The Financial Times

May 17, 2005

Why business values OECD guidelines

From Mr. Thomas R. Vant.

Sir, With reference to your article "OECD plea to raise corporate standards" (May 5), the purpose of the Organisation for Economic Co-operation and Development guidelines is not, as the article suggests, to provide a procedure for more non-governmental organisation and labour union allegations against companies.

Neither can the impact the guidelines have on corporate behaviour be measured by counting the number of complaints brought against businesses and by clocking the time needed by national government authorities to deal with these complaints. In fact, in most cases brought by NGOs and unions, the alleged breaches of the guidelines were rejected after careful consideration.

What the OECD guidelines are about is providing a balanced set of principles and recommendations by governments that are available for companies' use to enhance responsible corporate conduct. Their value stems from the fact that they were drafted in close partnership with business, labour unions and NGOs and were endorsed by 39 governments. This unique backing gives the guidelines high credibility in the business community.

It is business that puts the guidelines into practice, not the NGO community. Therefore, it is indispensable for the acceptance and practical relevance of the guidelines that national contact points established by governments adhering to the guidelines be credible and reliable partners for companies.

Thomas R. Vant, Secretary General, The Business and Industry Advisory Committee to the OECD, 75016 Paris, France