New OECD guidelines to protect human rights and social development

Ministers from OECD and developing economies will today agree new guidelines to promote more responsible business conduct by multinational enterprises, and a second set of guidance to limit the use of conflict minerals. Forty-two countries will commit to new, tougher standards of corporate behaviour in the updated Guidelines for Multinational Enterprises: the 34 OECD countries plus Argentina, Brazil, Egypt, Latvia, Lithuania, Morocco, Peru and Romania. The updated Guidelines include new recommendations on human rights abuse and company responsibility for their supply chains, making them the first inter-governmental agreement in this area. The Guidelines establish that firms should respect human rights in every country in which they operate. Companies should also respect environmental and labour standards, for example, and have appropriate due diligence processes in place to ensure this happens. These include issues such as paying decent wages, combating bribe solicitation and extortion, and the promotion of sustainable consumption. The Guidelines are a comprehensive, non-binding code of conduct that OECD member countries and others have agreed to promote among the business sector. A new, tougher process for complaints and mediation has also been put in place. “The business community shares responsibility for restoring growth and trust in markets,” said OECD Secretary-General Angel Gurrà­a. “These guidelines will help the private sector grow their businesses responsibly by promoting human rights and boosting social development around the world.” Ministers from adhering countries will also agree to a Recommendation designed to combat the illicit trade in minerals that finance armed conflict. More…

News selected by Covalence | Country: Global |  Source: OECD