2.6.1.1 International initiatives

The OECD MNE Guidelines were thoroughly revised in the year 2000 to emphasise that businesses must conduct their operations in a socially responsible way.1 The OECD MNE Guidelines contain recommendations to multinational enterprises for responsible business conduct, particularly in foreign countries from, or in which, they operate (host countries). According to the OECD MNE Guidelines ' responsible business conduct' implies that businesses exercise due care for the environment, their employees, and others involved in these foreign countries. It also means fighting corruption and paying taxes in situ. In addition, responsible business conduct requires enterprises to provide training and pass on science and technology. Moreover, the OECD MNE Guidelines provide that multinational enterprises should report on their corporate strategy and conduct with respect to the non-financial topics mentioned in the Guidelines in addition to their periodic financial reporting. This kind of reporting on non-financial topics is often called sustainable reporting' or ' social reporting'. The Dutch government actively promotes corporate compliance with the OECD MNE Guidelines, and acts as a mediator in the case of complaints regarding non-compliance.2

The UN Global Compact (Global Compact) was an initiative taken by Kofi Annan, the former Secretary-General of the United Nations, in 1999. He listed ten principles for conducting business activities.3 These principles cover the usual range of CSR categories. The UN Global Compact Principles, like the OECD MNE Guidelines, recommend that companies periodically publish transparent reports on their corporate strategy and conduct. The Global Compact seeks to advance its principles through the voluntary engagement of companies. The Global Impact initiative seems to be successful in that a large number of companies have joined as participants and associate being a participant with an element of prestige.4

The United Nations' Sub-Commission on the Promotion and Protection of Human Rights has also formulated rules of conduct relating to CSR.5 These rules aim to help advance the protection of human rights. These rules were intended to apply directly to enterprises, but have never been adopted by the international community (see section 7.4.3.). Moreover, it was unclear how the direct application could be achieved.

The first statute to make corporate bribery a criminal offence in a host country, was the United States' Foreign Corrupt Practices Act of 1977 (FCPA). This Act will be further elaborated upon in chapter 5.

In 1997, the OECD Member countries negotiated the OECD Corruption Convention.6 This Convention contains recommendations for both governments and enterprises. From a CSR perspective, it is important to note that the bribery of public officials falls within the scope of the OECD Corruption Convention. The Convention recommends that governments make bribery of foreign officials a criminal offence.7 In the Netherlands, this recommendation led to the Dutch Penal Code being amended.8 By 2003, already 34 Western countries had incorporated the Convention's recommendation into their national laws. Consequently, nationals, including companies, involved in committing an act of bribery in a foreign country can now be prosecuted in these 34 countries.9

In this respect, the ICC Rules of Conduct: Extortion and Bribery in International Business Transactions (1999 revised version) (ICC Rules on Bribery) and Fighting Bribery: a Corporate Practices Manual, by the ICC are also worth mentioning. The ICC Rules on Bribery as well as the Manual have been drawn up by the business community itself.

Over the years, the ILO has drawn up many conventions aimed at improving the working conditions of employees on a global scale and eliminating slavery and child labour. The ILO conventions are international conventions and consequently need to be implemented in national laws. A selection of several important ILO conventions and recommendations has been integrated into the 1977 Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. This document addresses not only governments but also workers' and employers' organisations and companies.10 Codes of conduct and CSR standards frequently refer to it.

The GRI is an international organisation which draws up regulations for sustainability reporting. The GRI strives to improve sustainability reporting in order to match the quality of financial reporting, especially where comparability, verification and timeliness are concerned. 11 In 2002, the GRI published a revised version of the GRI Guidelines.12 By the end of 2004, more than 600 international companies followed these guidelines in compiling their annual sustainability reports.13