NATIONAL CONTACT POINTS: A UNIQUE GRIEVANCE MECHANISM FOR RESOLVING RESPONSIBLE BUSINESS CONDUCT DISPUTES
National contact points (NCPs) are agencies established and overseen by governments in each of the 49 countries that adhere to the 2011 ‘Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises’ (Guidelines). The Guidelines comprise a set of non-binding principles and standards for responsible business conduct and mandate NCPs to promote the Guidelines and handle ‘specific instances’ (complaints) alleging breaches of the Guidelines by multinational enterprises (MNEs).
The mandate to handle specific instances means that the Guidelines are the only government-backed international instrument governing responsible business conduct with a built-in non-judicial grievance mechanism. But what does the NCP specific instance process involve and what trends can be observed? And what are the key considerations for MNEs when deciding if and how to engage in such a process? We address these important questions below.
NCPs: the specific instance process
The NCP process is a voluntary dispute resolution mechanism centred around mediation. Requests that NCPs should handle a specific instance are typically made by non-governmental organisations (NGOs) and trade unions. However, individuals and communities are also common complainants.
The lead NCP in a specific instance is typically the NCP in the jurisdiction where the harm arises, although complaints are often pursued in the country where the relevant MNE is headquartered.
Oct-Dec 2020 issue
Gibson, Dunn & Crutcher UK LLP