The OECD Guidelines for Multinational Enterprises (the Guidelines) provide voluntary principles and standards for responsible business conduct in a variety of areas including human rights, anti‑corruption, taxation, labour relations, environment, information disclosure, and consumer protection. The Guidelines are recommendations approved by governments to multinational enterprises (MNEs) operating in or from the territories of the 40 countries that adhere to the Guidelines1.
Promoting appropriate business conduct by MNEs is a growing challenge — particularly since their operations often straddle many countries of varying cultural, legal and regulatory environments. The Guidelines aim to develop a sustainable approach to business conduct, and promote an atmosphere of mutual confidence between MNEs and the many societies in which they operate. These relationships are increasingly important in the context of globalisation, and particularly as emerging economies play a greater role in this process.
Consequently, the Guidelines encourage greater levels of quality foreign direct investment (FDI) and support MNEs in contributing to the efficient use of capital, technology and human resources, and by acting as catalysts for transferring international best practice across a range of disciplines. Such influence in the global market also has invaluable flow‑on effects to sustainable and social development programs and to the achievement of the UN Millennium Development Goals.
Importantly, while the Guidelines have been endorsed within the OECD international forum, they are not a substitute for, nor do they override, Australian law. The Guidelines are voluntary standards and their effectiveness depends on the responsibility and good faith of all parties involved with their promotion and implementation.
While many codes of conduct for responsible business are available, the Guidelines stand out as the only multilaterally endorsed and comprehensive code that OECD governments are committed to promoting.
The Australian Government is committed to promoting the use of the Guidelines and their effective and consistent implementation. Through your cooperation and support, the Guidelines will realise their potential as a positive influence on business conduct and, ultimately, on economic, environmental and social progress.
1 This includes 30 OECD Member countries and 10 non-Member countries (as of August 2007).
