The business case for engaging with the National Contact Points for Responsible Business Conduct

There are fifty-two National Contact Points (NCPs) for Responsible Business Conduct (RBC) with the mandate to act as state-based non-judicial grievance mechanisms under the OECD Guidelines for Multinational Enterprises. Since 2000, NCPs have handled more than 700 cases (specific instances) relating to company operations in over 110 countries, covering issues such as human rights, employment and the environment. Despite a good track record of resolving disputes when both parties engage in the process in good faith, many companies choose not to engage with the NCP process. This paper outlines potential benefits for business to engage with NCP specific instances, drawing on past cases and research. It outlines how the unique characteristics of the NCP mechanism facilitate the resolution of complex issues, potentially helping companies avoid costs associated with RBC disputes. It also explores various incentives to engage, such as reputational risks or eligibility for government support, and highlights how the process can strengthen stakeholder relationships. Finally, it explores how participation can strengthen a company’s due diligence process and thereby support them in responding to increasing RBC expectations from regulators, business partners and investors.