preliminary draft, and with each new draft thereafter, they sought and incorporated comments from businesses, NGOs, unions, and others. Throughout the entire drafting process, the Working Group has continually sought and accepted outside perspectives and comments, including posting the drafts on the internet to ensure full accessibility and comments from all interested parties. The Working Group currently seeks additional comments, as it expects to submit a draft to the Sub-Commission in July/August 2003.

 

-> Originating Documents:

The Norms rely heavily upon the Universal Declaration of Human Rights; the International Covenant on Civil and Political Rights; and the International Covenant on Economic, Social and Cultural Rights. It also takes into account the International Labor Organization (ILO) Tripartite Declaration of Principles Concerning MNEs and Social Policy, the ILO Declaration on Fundamental Principles and the Rights at Work, the OECD Guidelines, and the U.N. Global Compact in addition to many other influential international legal documents.[7]

 

The Norms reflect the binding norms within these documents, but incorporate the most commonly used provisions in the less binding documents as well.

-> Drafting: (Revisions)

The Advisory bodies to the OECD (the Business and Industry Advisory Council, and the Trade Union Advisory Council) as well as ANPED (the Northern Alliance for Sustainability in the Netherlands) served to coordinate drafting, representing the views of business, labor, and civil society respectively.

Each group organized a common position, and presented that position to the OECD during the negotiating and drafting process. The OECD posted the comments of the groups, as well as each negotiating draft, on the internet, so that businesses, labor associations and civil society groups could respond and affect the content. The OECD released the newest revision of the Guidelines in June 2000.