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Annual Report on the OECD Guidelines for Multinational Enterprises 2006

Conducting Business in Weak Governance Zones

image of Annual Report on the OECD Guidelines for Multinational Enterprises 2006

The OECD Guidelines for Multinational Enterprises are recommendations to international business for conduct in such areas as labour, environment, consumer protection and the fight against corruption.  The recommendations are made by the adhering governments and, although not binding, governments are committed to promoting their observance.  This Annual Report provides an account of the actions the 39 adhering governments have taken over the 12 months to June 2006 to enhance the contribution of the Guidelines to the improved functioning of the global economy. One highlight of this reporting period was the completion of guidance for companies operating in weak governance zones.  This Tool aims to help companies that invest in countries where governments are unable or unwilling to take up their responsibilities by offering considerations in such areas as obeying the law and observing international instruments; political activities; knowing clients and business partners; and speaking out about wrongdoing.

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OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones

The OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones aims to help companies that invest in countries where governments are unwilling or unable to assume their responsibilitties. It addresses risks and ethical dilemmas that companies are likely to face in such weak governance zones, including obeying the law and observing international instruments, heightened care in managing investments, knowing business partners and clients and dealing with public sector officials, and speaking out about wrongdoing. The Risk Awareness Tool was developed as part of the OECD Investment Committee’s follow up to the OECD Guidelines for Multinational Enterprises. It is non-prescriptive and consistent with the objectives and principles of the Guidelines.

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