Multinational Enterprises (Hansard, 20 October 2003)

§ Dr. Vis
To ask the Secretary of State for International Development what his policy is on instructing the UK directors of the(a) European Bank for Reconstruction and Development and (b) International Finance Corporation to grant support for projects that have been the subject of an on-going complaint for breach of OECD guidelines on multinational enterprises. [132504]

§ Hilary Benn
UK policy is to assess proposed EBRD and IFC projects against the mandates, policies and procedures of those institutions. The OECD Guidelines for Multinational Enterprises ("the Guidelines") are recommendations addressed by adhering countries to multi-national enterprises ("MNE's"). They represent a framework of principles of good conduct for multi-national companies in their business activities, designed to help ensure that they act in harmony with the policies of the countries in which they operate and that they consider the views of other stakeholders. The Guidelines aim to promote and develop a sustainable approach to business conduct and to build an atmosphere of confidence and predictability between business, labour, governments and society as a whole. It is intended that companies use the Guidelines as a benchmark when developing their own codes of conduct. The Government take complaints under the guidelines very seriously and have an established mechanism for dealing 367W with complaints through the National Contact Point in DTI. This mechanism applies equally to projects for which financing by a multilateral financial institution is being considered.

§ Mr. Hancock
To ask the Secretary of State for International Development what guidance his Department has given to UK directors of the(a) European Bank for Reconstruction and Development and (b) International Finance Corporation in relation to projects that are the subject of a complaint for a breach of OECD guidelines on multi-national enterprises; and if he will make a statement. [132459]

§ Hilary Benn
UK policy is to assess proposed EBRD and IFC projects against the mandates, policies and procedures of those institutions. The OECD Guidelines for Multinational Enterprises ("the Guidelines") are recommendations addressed by adhering countries to multi-national enterprises ("MNE's"). They represent a framework of principles of good conduct for multi-national companies in their business activities, designed to help ensure that they act in harmony with the policies of the countries in which they operate and that they consider the views of other stakeholders. The Guidelines aim to promote and develop a sustainable approach to business conduct and to build an atmosphere of confidence and predictability between business, labour, governments and society as a whole. It is intended that companies use the Guidelines as a benchmark when developing their own codes of conduct. The Government takes complaints under the guidelines very seriously and has an established mechanism for dealing with complaints through the National Contact Point in DTI. This mechanism applies equally to projects for which financing by a multilateral financial institution is being considered.

§ Mr. Drew
To ask the Secretary of State for International Development what his policy is on the role of the(a) European Bank for Reconstruction and Development and (b) International Finance Corporation of the World Bank in granting support to projects that are subject to an outstanding complaint for a breach of OECD guidelines on multi-national enterprises. [133629]

§ Hilary Benn
UK policy is to assess proposed EBRD and IFC projects against the mandates, policies and procedures of those institutions. The OECD Guidelines for Multinational Enterprises ("the Guidelines") are recommendations addressed by adhering countries to multi-national enterprises ("MNE's"). They represent a framework of principles of good conduct for multi-national companies in their business activities, designed to help ensure that they act in harmony with the policies of the countries in which they operate and that they consider the views of other stakeholders (for example in respect of social and environmental issues). The Guidelines aim to promote and develop a sustainable approach to business conduct and to build an atmosphere of confidence and predictability between business, labour, governments and society as a whole. It is intended that companies use the Guidelines as a benchmark when developing their own codes of conduct. The Government takes complaints under the guidelines very seriously and has an established mechanism for dealing with complaints through the368W National Contact Point in DTI. This mechanism applies equally to projects for which financing by a multilateral financial institution is being considered.