To many people, international investment by multinational enterprises is what globalisation is all about. Promoting appropriate business conduct by these companies is a real challenge however since their operations often straddle dozens of countries and hundreds of cultural, legal and regulatory environments.

The present report reviews the activities undertaken to promote the observance of the OECD Guidelines for Multinational Enterprises (the Guidelines) during the implementation cycle of June 2012-June 2013. After the May 2011 Update of the Guidelines and the subsequent 6 month period during which the National Contact Points (NCPs) integrated the revised provisions, the past year was the first full-fledged implementation year of the updated Guidelines.

Overall, a quarter of NCPs reported changes in their governance structures and procedures to make them more inclusive, accountable and transparent. Denmark created an independent body with five members from different stakeholder backgrounds and a new mediation and complaint mechanism with an allocated budget of over 400 000 EUR per year. In Brazil, the election of a representative by each of the 11 governmental institutions that compose the NCP was made legally binding, to increase the sense of ownership and awareness about the Guidelines within the government. Switzerland set up a multi-stakeholder advisory board composed of 14 representatives from various stakeholder groups, and new internal procedures for handling specific instances. Australia established an Oversight Committee that includes government agencies. The Chilean NCP is now assisted by an advisory group of government experts and a civil society oversight committee composed of different stakeholders and RBC experts. The new procedures of the French NCP entered into force and Spain is well advanced in reforming its NCP. Finally, Tunisia created the 44th NCP on the Guidelines, which comprises representatives from government, trade union and business.

The main role of the NCPs of governments adhering to the Guidelines is to further their effectiveness by undertaking promotional activities, handling enquiries, and contributing to the resolution of issues that arise from the alleged non-observance of the Guidelines in specific instances. This chapter reviews NCP activities as well as other implementation activities undertaken by adhering governments over the June 2012-June 2013 reporting period.

The proactive agenda is a new prospective dimension added to the implementation of the Guidelines in the 2011 Update. It contributes to problem solving, as well as the avoidance of problems, in a broader context than the specific instance procedures. The proactive agenda complements the specific instance procedure by helping enterprises identify and respond to risks of adverse impacts associated with particular products, regions, sectors or industries. This chapter reviews the implementation of the proactive agenda over the June 2012-June 2013 reporting period.

The OECD plays a key supporting role in the implementation of the Guidelines. With the Global Forum, launched in 2013, it provides a forum for government, business, trade union, civil society and international organisation representatives to discuss key RBC challenges. It also spearheads an active communications strategy for the promotion of the Guidelines and hosts a comprehensive database of specific instances brought to NCPs since 2001. This chapter reviews the OECD’s work in this area during the June 2012-June 2013 reporting period.

This annual Global Forum, held for the first time in 2013, aims strengthen the international dialogue on responsible business conduct and contribute to the effective implementation of the Guidelines. The inaugural meeting addressed the Rana Plaza tragedy as a matter of priority along with other emerging challenges to help businesses address the core challenge of how to do well while doing no harm in an effort to contribute to sustainable development and enduring social progress.