Oecd Due Diligence Guidance For Responsible Business Conduct
OECD DUE DILIGENCE GUIDANCEFOR RESPONSIBLEBUSINESS CONDUCT
OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT
OECD DUE DILIGENCE GUIDANCEFOR RESPONSIBLEBUSINESS CONDUCT
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to thedelimitation of international frontiers and boundaries and to the name of any territory, city or area.Please cite this publication as:OECD (2018), OECD Due Diligence Guidance for Responsible Business ConductDesign: Peggy King Cointepas OECD 2018 You can copy, download or print OECD content for your own use, and you can include excerpts from OECDpublications, databases and multimedia products in your own documents, presentations, blogs, websites and teachingmaterials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for publicor commercial use and translation rights should be submitted to rights@oecd.org. Requests for permission to photocopyportions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC)at info@copyright.com or the Centre français d’exploitation du droit de copie (CFC) at contact@cfcopies.com.OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT2
FOREWORDThe objective of the OECD Due Diligence Guidance for Responsible Business Conduct (Guidance)is to provide practical support to enterprises on the implementation of the OECD Guidelinesfor Multinational Enterprises by providing plain language explanations of its due diligencerecommendations and associated provisions. Implementing these recommendations helpsenterprises avoid and address adverse impacts related to workers, human rights, the environment,bribery, consumers and corporate governance that may be associated with their operations, supplychains and other business relationships. The Annex to the Guidance includes additional explanations,tips and illustrative examples of due diligence.This Guidance also seeks to promote a common understanding among governments andstakeholders on due diligence for responsible business conduct. The UN Guiding Principles onBusiness and Human Rights as well as the ILO Tripartite Declaration of Principles ConcerningMultinational Enterprises and Social Policy also contain due diligence recommendations, and thisGuidance can help enterprises implement them.The Guidance responds to the G7 Leaders’ Declaration adopted on 7-8 June 2015 in SchlossElmau, which recognised the importance of establishing a common understanding on duediligence, in particular for small and medium-sized enterprises, and encouraged enterprisesactive or headquartered in their countries to implement due diligence in their supply chains. Intheir Declaration adopted on 8 July 2017 in Hamburg, G20 Leaders committed to fostering theimplementation of labour, social and environmental standards and human rights in line withinternationally recognised frameworks in order to achieve sustainable and inclusive supply chains,and underlined the responsibility of businesses to exercise due diligence in this regard.The development of this Guidance was overseen by the OECD Working Party on ResponsibleBusiness Conduct (WPRBC) and involved a multi-stakeholder process with OECD and non-OECDcountries and representatives from business, trade unions and civil society. A first draft wassubmitted to the WPRBC and institutional stakeholders of the OECD for comment in May 2016.A public consultation on a revised draft of this Guidance was held in February 2017. A multistakeholder advisory group was formed in June 2017 to support the WPRBC in integratingstakeholder comments and completing the Guidance. United Nations Human Rights collaboratedextensively in this process.This Guidance was approved by the OECD Working Party on Responsible Business Conduct on6 March 2018 and by the OECD Investment Committee on 3 April 2018. An OECD Recommendationon the Guidance was adopted by Council at Ministerial level on 30 May 2018.The OECD has also developed guidance to help enterprises carry out due diligence for responsiblebusiness conduct in specific sectors and supply chains, namely: minerals; agriculture; garmentand footwear; extractives; and finance.OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT3
ACRONYMS AND ABBREVIATIONSEIAEnvironmental impact assessmentEPZExport processing zoneESIAEnvironmental and social impact assessmentsHRIAHuman rights impact assessmentKYCKnow your counterpartyMNEMultinational enterpriseNHRINational human rights institutionNCP National Contact Point for the OECD Guidelinesfor Multinational EnterprisesOLGMOperational-level grievance mechanismRBCResponsible business conductRBC issues Human rights, including workers and industrialrelations, environment, bribery and corruption,disclosure, and consumer interestsSMESmall and medium-sized enterpriseWPRBCOECD Working Party on ResponsibleBusiness ConductOECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT4
TABLE OF CONTENTSINTRODUCTIONI.II.OVERVIEW OF DUE DILIGENCE FOR RESPONSIBLE BUSINESS CONDUCT9Adverse impacts and riskWhy carry out due diligence?Characteristics of due diligence – the essentials14151616DUE DILIGENCE PROCESS1. Embed responsible business conduct into policies and management systems2. Identify and assess actual and potential adverse impacts associated with the2022253. 4. 5. 6. 29323334enterprise’s operations, products or servicesCease, prevent and mitigate adverse impactsTrack implementation and resultsCommunicate how impacts are addressedProvide for or cooperate in remediation when appropriate NNEX: Questions related to the overview of due diligenceAfor responsible business conductQ1. What are some examples of adverse impacts on matters covered bythe OECD Guidelines for MNEs?Q2. How can an enterprise integrate gender issues into its due diligence?Q3. How can an enterprise make decisions with respect to prioritisation?Q4. At what stages of the due diligence process is prioritisation relevant?Q5. How does prioritisation differ for human rights risks than for otheradverse impacts?Q6. How can resource constraints be addressed?Q7. How can due diligence be appropriate to an enterprise’s circumstances?Q8. Who are the enterprise’s stakeholders?Q9. What is “meaningful stakeholder engagement”?Q10. When is stakeholder engagement important in the context of due diligence?Q11. How can an enterprise engage with potentially vulnerable stakeholders?Q12. How can enterprises collaborate in carrying out due diligence?Q13. Can collaboration pose risks under competition law?OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT53738414245454646484950515153
TABLE OF CONTENTSQuestions related to the due diligence processA.1. Embed responsible business conduct into policiesand management systemsQ14. What goes into RBC policies?Q15. What expertise can be drawn upon in developing RBC policies?Q16. Which teams or business units will be relevant to consider whendeveloping and aligning objectives with the enterprise’s RBC policies?Q17. What are the distinctions in the role of the board and management inensuring RBC is embedded?Q18. How can RBC expectations be built into business relationships?A.2. Identify and assess actual and potential adverse impacts associatedwith the enterprise’s operations, products or servicesQ19. What is meant by scoping and how broad should an enterprise’sscoping exercise be?Q20. What is meant by sector, product, geographic, and enterprise-level risks?Q21. What are example sources of information for desk-based research?Q22. How might information deficits be addressed?Q23. How can an enterprise assess risks of adverse impacts in its own activities?Q24. How can an enterprise prioritise which of its own operations or businessrelationships to assess first?Q25. How can enterprises carry out assessments of business relationshipsprioritised during its scoping?Q26. What can an assessment of business relationships cover and who shouldconduct these assessments?Q27. When to assess business relationships?Q28. How can enterprises assess business relationships with whom they do nothave contractual relationships?Q29. What is meant by adverse impacts that are “caused”, “contributed to” bythe enterprise or are “directly linked” to its operations, products or servicesby a business relationship?Q30. Why does the way an enterprise is involved with adverse impacts matter?Q31. How can an enterprise prioritise its actions when seeking to prevent andmitigate adverse impacts across its activities and business relationships?OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT655565657596061626365656666676868707273
TABLE OF CONTENTSA.3. Cease, prevent and mitigate adverse impactsQ32. What is the difference between preventing adverse impacts andmitigating adverse impacts?Q33. How should an enterprise prevent and mitigate actual or potential impactsit may cause or contribute to?Q34. How can an enterprise seek to prevent and mitigate actual or potentialimpacts directly linked to its operations, products or services by a businessrelationship?Q35. How can an enterprise modify its operations or activities to prevent andmitigate adverse impacts linked to its business relationships?Q36. How can an enterprise use its leverage?Q37. How can a lack of leverage be addressed?Q38. How can an enterprise support a business relationship in the prevention ormitigation of adverse impacts?Q39. How can an enterprise approach disengagement?A.4. Track implementation and resultsQ40. How can an enterprise seek to prevent and mitigate adverse impactslinked to business relationships with whom it does not have acontractual relationship?Q41. What information is tracked under due diligence?Q42. How can an enterprise track implementation and results?Q43. Who is involved in tracking implementation and results within anenterprise?Q44. How can an enterprise respond to the results of its tracking?Q45. How to prioritise tracking activities?A.5. Communicate how impacts are addressedQ46. What are appropriate forms of communicating publicly and to impactedstakeholders?Q47. When information is commercially sensitive, how can relevant informationstill be communicated?OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT774757777787980808182828384848586
TABLE OF CONTENTSA.6. Provide for or cooperate in remediation when appropriateQ48. What is the relationship of remediation to due diligence?Q49. What is meant by “remediation” and “remedy”?Q50. How can an enterprise identify appropriate forms of remedy?Q51. What are “legitimate remediation mechanisms”?Q52. What does it mean to “cooperate with legitimate remediationmechanisms”?Q53. In which circumstances are various processes to enable remediationappropriate?Q54. What is the difference between an early warning system anda process to enable remediation?88888889909091RECOMMENDATION OF THE COUNCIL ON THE OECD DUE DILIGENCEGUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT92REFERENCES95OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT8
INTRODUCTIONBASIS This Due Diligence Guidance for Responsible Business Conduct (Guidance) is based on the OECDGuidelines for Multinational Enterprises (OECD Guidelines for MNEs). The OECD Guidelines forMNEs are non-binding recommendations addressed to multinational enterprises by governments on responsible business conduct (RBC). They acknowledge and encourage the positivecontributions that business can make to economic, environmental and social progress, and alsorecognise that business activities can result in adverse impacts related to workers, human rights,the environment, bribery, consumers and corporate governance. The OECD Guidelines for MNEstherefore recommend that businesses carry out risk-based due diligence to avoid and addresssuch adverse impacts associated with their operations, their supply chains and other businessrelationships.PURPOSEThis Guidance helps businesses (enterprises) to understand and implement due diligence for RBCas foreseen in the OECD Guidelines for MNEs (due diligence). This Guidance also seeks to promotea common understanding amongst governments and stakeholders on due diligence for RBC.T he OECD Guidelines for MNEs provide enterprises with the flexibility to adapt the characteristics, specific measures and processes of due diligence to their own circumstances. Enterprisesshould use this Guidance as a framework for developing and strengthening their own tailoreddue diligence systems and processes, and then seek out additional resources for further in-depthlearning as needed. OECD Guidelines for MNEs have a unique promotion and grievance mechanism – theTheNational Contact Points (NCPs). This Guidance is a useful resource for NCPs in understanding andpromoting the OECD Guidelines for MNEs. usee Box 8 for further information on NCPsSCOPETABLE 1. SCOPE OF THE OECD DUE DILIGENCE GUIDANCE FOR RBCEnterprisesl All multinational enterprises (MNEs), regardless of their ownershipstructure, in all sectors and of all sizes operating or based in countriesadhering to the OECD Guidelines for MNEs, including multinational, smalland medium-sized enterprises (SMEs).l All the entities within the MNE group – parent and local entities,including subsidiaries.l Multinational and domestic enterprises are subject to the sameexpectations in respect of their conduct wherever the OECD Guidelines forMNEs are relevant to both.OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT9
INTRODUCTIONTABLE 1. SCOPE OF THE OECD DUE DILIGENCE GUIDANCE FOR RBCTopics coveredin due diligence(RBC issues)*l Human Rights (OECD, 2011, Chapter IV)l Employment and Industrial Relations (OECD, 2011, Chapter V )l Environment (OECD, 2011, Chapter VI)l Combating Bribery, Bribe Solicitation and Extortion (OECD, 2011,Chapter VII)l Consumer Interests (OECD, 2011, Chapter VIII)l Disclosure (OECD, 2011, Chapter III)Businessrelationshipscovered bydue diligenceAll types of business relationships of the enterprise – suppliers, franchisees,licensees, joint ventures, investors, clients, contractors, customers,consultants, financial, legal and other advisers, and any other non-State orState entities linked to its business operations, products or services.* Three chapters of the OEC D Guidelines for MNEs are not covered by the Guidance: Science and Technology;Competition; and Taxation.TARGET AUDIENCESThe primary audience of the Guidance is practitioners tasked with implementing due diligencewithin an enterprise. Given the wide range of topics covered by the OECD Guidelines for MNEsand the cross-functional nature of implementing due diligence across an enterprise’s variedoperations and business relationships, there are likely to be a number of different business units,functional areas and individuals responsible for implementing due diligence. This Guidancemay also be useful for other parties, such as sector-wide and multi-stakeholder initiatives thatfacilitate collaboration on due diligence activities, and for workers, trade unions and workers’representatives1 and civil society organisations.STRUCTUREThe Guidance begins with a brief summary of each chapter of the OECD Guidelines for MNEs. It thenprovides an overview of due diligence, including some key concepts and characteristics, so readerscan easily understand the due diligence approach recommended in the OECD Guidelines for MNEs.The main body of this Guidance describes the due diligence process and supporting measures in astep-by-step fashion, although in practice the process of due diligence is ongoing, iterative and notnecessarily sequential, as several steps may be carried out simultaneously with results feeding intoeach other. “Practical actions” are included in each step to further illustrate ways to implement, or1. T his Guidance uses the terms workers’ representatives, trade unions and representative organisations of their ownchoosing, as understood by international labour standards: ILO Conventions No. 87 (Freedom of Association),No. 98 (Right to Organise and Collective Bargaining) and No. 135 (Workers’ Representatives).OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT10
INTRODUCTIONadapt as needed, the supporting measures and due diligence process. The practical actions are not meantto represent an exhaustive “tick box” list for due diligence. Not every practical action will be appropriatefor every situation. Likewise, enterprises may find additional actions or implementation measures useful insome situations.Additional explanations, tips and illustrative examples of due diligence are referenced and crosslinkedthroughout this Guidance. These are presented in a “question and answer” format and associated withspecific sections of the Guidance.LINKS TO OTHER PROCESSES AND INSTRUMENTSOECD sector guidance on responsible business conductThe OECD has developed sector-specific due diligence guidance for the minerals, agriculture andgarment and footwear supply chains, and good practice papers for the extractives and financial sectors(see OECD, 2016a; OECD, 2016b; OECD, 2016c; OECD, 2017a; and OECD, 2017b). These were developed inclose co-operation with governments, business, trade unions and civil society. Approaches articulatedunder the sector guidance align with the approach of this Guidance, but provide more detailed recommendations tailored to specific contexts or sectors. This Guidance is not intended to replace or otherwisemodify, but can supplement, existing sector-specific or thematic OECD guidance on RBC. Where questions arise, enterprises should use the guidance that is most specific and relevant to their operations,supply chain or sector.Other OECD instrumentsThe OECD Guidelines for MNEs are referenced in a range of other OECD instruments that reinforcethe interlinkages between RBC and these other areas, including: the G20/OECD Principles of CorporateGovernance; the Guidelines on Corporate Governance of State-Owned Enterprises; the CommonApproaches for Officially Supported Export Credits and Environmental and Social Due Diligence; thePolicy Framework for Investment; the Recommendation of the Council on Public Procurement; and theRecommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions (see OECD, 2015a; OECD, 2015b; OECD, 2016d; OECD, 2015c; OECD, 2015d;and OECD, 2009).Other multilateral processes and instrumentsIn relation to human rights issues, including the human rights of workers, this Guidance seeksto align with the UN Guiding Principles on Business and Human Rights, the ILO Declaration onFundamental Principles and Rights at Work, the ILO Conventions and Recommendations referencedwithin the OECD Guidelines for MNEs, and the ILO Tripartite Declaration of Principles concerningMultinational Enterprises and Social Policy (see UN, 2011; ILO, 1998; and ILO, 2017).OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT11
INTRODUCTIONCHAPTERS OF THE OECD GUIDELINESDISCLOSUREI. Concepts and PrinciplesThe first chapter of theGuidelines sets outconcepts and principlesthat put into context all of therecommendations in the subsequent chapters. These conceptsand principles (e.g. obeyingdomestic law is the first obligationof enterprises) are the backboneof the Guidelines and underlinethe fundamental ideas behindthe Guidelines.DISCLOSUREHUMAN RIGHTSRIGHTSCONCEPTSDISCLOSUREAND OYMENTAND INDUSTRIALRELATIONSENVIRONMENTIV. Human RightsEnterprises can havean impact on virtuallythe entire spectrum ofinternationally recognised humanrights. As such, it is important thatthey meet their responsibilities.This new chapter of the Guidelinesdraws on and is aligned with theUN “Protect, Respect and Remedy”Framework and the Guiding Principles on Business and Human Rightsthat operationalise that framework.CONCEPTSDISCLOSUREAND PRINCIPLESDISCLOSUREHUMAN UREDISCLOSURECONSUMERINTERESTSPEGGY KING COINTEPAS / DESIGNVI. EnvironmentThe environmentchapter provides a setof recommendations forMNEs to raise their environmentalperformance and help maximisetheir contribution to environmentalprotection through improvedinternal management and betterplanning. It broadly reflects theprinciples and objectives of theRio Declaration on Environmentand Development and Agenda OSUREDISCLOSUREDISCLOSUREPOLICIESPOLICIESAND ATINGHUMAN RIGHTSRIGHTSAND INDUSTRIALAND INDUSTRIALBRIBERY, BRIBERELATIONSRELATIONSSOLICITATIONSAND EXTORTION1 2 3 4 5 6ENVIRONMENTCOMBATINGBRIBERY, BRIBESOLICITATIONSAND BRIBERY, BRIBESOLICITATIONSAND EXTORTION1 2 3 4 5 6CONSUMERCOMPETITIONTAXATIONCOMPETITIONSCIENCE ANDSCIENCE ANDTAXATIONINTERESTSTECHNOLOGYTECHNOLOGYPEGGY KING COINTEPAS / DESIGNDISCLOSUREDISCLOSURETAXATIONTAXATION6, QUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET6, QUAI /DES 33CÉLESTINS(0) 6 76 487500481 36PARIS/ WWW.PFFK.NET/ STUDIO@PFFK.NET / 33 (0) 6 76 48ICONS81 36 // WWW.PFFK.NETOECD GUIDEINES FOR MULTINATIONAL ENTERPRISESICONS / OECD/ R5 GUIDEINESMARCH 2018FOR MULTINATIONAL ENTERPRISES / R5 MARCH 20181 2 3 4 5 6CONSUMERINTERESTSSIGNSCIENCE ANDTECHNOLOGYII. General PoliciesThis chapter is the firstto contain specificrecommendations toenterprises in the form of generalpolicies that set the tone andestablish a framework of commonprinciples for the subsequentchapters. It includes importantprovisions such as implementingdue diligence, addressing adverseimpacts, engaging stakeholders,and others.RIS / STUDIO@PFFK.NET / 33 (0) 6 76 48 81 36 / WWW.PFFK.NETDISCLOSURECONCEPTSDISCLOSUREAND PRINCIPLESEMPLOYMENTAND RONMENT1 2 3 4 5 60) 6 76 48 81 36 / IRONMENTENVIRONMENTCOMPETITIONV. Employment andIndustrial RelationsThe ILO is thecompetent bodyto set and deal withinternational labour standardsand to promote fundamentalrights at work as recognisedin the ILO 1998 Declaration onFundamental Principles and Rightsat Work. This chapter focuses onthe role the Guidelines have inpromoting observance amongMNEs of the international labourstandards developed by the ILO.CONCEPTSDISCLOSUREAND N RIGHTSRIGHTSEMPLOYMENTAND ENCE NMENTENVIRONMENTCOMBATINGBRIBERY, BRIBESOLICITATIONSAND EXTORTIONPEGGY KING COINTEPAS / DESIGNSCIENCE ANDTECHNOLOGYDISCLOSUREICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH DISCLOSUREICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH 2018III. DisclosureClear and completeinformation on theenterprise is importantto a variety of users. This chaptercalls on enterprises to be transparent in their operations and responsive to increasingly sophisticatedpublic demands for , BRIBESOLICITATIONSAND EXTORTION1 2 3 4 5 66, QUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET / 33 (0) 6 76 48 81 36 / XATIONTAXATIONICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH ATINGBRIBERY, BRIBESOLICITATIONSAND EXTORTION1 2 3 4 5 6COMPETITIONTAXATIONTAXATIONOECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT12ICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH 2018
ONCONCEPTSDISCLOSUREAND PRINCIPLESDISCLOSUREENVIRONMENT1 2 3 4 5 ENVIRONMENTAND LOSUREDISCLOSUREENVIRONMENTFOR MULTINATIONAL ENTERPRISESHUMAN NERALDISCLOSUREPOLICIESENVIRONMENT VII. C ombating Bribery, BribeSolicitations and ExtortionBribery and corruptionare damaging to democratic institutions andthe governance of corporations.Enterprises have an important roleto play in combating these practices. The OECD is leading globalefforts to level the playing field forinternational businesses by fightingto eliminate bribery. The recommendations in the Guidelines arebased on the extensive work theOECD has already done in this MBATINGBRIBERY, BRIBESOLICITATIONSAND EXTORTIONPEGGY KING COINTEPAS / DESIGNEMPLOYMENTAND THUMAN ICITATIONSRELATIONSAND EXTORTIONDISCLOSUREDISCLOSUREVIII. Consumer InterestsThe Guidelines call onenterprises to apply fairbusiness, marketing,and advertising practices and toensure the quality and reliability ofthe products that they provide.This chapter draws on the work ofthe OECD Committee on ConsumerPolicy and the Committee onFinancial Markets, and of otherinternational organisations,including the InternationalChamber of Commerce, theInternational Organisation forStandardization and the UN.1 2 3 4 5 6CONSUMERINTERESTSENVIRONMENTCOMBATINGBRIBERY, BRIBESOLICITATIONSAND EXTORTION1 2 3 4 5 6COMPETITIONTAXATIONCONSUMER TAXATIONSCIENCE CLOSUREPOLICIESAND PRINCIPLESENVIRONMENTPEGGY KING COINTEPAS / DESIGNSCIENCE ANDTECHNOLOGYENVIRONMENTIX. Science and TechnologyThis chapter recognisesthat MNEs are the mainconduit of technologytransfer across borders. It aims topromote technology transfer tohost countries and contribution totheir innovative SCLOSUREENVIRONMENTQUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET 33 (0) 6 76FOR48 8136 / WWW.PFFK.NET6, QUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET / 33 (0) 6 76 48 81 36 /6,WWW.PFFK.NETICONS / OECD/ GUIDEINESMULTINATIONALENTERPRISES / R5 MARCH 2018 ICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH 2018TAXATIONTAXATIONICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH 2018HUMAN RIGHTSRIGHTSEMPLOYMENTAND INDUSTRIALRELATIONSCONSUMERINTERESTSSCIENCE ANDTECHNOLOGYPEGGY KING COINTEPAS / DESIGN6, QUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET / 33 (0) 6 76 48 81 36 / WWW.PFFK.NETDISCLOSUREHUMAN RIGHTSRIGHTSDISCLOSURECONCEPTSDISCLOSUREAND OYMENTAND INDUSTRIALRELATIONSENVIRONMENTSCIENCE ANDTECHNOLOGYCOMPETITION1 2 3 4 5 6CONSUMERINTERESTSPEGGY KING COINTEPAS / DESIGN6, QUAI DES CÉLESTINS 75004 PARIS / STUDIO@PFFK.NET / 33 (0) 6 76 48 81 36 / , BRIBESOLICITATIONSAND EXTORTIONX. CompetitionThis chapter focuseson the importance ofMNEs carrying out theiractivities in a manner consistentwith all applicable competitionlaws and regulations, taking intoaccount the competition laws of alljurisdictions in which their activitiesmay have anti-competitive effects.Enterprises need to refrain fromanti-competitive agreements,which undermine the efficientoperation of both domestic andinternational markets.1 2 3 4 5 6COMPETITIONTAXATIONTAXATIONICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH ATINGBRIBERY, BRIBESOLICITATIONSAND EXTORTIONXI. TaxationThe Guidelines arethe first internationalcorporate responsibility instrument to cover taxation,contributing to and drawing upona significant body of work ontaxation, most notably the OECDModel Tax Convention and the UNModel Double Taxation Conventionbetween Developed and Developing Countries. This importantchapter covers fundamentaltaxation recommendations.TAXATIONTAXATIONICONS / OECD GUIDEINES FOR MULTINATIONAL ENTERPRISES / R5 MARCH 2018OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT13
I.OVERVIEW OF DUE DILIGENCEFOR RESPONSIBLE BUSINESS CONDUCTOECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE BUSINESS CONDUCT14
OVERVIEW OF DUE DILIGENCE FOR RESPONSIBLE BUSINESS CONDUCT The OECD Guidelines for MNEs acknowledge and encourage the positive contributions that business can make to economic, environmental and social progress, but also recognise that businessactivities may result in adverse impacts related to corporate governance, workers, human rights,the environment, bribery, and consumers. Due diligence is the process enterprises should carryout to identify, prevent, mitigate and account for how they address these actual and potentialadverse impacts in their own operations, their supply chain and other business relationships, asrecommended in the OECD Guidelines for MNEs. Effective due diligence should be supported byefforts to embed RBC into policies and management systems, and aims to enable enterprises toremediate adverse impacts that they cause or to which they contribute. usee Figure 1ADVERSE IMPACTS AND RISK Due diligence addresses actual adverse impacts or potential adverse impacts (risks) related tothe following topics covered in the OECD Guidelines for MNEs: human rights, including workersand industrial relations, environment, bribery and corruption, disclosure, and consumer interests(RBC issues). The OECD Guidelines for MNEs chapters provide detailed provisions on the type ofconduct recommended for each RBC issue. The likelihood of adverse impacts increases in situations where an enterprise’s behaviour or the circumstances associated with their supply chainsor business relationships are not consistent with the recommendations in the OECD Guidelinesfor MNEs. A risk of adverse impacts may exist when there is the potential for behaviour that isinconsistent with the recommendations in the OECD Guidelines for MNEs because
Business Conduct (WPRBC) and involved a multi-stakeholder process with OECD and non-OECD countries and representatives from business, trade unions and civil society. A first draft was submitted to the WPRBC and institutional stakeholders of the OECD for comment in May 2016.
context, the OECD is making two draft documents available for public comment: OECD Due Diligence Guidance for Responsible Business Conduct OECD Due Diligence Companion - a "living document" containing examples, tips and good practices that could be regularly updated with further examples as the Due Diligence Guidance is implemented
RGF Due Diligence Engagement Template Terms . 1 Introduction The [Applicant] is required to submit to BIS a Due Diligence report prepared by the Due Diligence Service Provider which covers the scope of the Due Diligence work set out in Appendix 7 of the Conditional Grant Offer Letter (the "Due Diligence report"). These termsof engagement set
The OECD Due Diligence Guidance outlines a 5-step risk-based due diligence process applicable to all companies throughout the mineral supply chain. It is accompanied by a model supply chain policy that lays down expectations regarding identified risks, and responses thereto (Annex II). Under the OECD Due Diligence Guidance, companies
Section 01 - Legal Due Diligence 04 1.1 Purpose of Legal Due Diligence 05 1.2 Conclusion 1 4 Section 02 - Finance Due Diligence 1 5 2.1 Purpose of Finance Due Diligence 1 6 2.2 Conclusion 2 8 Annexure 2 9 Annexure 01 - Statement of Comprehensive Income 30 Annexure 02 - Statement of Financial Position 31
Phase 1 is concerned with the basics of due diligence with a focus on tools and techniques of due diligence analysis. Day One: The basics of due diligence in the oil and gas business The changing dynamics of the global oil and gas business The strategic relevance of due diligence in market analysis
finalizes the due diligence report - The due diligence report must seek to prov ide the most pertinent information at a gi i i i i h il b bd f ibliven point in time in the most easily absorbed form possible - It is particularly critical to relate the due diligence report to the strategic objectives of the due diligence process.
§ 1.03[1] DUE DILIGENCE 1-8 § 1.03 Benefits of the Due Diligence Investigation If not carefully conceived and managed, due diligence investiga-tions can become expensive boondoggles that never end and never lead anywhere. It should be kept in mind that process without results is useless. The due diligence investigation is all about producing .
5. Anti-bribery due diligence starts sufficiently early in the due diligence process to allow adequate due diligence to be carried out and for the findings to influence the outcome of the negotiations or stimulate further review if necessary. 6. The partners or board provide commitment and oversight to the due diligence reviews.
