The OECD Guidelines for Multinational Enterprises

Organisation for Economic Co-operation and Development

Summary of the guidelines

• Features
• Coverage
• Implementation

• Institutional set-up
• Follow-up procedures

• Experiences with the guidelines

Questions and answers

Text of the Guidelines

• Introduction
• General policies
• Disclosure of information
• Competition
• Financing
• Taxation
• Employment and industrial relations
• Environmental protection
• Science and technology

Second revised Decision of the OECD Council

Summary of the Guidelines

The OECD Guidelines for Multinational Enterprises (MNEs) are recommendations to enterprises, made by the Governments of OECD Member countries. Their aim is to ensure that MNEs operate in harmony with the policies of the countries where they operate. These voluntary standards cover the full range of MNEs' operations.

Features

The Guidelines are a part of the Declaration on International Investment and Multinational Enterprises. The Declaration constitutes a political commitment, adopted by the Governments of OECD Member countries in 1976 with the objective of facilitating direct investment among OECD Members. The other parts of the Declaration deal with three related instruments, aimed at:

• providing national treatment to foreign-owned enterprises;
• promoting co-operation among governments in relation to international investment incentives and disincentives;
• minimising the imposition of conflicting requirements on MNEs by governments of different countries.

The Guidelines are voluntary and, consequently, not legally enforceable. This, however, does not imply less commitment by OECD Governments to encourage their observance. The system under which the Guidelines are implemented is described below.

The basic approach of the Guidelines is that internationally agreed guidelines can help to prevent misunderstandings and build an atmosphere of confidence and predictability between business, labour and governments.

The Guidelines address the MNEs from OECD countries. However, reflecting the worldwide operations of MNEs, Member countries support international co-operation in this area to extend to all States, and in particular with developing countries with a view to improving the welfare and living standards of all people by encouraging the positive contributions of MNEs and minimising and resolving the problems which may arise in connection with their activities.

Coverage

The Guidelines are divided into separate chapters which cover the range of MNE activities. These chapters deal with: general policies, information disclosure, competition, financing, taxation, employment and industrial relations, environment and science and technology.

Introductory paragraphs explain the purpose, nature and scope of the Guidelines, making clear that they are addressed to MNEs and their entities, and that these entities should co-operate with each other to facilitate observance. The introduction also makes it clear that no different treatment between MNEs and domestic enterprises is sought. Wherever relevant, the Guidelines reflect good practice for all. The introduction states that enterprises should take full account of countries' general objectives, co-operate with local community and business interests and refrain from bribery and improper political activities.

The provision of information is an important Guidelines theme. For the public, this involves having information on the structure, activities and policies of the enterprise as a whole. For governments this means access to information to ensure compliance with policies and regulations on taxes, competition and environmental standards. For employees it means having information provided to their representatives for purposes such as meaningful negotiations on conditions of employment, or the performance of the enterprise or an entity thereof.

Another chapter addresses employment and industrial relations, where enterprises are encouraged to respect employees' rights to representation, refrain from unfair influence in labour negotiations or during organising campaigns, and to negotiate constructively on employment conditions. Enterprises are also encouraged to provide reasonable notice of changes in operations that would have major effects on employees and to co-operate to mitigate these changes' adverse effects. In particular, enterprises should:

• respect the right of their employees to be represented by trade unions and other bona fide organisations and engage in constructive negotiations with them on employment conditions;
• provide assistance and information to employee representatives;
• provide information for a true and fair view of the performance of the enterprise;
• observe standards of employment and industrial relations not less favourable than those observed by comparable employers in the host country;
• utilise, train and prepare for upgrading their labour force;
• provide reasonable prior notice of changes in operations, in particular on intended closures and collective layoffs;
• refrain from discriminatory practices in their employment policies;
• exercise unfair influence over bona fide negotiations with employee's representatives;
• enable authorised representatives of their employees to conduct negotiations on collective bargaining or labour-management relations with management representatives authorised to take decisions on the matters at hand.

In the competition area, MNEs are encouraged to conform to countries' rules and policies by, for example, refraining from forming cartels or restrictive agreements and from abusing dominant market positions through anti-competitive acquisitions, predatory behaviour and other practices.

To promote environmental protection, the Guidelines state that enterprises should take due account of the need to protect the environment and to avoid environmentally related health problems. They should provide timely information regarding potential impacts of their activities on environment and health, take appropriate measures to minimise the risk of accidents and damage to health and environment and co-operate in mitigating any adverse effects of their activities.

Implementation of the Guidelines

Institutional set-up

The institutional set-up of the Guidelines consists of three elements: i) the National Contact Points, ii)the OECD's Committee on International Investment and Multinational Enterprises (CIME), and iii)the advisory Committees of business and labour federations, BIAC and TUAC.

The National Contact Points (typically a government office in a Member country) serve to gather information on experience with the Guidelines, to promote them, to handle enquiries, discuss matters related to the Guidelines and assist in solving problems which may arise between business and labour in matters covered by the Guidelines.

The CIME's responsibilities in the field of the Guidelines include: providing clarifications on the interpretation of the Guidelines, reviewing and exchanging views on them and responding to requests from Members, BIAC or TUAC on aspects of the Guidelines.

BIAC and TUAC can request consultations with the National Contact Points on issues related to the Guidelines and can raise such issues at the CIME. They also have a task in informing their member federations about the Guidelines' development and in seeking their members' input in Guidelines follow-up procedures.

Follow-up procedures

The Guidelines are drafted in general terms, so as to apply to the whole OECD area, with its diversity of legal systems and practices towards MNEs. Consequently, clarifications may be necessary in individual cases.

If a party is under the impression that, in an individual case, the Guidelines have not been observed, but is unclear about the Guidelines applicability, that party should approach the National Contact Point. Member Governments and labour and business organisations (through BIAC and TUAC), may raise such issues. The National Contact Point should the contact the enterprise, either directly, or through the appropriate business federation, to inform it that a Guidelines issue has been raised. The Contact Point and business and labour representatives should try to resolve the issue at the national level. If entities of the enterprise in another country are involved, the contact point should contact its counterparts in that country to exchange information and try and resolve the matter. The National Contact Point in the country where the enterprise has its headquarters should also be informed.

If no solution can be found through the National Contact Points, and a clarification seems necessary, the issue can be submitted to the CIME for consideration. Final responsibility for clarifications lies with the Committee, although matters discussed by the National Contact Points may involve questions of the scope and meaning of the Guidelines in specific circumstances. Whenever a Contact Point gives its opinion as to the relevance of the Guidelines to matters at had, it should keep in mind the international character of the Guidelines and the overriding necessity of avoiding conflicting national interpretations. Where there is any doubt or where there are divergent views as to the consistency of an interpretation under consideration by a Contact Point with clarifications adopted by the OECD, the matter should be brought to the attention of the Committee before the Contact Point gives the final answer.

In order to speed up such proceedings, these matters can be referred directly to the CIME's Working Group on Investment Policies and the Guidelines for preliminary consideration. After considering the question, and consulting with BIAC and TUAC, the CIME may then provide a clarification about how the Guidelines would apply in a situation like the one in question.

However, the Committee's examination of the need for, and eventual provision of, a clarification refers to how the Guidelines would apply as concerns the issue raised. It is not a judgement on the behaviour of an individual enterprise and thus does not refer to it by name.

This being said, the enterprise concerned may express its views orally or in writing on Guidelines issues involving its interests. Such an enterprise may, alternatively, use the offices of BIAC for this purpose.

Labour and business organisations may, though BIAC and TUAC, submit cases that raise issues for clarification, but an attempt should be made first to resolve the issues at the national level.

Experience with the Guidelines

In the two decades of their existence, the OECD Guidelines have proven to be a respected point of reference for a great majority of enterprises. The Guidelines are a voluntary instrument. However, they carry the weight of a joint Recommendation of OECD governments. Alongside with national laws, the Guidelines form part of a legal infrastructure which promotes responsible behaviour of MNEs. In addition, their language has influenced considerably the other codes of conduct for multinational enterprises, such as the ILO Tripartite Declaration and the Code of Conduct for Transnational Corporations of the United Nations.

As with any internationally negotiated instrument, the Guidelines have sometimes been criticised, either for being too general or too detailed. Some have argued, for example, that they do not go far enough in ensuring that MNEs comply with national law and practice, while others have suggested that the Guidelines go beyond those standards in some areas. Another area of debate involves the follow-up, which some say needs to be made stronger, while others argue that it is too juridical.

When Guidelines issues arise the onus of attempting a settlement is particularly on the National Contact Point; hence, the effectiveness of the Guidelines depends to a large degree on that of the Contact Points. This effectiveness differs from country to country. The functioning of the National Contact Points is crucial in this context.

Questions and Answers

What are the Guidelines ?

The OECD Guidelines for Multinational Enterprises (MNEs) were adopted in 1976 by the OECD Governments. Their status is that of recommendations to enterprises by the Governments of OECD Member countries. This means that the Guidelines address private parties, i.e. enterprises and not the Governments themselves. They do not have the character of binding international law, but are a voluntary code of conduct.

Which practices do the Guidelines cover ?

The Guidelines cover the range of MNE activities. Specific chapters deal with: general policies, information disclosure, competition, financing, taxation, employment and industrial relations, environment and science and technology.Both the chapters on general policies and on employment and industrial relations contain clauses that are relevant in relation to enterprise closures.

Who should be approached if questions arise concerning the application of the Guidelines ?

If an interested party is under the impression that, in an individual case, the Guidelines have not been observed, that party should approach the National Contact Point (typically a government office in a Member country). The National Contact Point should then contact the enterprise, either directly, or through the appropriate business federation, to inform it that a Guidelines issue has been raised. Next, the Contact Point and business and labour representatives should try to resolve the issue at the national level. If entities of the enterprise in another country are involved, the contact point should contact its counterparts in that country to exchange information and try and resolve the matter. The National Contact Point in the country where the enterprise has its headquarters should also be informed.

What is the task of the OECD if a Guidelines issue has been raised?

The OECD does not intermediate in individual cases of an alleged breach of the Guidelines. Passing a judgement on the behaviour of an individual enterprise is not within its mandate. The OECD, through its Committee on International Investment and Multinational Enterprises (CIME) holds exchanges of views (periodically or at the request of a Member country) on matters related to the Guidelines and the experience gained in their application. The CIME is also responsible for providing clarifications on the interpretation of specific elements of the Guidelines.

Text of the Guidelines for Multinational Enterprises

The following Guidelines for Multinational Enterprises constitute Annex 1 to the Declaration on International Investment and Multinational Enterprises. They were last revised in 1991 (when, i.a. the section on environmental protection was added). A procedural Decision of the OECD Council deals with their implementation.

Introductin

1. Multinational enterprises now play an important part in the economies of Member countries and in international economic relations, which is of increasing interest to governments. Through international direct investment, such enterprises can bring substantial benefits to home and host countries by contributing to the efficient utilisation of capital, technology and human resources between countries and can thus fulfil an important role in the promotion of economic and social welfare. But the advances made by multinational enterprises in organising their operations beyond the national framework may lead to abuse of concentrations of economic power and to conflicts with national policy objectives. In addition, the complexity of these multinational enterprises and the difficulty of clearly perceiving their diverse structures, operations and policies sometimes give rise to concern.
2. The common aim of the Member countries is to encourage the positive contributions which multinational enterprises can make to economic and social progress and to minimise and resolve the difficulties to which their various operations may give rise. In view of the transnational structure of such enterprises, this aim will be furthered by co-operation among the OECD countries where the headquarters of most of the multinational enterprises are established and which are the location of a substantial part of their operations. The Guidelines set out hereafter are designed to assist in the achievement of this common aim and to contribute to improving the foreign investment climate.
3. Since the operations of multinational enterprises extend throughout the world, including countries that are not Members of the Organisation, international co-operation in this field should extend to all States. Member countries will give their full support to efforts undertaken in co-operation with non-member countries, and in particular with developing countries, with a view to improving the welfare and living standards of all people both by encouraging the positive contributions which multinational enterprises can make and by minimising and resolving the problems which may arise in connection with their activities.
4. Within the Organisation, the programme of co-operation to attain these ends will be a continuing, pragmatic and balanced one. It comes within the general aims of the Convention on the Organisation for Economic Co-operation and Development (OECD) and makes full use of the various specialised bodies of the Organisation, whose terms of reference already cover many aspects of the role of multinational enterprises, notably in matters of international trade and payments, competition, taxation, manpower, industrial development, science and technology. In these bodies, work is being carried out on the identification of issues, the improvement of relevant qualitative and statistical information and the elaboration of proposals for action designed to strengthen inter-governmental co-operation. In some of these areas procedures already exist through which issues related to the operations of multinational enterprises can be taken up. This work could result in the conclusion of further and complementary agreements and arrangements between governments.
5. The initial phase of the co-operation programme is composed of a Declaration and three Decisions promulgated simultaneously as they are complementary and inter-connected, in respect of Guidelines for multinational enterprises, National Treatment for foreign-controlled enterprises and international investment incentives and disincentives.
6. The Guidelines set out below are recommendations jointly addressed by Member countries to multinational enterprises operating in their territories. These Guidelines, which take into account the problems which can arise because of the international structure of these enterprises, lay down standards for the activities of these enterprises in the different Member countries. Observance of the Guidelines is voluntary and not legally enforceable. However, they should help to ensure that the operations of these enterprises are in harmony with national policies of the countries where they operate and to strengthen the basis of mutual confidence between enterprises and States.
7. Every State has the right to prescribe the conditions under which multinational enterprises operate within its national jurisdiction, subject to international law and to the international agreements to which it has subscribed. The entities of a multinational enterprise located in various countries are subject to the laws of these countries.
8. A precise legal definition of multinational enterprises is not required for the purposes of the Guidelines. These usually comprise companies or other entities whose ownership is private, state or mixed, established in different countries and so linked that one or more of them may be able to exercise a significant influence over the activities of others and, in particular, to share knowledge and resources with the others. The degrees of autonomy of each entity in relation to the others varies widely from one multinational enterprise to another, depending on the nature of the links between such entities and the fields of activity concerned. For these reasons, the Guidelines are addressed to the various entities within the multinational enterprise (parent companies and/or local entities) according to the actual distribution of responsibilities among them on the understanding that they will co-operate and provide assistance to one another as necessary to facilitate observance of the Guidelines. The word "enterprise" as used in these Guidelines refers to these various entities in accordance with their responsibilities.
9. The Guidelines are not aimed at introducing differences of treatment between multinational and domestic enterprises; wherever relevant they reflect good practice for all. Accordingly, multinational and domestic enterprises are subject to the same expectations in respect of their conduct wherever the Guidelines are relevant to both.
10. The use of appropriate international dispute settlement mechanisms, including arbitration, should be encouraged as a means of facilitating the resolution of problems arising between enterprises and Member countries.
11. Member countries have agreed to establish appropriate review and consultation procedures concerning issues arising in respect of the Guidelines. When multinational enterprises are made subject to conflicting requirements by Member countries, the governments concerned will co-operate in good faith with a view to resolving such problems either within the Committee on International Investment and Multinational Enterprises established by the OECD Council on 21 January 1975 or through other mutually acceptable arrangements.

Having regard to the foregoing considerations, the Member countries set forth the following Guidelines for multinational enterprises with the understanding that Member countries will fulfil their responsibilities to treat enterprises equitably and in accordance with international law and international agreements as well as contractual obligations to which they have subscribed.

General policies

Enterprises should:

1. Take fully into account established general policy objectives of the Member countries in which they operate;
2. In particular, give due consideration to those countries' aims and priorities with regard to economic and social progress, including industrial and regional development, the protection of the environment and consumer interests, the creation of employment opportunities, the promotion of innovation and the transfer of technology;
3. While observing their legal obligations concerning information, supply their entities with supplementary information the latter may need in order to meet requests by the authorities of the countries in which those entities are located for information relevant to the activities of those entities, taking into account legitimate requirements of business confidentiality;
4. Favour close co-operation with the local community and business interests;
5. Allow their component entities freedom to develop their activities and to exploit their competitive advantage in domestic and foreign markets, consistent with the need for specialisation and sound commercial practice;
6. When filling responsible posts in each country of operation, take due account of individual qualifications without discrimination as to nationality, subject to particular national requirements in this respect;
7. Not render and they should not be solicited or expected to render any bribe or other improper benefit, direct or indirect, to any public servant or holder of public office;
8. Unless legally permissible, not make contributions to candidates for public office or to political parties or other political organisations;
9. Abstain from any improper involvement in local political activities.

Disclosure of information

Enterprises should, having due regard to their nature and relative size in the economic context of their operations and to requirements of business confidentiality and to cost, publish in a form suited to improve public understanding a sufficient body of factual information on the structure, activities and policies of the enterprise as a whole, as a supplement, in so far as necessary for this purpose, to information to be disclosed under the supplement, in so far as necessary for this purpose, to information to be disclosed under the national law of the individual countries in which they operate. To this end, they should publish within reasonable time limits, on a regular basis, but at least annually, financial statements and other pertinent information relating to the enterprise as a whole, comprising in particular:

a) The structure of the enterprise, showing the name and location of the parent company, its main affiliates, its percentage ownership, direct and indirect, in these affiliates, including shareholdings between them;
b) The geographical areas* where operations are carried out and the principal activities carried on therein by the parent company and the main affiliates;
c) The operating results and sales by geographical area and the sales in the major line of business for the enterprise as a whole;
d) Significant new capital investment by geographical area and, as far as practicable, by major lines of business for the enterprise as a whole;
e) A statement of the sources and uses of funds by the enterprise as a whole;
f) The average number of employees in each geographical area;
g) Research and development expenditure for the enterprise as a whole;
h) The policies followed in respect of intra-group pricing;
i) The accounting policies, including those on consolidation, observed in compiling the published information.

* For the purposes of the Guideline on Disclosure of Information, the term "geographical area" means groups of countries or individual countries as each enterprise determines is appropriate in its particular circumstances. While no single method of grouping is appropriate for all enterprises or for all purposes, the factors to be considered by an enterprise would include the significance of geographic proximity, economic affinity, similarities in business environments and the nature, scale and degree of interrelationship of the enterprises' operations in the various countries.

Competition

Enterprises should, while conforming to official competition rules and established policies of the countries in which they operate:

1. Refrain from actions which would adversely affect competition in the relevant market by abusing a dominant position of market power, by means of, for example:

   a) Anti-competitive acquisitions;
   b) Predatory behaviour toward competitors;
   c) Unreasonable refusal to deal;
   d) Anti-competitive abuse of industrial property rights;
   e) Discriminatory (i.e. unreasonably differentiated) pricing and using such pricing

   transactions between affiliated enterprises as a means of affecting adversely competition outside these enterprises;

2. Allow purchasers, distributors and licensees freedom to resell, export, purchase and develop their operations consistent with law, trade conditions, the need for specialisation and sound commercial practice;
3. Refrain from participating in or otherwise purposely strengthening the restrictive effects of international or domestic cartels or restrictive agreements which adversely affect or eliminate competition and which are not generally or specifically accepted under applicable national or international legislation;
4. Be ready to consult and co-operate, including the provision of information, with competent authorities of countries whose interests are directly affected in regard to competition issues or investigations. Provisions of information should be in accordance with safeguards normally applicable in this field.

Financing

Enterprises should, in managing the financial and commercial operations of their activities, and especially their liquid foreign assets and liabilities, take into consideration the established objectives of the countries in which they operate regarding balance of payments and credit policies.

Taxation

Enterprises should:

1. Upon request of the taxation authorities of the countries in which they operate provide, in accordance with the safeguards and relevant procedures of the national laws of these countries, the information necessary to determine correctly the taxes to be assessed in connection with their operations, including relevant information concerning their operations in other countries;
2. Refrain from making use of the particular facilities available to them, such as transfer pricing which does not conform to an arm's length standard, for modifying in ways contrary to national laws the tax base on which members of the group are assessed.

Employment and industrial relations

Enterprises should, within the framework of law, regulations and prevailing labour relations and employment practices, in each of the countries in which they operate:

1. Respect the right of their employees to be represented by trade unions and other bona fide organisations of employees, and engage in constructive negotiations, either individually or through employers' associations, with such employee organisations with a view to reaching agreements on employment conditions, which should include provisions for dealing with disputes arising over the interpretation of such agreements, and for ensuring mutually respected rights and responsibilities;

2. a) Provide such facilities to representatives of the employees as may be necessary to assist in the development of effective collective agreements;
   b) Provide to representatives of employees information which is needed for meaningful negotiations on conditions of employment;

3. Provide to representatives of employees where this accords with local law and practice, information which enables them to obtain a true and fair view of the performance of the entity or, where appropriate, the enterprise as a whole;
4. Observe standards of employment and industrial relations not less favourable than those observed by comparable employers in the host country;
5. In their operations, to the greatest extent practicable, utilise, train and prepare for upgrading members of the local labour force in co-operation with representatives of their employees and, where appropriate, the relevant governmental authorities;
6. In considering changes in their operations which would have major effects upon the livelihood of their employees, in particular in the case of the closure of an entity involving collective lay-offs or dismissals, provide reasonable notice of such changes to representatives of their employees, and where appropriate to the relevant governmental authorities and co-operate with the employee representatives and appropriate governmental authorities so as to mitigate to the maximum extent practicable adverse effects;
7. Implement their employment policies including hiring, discharge, pay, promotion and training without discrimination unless selectivity in respect of employee characteristics is in furtherance of established governmental policies which specifically promote greater equality of employment opportunity;
8. In the context of bona fide negotiations** with representatives of employees on conditions of employment, or while employees are exercising a right to organise, not threaten to utilise a capacity to transfer the whole or part of an operating unit from the country concerned nor transfer employees from the enterprises' component entities in other countries in order to influence unfairly those negotiations or to hinder the exercise of a right to organise;
9. Enable authorised representatives of their employees to conduct negotiations on collective bargaining or labour management relations issues with representatives of management who are authorised to take decisions on the matters under negotiation.

** Bona fide negotiations may include labour disputes as part of the process of negotiation. Whether or not labour disputes are so included will be determined by the law and prevailing employment practices of particular countries.

Environmental protection

Enterprises should, within the framework of laws, regulations and administrative practices in the countries in which they operate, and recalling the provisions of paragraph 9 of the Introduction to the Guidelines that, inter alia, multinational and domestic enterprises are subject to the same expectations in respect of their conduct whenever the Guidelines are relevant to both, take due account of the need to protect the environment and avoid creating environmentally related health problems. In particular, enterprises, whether multinational or domestic, should:

1. Assess, and take into account in decision making, foreseeable environmental and environmentally related health consequences of their activities, including siting decisions, impact on indigenous natural resources and foreseeable environmental and environmentally related health risks of products as well as from the generation, transport and disposal of waste;
2. Co-operate with competent authorities, inter alia, by providing adequate and timely information regarding the potential impacts on the environment and environmentally related health aspects of all their activities and by providing the relevant expertise available in the enterprise as a whole;
3. Take appropriate measures in their operations to minimise the risk of accidents and damage to health and the environment, and to co-operate in mitigating adverse effects, in particular:

a) by selecting and adopting those technologies and practices which are compatible with these objectives; b) by introducing a system of environmental protection at the level of the enterprise as a whole including, where appropriate, the use of environmental auditing; c) by enabling their component entities to be adequately equipped, especially by providing them with adequate knowledge and assistance; d) by implementing education and training programmes for their employees; e) by preparing contingency plans; and f) by supporting, in an appropriate manner, public information and community awareness programmes.

Science and technology

Enterprises should:

1. Endeavour to ensure that their activities fit satisfactorily into the scientific and technological policies and plans of the countries in which they operate, and contribute to the development of national scientific and technological capacities, including as far as appropriate the establishment and improvement in host countries of their capacity to innovate;
2. To the fullest extent practicable, adopt in the course of their business activities practices which permit the rapid diffusion of technologies with due regard to the protection of industrial and intellectual property rights;
3. When granting licenses for the use of industrial property rights or when otherwise transferring technology, do so on reasonable terms and conditions.

The Guidelines for Multinational Enterprises:

Second revised Decision of the OECD Council

(Amended June 1991)

THE COUNCIL,

Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960 and, in particular, to Articles 2d), 3 and 5a) thereof;

Having regard to the Resolution of the Council of 28th November 1979, on the Terms of Reference of the Committee on International Investment and Multinational Enterprises and, in particular, to paragraph 2 thereof [C(79)210(Final)];

Taking note of the Declaration by the Governments of OECD Member countries of 21st June 1976 in which they jointly recommend to multinational enterprises the observance of Guidelines for multinational enterprises;

Having regard to the Revised Decision of the Council of 13th June 1979 on Inter-Governmental Consultation Procedures on the Guidelines for Multinational Enterprises [C(79)143(Final)];

Recognising the desirability of setting forth procedures by which consultations may take place on matters related to these Guidelines;

Recognising that, while bilateral and multilateral co-operation should be strengthened when multinational enterprises are made subject to conflicting requirements, effective co-operation on problems arising therefrom may best be pursued in most circumstances on a bilateral level, although there may be cases where the multilateral approach would be more effective;

Considering the Report on the Review of the 1976 Declaration and Decisions on International Investment and Multinational Enterprises [C(79)102(Final)] and the Report on the Second Review of the 1976 Declaration and Decisions on International Investment and Multinational Enterprises [C/MIN(84)5(Final)], including the particular endorsement of the section in the Second Review Report relating to conflicting requirements;

On the proposal of the Committee on International Investment and Multinational Enterprises:

DECIDES:

1. Member Governments shall set up National Contact Points for undertaking promotional activities, handling inquires and for discussions with the parties concerned on all matters related to the Guidelines so that they can contribute to the solution of problems which may arise in this connection. The business community, employee organisations and other interested parties shall be informed of the availability of such facilities.
2. National Contact Points in different countries shall co-operate if such need arises, on any matter related to the Guidelines relevant to their activities. As a general procedure, discussions at the national level should be initiated before contacts with other National Contact Points are undertaken.
3. The Committee on International Investment and Multinational Enterprises (hereinafter called "the Committee") shall periodically or at the request of a Member country hold an exchange of views on matters related to the Guidelines and the experience gained in their application. The Committee shall be responsible for clarification of the Guidelines. Clarification will be provided as required. The Committee shall periodically report to the Council on these matters.
4. The Committee shall periodically invite the Business and Industry Advisory Committee to OECD (BIAC) and the Trade Union Advisory Committee to OECD (TUAC) to express their views on matters related to the Guidelines. In addition, exchanges of views with the advisory bodies on these matters may be held upon request by the latter. The Committee shall take account of such views in its reports to the Council.
5. If it so wishes, an individual enterprise will be given the opportunity to express its views either orally or in writing on issues concerning the Guidelines involving its interests.
6. The Committee shall not reach conclusions on the conduct of individual enterprises.
7. This Decision shall be reviewed at the latest in six years. The Committee shall make proposals for this purpose as appropriate.
8. This Decision shall replace Decision [C(79)143].