With the acceleration of economic globalization and the increasing activities of multinational enterprises, multinational enterprises have a broad effect on areas such as company policies of the host counties, labor, environment and consumer protection.
The Organization for Economic Cooperation and Development (¡°OECD¡±) established the ¡®Guidelines for Multinational Enterprises¡¯ (¡°Guidelines¡±) as the principles and standards for responsible business conduct in order to ensure that the operations of these enterprises are in harmony with government policies and societies where they operate.
The Guidelines are divided into Text (Part 1) and Implementation Procedures (Part 2), consisting of 11 chapters such as general policies, environment, consumer protection, and science technology, etc. The guidelines are joint international commitments imposing a social responsibility on multinational enterprises under the name the OECD member countries.
Compliance with the Guidelines is a good way to help multinational enterprises entrench themselves and maximize their performance in a host country.
In addition, the Guidelines are widely supported from the business and labor communities and NGOs, and they may file complaint against the implementation of the Guidelines with each country¡¯s national contract point (¡°NCP¡±).
Korea NCP (¡°KNCP¡±) expects both multinational enterprises operating in Korea and Korean companies advancing abroad to voluntarily and actively observe the Guidelines.
