Government involvement is critical to the success of responsible business standards

The OECD’s Guidelines for Multinational Enterprises are a set of standards that are underestimated by many corporations.

But, the OECD is preparing for some revisions and a major push of the guidelines.

The OECD’s Guidelines have the unique advantage of receiving significant support from the national governments of OECD member countries. 42 OECD and non-OECD countries recommend the Guidelines.

Sustainability professionals whom attended the Ethical Corporation debate on voluntary initiatives in CSR last year unanimously agreed that governments must play a part in such standards.

Dr. Sue Konzelmann and her colleagues at the London Centre for Corporate Governance and Ethics (LCGGE) agree. Their research points to a strong connection between national regulation and corporate governance.

For the OECD Guidelines to have substantial impact, they will also need to convince companies of the value they bring to business.

They are well on their way to doing just this. In December 2009, I joined the OECD’s Consultation on the Update of the Guidelines for Multinational Enterprises, where an in-depth debate on necessary revisions to the Guidelines began. Themes that emerged from the discussion included a need for an increased focus on transparency, human rights, and supply chain issues.

This spring, the OECD’s adhering governments are expected to decide on the terms of reference for an updated set of Guidelines. Information will be posted here.