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Corporate Accountability for Human Rights: Using the OECD Guidelines for Multinational Enterprises as a Tool

Corporate Accountability for Human Rights: Using the OECD Guidelines for Multinational Enterprises as a Tool. Trocaire Development Review November 11 2009 Hannah Grene. What is the role of business in respecting human rights?.

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Corporate Accountability for Human Rights: Using the OECD Guidelines for Multinational Enterprises as a Tool

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  1. Corporate Accountability for Human Rights: Using the OECD Guidelines for Multinational Enterprises as a Tool Trocaire Development Review November 11 2009 Hannah Grene

  2. What is the role of business in respecting human rights? • Traditionally, international law applies to states -both rights and responsibilities. • Human rights law gives rights to individuals; but duties remain with state • What duties do business have? • Ruggie report, 2008: ‘Protect, Respect and Remedy’.

  3. What is the role of business in respecting human rights? Weaknesses in orthodox view where all responsibility rests with the state • situations where the corporation is wealthier than the host state, leading to an imbalance of power; • Businesses taking advantage of conflict to gain control of natural resources (eg DRC) • Businesses operating in states involved in human rights violations (eg Burma)

  4. Filling the gap? • Various international mechanisms have been created to hold companies responsible • Include voluntary codes of conduct and industry specific initiatives eg Kimberly Process • The OECD Guidelines are one of these tools.

  5. The OECD Guidelines for Multinational Enterprises • ‘adhering states undertake to ensure that their corporations respect certain standards in their activities, whether at home or abroad’ • In existence since 1976, specifically human rights since 2000. • Unlike Global Compact and other codes of conduct, it does have a grievance mechanism, provided by a system of National Contact Points (NCPs)

  6. OECD National Contact Points as a non-judicial grievance mechanisms • Weaknesses: can be frustrating, as no real ‘teeth’ and therefore often no results. • Strengths: OECD NCPs have sometimes successfully acted as mediators • Strengths: Official condemnation of a company by a government agency - leverage for a public/divestment campaign.

  7. The way forward? - Three recommendations • For the OECD Guidelines to function properly, there must be more input from the OECD Investment Committee (the central body which oversees them). This requires: • a push by the reform minded NCPs (UK, NL) • impetus from the Ruggie team • pressure from civil society

  8. The way forward? - Three recommendations • National Contact Points must be given more ‘teeth’. • 29 states report linking OECD Guidelines to export credit agreements, overseas investment guarantees and inward investment programmes. BUT only 2 actually make observance a condition for funding.

  9. The way forward? - Three recommendations • NGOs and interested parties should raise a specific instance as part of a public campaign. • No cost • Not a huge commitment; no specific format for raising complaints, so can use general campaign research and literature. • May not make a difference, but will at least test the system.

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