ILO to encourage positive contribution of multinational enterprises in Indonesia

JAKARTA (ILO News) – Multinational enterprises are the principal drivers of globalization and through their operations influence the working and living conditions of people worldwide. Therefore, they have a vital role to play in promoting economic and social progress.

Multinational enterprises provide sizeable opportunities in employment and benefit the host country of their operations through establishing business linkages with the local economy. There are evidence that suggests MNEs and their supply chains have created more jobs for women than men.

The MNE Declaration is the only ILO instrument that provides direct guidance to enterprises on social policy. Underpinned by international labour standards, its provisions constitute good practices on responsible and sustainable workplace practices. It is also the only global instrument in this area that was elaborated and adopted by governments, employers and workers from around the world. Adopted more than 40 years ago, the MNE Declaration remains even more relevant today in the context of the 2030 Agenda for Sustainable Development. The principles under this Declaration aim to encourage positive contributions of multinational enterprises to economic and social progress, and to minimize and resolve the difficulties to which their operations may give rise."

To maximize the potential roles of multinational enterprise in development, the International Labour Organization (ILO) will conduct a one-day workshop to look at ways in which business could further advance the principles of the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration), titled “Promoting Employment and Enhancing Business Linkages in Indonesia” on Tuesday, 15 November 2016, in Jakarta.

The workshop will provide an opportunity to exchange experiences amongst the participating companies and point the way forward in terms of five topic areas of the MNE Declaration, in promoting sustainable development, inclusive growth and employment generation through joint action. The five topic areas of the MNE Declaration are: General Policies, Employment, Training, Conditions of Work and Life and Industrial Relations.

The MNE Declaration is the only ILO instrument that provides direct guidance to enterprises on social policy. Underpinned by international labour standards, its provisions constitute good practices on responsible and sustainable workplace practices. It is also the only global instrument in this area that was elaborated and adopted by governments, employers and workers from around the world.

Adopted more than 40 years ago, the MNE Declaration remains even more relevant today in the context of the 2030 Agenda for Sustainable Development. The principles under this Declaration aim to encourage positive contributions of multinational enterprises to economic and social progress, and to minimize and resolve the difficulties to which their operations may give rise.

In the workshop, representatives of multinational enterprises share their experiences in promoting social responsible labour practices within their enterprises and in their supply chains. The workshop will also identify and discuss opportunities and challenges in promoting decent work through multinational enterprises, including through enhancing the linkages with local small-sized and medium-sized enterprises, capacity-building for local manufacturers, human resources development and promoting sound industrial relations. Youth employment is also on the agenda.

Another workshop will be jointly organised with the Bali Hotel Association on 18 November in Bali, focusing on hotel business sector. Under the title “Promoting Responsible and Sustainable Business Practices in Indonesia: the lead role of the global hotel chains operating in Bali for promoting youth employment”, the workshop will engage managers of the global and local hotel chains to learn from best local practices, given their crucial role in generating employment and development of the local economy in Bali.

Both workshops will be facilitated by Yukiko Arai, an expert of the ILO Multinational Enterprises and Enterprise Engagement Unit in Geneva. “Socially responsible practices are often seen as costly and harmful to competitiveness, but I hope the upcoming seminars will help demonstrate that realising win-win outcomes is possible through competitiveness enhancing socially responsible labour and business practices. The ILO MNE Declaration provides the necessary guidance” said Yukiko.

Yukiko will also share her global experience in engaging with multinational enterprises in promoting decent work in various sector of industries.

For further information please contact:

Tendy Gunawan
ILO’s Programme Officer
Tel.: +6221 3913112 ext. 116
Email: [email protected]

Gita Lingga
ILO’s Media Officer
Tel.: +6221 3913112 ext. 115
Email: [email protected]