Major Programme 85. Multinational Enterprises

Summary of 1998-99 proposals and comparison with previous biennium (including funds from other sources)

85.1. The continued rapid globalization of the world economy is fuelled in no small measure by foreign direct investment and the activities of multinational enterprises. In this context, the concern of governments to accelerate industrialization and economic progress in order to combat unemployment and minimize social unrest has led to a reversal in many developing countries of their earlier hesitations concerning foreign direct investment and multinational enterprises. In a situation of intense competition to attract foreign capital, know-how and technology, many governments are adopting codes of investment containing incentives and concessions to attract investors. However, the progressive rapprochement between governments and foreign investors could well create situations in which the interests and rights of workers are affected. Indeed, at a time when there is a growing tendency to relegate social and labour issues to a secondary position because of their cost, it is even more important to promote the more widespread acceptance of a consensus-based voluntary instrument that bridges the gap between national laws and regulations, which may not be wholly capable of dealing with situations arising from the activities of multinational enterprises, and international Conventions, which may not yet have been ratified, and even if ratified, are not being implemented by some of the countries concerned. This provides new opportunities for the promotion of the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy as a useful set of guidelines for the policies and practices of ILO constituents.

85.2. The objective of this major programme is the more widespread observance of the principles contained in the Tripartite Declaration as a framework for action by governments, employers (including multinational enterprises) and workers to address the labour and social problems that may arise as a result of foreign direct investment and the activities of multinational enterprises. This objective will be achieved through activities to follow up the effect given to the Tripartite Declaration, the provision of assistance to further promote its observance, and research into trends and developments relating to foreign direct investment and the activities of multinational enterprises. In the course of the biennium, the questionnaire for the Seventh Survey on the effect given to the Tripartite Declaration (1996- 99) will be prepared and sent out. Reports will also be submitted to the Governing Body Subcommittee on Multinational Enterprises on the promotional activities, technical cooperation as well as advisory services, research and other work carried out in this field by other organizations with similar interests.

85.3. The various sections of the Tripartite Declaration cover fields such as industrial relations, employment, training and working conditions. Work to promote the wider observance of the Tripartite Declaration will therefore be carried out in close collaboration with the experts in the multidisciplinary advisory teams, with a view to extending the range of advisory services provided to constituents and furnishing them with useful tools to minimize any problems that they may face in relation to multinational enterprises, foreign direct investment and export processing zones. In addition to reinforcing collaboration with its constituents, the Office will explore ways of working with other organizations to minimize the social and labour problems arising in this field. These organizations include: international, regional and national donors; financial institutions, the regional economic commissions and similar groups (EU, ASEAN, APEC, Mercosur, etc.); organizations which play a catalytic role in promoting foreign direct investment and industrial and economic development; and NGOs that are active in promoting workers’ rights in relation to foreign direct investment, multinational enterprises and export processing zones.

85.4. The capacity of the Office to provide its constituents with advisory services, offer and implement technical cooperation and disseminate information is dependent on its access to up-to-date and reliable information. Research will therefore continue to be carried out into new problems arising in relation to foreign direct investment and multinational enterprises in the context of a globalization process that is gathering momentum. The findings of this research will be disseminated in the form of documentation and publications.

85.5. The representatives of multinational enterprises have frequently reiterated that any international action to minimize labour problems and improve standards should be of a cooperative nature, and any instruments that may result therefrom should be voluntary and non-coercive. It is no doubt in this spirit that many multinational enterprises have adopted “voluntary” corporate codes and guidelines.A compendium of  these  instruments  will  be  prepared,  with  an accompanying handbook containing comments, cross-references to the Tripartite Declaration and a list of the relevant basic international instruments. The compendium will be useful not only in assisting the work of the Office in further promoting its instruments, but also in providing model texts to enterprises, including the growing number of smaller and medium-sized multinational enterprises that are operating worldwide and may wish to have similar instruments. It will also be useful to other users as a reference text.

85.6. The resources of this programme are at the same level as for the 1996-97 biennium.

International Labour Organization (ILO): Contact us | Site map |

Copyright and Permissions 1996-2009 International Labour Organization (ILO) - Disclaimer