Science and Technology: aims to promote the diffusion by multinational

ENVIRONMENT AND THE OECD GUIDELINES… – ISBN-92-64-00938-8 – © OECD 2005 - 15 Box 2. The Declaration on International Investment and Multinational Enterprises The Declaration on International Investment and Multinational Enterprises comprises four instruments for international co-operation: x The Guidelines for Multinational Enterprises are a multilaterally endorsed non-binding code of corporate conduct addressed to multinational enterprises. x Under the National Treatment instrument, adhering countries commit themselves to treating foreign-controlled enterprises operating in their territories no less favourably than domestic enterprises in like situations. x An instrument on Conflicting Requirements calls on adhering countries to avoid or minimise conflicting requirements imposed on multinational enterprises by governments of different countries. x An instrument on International Investment Incentives and Disincentives provides for efforts among adhering countries to improve co-operation on measures affecting international direct investment. To whom do the Guidelines apply? The recommendations in the Guidelines are addressed to multinational enterprises operating in or from adhering countries. Governments adhering to the Guidelines encourage enterprises operating in their territories to observe the Guidelines, wherever they operate, while taking into account the particular circumstances of each host country. The Guidelines’ recommendations are also addressed to all the entities within the multinational enterprise - parent companies andor local entities. Although the Guidelines acknowledge that small- and medium-sized enterprises may not have the same capacities as larger enterprises, governments adhering to the Guidelines nevertheless also encourage them to observe the Guidelines’ recommendations to the fullest extent possible. The Guidelines are not aimed at introducing differences of treatment between multinational and domestic enterprises; they are intended to reflect good practice for all. Accordingly, multinational and domestic enterprises are subject to the same expectations in respect of their conduct wherever the Guidelines are relevant for both.