Governments failing to curb corporate abuse
05 10 2007
OECD Watch´s new briefing ´Model National Contact Point´ (released today) makes recommendations for increasing the effectiveness of the OECD Guidelines, one of the few corporate accountability instruments currently available. The recommendations are based on the findings from extensive consultations among government officials, trade unions, business representatives and NGOs in 20 OECD countries. Almost none of the countries surveyed had properly functioning bodies to deal with complaints about violations of the OECD Guidelines.
The Model NCP contains proposals and
recommendations to improve and harmonise the functioning of the National
Contact Points. Proposals range from principles such as the independence of the
NCP and equal treatment of parties to detailed recommendations towards better
handling of complaints. Although the survey largely focuses on the EU, the
problems identified are prevalent throughout OECD and adhering countries.
“Governments seem to have forgotten that they have an obligation to prevent and
punish irresponsible behaviour by their companies, especially when such
behaviour leads to human rights violations. Whether companies are active in
Burma, Baghdad or Bolivia, governments need to take reasonable steps to curb
corporate abuses”, said Patricia Feeney of OECD Watch.
One of the few corporate accountability mechanisms currently available is the
OECD Guidelines, which are intended to govern corporate conduct at home and
abroad. “Complaints about abuse are handled by government officials – National
Contact Points – but in practice many are too close to companies to act as
credible arbiters of corporate conduct”, said Joris
Oldenziel, OECD Watch spokesperson.
When, in 2001, concerns were raised about the activities of French companies in
Burma, the French National Contact Point failed to criticise the companies
involved and ignored calls for disinvestment.
OECD Watch calls on governments, the OECD and the European Commission to adopt
the recommendations contained in the Model National Contact Point, which would
increase the effectiveness and credibility of the Guidelines as a tool for
ensuring responsible corporate behaviour. If no significant improvement are
made in the next year, the Guidelines will become meaningless.