press release
friends of the earth international/o.e.c.d.
watch
22 September 2005
oecd guidelines failing to deliver
corporate accountability, five-year review
concludes
Global Coalition Calls For Tighter
Regulation of Multinational Corporations
BRUSSELS (BELGIUM) / PARIS (FRANCE),
September 22, 2005 - The 'Guidelines for
Multinational Enterprises' of the
Organisation for Economic Co-operation and
Development (OECD) are not an adequate
instrument for curbing corporate
misconduct.
This is the stark conclusion of 'OECD
Watch' in its report '
Five
Years On: A Review of the OECD Guidelines for
Multinational Enterprises and National
Contact Points
,' which was released
today to coincide with the OECD's Investment
Committee meeting in Paris.
The international NGO coalition OECD Watch
calls for legally binding international
social and environmental standards for
corporations to help stop corporate abuses,
particularly in developing countries.
Five years ago the OECD launched the
revised Guidelines for Multinational
Enterprises, including a complaint mechanism
for affected communities and NGOs. Despite
being the most widely endorsed instrument in
existence, few multinationals have adapted
their behaviour to the Guidelines' principles
and standards for responsible corporate
behavior.
"There are a number of inherent weaknesses
in the Guidelines, the most notable being
that companies cannot be sanctioned for
irresponsible behavior because the Guidelines
are voluntary," said Paul de Clerk of Friends
of the Earth International at the launch of
the report.
Governments, however, have clear
implementation obligations, which includes
establishing a 'national contact point' (NCP)
to handle allegations of corporate
misconduct.
OECD Watch examined 45 complaints that
were filed by NGOs and affected communities
over the last five years. In addition to an
overview of the cases, the report 'Five Years
On' analyses the way in which the NCPs have
handled complaints. Most of the results are
deeply worrying.
There is no evidence to suggest that the
Guidelines have helped to reduce the number
of conflicts arising between local
communities, civil society groups and
multinational companies. NGO experience with
the Guidelines indicates that they are simply
inadequate as a global mechanism to improve
the operations of multinationals and
contribute to a reduction in conflict between
communities and investors in any
comprehensive way. Without the threat of
effective sanctions, there is little
incentive for companies to ensure they are in
compliance with the guidelines.
In those cases where a complaint was
filed, the NCPs rarely contributed to
resolving specific conflicts. Five years of
experience with the Guidelines has revealed
that most NCPs are failing to promote the
Guidelines and impress upon companies the
importance of adherence. When issues are
raised with governments, most NCPs will not
investigate the validity of the claims.
The report's author, Patricia Feeney of
RAID-UK, explained, "Even when issues of the
utmost gravity are raised, as in the case of
the Democratic Republic of the Congo, NCPs
have exerted themselves to block
investigations and to shield companies from
censure."
OECD Watch's five year review concludes
that voluntary instruments such as the OECD
Guidelines for Multinational Enterprises are
insufficient and that legally binding
international social and environmental
standards are needed to curb corporate
abuses. If the Guidelines are to be at all
effective in solving specific problems raised
by communities, OECD governments must do more
to promote adherence to the guidelines and
improve their implementation drastically.
for more information contact
In Brussels, Belgium, Paul de Clerck
(Friends of the Earth International) Tel: +32
2 542 6107 or email
paul@milieudefensie.nl
In Paris, France, Patricia Feeney (Raid),
mobile tel: +44 (0) 7796 178447 (in the UK
from Sept.23 onwards at + 44 1865436245 )
In Amsterdam, The Netherlands, Joris
Oldenziel (SOMO), Tel: +31 (0)20 639 12
91
notes to editors
OECD Guidelines
The OECD Guidelines are a set of voluntary
principals and standards backed by
governments to which multi-national
enterprises operating in or from OECD
countries are expected to adhere. In 2000 the
OECD Guidelines for Multinational Enterprises
were revised and procedures established
allowing NGOs to file complaints about the
behaviour of companies.
National Contact Points
National Contact Points (NCPs) are
government offices established to promote
multinational companies' adherence to the
OECD Guidelines. NCPs are responsible for
handling complaints about companies.
oecd watch
OECD Watch is an international network of
47 NGOs from 28 countries set up to
facilitate NGO activities around the OECD
Guidelines and the work of the Investment
Committee. The Investment Committee is the
OECD body working on international
investment, multinational enterprises and the
OECD Guidelines. This report, the third by
OECD Watch, reviews the development of the
National Contact Points (NCPs) in 22 of the
39 countries that have adopted the
Guidelines. This assessment is based on NGO
experiences and perceptions. It also reflects
the views of NGOs in a number of in non
adhering countries.
www.oecdwatch.org
|
