Strengthening mechanisms for corporate accountably is a core priority for EarthRights International (ERI). As part of this effort, ERI has actively engaged in activities to strengthen the OECD Guidelines for Multinational Enterprises (“Guidelines”), a set of principles and standards for responsible business conduct in areas including human rights, the environment, and bribery. ERI is also working to improve National Contact Points (“NCP”), the national offices responsible for: promoting the Guidelines, serving as a clearing house for inquiries and comments about implementation of the Guidelines, and discussing with concerned parties matters covered by the Guidelines.
Since 2007, ERI has had a sustained engagement with the OECD Guidelines and efforts to improve their content and implementation in the US, abroad, and at the international level. We have coordinated the filing of a specific instance complaint with the Korean NCP over the destructive Shwe natural gas project in Burma, submitted a report and request for clarification to the OECD Investment Committee, and as an active member of OECD Watch, have presented recommendations on updating the Guidelines to address non and low-functioning NCPs and the failure to achieve functional equivalence in front of the Investment Committee and the gathering of NCPs at the annual meetings in Paris this year. ERI is also on the Subcommittee of the State Dept.’s Advisory Committee on International Economic Affairs (ACIEP).
As part of our work in the U.S., ERI has partnered with a coalition of labor and human rights organizations in an effort to reform the U.S. National Contact Point, an NCP with a dismal reputation among communities impacted by American corporate activities. The U.S. has conceded that its NCP, housed in the State Department’s Bureau of Economic, Energy and Business (EEB) is in need of reform, and is taking important steps to this end.
Spurred on by our coalition, EEB has undertaken a review process, including a public comment process to improve the NCP procedures that closes on November 5, 2010. In addition, EEB has removed the NCP from the Office of Investment Affair – an obvious conflict of interest, appointed a new NCP whose exclusive portfolio is the promotion of the Guidelines and handling of Specific Instance complaints, and recognized the need for an independent NCP.
ERI will be submitting detailed comments by the November 5, 2010 deadline, and ERI’s Campaign Director, Paul Donowitz spoke yesterday at a public hearing on the issue.
Donowitz's comments focused on three key issues critical to a well-functioning NCP office: (1) increased stakeholder representation, within the NCP office itself, and within a Review Board; (2) elimination of conflict-of-interest, including removing the NCP office from within EEB, whose primary role is to promote the interest of U.S. business; and (3) enforcement of Final Statements that find MNE non-compliance with the OECD Guidelines, including referral to other government agencies for appropriate actions.
ERI will continue our work to improve National Contact Points as well as the OECD Guidelines for Multinational Enterprises, and partner with communities and local organizations to file Specific Instance complaints where multinational corporations violate human and environmental rights.
