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Multinational enterprises and social policy

Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration). Multinational enterprises and social policy. The MNE Declaration. Key instrument on labour aspects of CSR Adopted by the Governing Body of the ILO in 1977 (last update: 2006)

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Multinational enterprises and social policy

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  1. Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy(MNE Declaration) Multinational enterprisesand social policy

  2. The MNE Declaration • Key instrument on labour aspects of CSR • Adopted by the Governing Body of the ILO in 1977 (last update: 2006) • Non-binding character • Recommendations to enterprises, governments, employers and workers • Applies to multinational and domestic companies

  3. MNE Declaration Content • General policies • Employment promotion and security • Equality of opportunity and treatment • Skills training • Conditions of work: Child and forced labour, wages and benefits, occupational safety and health • Industrial relations: freedom of association and collective bargaining

  4. Roles and responsibilities of tripartite partners • 27 Paragraphs addressed to enterprises • 15 Paragraphs addressed to Governments • Involvement of employers’ and workers’ organizations

  5. MNE Declaration Follow up • MNE Subcommittee of the Governing Body & Multinational enterprises team • Periodic surveys • Interpretation Procedure • Promotional activities, research, technical cooperation

  6. MNE Declaration Follow up surveys • Purpose of the surveys is to monitor the effect given to the MNE Declaration by multinationals, governments, and employers’ and workers’ organizations • A questionnaire approved by the ILO Governing Body is sent to the tripartite partners of all ILO member States • Eight surveys have been carried out. Most recent published in 2006 covers the period 2000-2003

  7. MNE Declaration Interpretation Procedure • To solve a disagreement on the meaning of the principles of the MNE Declaration, arising from an actual situation • To date interpretations of the Declaration have been given in four cases. They have dealt with different situations including: • Timing of notice to governments and workers concerning changes in MNE activities that would significantly affect employment • Trade union rights

  8. OECD Guidelines • Recommendations from Governments to enterprises • Adopted 1976, amended in 2000 • Part of the OECD Declaration on International Investment and Multinational Enterprises

  9. OECD Guidelines - Main features • Legally binding for Governments but not for companies • Primarily addressed to multinational enterprises but also to small and medium-sized enterprises • Not an alternative to national laws and regulations, but represent complementary principles of behaviour

  10. OECD Guidelines Content • General policies • Disclosure • Employment and industrial relations • Environment • Bribery • Consumer interests • Science and technology • Competition • Taxation

  11. Content related to labour • General policies:respect the human rights of those affected by their activities • Employment and Industrial relations • Freedom of association and collective bargaining • Child labour • Forced labour • Non-discrimination • Employment promotion and security • Skills Training • Environment • Health and Safety

  12. Implementation: National Contact Points (NCPs) • Adhering countries set up NCPs to: • Carry out promotional activities • Handle enquiries • Contribute to the solution of problems that may arise from alleged non-compliance with the Guidelines • NCPs should cooperate among them • NCPs meet annually to share experience and report to the Investment Committee

  13. NCP Specific Instances procedureIf a company is believed to be in breach of the Guidelines: A trade union, an NGO or another interested party can raise a case with the appropriate NCP NCP can seek advice from relevant authorities, employers’ organizations, trade unions, the OECD Investment Committee and other relevant experts Initial assessment to decide if case merits further examination Second phase of investigation: a forum for discussion for the parties concerned, allowing conciliation or mediation Impossible Resolution Possible Resolution Public statement which can include recommendations to the company

  14. Implementation: Investment Committee • Periodically hold exchanges of views on matters covered by the Guidelines • Examines NCPs’ requests for assistance and annual reports • Responsible for clarifications of the guidelines consults with TUAC, BIAC and NGOs • Holds exchanges of views among adhering and non-adhering countries • Reports to the OECD Council

  15. The MNE Declarationand the OECD Guidelines

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