This presentation by Roel Nieuwenkamp, was made at the session "Integrating ASEAN firms into global value chains through investment" during the 2nd ASEAN-OECD Investment Policy Conference held on 10-11 December 2014. Find out more at: http://www.oecd.org/daf/inv/investment-policy/2014-asean-oecd-investment-policy-conference.htm

1. Responsible Business Conduct
in Global Value Chains
Relevance for South East Asia
Prof. Dr. Roel Nieuwenkamp
• Chair OECD Working Party on Responsible Business
Conduct
• 46 Member governments

4. Contents
1. OECD Guidelines for Multinationals
2. What are the global trends?
3. NCP cases South East Asia
4. Soft law -> hard law
5. Relevance for business in South East Asia

5. • Most comprehensive set of guidelines for responsible business conduct
• All areas of corporate responsibility (labour, human rights, environment,
corruption, taxation, etc)
• Government backed, binding for governments, non binding for MNE’s
• Unique grievance mechanism (Mediation by National Contact Points)
• NCPs promote the Guidelines and deal with complaints about company
behaviour in specific instances.
• 46 Members, including non OECD members (Braz, Arg, Col, Tun., etc)
• More non members process of adherence
• Most global supply chains and foreign direct investment covered
1. OECD Guidelines for Multinationals

6. 1. OECD Guidelines for Multinationals
1. Concepts and Principles
2. General policies
3. Disclosure
4. Human Rights
5. Employment and industrial relations
6. Environment
7. Combating bribery
8. Consumer interests
9. Science and technology
10. Competition
11. Taxation
No other corporate
responsibility
instrument covers
these four issues

7. Adoption by the OECD Ministerial Council Meeting
Fmr US Secretary of State, Ms. Hillary Clinton, at the adoption:
“If you look at these guidelines, they will be helping us determine how
supply chains can be changed so that it can begin to prevent and
eliminate abuses and violence. We’re going to look at new strategies
that will seek to make our case to companies that due diligence, while
not always easy, is absolutely essential.”

8. 2. Global trends: Due Diligence and Supply Chain
• Scope of application of the Guidelines extended from investment to business
relationships, including suppliers, agents and franchises
• Risk-based due diligence main tool to prevent adverse impact.
Enterprises should:
•Carry out risk-based due diligence , (…), to identify, prevent and mitigate actual and
potential adverse impacts (…), and account for how these impacts are addressed.
•Avoid causing or contributing to adverse impacts on matters covered by the
Guidelines, through their own activities, and address such impacts when they occur.
•Seek to prevent or mitigate an adverse impact where they have not contributed to
that impact, when the impact is nevertheless directly linked to their operations,
products or services by a business relationship.

9. 3. NCP Cases
Philippines (9)
Indonesia (8)
Myanmar (6)
Lao People’s Democratic Republic (4)
Malaysia (4)
NCP’s: e.g. Australia, Denmark, France, Germany, Japan,
Netherlands, Norway, Switzerland, United Kingdom, United
States

10. 3. High risk areas – human rights
• Sugar plantation Cambodja - displacement of people (Australia
NCP)
• Nickel Mine Philppines - Norway NCP - Indigenous people
(stakeholder engagement)
• Dam Laos– Austria, Finland NCP’s

11. 3. High risk areas – labour issues
- restructuring
- freedom of association
• Philippines, Thailand – NCP Sweden – Triumph
• Malaysia – NCP United Kingdom - BAT
• Indonesia – NCP Germany –Heidelberg Cement

12. 3. High risk areas
Garment & textiles - Health and safety
- Wages
- Freedom of association
- Child labor
Mining - Failing stakeholder engagement
- Indigenous peoples
Agriculture - Land rights

13. 4. Relevance for Business in South East Asia
• Soft law with hard consequences
• Investment in and from SE Asia
• Global Supply chains to and from SE Asia
• Serious implementation necessary: due diligence
system!
• Focus on problem prevention

14. Further information
For further information:
http://mneguidelines.oecd.org
Contact: Prof dr Roel Nieuwenkamp, Chair of the Working Party on
Responsible Business Conduct – roel.nieuwenkamp@minbuza.nl
@Nieuwenkamp_CSR
#OECDrbc
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