OECD Guidelines Chapter 1 & 2: General principles and supply chain
The OECD Guidelines formulate a number of general principles for international business. The underlying theme is to observe the 'rules' of the country in which your company operates and responsible supply chain management.
Note the following points:
- Comply with local laws and regulations primarily follow national legislation and align with the OECD Guidelines when that legislation appears inadequate.
- By contributing to the economy of other countries, including paying attention to people and the environment, sustainable development is possible locally.
- Respect the human rights of those affected by your business.
- Promote the development of local capacity through close co-operation with the local community. By working together with the people in the city or region where you do business, you are helping local communities to develop. By creating jobs and providing training, you can promote the development of ‘human capital’. Authorities will appreciate your investment in their country and this will lead to a sense of understanding for your activities and get the commitment you need from the local population.
- Refrain from seeking or accepting exemptions regarding human rights, environment, health, safety, labor and taxation. Rules are rules, wherever you do business. It isn’t recommended to negotiate exceptions to these rules. This way, you remain a credible and reliable business partner.
- Formulate principles of proper corporate governance and apply them. Since 2009 corporate social responsibility (CSR) has been a relevant topic in the international Corporate Governance Code and explicitly seen as an important part of responsible corporate management.
- Develop and apply effective self-regulatory practices and management systems that foster a relationship of confidence and mutual trust between enterprises and the societies in which they operate.
- Refrain from punishing or discriminating against employees who make bona fide reports to management or the competent public authorities on practices that conflict with local law or the OECD Guidelines.
- Carry out risk-based due diligence, for example by incorporating it into enterprise risk management systems to identify, prevent and reduce actual and potential adverse impacts.
- Actively encourage suppliers and subcontractors to apply conduct compatible with the OECD Guidelines. Supply chain management means promoting and enabling responsible business conduct whenever possible: you should ensure that your suppliers and subcontractors follow the recommendations of the OECD as much as they can. Financiers, governments and clients will increasingly ask about the implementation of responsible business practices within the entire supply chain.
- Abstain from any improper involvement in local political activities.