Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration)

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

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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

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Roles and responsibilities of tripartite partners

• 27 Paragraphs addressed to enterprises
• 15 Paragraphs addressed to Governments
• Involvement of employers and workers
  organizations

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MNE Declaration Follow up

• MNE Subcommittee of the Governing Body
  Multinational enterprises team
• Periodic surveys
• Interpretation Procedure
• Promotional activities, research, technical
  cooperation

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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

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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

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OECD Guidelines

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

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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

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OECD Guidelines Content

• General policies
• Disclosure
• Employment and industrial relations
• Environment
• Bribery
• Consumer interests
• Science and technology
• Competition
• Taxation

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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

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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

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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
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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

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The MNE Declarationand the OECD Guidelines
Common features Adopted at the end of the 1970s Two main international instruments on corporate social responsibility (CSR) Similar provisions as regards employment and labour issues Encourage business to contribute to sustainable development and a fair globalization Encourage dialogue and partnerships Common features Adopted at the end of the 1970s Two main international instruments on corporate social responsibility (CSR) Similar provisions as regards employment and labour issues Encourage business to contribute to sustainable development and a fair globalization Encourage dialogue and partnerships Common features Adopted at the end of the 1970s Two main international instruments on corporate social responsibility (CSR) Similar provisions as regards employment and labour issues Encourage business to contribute to sustainable development and a fair globalization Encourage dialogue and partnerships
Distinctive features
MNE Declaration MNE Declaration OECD Guidelines
More detailed recommendations concerning labour employment topics Non-binding character Follow-up mechanisms always involve tripartite partners More detailed recommendations concerning labour employment topics Non-binding character Follow-up mechanisms always involve tripartite partners Covers much more areas than labour employment Binding for adhering governments Governments investigate alleged violations