The OECD Guidelines for Multinational Enterprises are described by the OECD as non-binding recommendations to enterprises. Participating countries include the 30 OECD members as well as eight other countries - Argentina, Brazil, Chile, Estonia, Israel, Latvia, Lithuania and Slovenia.

Under the Guidelines, enterprises undertake to respect the human rights of those affected by their activities, to support corporate governance principles and to “…refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory framework related to environmental, health, safety, labour, taxation, financial incentives, or other issues” . Corporations also undertake to abstain from improper involvement in local politics.

The Guidelines include undertakings within the field of employment and labour rights. Corporations pledge to contribute towards the elimination of child and forced labour, and to adhere to domestic employment standards – to “observe standards of employment and industrial relations not less favourable than those observed by comparable employers in the host country” . However, this may not be adequate in countries where employment standards for domestic employers leave much to be desired.

The Guidelines also include sections relating to bribery, to intellectual property and to taxation – transnational corporations undertake not to avoid taxation through transfer pricing manipulation.

The Commentaries to the Guidelines State that these Guidelines are not intended to override local regulations. Also, the Commentary includes an important proviso – the Guidelines are not intended to substitute a regulatory approach, but to complement it – “Enterprises should be viewed as partners with government in the development and use of both voluntary and regulatory approaches (of which the Guidelines are one element) to policies affecting them” .