Uruguay’s National Contact Point for Responsible Business Conduct (NCP), hosted within the Ministry of Economy and Finance, benefits from a formal legal basis and an interagency structure that can support effective implementation of its mandate. However, limited resources, low activity levels and insufficient stakeholder engagement have constrained its operational impact, according to a new OECD peer review.
The review finds that, since its establishment in 2021, the Uruguayan NCP has laid important institutional foundations, including the creation of an inter-ministerial commission and an advisory body designed to involve stakeholders. Nevertheless, the NCP has undertaken limited activities across its core functions in recent years, and a relaunch of its operations will be essential to ensure effectiveness. According to the review, strengthening resources and clarifying institutional arrangements will be key to enabling the NCP to fulfil its responsibilities under the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the Guidelines).
The NCP’s structure brings together several ministries and public bodies, providing a potential platform for policy coherence and access to expertise. The existence of an advisory body, which includes representatives from business, trade unions and civil society, offers an avenue for broad stakeholder engagement. However, the review finds that both the inter-ministerial commission and advisory body have not been fully operational in practice, with limited meetings held and a lack of clarity regarding roles, composition, and procedures. Stakeholders have highlighted low visibility of the NCP and uncertainty about its structure.
Resource constraints have significantly affected the NCP’s ability to carry out its mandate. Staffing levels have declined in recent years, with only part-time capacity (equivalent to one-fourth full-time staff) currently dedicated to NCP functions. The NCP has organised only a small number of promotional events since its establishment.
The Uruguayan NCP has not received any specific instances. While stakeholders recognise the potential value of the NCP as a mechanism to address grievances, awareness remains low among business, trade unions, and civil society, and the NCP has not yet developed practical experience in case handling. The review finds that existing procedures, while generally comprehensive, would benefit from revision and further elaboration, including on issues such as confidentiality and conflicts of interest.
Uruguay has demonstrated engagement in responsible business conduct related policy areas, including through measures such as anti-money laundering legislation. However, most relevant policies do not explicitly reference the Guidelines or the role of the NCP. The review recommends that the NCP play a stronger role in supporting government efforts and promoting policy coherence across relevant areas.
The peer review recommends that the Uruguay NCP:
- Ensure sufficient resources, including at least one full-time staff member, to carry out its responsibilities.
- Relaunch its operations and develop a structured plan for activities, including periodic evaluations.
- Reassess and clarify the composition and operations of its inter-ministerial commission and advisory body.
- Develop and implement a strategic approach to promotion, including tailored materials, improved website content, and renewed use of social media.
- Update case-handling procedures to align with the 2023 Guidelines and strengthen key elements such as confidentiality and conflict-of-interest provisions.
- Build capacity for dispute resolution, including through training and preparation for handling its first specific instance.
- Strengthen its role in supporting government efforts to promote RBC and enhance policy coherence across relevant ministries and policy areas.
The NCPs of Chile and Finland led this peer review. Uruguay is invited to report on follow-up actions to the OECD one year following approval of the report.
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the Guidelines) are the most comprehensive international standard to align activities of business with the needs of society. The Guidelines are backed by 52 governments in the OECD and beyond, which are required to establish a National Contact Point for Responsible Business Conduct, a unique domestic body to promote the Guidelines and resolve cases brought against companies as a non-judicial grievance mechanism. To ensure continued effectiveness, all NCPs must undertake periodic peer reviews.
For further information, please contact: RBC@oecd.org
