Why are the OECD Guidelines important?
The OECD Guidelines are recommendations from governments to multinational enterprises on how to act responsibly. Together with the UN Guiding Principles on Business and Human Rights (UNGPs) and the ILO Declaration on Multinational Enterprises, they establish the international normative framework for corporate human rights and environmental accountability. The Guidelines:
- Set international expectations for responsible business conduct
- Are backed by governments and endorsed by civil society, trade unions, and businesses
- Expect companies to carry out risk-based due diligence to identify, prevent, mitigate and account for adverse impacts to human rights, the environment, and society
- Apply to impacts across a company’s whole value chain
- Cover companies across all sectors, business models, sizes and ownership structures
- Are supported by the OECD’s system of National Contact Point (NCP) promotional and complaint mechanisms
Because of these strengths, the Guidelines have become a basis for wider national, regional, and international policy and law on responsible business conduct.
What changed in the 2023 Guidelines?
Originally drafted in 1976, the Guidelines have been updated repeatedly. Governments updated the OECD Guidelines most recently in 2023 to strengthen expectations for responsible business conduct and respond to emerging environmental, social, and technological challenges.
The 2023 update particularly strengthened expectations around climate change, biodiversity, technology, supply-chain due diligence, disclosure, and protection for human rights and environmental defenders. The update also strengthened guidance for NCPs on how they should function, promote the Guidelines, and handle complaints.
Read more about the 2023 Guidelines update and the role of OECD Watch here.
Are the OECD Guidelines legally binding?
The OECD Guidelines are recommendations to companies rather than legally binding rules for businesses. Governments that adhere to the Guidelines commit to promoting and implementing the Guidelines, including through National Contact Points. The Guidelines can also serve as a blueprint for strong, legally binding corporate accountability and due diligence rules. We support civil society organisations to use the Guidelines when engaging in policy processes and assessing emerging laws and policies. Read more about this here.
How to use the Guidelines
The OECD Guidelines provide civil society with a framework for engaging companies, governments and other decision-makers on responsible business conduct. You can use the Guidelines to:
Help communities and other affected people understand the standards companies are expected to meet and the rights and protections they can demand.
Use the Guidelines to talk to companies about their impacts and demand that they prevent, address and remedy harm.
Use the Guidelines to advocate for strong laws, policies and corporate practices that protect people and the planet and hold companies accountable.
When a company falls below the standards in the Guidelines, you can bring a complaint to an NCP and seek accountability and remedy.
Click on one of the topics below to find out more...
Animal Welfare
How companies should respect animal welfare and prevent harm through responsible business practices.
Anti-corruption
How companies should prevent corruption and strengthen integrity, transparency and responsible business conduct.
Climate Change
How companies should reduce emissions, strengthen climate action and address the impacts of the transition on people and communities.
Competition
How companies should compete fairly and avoiding anti-competitive practices that harm workers, consumers or society.
Due Diligence
How companies should identify, prevent, mitigate and address their impacts on people and the planet.
Environment
How companies should prevent and address environmental harm through responsible business conduct practices and due diligence.
Finance
How financial institutions should follow the responsible business conduct standards set out in the OECD Guidelines across the whole value chain.
Gender
How companies should use a gender lens to identify and address the distinct impacts of their activities on women and LGBTQI+ people.
Human Rights
How companies should respect human rights, prevent harm and provide or contribute to remedy when harms occur.
Human Rights Defenders
How companies should respect human rights defenders and prevent and remedy reprisals against those who speak out.
Indigenous Peoples
How companies should respect Indigenous Peoples’ rights, including collective rights to culture, self-determination, and free, prior and informed consent.
Just Transition
How businesses should support a transition to sustainable economies that protects people, workers and communities.
Land Rights
How companies should prevent harm to people’s land, housing and tenure rights and respect legitimate land rights.
Policy Coherence
Why governments need coherent policies and strong rules to ensure companies act responsibly.
Remédio
How companies and accountability mechanisms can help ensure people affected by corporate harm can access effective remedy.
Stakeholder Engagement
How meaningful engagement can ensure affected people have a voice in decisions that impact them.
Taxation
How companies should engage as responsible tax citizens, contributing fairly to the public revenues that support sustainable development.
Technology
How companies can identify and address the human rights, environmental and other impacts of technology and AI.
Workers’ Rights
How companies should respect workers’ rights across their operations and value chains, including freedom of association and collective bargaining.