History

The advent of multinational enterprises (MNEs) on the world economic scene, and in particular their activities in the 1960s, provoked intense discussions that resulted in efforts to draw up international instruments to regulate their conduct and define the terms of their relationship with host countries.

Since labour-related and social policy issues were among the specific concerns to which MNE activities gave rise, the ILO was inevitably drawn into the search for international guidelines in its sphere of competence. 

In view of its interest in the field of research in labour and social policy, the International Institute for Labour Studies organized, in 1967, a symposium on transnational industrial relations. This was followed by, inter alia, a decision of the Governing Body of the ILO in March 1971 to hold a technical meeting on the relationship between MNEs and social policy.

In June 1972, the International Labour Conference adopted a resolution concerning the social problems raised by the activities of multinational enterprises. In the resolution, the Conference took note with satisfaction of the above decision of the Governing Body and asked it to further consider what action the ILO should take in the light of the conclusions of that meeting.

In October/November 1972 a tripartite meeting on the "Relationship Between Multinational Corporations and Social Policy" was held to "explore and submit recommendations to the Governing Body on the desirability and possible scope of ILO action in this area". The meeting brought together 24 experts as well as substitutes and advisers from government, employers' and workers' groups to discuss human resources, employment, income and security, training, conditions of work and life and industrial relations. A second meeting was convened by the Governing Body in May 1976 to review work done in line with the recommendations of the earlier meeting, examine the usefulness and feasibility of principles/guidelines and formulate recommendations to the Governing Body.

The most important recommendation of this meeting was that work on a tripartite declaration of principles concerning multinational enterprises and social policy be initiated. The guidelines given stated that a tripartite declaration should be non-mandatory in character, not introduce inequality of treatment between multinational and national enterprises, cover all multinational enterprises whatever their ownership pattern, give due consideration to existing ILO instruments, be directed to governments, employers/multinationals, workers, and that once prepared be transmitted to the United Nations for incorporation in the Code which was then being discussed.

In June 1976 the ILO's tripartite World Employment Conference gave rise to a discussion on multinational enterprises. The Workers' group, as well as the Group of 77, recommended that a Convention on multinational enterprises be adopted. The Employers did not share this view but agreed on the usefulness of a tripartite declaration of principles which would be of a voluntary character.

Drafting the Declaration

Taking account of the preceding events and the possible emergence of a compromise, a restricted working group from the earlier tripartite advisory meeting was convened and worked on a draft of a set of principles during the first three months of 1977. The full tripartite advisory meeting was reconvened in April of 1977 to consider the text prepared by the small working group. This resulted in an agreed text which was submitted to the Governing Body in November of 1977.

The Governing Body's approval of that text gave birth to the ILO's Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

2000 and 2006 Updates

The text of the MNE Declaration is regularly updated to include references to new instruments, adopted by the International Labour Conference and the Governing Body, that are of relevance to the issues it covers.

In March 2000 the text of the MNE Declaration was revised to incorporate the fundamental principles and rights at work. All the parties to which the Declaration is commended are encouraged to contribute to the realization of the ILO Declaration on Fundamental Principles and Rights at Work. In addition, governments are urged in to ratify, along with the conventions already referenced, the minimum age and child labour conventions and the corresponding Recommendations.

During the last update of the MNE Declaration, which was approved in March 2006, the list of ILO Conventions that member States are invited to ratify was extended to all the fundamental Conventions. Furthermore, a specific recommendation was added to encourage enterprises, both multinational and national, to take immediate and effective measures within their own competence to secure the prohibition and elimination of the worst forms of child labour, as a matter of urgency. References to the following ILO instruments were also added: the Global Employment Agenda; Recommendation (No. 169) concerning Employment Policy and Recommendation (No. 189) concerning General Conditions to Stimulate Job Creation in Small and Medium-Sized Enterprises; and ILO codes of practice on HIV/AIDS and the world of work (2001) and on Managing disability in the workplace (2002).