Loading...
Using the OECD Guidelines to tackle corporate corruption
Transparency International
Transparency International
Author(s)
Author(s) (Additional)
Illustrator(s)
Producer(s)
Contributor(s)
Contributor(s) (Other)
Editor(s)
Advisor(s)
Contact(s)
Data Collector(s)
Keywords
GE Subjects
Collections
Files
Research Projects
Organizational Units
Journal Issue
Online Access
Abstract
"There is no shortage of international instruments designed to promote corporate responsibility and clean business standards. Awareness of the economic and social damage that corrupt business practices cause has increased sharply in recent years, spurring governments, civil society organisations (CSOs), trade unions and companies to take action. The United Nations Convention against Corruption (UNCAC), the first global anti-corruption treaty that came into force in 2005, is a striking example of these efforts. However, the Guidelines provide some advantages over UNCAC and other mechanisms. They combine non-binding, government-endorsed business standards with internationally-agreed rules to promote worldwide adherence. In addition, the Guidelines have given civil society the space to directly engage in advancing good business behaviour and advocacy groups the opportunity to monitor corporate responsibility and accountability. 2. What are the Guidelines? The Guidelines are defined as ‘recommendations on responsible business conduct’. In addition to broad human rights and sustainability provisions, specific chapters focus on different aspects of a company’s operations: information disclosure; employment and industrial relations; the environment; combating bribery; consumer interests; science and technology; competition; and taxation. Overall, the range of issues relevant to corruption covered by the Guidelines is much broader than what the OECD and UN tackle in their respective conventions against bribery and corruption. For example, the Guidelines’ section on combating bribery (Chapter VI) deals with the paying of bribes between companies — an area not addressed under the OECD Convention. Furthermore, it includes recommendations that companies should ‘adopt management control systems that discourage bribery and corrupt practices’ (see sidebar). As signatories to the Guidelines, governments are obliged to set up a 'National Contact Point' (NCP) whose function is to promote, publicise and monitor adherence to the standards set out in the Guidelines. Where there are allegations of company misconduct, NCPs must determine if the issues raised by the complainant fall within the scope of the Guidelines. In cases where they do, the NCP must attempt to mediate a solution between the parties, publish the results of its mediation efforts (even if no agreement is reached) and, where appropriate, make recommendations to the company on how to change its practices to comply with the Guidelines. This dispute resolution facility is important because a common weakness of voluntary codes of conduct is the absence of internal — much less external — oversight mechanisms aimed at corrective actions."
Note(s)
Topic
Type
Journal
Date
2008-05-09
Identifier
ISBN
DOI
Copyright/License
With permission of the license/copyright holder