Castan Centre for Human Rights Law

Multinational Corporations and Human Rights

International Law Norms

International Labour Organisation Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy

The principles were adopted by the International Labour Organisation (ILO) in November 1977 with the objective of encouraging multinational enterprises (MNEs) to make a positive contribution towards economic and social progress and to minimise difficulties arising from their operations. This work can be seen as providing guidance for how MNEs should implement the fundamental ILO conventions. The principles were updated and the revised version was released in 2000. The principles state that in terms of general policies, MNEs should obey national laws, respect international standards and honour their voluntary commitments. The principles cover in detail: employment promotion, equality of opportunity and treatment, security of employment, training, conditions of work and industrial relations. Implementation is voluntary.

http://www.ilo.org/public/english/employment/multi/download/english.pdf

Organisation for Economic Cooperation and Development Guidelines for Multinational Enterprises: Text, Commentary and Clarifications (October 2001)

The guidelines were originally adopted by the Organisation for Economic Cooperation and Development (OECD) in 1976 but were replaced by a revised text in 2000. They provide multinational enterprises (MNEs) from OECD member countries with voluntary, non-binding principles and standards of good business conduct. The guidelines are intended to help these enterprises contribute to economic, environmental, and social progress, with a view towards achieving sustainable development. The areas covered by the principles, in addition to general policies, include disclosure, employment and industrial relationships, the environment, combating bribery, consumer interests, science and technology, competition and taxation. Implementation is at the initiative of individual companies however there is a mechanism by which guideline issues may be raised through the National Contact Points (NCPs) established as a requirement of the guidelines in each adhering country. NCPs come together annually to share experiences and report to the OECD Committee on International Investment and Multinational Enterprises (CIME). CIME meets periodically to discuss the guidelines and to consult with business advisors, trade unions and non-governmental organisations (NGOs).

http://www.oecd.org/dataoecd/56/36/1922428.pdf

Organisation for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions aims to create a level playing field for companies competing for business contracts outside their home countries by outlawing the payment of bribes to foreign officials. In contrast to the many voluntary guidelines for multinational enterprises, this Convention imposes legal obligations on signatory party states. It entered into force in 1999.

http://www.oecd.org/document/21/0,2340,en_2649_34855_2017813_1_1_1_1,00.html

UN Global Compact

The UN Secretary-General Kofi Annan initiated the Global Compact in January 1999 as a voluntary programme seeking to engage companies on issues of international human rights, labour rights and environmental standards. The Global Compact originally contained nine principles all derived from UN instruments. A tenth principle, added in June 2004, is an anti-corruption principle. In order to take part in the Compact, chief executive officers send a letter to the UN Secretary-General, expressing a clear commitment to it. This commitment is demonstrated by taking concrete steps within the organisation to act on the nine principles, sharing these experiences on the Global Compact website and public advocating in favour of the Global Compact. As at June 2004, there were approximately 1,700 company participants.

http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html

The Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights

The Norms were adopted by the Subcommission on the Promotion and Protection of Human Rights, a subsidiary body of the UN Commission on Human Rights, in August 2003 and considered by the UN Commission on Human Rights at its 60th Session in April 2004. The Commission, while not adopting the Norms, resolved that the Office of the High Commissioner for Human Rights (OHCHR) should compile a report setting out the scope and legal status of all existing initiatives and standards on business responsibilities with regard to human rights, including the Norms, for the 61st Session. A mechanism for monitoring and enforcement proposed in the Norms is not to be utilised for the time being. The Norms and the accompanying interpretive commentary are a comprehensive restatement of human rights obligations on companies from the Universal Declaration of Human Rights and the principal human rights treaties as well as a wide range of labour, environmental, consumer protection and anti-corruption treaties and other international instruments.

http://www1.umn.edu/humanrts/links/norms-Aug2003.html

The commentary

http://www1.umn.edu/humanrts/links/commentary-Aug2003.html

The UN Human Rights Commission’s Resolution of 20 April 2004 (page 81, decision 2004/116)

http://www.unhchr.ch/huridocda/huridoca.nsf/e06a5300f90fa0238025668700518ca4/169143c3c1009015c1256e830058c441/$FILE/G0413976.pdf