OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are the most comprehensive set of government-backed recommendations on responsible business conduct, providing non-binding principles and standards for multinational enterprises operating in or from adhering countries.

First adopted in 1976 as part of the OECD Declaration on International Investment, the Guidelines were most recently updated in June 2023 to address emerging challenges including climate change, biodiversity, technology, and supply chain due diligence. They are the only multilaterally agreed and comprehensive code of responsible business conduct that governments have committed to promoting.

Key Chapters

The Guidelines cover recommendations across eleven chapters: general policies, disclosure, human rights, employment and industrial relations, environment, combating bribery, consumer interests, science and technology, competition, taxation, and due diligence (added in 2023).

Human Rights aligns with the UN Guiding Principles on Business and Human Rights, requiring enterprises to respect human rights, avoid causing or contributing to adverse impacts, and address such impacts when they occur. Enterprises should carry out human rights due diligence appropriate to their size, nature, and context of operations.

Environment recommends that enterprises establish and maintain environmental management systems, provide adequate and timely information on potential environmental impacts, assess and address foreseeable environmental impacts, maintain contingency plans, and continually seek to improve environmental performance. The 2023 update strengthened climate and biodiversity provisions.

Due Diligence was elevated to a standalone chapter in 2023, establishing risk-based due diligence as a cross-cutting expectation across all chapters. This aligns with the OECD Due Diligence Guidance for Responsible Business Conduct (2018) and reflects the growing regulatory trend toward mandatory due diligence legislation.

National Contact Points

A unique feature of the Guidelines is the National Contact Point (NCP) mechanism. Each adhering government must establish an NCP to promote the Guidelines and handle "specific instances" — complaints about alleged non-observance by enterprises. NCPs offer a non-judicial grievance mechanism that can facilitate mediation and issue determinations on whether enterprises have observed the Guidelines.

2023 Update: Key Changes

The 2023 update introduced provisions on climate change mitigation aligned with the Paris Agreement, biodiversity and ecosystem protection, technology-related due diligence including AI and digital technologies, enhanced supply chain due diligence expectations, and alignment with evolving regulatory frameworks such as the EU Corporate Sustainability Due Diligence Directive.

Further Reading

• OECD MNE Guidelines — Official portal
• OECD Due Diligence Guidance — Implementation guidance

Related Topics

• UN Guiding Principles
• Supply Chain Human Rights
• Anti-Corruption & Bribery Laws