Interested to know why the OECD Guidelines are important for the Netherlands?
The OECD Guidelines are important for the Netherlands, because they stipulate the Dutch government's expectations on how Dutch multinationals should act according to Responsible Business Conduct.
The OECD Guidelines for Multinational Enterprises are the most comprehensive set of government-backed recommendations on responsible business conduct in existence today. The governments adhering to the Guidelines aim to encourage and maximise the positive impact MNEs can make to sustainable development and enduring social progress.
The Guidelines are important recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation.
Part I of the OECD Guidelines
Part I of the OECD Guidelines contains the 11 chapters of the Guidelines. Through the drop-down overview below you can find a short overview of each chapter. For the full text of the OECD Guidelines, please refer to the link at the top of this page.
The chapter sets out the nature of the Guidelines, their potential scope of application, their relationship to domestic law, the definition of a multinational enterprise and avenues for promoting the implementation of the recommendations the Guidelines make to enterprises.
The chapter establishes common principles that underline the specific recommendations of subsequent chapters, including that businesses should conduct risk-based due diligence to identify, assess and address adverse impacts associated with their operations, products and services on the matters covered by the Guidelines. The main aspects of the six-step due diligence framework and the scope of business relationships are outlined. The chapter also includes expectations with regard to lobbying, self-regulatory practices and multistakeholder initiatives, and reprisals against persons for investigating or raising concerns about the enterprise.
The chapter outlines recommendations for enterprises related to disclosure of material information and disclosure of responsible business conduct information even where this information is not considered material. It is clarified how disclosure is intertwined with the six-step due diligence framework. The chapter is aligned with the G20/OECD Principles of Corporate Governance.
The chapter is aligned with the business responsibility to respect human rights established in the UN Guiding Principles on Business and Human Rights, including that enterprises should conduct due diligence to avoid causing, contributing to, or being directly linked to adverse human rights impacts. Included are expectations to pay special attention to individuals or groups who may be at heightened risk due to marginalization, vulnerability or other circumstances, such as human rights defenders and Indigenous Peoples. Also, enhanced due diligence is expected in the context of armed conflict or heightened risk of gross abuses.
The chapter affirms that enterprises should respect the International Labour Organization (ILO) fundamental principles and rights at work (ILO core conventions) as well as a range of principles related to industrial relations, worker training, and adequate wages and working conditions. Expectations in relation to the prevention of human trafficking, forced labour and debt bondage are included as well as expectations in relation to automation, digitalization, just transition and sustainable development.
The chapter sets out the expectation that enterprises conduct due diligence to assess and address adverse environmental impacts associated with their operations, products and services, including in relation to climate change (scope 1, 2, 3), biodiversity, consumption and production, and animal welfare.
The chapter sets out the expectation that enterprises do not engage in any act of bribery or other forms of corruption. This applies to both offers of corruption to the enterprise as well as requests made to the enterprise and to interactions with both public officials and with employees of other enterprises.
The chapter calls on enterprises to act in accordance with fair business, marketing and advertising practices and that their goods and services do not adversely impact consumers. This includes the expectations regarding e-commerce and sustainability related claims.
The chapter sets out the expectation that enterprises conduct due diligence to assess and address adverse impacts associated with the development, financing, sale, licensing, trade and use of technology, including gathering and using data, as well as scientific research and innovation. Expectations where children and youth are involved, as well as the misuse of civilian technology are included.
The chapter calls on domestic and multinational enterprises to carry out their activities in a manner consistent with applicable competition laws and regulations, taking into account the competition laws of all jurisdictions in which the activities may have anti-competitive effects. This includes paragraphs concerning responsible business conduct initiatives and buying labour input.
The chapter calls on enterprises to comply with both the letter and spirit of tax laws and regulations of the countries in which they operate and make timely tax payments. It is aligned with the transparency-related provisions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) project, transfer pricing guidelines and notes the importance of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
Part II of the OECD Guidelines
Part II of the OECD Guidelines contains the following sections. For the full text, please refer to the OECD Guidelines through the link at the top of this page.
the Amendment of the Decision of the Council on the OECD Guidelines for Multinational Enterprises
the NCP Procedures
the Commentary on the Implementation Procedures of the OECD Guidelines for Multinational Enterprises
NCP
All countries adhering to the OECD Guidelines, have established a National Contact Point (NCP). All the information regarding the Netherlands National Contact Point can be found under NCP.
Due Diligence
The objective of the OECD Due Diligence Guidance for Responsible Business Conduct is to provide practical support to enterprises on the implementation of the OECD Guidelines for Multinational Enterprises.
The Due Diligence Guidance and the Due Diligence Guidances per sector can be found here.
You can also join the OECD e-learning Academy on Responsible Business Conduct. The OECD e-learning Academy on Responsible Business Conduct (RBC) provides learners with a unique opportunity to advance their knowledge on responsible business conduct and OECD risk-based due diligence.
