Programmes for the regulation of corporate

Voluntary programmes for the regulation of corporate behavior. New OECD Guidelines for Multinational Corporations and the UN Global Compact. Disadvantages, which affect the outcome of the OECD Guidelines. A global partnership with private sector.

Рубрика Международные отношения и мировая экономика
Вид доклад
Язык английский
Дата добавления 27.02.2014
Размер файла 16,3 K

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1. Two most remarkable voluntary programmes for the regulation of corporate behavior have been introduced recently, the New OECD Guidelines for Multinational Corporations and the UN Global Compact. They are quite similar in the their goals, but they have one significant difference in their way to reach and change corporate behavior of MNCs. While the New OECD Guidelines for Multinational Corporations are endorsed by governments, and only through governments they are in contact with businesses, the UN Global Compact Principles are endorsed directly by corporations. Let us proceed with the OECD first. corporate programme guidelins partnership

On the one hand main advantages of the OECD approach are that (endorsed by governments):

· It is particular with respect to every national state and its peculiarities of law and functioning of companies and big corporations;

· Each adhering country sets up a National Contact Point to better coordinate national activities;

· NCPs are systems which handle complaints and deal with companies misbehaviors in each country, hence the OECD Specific Intances Procedure manage to conduct deeper examination into an issue;

· Network-based monitoring systems are more flexible, which may influence the involvment of companies;

· NCPs are more easily integrated within existing corporate procedures;

· It enables governments both to raise social awareness of corparate conduct and to build new institutional capacitiy.

· NCP have influence on defining what governments' expectations are.

On the other hand there are plenty of disadvantages, which afffect the outcome of the OECD Guidelines:

· Lack of capacity (NCPs need to increase their influence on MNC without `teeth');

· Political commitment as such;

· Lack of resourсes to coordinate multinational enterprises;

· NCPs are affected by insitutional systems beeing hosted by Ministries promoting their own interests;

· Cannot be considered super partes when evaluating disputes;

· NCPs have limited number of decisions and questinable efficacy;

· The NCP functioning have to be revised as the procedures are very time consuming.

The UN Global Compact approach has also some pros and cons to be weighed. There are some positive points to be considered to back up the UN decision to launch a global partnership with private sector:

· Local Networks of GC are able to touch upon all companies all over the world;

· Provides a forum thanks to which it is possible to engage MNCs at the global level;

· Can facilitate involvement of SMEs;

· Involves directly private sector in further spreading and implementing its code of corporate conduct;

· Allows for participation of some prominent NGOs (i.e. Transperancy International).

The UN GC reaching companies directly is even more criticized than the OECD Guidelines, namely for the reasons listed below:

· GC is a new way to attract political and financial support for the UN,

· Lack of any political mandate in this field and lack of institutional capacity make the global code unfeasible for corporations;

· The compact contains no mechanisms to sanction member companies for non-compliance with the Compact's principles;

· GC has no evidence of concrete impact on corporate behaviour, while NCPs are able to estimate it;

· Has no strong indicators of programme's performance.

· GC Principles have law rate of advanced performers among corporations to the programmes;

· Companies can misuse the Global Compact as a public relations instrument for "bluewash".

2.a. NGOs are not only stake holders in governance, but also driving force behind greater international cooperation through active mobilization of public support for international agreements. They are becoming more and more influential. Under pressure of NGOs big corporations tend to regard these two voluntary programmes introduced by the OECD and the UN. In so doing MNCs want to reduce the level of social risk as well as to improve their reputation. The interest of NGOs beyond shaping the Guidelines Principles and the Global Compact is their direct participation to the reduction of negative social and environmental effects produced by MNCs. These two programmes are endorsed by many governments and corporations, which in return produce more efficient channel for NGOs to have influence on companies. Although there have been many cases that have been submitted by NGOs to, for example, to NCPs, NGOs have not influenced the shaping of the Guidelines to the extent they have succeeded with the UN GC. It can be explained partly because the OECD guidelines had been first introduced before NGOs have become so important and influential. Nevertheless, the Guidelines and the Global Compact still provides the unique platform for interaction of such social actors as NGOs, unions, academia etc. NGOs regularly examine the compliance to the standards and file complaints on corporate behavior of companies through these two systems. In the case with the Guidelines NGOs have always asked for greater legal formalism and for working codes, moreover, they reached some promising results in reshaping the standards of the OECD Guidelines. AS far as the UN is concerned, more and more prominent and well - established NGOs adhere to the Global Compact in order to improve corporate behavior through out the world and they have more power in this case. In general, NGOs see a greater possibility to exert pressure from the inside of the GC to improve the work of the GC (i.e. strengthening the role of the Local Networks and involvement of civil society, introduction of three integrity measures).

2.b. Non-governmental organizations have been active in the United Nations since its founding. They interact with the UN Secretariat, programmes, funds and agencies and they consult with the Member States. NGO work related to the UN comprises a number of activities including information dissemination, awareness raising, development education, policy advocacy, joint operational projects, and providing technical expertise and collaborating with UN agencies, programmes and funds. This work is undertaken in formal and informal ways at the national level and at the UN.

Nongovernmental organizations (NGOs) are more involved than ever before in global policymaking. The nature of their involvement will most likely broaden and evolve in terms of substance. Participants discussed the UN-NGO relationship and explored ways of building more productive ties between the United Nations and NGOs. To my mind, at the moment there is neither political nor social ground, which can vividly support the inclusion of NGOS into the UN HR Council.

Clearly, the growing numbers of NGOs impose administrative and communications burdens on the United Nations. NGOs fear that administrative procedures and concerns of member nations about their growing influence are resulting in what can be considered a "rolling back" of NGO participation. They view with alarm actions in both intergovernmental and national arenas that include restricting the areas of NGO activities.

Second, NGOs are not representative in the sense that they have an externally defined geographic or community constituency. At best, they represent the interests and concerns of their members. At worst, they represent only the agendas of their founders or leaders. To complicate matters further, many NGOs with considerable access to the United Nations are from the North, and there are concerns that they do not necessarily share the perspectives and interests of those in the Southern Hemisphere. This arouses concerns that NGO influences and contributions to UN work may be skewed in one direction. Third, some member nations argue that NGOs should focus on gaining access to governments in the countries they represent rather than working in intergovernmental arenas.

To conclude, I would not recommend to the UN HR Council the inclusion of NGOs as I claim that current state of affairs with NGOs do not allow for this dubious step, at least not at the moment.

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