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Explain the OECD Guidelines for Multinational Enterprises.

Originally adopted as part of the larger Declaration on International Investments and Multinational Enterprises in 1976, the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises represents a more governmental approach to the same issues featured in the UN’s nongovernmental Global Compact. Supporters argue that the government backing adds credibility to the issues being promoted, but the guidelines carry no criminal or civil enforcement and are not regarded as legally binding. What they do offer are principles and standards of behavior that draw on the same core values as the UN Global Compact across a broader series of issues captured in 10 “chapters.”

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