The effectiveness of the OECD Guidelines' NCP procedure

Abstract

The OECD Guidelines for Multinational Enterprises have become increasingly relevant in the debate on the role of business in society. This instrument for responsible business conduct (RBC) is considered to be unique due to its implementation mechanism, the National Contact Point (NCP) procedure. The NCP procedure applies a pragmatic stakeholder engagement approach to contribute to the effectiveness of the OECD Guidelines. However, little is known about the effects of the NCP procedure. To fill this gap, this study provides insights into the ex-post effects of the Dutch NCP procedure on solving non-compliance issues, the RBC performance of MNEs, and societal impact. This study developed a framework of different layers of effects. It used this framework to gather and analyze empirical data through interviews with parties that have participated in non-compliance procedures. The effects found are mainly related to solving issues, while the effects on RBC within MNEs and their societal impact seem limited. Based on the findings, this study concludes that the full potential of the OECD Guidelines remains unrealized in most of the investigated cases.