BSR Insight | 10 Years Later: An Assessment of the Effectiveness of the OECD Guidelines
About the Author(s)
Elissa Goldenberg, Associate, Advisory Services
Publication Date
July 13, 2010
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In preparation for the Organisation for Economic Co-Operation and Development (OECD)'s forthcoming revisions of its Guidelines for Multinational Enterprises on responsible business and sustainable development, OECD Watch assessed the effectiveness of the guidelines over the past 10 years.
Based on an analysis of the 96 alleged cases of violation filed by NGOs since 2000, the study reveals that the guidelines have had limited success; however, the report authors provided recommendations they believe could improve the guidelines' effectiveness. These include:
- Provisions covering human and labor rights, the environment, climate change, community relations, taxation, and disclosure should be included to ensure responsible conduct.
- Governmental bodies responsible for enforcing the guidelines should have the necessary resources, independence, and investigative capacities to mediate and conduct impartial assessments of complaints.
- Companies violating the guidelines should be ineligible for state subsidies or receive other legal, administrative, or financial penalties.
For more information on how to effectively apply the guidelines to supply chain relationships, read BSR's report, or explore a suite of other resources here.
About the Author(s)
Elissa Goldenberg, Associate, Advisory Services
With four years of sustainability communications expertise, Elissa works with BSR member companies in a range of sectors—including those in information and communications technology; food, beverage, and agriculture; energy; and consumer products—on various sustainability issues including reporting, stakeholder engagement, and human rights... Read more →
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