About
The OECD Guidelines provide voluntary principles and standards for responsible business conduct in a global context consistent with applicable laws and internationally recognised standards.
The Guidelines cover several areas of business responsibility, including human rights and labour rights, as well as information disclosure, environment, bribery, consumer interests, science and technology, competition, and taxation.
The due diligence framework is based on a six-step model, where businesses must:
- embed responsible business conduct into policies and management systems;
- identify and assess adverse impacts in operations, supply chains and business relationships:
- provide for or cooperate in remediation when appropriate;
- cease, prevent or mitigate adverse impacts;
- track implementation and results; and
- communicate how impacts are addressed.
The latest updated version was published in June 2023. Key updates include:
- Recommendations for enterprises to align with internationally agreed goals on climate change and biodiversity;
- Recommendations for risk-based due diligence on the development, financing, sale, licensing, trade and use of technology, including gathering and using data;
- Recommendations on how enterprises are expected to conduct due diligence on impacts and business relationships related to the use of their products and services;
- Better protection for at-risk persons and groups including those who raise concerns regarding the conduct of businesses;
- Updated recommendations on disclosure of responsible business conduct information;
- Expanded due diligence recommendations to all forms of corruption;
- Recommendations for enterprises to ensure lobbying activities are consistent with the Guidelines; and
- Strengthened procedures to ensure the visibility, effectiveness, and functional equivalence of National Contact Points for Responsible Business Conduct.
Who does it impact?
All multinational enterprises operating in or from a signatory state.
In Norway: Companies falling within the scope of the Norwegian Transparency Act, i.e. companies covered by sec. 1-5 of the Norwegian Accounting Act, or which on the date of financial statements exceeds the threshold for two of the following three conditions: (i) sales revenues of NOK 70 million, (ii) balance sheet total of NOK 35 million and (iii) average number of employees over the financial year of 50 full-time equivalent.
Status: Launched
Adopted by the adhering governments in 1976. The last updated guidelines were released on 8 June 2023.
Relation to other initiatives and regulations
The OECD Guidelines are an integral part of the OECD Declaration on International Investments and Multinational Enterprises. They constitute a package of measures designed to promote direct investments between OECD states.
The 2023 updated OECD Guidelines are fully aligned with and complimentary to the UN Guiding Principles on Business and Human Rights and the ILO Tripartite Declaration.
Participants
- The OECD countries
- Some non-OECD countries, e.g. Argentina, Brazil, Egypt, Morocco, Latvia and Romania
Thommessen's comments
The OECD Guidelines are not legally binding for companies, but they are binding for signatory governments. Multinational enterprises may therefore be affected by legislation and requirements aiming to ensure that the operations of these enterprises are in line with government policies. We have also observed that compliance with the OECD Guidelines has become a common contractual requirement.
With effect from 1 July 2022, the Norwegian Transparency Act requires large enterprises in Norway to carry out due diligence assessments in line with the OECD Guidelines. The assessment may also be included in the company's reporting of corporate responsibility cf. Section 3-3 of the Norwegian Accounting Act.
The Norwegian National Contact Point for Reasonable Business Conduct ('NCP') has developed a self-assessment tool, intended to determine whether a company complies with the OECD Guidelines.