OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (2023 Update)

Adhere to OECD MNE Guidelines Chapter VII (Combating Bribery + Other Forms of Corruption) aligned with OECD Anti-Bribery Convention + UN Convention Against Corruption. MNEs should (a) not directly or indirectly offer + promise + give + or demand a bribe or other undue advantage to obtain or retain business or other improper advantage + (b) develop and adopt adequate internal controls + ethics and compliance programmes or measures for preventing and detecting bribery + including a periodic review for assessing effectiveness + (c) prohibit or discourage the use of small facilitation payments which are generally illegal in the countries where they are made and when made should be accurately accounted for in books and financial records + (d) ensure properly documented due diligence pertaining to the hiring as well as appropriate and regular oversight of agents + (e) enhance transparency of t

• anti-bribery and anti-corruption programme aligned with OECD Convention + FCPA + UKBA + national equivalents
• risk-based third-party due diligence + agent oversight + JV/M&A diligence
• whistleblower channel with non-retaliation + accurate books and records + internal controls
• political contributions policy + disclosure

• anti-bribery programme limited to high-risk jurisdictions ignoring third party + agent risk in others
• whistleblower channel nominal without non-retaliation track record
• political engagement disclosure incomplete

Adhere to the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct Chapter I (Concepts and Principles) + Chapter II (General Policies + Risk-Based Due Diligence) per the OECD Council Recommendation (Decision of the Council) adopted 8 June 2023 (2023 Update of the 2011 Guidelines). MNEs are encouraged to (a) contribute to economic + environmental + social progress with a view to achieving sustainable development + (b) respect the internationally recognised human rights of those affected by their activities + (c) encourage local capacity building through close cooperation with the local community + (d) encourage human capital formation by creating employment opportunities and providing training + (e) refrain from seeking or accepting exemptions not contemplated in the regulatory framework + (f) support sound corporate governance + (g) develop and apply effective se

• Board-approved Responsible Business Conduct policy referencing OECD MNE Guidelines + UNGPs + ILO + applicable mandatory diligence law
• general policies covering sustainable development + human rights + worker engagement + governance + transparency
• risk-based due diligence framework with 6-step process integration

• RBC policy generic not aligned to OECD MNE Guidelines or applicable mandatory law
• board oversight nominal not operational
• due diligence performed without risk-based prioritisation

Adhere to OECD MNE Guidelines Chapter VIII (Consumer Interests) + Chapter IX (Science + Technology + Innovation) + Chapter X (Competition) + Chapter XI (Taxation). Consumer Interests requires MNEs to (a) act in accordance with fair business + marketing + and advertising practices + take all reasonable steps to ensure the safety and quality of the goods and services they provide + (b) provide accurate + verifiable + clear + sufficient + and accessible information to enable consumers to make informed decisions + (c) provide consumers with access to fair + easy to use + timely + and effective non-judicial dispute resolution and redress mechanisms + (d) cooperate with public authorities to prevent and combat deceptive marketing practices + (e) respect consumer privacy and protect personal data per applicable law. Science + Technology + Innovation requires MNEs to (a) endeavour to ensure that

• consumer protection + fair marketing + product safety + dispute resolution
• STI policy on technology transfer + IP licensing + cooperation with host country research
• competition compliance + cooperation with investigations
• tax strategy + BEPS alignment + CbCR + arms-length pricing + cooperation

• tax strategy aligned to letter but not spirit of tax law producing reputational exposure
• consumer dispute resolution nominal not effective
• STI commitments not implemented in technology transfer or local R&D

Adhere to OECD MNE Guidelines Chapter III (Disclosure). MNEs should (a) ensure timely and accurate information is disclosed on all material matters regarding their activities + structure + financial situation + performance + ownership + and governance + (b) disclose information including financial and operating results + the objectives of the enterprise + major share ownership including beneficial owners + voting rights + remuneration of board and key executives + related party transactions + foreseeable risk factors + issues regarding workers + the environment + climate + and other matters relevant to evaluating the enterprise + (c) apply high quality standards for accounting + financial reporting + and non-financial information disclosure including sustainability + climate + diversity + (d) consider applicable disclosure regimes (IFRS Sustainability Disclosure Standards + ESRS European

• sustainability disclosure aligned to applicable framework (ESRS / CSRD / ISSB / TCFD / GRI / SASB)
• financial and non-financial reporting with audit/assurance scheme
• value chain due diligence disclosure

• sustainability reporting not aligned to mandatory framework
• value chain due diligence not disclosed
• no third-party assurance on material disclosures

Implement risk-based due diligence per OECD Due Diligence Guidance for Responsible Business Conduct (2018) + sectoral guidance + Value Chain Coverage per 2023 Update. Due diligence steps must (a) embed responsible business conduct into policies and management systems including board oversight + (b) identify and assess actual and potential adverse impacts in operations + supply chains + and business relationships (OECD-MNE-DD-01), (c) cease + prevent + and mitigate adverse impacts using leverage and prioritised by severity and likelihood (OECD-MNE-DD-02), (d) track implementation and results of due diligence measures via metrics + audits + stakeholder consultation (OECD-MNE-DD-03), (e) communicate how impacts are addressed externally to affected stakeholders + general public + investors (OECD-MNE-DD-04), (f) provide for or cooperate in remediation when appropriate (OECD-MNE-DD-05). Value

• 6-step due diligence implementation per OECD Due Diligence Guidance with documentation per step
• value chain coverage analysis with downstream + upstream material risk identification
• NCP engagement evidence + final statement consideration + recommendation implementation
• operational-level grievance mechanism per UNGP effectiveness criteria + remediation outcomes

• due diligence steps documented but not connected to operational decisions
• value chain coverage limited to first tier
• operational grievance mechanism nominal not used by rightsholders
• NCP engagement reactive not proactive

Adhere to OECD MNE Guidelines Chapter V (Employment and Industrial Relations) aligned with ILO standards. MNEs should within the framework of applicable law + regulations + and prevailing labour relations and employment practices and applicable international labour standards (a) respect the right of workers employed by the MNE to establish or join trade unions and representative organisations of their own choosing + (b) respect the right of workers employed by the MNE to have trade unions and representative organisations of their own choosing recognised for the purpose of collective bargaining + (c) contribute to the effective abolition of child labour + take immediate and effective measures to secure the prohibition and elimination of the worst forms of child labour + (d) contribute to the elimination of all forms of forced or compulsory labour + (e) promote equality of opportunity and

• labour rights policy + freedom of association + collective bargaining + non-discrimination + forced/child labour prohibition
• working conditions including wages + hours + health and safety + harassment prevention + just transition
• supply chain labour rights diligence with enforcement-grade evidence
• alignment with UFLPA + EU/UK forced labour bans

• supply chain labour rights via certification alone without independent verification
• just transition plans absent for workforce affected by climate + tech change
• harassment prevention nominal not operational

Adhere to OECD MNE Guidelines Chapter VI (Environment) covering environmental management + climate + biodiversity per the 2023 Update reinforcement. MNEs should (a) establish and maintain a system of environmental management appropriate to the enterprise including collection and evaluation of adequate and timely information regarding the environmental + climate + and biodiversity impacts of their activities + (b) align greenhouse gas emission targets with the goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels + (c) take appropriate action to address actual and potential adverse impacts on biodiversity + (d) provide the public and workers with adequate + measurable + and verifiable information on the potential environment + health and safety impacts of the activities of the enterprise + (e) consult and communicate with the communities directly affected by t

• environmental management system + Scope 1/2/3 emissions accounting + 1.5C-aligned targets + transition plan
• biodiversity impact and dependency assessment + nature-related disclosures
• consultation with affected communities + emergency preparedness
• alignment with TCFD + IFRS S2 + ESRS E1

• 1.5C target without credible transition plan producing greenwashing exposure
• Scope 3 emissions incomplete missing key value chain segments
• biodiversity treated as separate from climate

Adhere to OECD MNE Guidelines Chapter IV (Human Rights) aligned with UN Guiding Principles on Business and Human Rights (UNGPs). MNEs should (a) respect human rights which means they should avoid infringing on the human rights of others and address adverse human rights impacts with which they are involved + (b) within the context of their own activities avoid causing or contributing to adverse human rights impacts and address such impacts when they occur + (c) seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations + products or services by a business relationship + even if they do not contribute to those impacts + (d) have a policy commitment to respect human rights + (e) carry out human rights due diligence as appropriate to their size + the nature and context of operations + and the severity of the risks of adverse human righ

• policy commitment to respect human rights aligned with UNGPs + OECD MNE
• human rights due diligence per OECD Guidance + UNGP framework with identify/prevent/track/communicate/remediate
• remediation mechanism evidence + provision and cooperation
• alignment with mandatory due diligence laws (CSDDD + LkSG + Duty of Vigilance + similar)

• HRDD covers first-tier suppliers only missing severity-driven downstream/upstream coverage
• remediation provided but not effective from rightsholder perspective
• mandatory diligence law compliance not yet operational despite phased effective dates