OECD Adds Human Rights Chapter to Its Multinationals Guidelines
The State Department has announced that Secretary of State Clinton and other Ministers have adopted a new update to the OECD1 Guidelines for Multinational Enterprises which includes recommendations for the exercise of due diligence in supply chains.
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New Human Rights Chapter Recommends Due Diligence in Supply Chains
The current update incorporates a new human rights chapter that draws upon the Guiding Principles for business and human rights developed by the United Nations Special Representative for Human Rights and Business. The new chapter also incorporates guidance on exercising due diligence regarding human rights in the context of supply chain relationships.
(Another result of the update is the new recommendation to enterprises to cooperate in promoting Internet freedom through respect for the rights of freedom of expression, association, and assembly online.)
Update is Step Forward in Collaboration Between Gov't, Business, Labor, Etc.
According to the State Department, this update is a step forward in the collaborative efforts of business, labor, governments, and other key stakeholders to foster the positive contribution that business can make in realizing social objectives together with their contribution to job creation, economic growth and the production of value for their shareholders.
(The State Department notes these OECD Guidelines are the only ones that employ a network of national contact points to promote and implement their recommendations in cooperation with business, trade unions, and nongovernmental organizations. This update improves guidance to national contact points in relation to assisting companies and stakeholders address questions that arise regarding implementation of its recommendations, as well as the incorporation of a proactive agenda for collaboration with businesses and other stakeholders in addressing emerging challenges that may be faced by companies in similar circumstances.)
1Organization for Economic Cooperation and Development. The Guidelines are not limited to OECD members and presently have 42 adherents, including some emerging economies.
OECD Guidelines are available here.