Recognized in more than 50 countries, including Switzerland, the "code of conduct" for responsible multinational corporations has been updated. What's new, and why does it matter for SMEs? SECO expert Nadja Meier weighs in.
Since the last update of the Guidelines for Multinational Enterprises in 2011, numerous new challenges have come to the fore: accelerated climate change, significant advancements in artificial intelligence, and a surge in cybersecurity issues, to mention a few. In response to these changes, 51 countries, including Switzerland, ratified an updated version of the Organisation for Economic Co-operation and Development (OECD) guidelines in 2023.
These guidelines are vital for Swiss SMEs, particularly those whose operations extend beyond national boundaries. They encompass all aspects of responsible business conduct: human and labor rights, environmental practices, anti-corruption measures, consumer protection, competition, and taxation, among others. In Switzerland, the implementation of these guidelines is overseen by the National Contact Point for Responsible Business Conduct, which is affiliated with SECO. Nadja Meier, one of its members, outlines the implications for small and medium-sized enterprises.
What topics emerged in the 2023 document?
Nadja Meier: The major updates are in the areas of climate change and biodiversity. Companies are expected to align with globally agreed goals, especially in terms of implementing scientifically backed measures, strategies, and transition plans aimed at protecting the climate.
Furthermore, the signatory countries demand a meticulous approach to the development, commerce, and application of technologies. For example, an employer using artificial intelligence for hiring must ensure the process is free from discrimination and that personal data is safeguarded.
Finally, the guidelines on due diligence have been extended to address every form of corruption comprehensively. Companies are obligated to avoid any action that could be interpreted as corrupt, from engaging in bribery, whether offering or requesting, to the misuse of sponsorships or charitable donations.
The guidelines target multinational companies. Why are they significant for Swiss SMEs too?
Meier: A significant number of SMEs operate and invest across national borders. As a result, their activities, or those of their trading partners, can lead to negative impacts abroad. The scope of due diligence necessary varies with the company's size, its industry, and the region of operation. The OECD has published due diligence guidelines tailored to specific sectors, including raw materials, textiles, agriculture, and finance. SMEs, especially those with business partners, operational countries, or sectors that are subject to rapid changes, should regularly review and assess the effectiveness of their due diligence measures.
What advantages can an SME derive from engaging in responsible business practices?
Meier: Adopting responsible business practices provides strategic benefits. Due diligence enables the early identification of risks tied to products or services, leading to fewer supply chain disruptions and enhanced productivity. Furthermore, responsible conduct drives innovation, such as in creating premium products or processes that conserve resources, bolstering an SME's reputation in the process. Today, investors, governments, customers, and consumers demand that companies not only recognize their impact on society and the environment but also actively work to reduce any negative consequences through preemptive actions.
The document acts as a detailed but non-mandatory code of conduct. What occurs if a complaint is filed?
Meier: When there are complaints about potential violations of the OECD guidelines, the National Contact Point (NCP) in Switzerland, tasked with enforcing these principles, steps in as a mediator outside the courtroom. It reviews the complaint within the context of the guidelines and decides whether mediation is warranted, issuing a reasoned verdict. The mediation process is conducted in confidentiality to foster trust and facilitate a successful resolution. The goal is to encourage dialogue between the parties, aiming for a resolution that looks towards the future. Following the mediation, the NCP releases a report summarizing the outcomes and offers recommendations to all involved parties.
What resources and tools can entrepreneurs interested in these topics access?
Meier: The National Contact Point (NCP) is available to field any inquiries or feedback about the guidelines. Businesses interested in connecting with peers on these subjects are encouraged to join the Global Compact Network Switzerland. Backed by the federal government, this membership-based network hosts a variety of events. For SMEs with international operations, whether in exporting, importing, or production, the CSR Risk Check digital tool proves invaluable for evaluating social, environmental, or governance risks within their value creation chain.
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Biography
Nadja Meier earned her first master's degree in international relations from the Graduate Institute of International and Development Studies in Geneva and her second master's in international economic law from the University of Zurich. Since 2015, she has been serving as a scientific collaborator, focusing on the OECD guidelines within the International Investments and Multinational Enterprises sector of SECO.
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Last modification 03.04.2024
