OECD Guidelines – orientation for large and small companies

The business world is more globally networked than ever before, which presents companies with the challenge of operating profitably and at the same time acting sustainably and responsibly. The OECD Guidelines for Multinational Enterprises provide clear guidance in this regard – both for large corporations and for small and medium-sized enterprises (SMEs). But what exactly do these guidelines mean and how can they be successfully implemented by companies of different sectors and sizes? 

What are the OECD Guidelines? 

The OECD Guidelines are recommendations for responsible business conduct that have been adopted by the 38 member states of the Organisation for Economic Cooperation and Development (OECD) and other partner countries. They are aimed at multinational companies, but also serve as a reference for SMEs.  

The guiding principles cover the following key topics: 

1. General principles: promoting responsible business practices across the value chain
2. Disclosure of information: transparency about corporate structures, finances and risks
3. Human rights: safeguarding and promoting human rights
4. Employee rights: protection of employee rights and promotion of good working conditions
5. Environment: consideration of ecological impacts and promotion of sustainable approaches
6. Combating corruption: measures against bribery and illegal business practices
7. Consumer protection: transparency and protection of consumer rights
8. Science and technology: promoting innovation while upholding ethical principles
   
   

Why are the OECD Guidelines important? 

The guidelines create an international standard for sustainable business practices and ethical behavior. Companies that follow them not only strengthen their reputation, but also minimize risks such as legal conflicts or damage to their image. They also help to secure their own long-term competitiveness. 

Relevance for large companies

• Transparency in the supply chain: Large companies use the Guiding Principles to implement human rights due diligence obligations.
  
  
• Innovative environmental strategies: Sustainability programs of large companies are often based on the environmental requirements of the Guidelines. 
  
  

What do the OECD Guidelines mean for SMEs? 

• Simpler reporting obligations: SMEs can use adapted disclosure practices. 
  
  
• Focused measures: Smaller companies can focus on specific issues such as the environment or workers' rights that are particularly relevant to their industry. 
  
  

Our offer 

The OECD Guidelines offer companies of all sizes a structured basis for combining economic success with social responsibility. They are an obligation for large corporations and an opportunity for SMEs to remain competitive in the global economy. Those who take the guiding principles seriously are not only investing in the future of the company, but also in a more sustainable and fairer world. 

Would you like to find out more about the topic and/or do you need appropriate training? Would you like support in drawing up appropriate guidelines or implementing processes? Do you have to prepare a report in accordance with the European Taxonomy Regulation and need support in meeting the minimum standards? Get in touch with our experts in sustainability consulting!

Text: Olga Schmidt

(Header image: Freepik)