OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones

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The OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones was adopted by the OECD Council on 8 June 2006 (download the full text in English or French). It aims to help companies that invest in countries where governments are unwilling or unable to assume their responsibilities.  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 (“the Guidelines”), a voluntary, government-backed code of conduct for international business. It is non-prescriptive and consistent with the objectives and principles of the Guidelines. 

The Risk Awareness Tool has benefited from inputs from business, trade unions and civil society representatives from both the OECD and non-OECD areas. The Risk Awareness Tool incorporates earlier Investment Committee discussions of investments in Myanmar and the Democratic Republic of Congo as well as inputs received during two separate public consultations - November 2005 and April 2005. 

Drawing on the OECD Guidelines for Multinational Enterprises and the recognised strengths of the OECD in the integrity area, the Risk Awareness Tool focuses on those issues about which the OECD integrity instruments shed light.  In addition to the Guidelines, these instruments include the Convention and Recommendations on Combating Bribery of Foreign Public Officials and the Guidelines for Managing Conflict of Interest in the Public Sector.  The importance of this work has been recognised by the UN Security Council and by G8 Heads of State and it will serve as a basis for ongoing OECD outreach on investment issues in Africa, Asia and Latin America. In the next phase, business and stakeholders will work with OECD to identify sources of practical experience in meeting the challenges the Tool addresses.

Documentation:

• OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones [ English / French ], 8 June 2006
• Resources for companies working in weak governance zones
• News release: OECD offers guidance for multinationals in “weak governance” zones, 12 June 2006
• Second public consultation - November 2005
• First public consultation - April 2005
• NEPAD/OECD Conference on Alliances for Integrity – Government and Business Roles in Enhancing African Standards of Living, Addis Ababa, Ethiopia, 7-8 March 2005
• Conducting Business with Integrity in Weak Governance Zones: Project Outline, 3 May 2004
• Illegal Exploitation of Natural Resources in the Democratic Republic of Congo: Public Statement by the Committee, 12 February 2004
• Multinational Enterprises in Situations of Violent Conflict and Widespread Human Rights Abuses, June 2002 [ English / français ]