Promoting a Conflict Prevention Approach to OECD Companies and Partnering with Local Business

This Briefing Paper assesses challenges and opportunities for a framework that would help to better ensure that the activities of OECD companies do not directly or indirectly fuel violent conflicts, but rather actively engage in conflict prevention and peacebuilding.

The paper points out that while there has been considerable reference and controversy surrounding the OECD Guidelines for Multinational Enterprises (MNE Guidelines) as related to OECD companies operating in conflict-affected countries, they present a good starting point for a viable framework. In order for the MNE Guidelines to meet their potential there needs to be a clarification regarding operations in conflict zones, and implementations also need to be strengthened.

The Paper therefore gives the following recommendations:

• the CPDC Network should set up a Joint Task Force together with CIME in order to develop a new chapter to the MNE Guidelines on this issue
• useful clauses would include: best practice on security arrangements, transparency of revenues, and reference to the importance of using conflict analysis and impact assessment tools when operating in conflict-affected countries
• donors should cooperate with other ministries and agencies to promote conflict awareness and sensitive conduct of OECD home companies
• donors should work through in-country missions to engage home companies in conflict prevention and peacebuilding
• donors should establish priorities for working with recipient governments in order to promote enabling environments for conflict-sensitive investment.

[Summary Source: Eldis]