U.S. NCP Peer Review Overview Presentation

September 27, 2017

   

WELCOME TO THE U.S. NATIONAL CONTACT POINT PEER REVIEW

September 27-29, 2017

 

CONTENTS

1. High-Level Endorsements
2. U.S. NCP’s Three Roles
3. Structure of the U.S. NCP
4. Who We Work With – SAB and IWG
5. Specific Instance Process
6. U.S. NCP Specific Instance Statistics
7. Confidentiality
8. U.S. National Action Plan on RBC
9. Communication and Outreach

HIGH-LEVEL ENDORSEMENTS

G20 Leaders’ Declaration (2017)

“We support access to remedy and, where applicable, non- judicial grievance mechanisms, such as the National Contact Points for the OECD MNE Guidelines (NCPs).

G7 Leaders’ Declaration (2015)

“We also commit to strengthening mechanisms for providing access to remedies including the National Contact Points (NCPs) for the OECD Guidelines for Multinational Enterprises. In order to do so, the G7 will encourage the OECD to promote peer reviews and peer learning on the functioning and performance of NCPs. We will ensure that our own NCPs are effective and lead by example.

U.S. NCP Peer Review

U.S. is 5th out of 7 G7 countries to do a Peer Review & 15 out of 47 NCPs to complete a Peer Review

U.S. NCP's Three Roles

  • Promote awareness and encourage implementation of the Guidelines to business, labor, and members of civil society, the general public, and the international community.
  • Facilitate practical application of the Guidelines by bringing business and civil society together to identify potential and emerging RBC-related risks and discuss appropriate actions and responses under the Guidelines.
  • Offer a “Specific Instance” mediation process to be used when a party raises allegations against an MNE’s operations, focusing on finding a resolution between the parties through mediated dialogue.

Good News! Since 2012, the U.S. NCP has:

  • Tripled team size
  • Published written procedures
  • Hired mediators (FMCS & CBI)
  • Created the U.S. NCP website (rules of procedure, contact info, promotional events, process questions, languages)
  • Issued Final Statements
  • Created the Stakeholder Advisory Board
  • Implemented stakeholder feedback
  • Expanded USG training on NCP/RBC
  • Conducted extensive outreach

Structure of the U.S. NCP

Date: 11/21/2016 Description: U.S. Department of State Organization Chart November 2016 - State Dept ImageThe U.S. NCP is located in the Bureau of Economic and Business Affairs at the U.S. Department of State. To view a full-size and text-based version of the Department of State organization chart, please click here.

U.S. NCP Structure & Team

Economic and Business Affairs Bureau

Three Full-Time Staff

  • Melike Ann Yetken
  • Alan Krill
  • Erin Clancy

Broader RBC Agenda and Portfolio

  • RBC issues at the OECD
  • Award for Corporate Excellence – high level buy-in
  • Advisory Committee on International Economic Policy

Interagency Working Group (IWG)

  1. General Services Administration
  2. Office of the U.S. Trade Representative
  3. Overseas Private Investment Corporation
  4. Department of Energy
  5. Environmental Protection Agency
  6. Export Import Bank
  7. Department of State
  8. Department of Agriculture
  9. Department of Labor
  10. U.S. Agency for International Development
  11. Millennium Challenge Corporation
  12. Department of the Treasury

Stakeholder Advisory Board (SAB)

  1. The Coca-Cola Company
  2. Citi
  3. International Corporate Accountability Roundtable
  4. Accountability Counsel
  5. Medtronic
  6. International Labor Rights Forum
  7. Yahoo!
  8. United Steel Workers
  9. HP
  10. University of Oklahoma College of Law
  11. University of California Berkeley Haas School of Business
  12. Cornell University
  13. Barrick
  14. AFL-CIO
  15. Association of Machinists and Aerospace Workers

Specific Instance Process

To view these flowcharts in PDF format, please click here.

OVERVIEW: U.S. NCP PROCESS FOR A SPECIFIC INSTANCE

1. SUBMISSION OF A SPECIFIC INSTANCE TO THE OFFICE OF THE U.S. NCP AT USNCP@STATE.GOV

2. THE U.S. NCP CONFIRMS RECEIPT, INFORMS ALL INVOLVED PARTIES OF THE SPECIFIC INSTANCE; REQUESTS WRITTEN RESPONSE FROM COMPANY(IES)

3. U.S. NCP PRODUCES INITIAL ASSESSMENT USING OECD ADMISSIBILITY CRITERIA

4a. OFFERS MEDIATION, or
4b. DOES NOT MEET OECD ADMISSIBILITY CRITERIA; MEDIATION SERVICES NOT OFFERED

5a. ALL PARTIES ACCEPT MEDIATION, or
5b. ONE PARTY DOES NOT AGREE TO MEDIATION, or
5c. U.S. NCP DRAFTS AND PUBLISHES FINAL STATEMENT

6a. PARTIES REACH AN AGREEMENT, or
6b. PARTIES DO NOT REACH AN AGREEMENT

7. U.S. NCP DRAFTS AND PUBLISHES FINAL STATEMENT ON WWW.STATE.GOV/USNCP

8. POST CONCLUSION

U.S. NCP Detailed Specific Instance Process

Phase 1: Submitting a Specific Instance (SI)

  • To initiate the SI process, a submitter sends a SI to the Office of the U.S. NCP at USNCP@state.gov
  • The U.S. NCP acknowledges receipt and informs all involved parties of the SI which includes
    • The Submitter(s): The U.S. NCP will acknowledge receipt, describing the Guidelines, explain the role of the U.S. NCP and its procedures, and request one lead point of contact.
    • The Company(ies): The U.S. NCP will inform the company/ies named by sending a copy of the SI, describe the Guidelines and the purpose and function of the NCP, share the U.S. NCP procedures, request a senior point of contact within the company, and request a written response to the allegations made.
    • The Interagency Working Group (IWG): The U.S. NCP will consult subject-matter experts within the U.S. government on the issues raised.
    • Other NCPs and the OECD Secretariat: The U.S. NCP will inform and coordinate as appropriate.

Phase 2: Initial Assessment

The U.S. NCP conducts an Initial Assessment using the OECD’s Admissibility Criteria:

  • The identity of the party concerned and its interest in the matter;
  • Whether the issue is material and substantiated;
  • Likely link between the enterprise’s activities and the issue raised;
  • Relevance of applicable law and procedures, including court rulings;
  • Treatment of similar issues in other domestic or international proceedings; and,
  • Contribution of the specific issue to the purposes and effectiveness of the Guidelines.

Phase 3: Two Options

  • Mediation Offered

If mediation is offered, parties have the opportunity to accept. If mediation is offered and accepted by the parties, the U.S. NCP will facilitate mediation through either the Federal Mediation and Conciliation Services (FMCS) or the Consensus Building Institute.

  • Mediation Not Offered

If mediation is not offered, the parties are informed through the Initial Assessment and then the Office of the U.S. NCP drafts a Final Statement that is shared with the parties for fact checking input before it is published on www.state.gov/usncp.

U.S. NCP Mediators

  • Federal Mediation and Conciliation Service (FMCS)
  • Consensus Building Institute

Post Conclusion Follow-Up

One year after successful mediation, each party is asked to submit a confidential report to the U.S. NCP on the following:

  • The status of the implementation of the agreement;
  • The summary of the recommendations taken into effect since the Final Statement;
  • Any continued conversation between the involved parties;
    Any other relevant information.

U.S. NCP Specific Instance Statistics

  • 45 cases since 2000 (11% of global cases)
  • Second highest number of cases of the NCPs (UK has the most: 48)
  • 18 cases since 2012
  • 12 cases we offered mediation
  • 3 Specific Instances went to mediation

Specific Instance Sessions

Peer Review: Evaluation of Cases Completed

  • No discussion of on-going and current cases per confidentiality

Specific Instance Consultations:

  • IUF and Starwood
  • IUF and PepsiCo.
  • Herakles Farms and CED/RELUFA

Since 2012

  • Most Cited Chapters:
  1. Employment
  2. Human Rights
  • 50% cases involve issues in the U.S
  • 50% involve issues from abroad

U.S. NCP Specific Instance Statistics

Submitters

  • Specific Instances Submitted by individuals: 11%
  • Specific Instances Submitted by NGOs: 17%
  • Specific Instances Submitted by Labor Groups: 72%

Specific Instance Completed Results

  • Specific Instances where mediation was offered: 67%
  • Specific Instances where mediation was not offered: 33%

In 2/3 of the cases we offered mediation and 2/3 of the cases that went to mediation resulted in an agreement.

Sectors Covered

  • Aerospace and Defense: 5%
  • Agriculture: 11%
  • Consumer Products: 44%
  • Hospitality and Tourism: 6%
  • Manufacturing: 28%
  • Telecommunications: 6%

Supporting NCP Role

Cases U.S. NCP Consulted on

  • Canada NCP: 1 case
  • UK NCP: 2 cases
  • Germany NCP: 1 case
  • France NCP: 1 case
  • Netherlands NCP: 1 case
  • Switzerland NCP: 1 case
  • Norway NCP: 1 case
  • South Korea NCP: 1 case

CONFIDENTIALITY

Confidentiality Procedures

  • Clear expectations and clearly stated

Balance between transparency and confidentiality

Campaigning

NATIONAL ACTION PLAN

  • National Action Plan on Responsible Business Conduct
  • Broad U.S. government coordination to promote & incentivize RBC
  • Core Commitments
    • Share best practices & support high standards
    • Highlight success stories
    • Implement effective mechanisms to address negative impacts
    • Purchase & finance responsibly for USG
  • www.state.gov/rbc

Communication & Outreach

How We Do It:

  1. Online
  2. In Person
  3. Outreach
  • The U.S. NCP maintains a dedicated webpage to explain all of the policies and procedures of the NCP, as well as a list of outreach activities and how to get in touch with the U.S. NCP

Statistics on Outreach

Between 2016 and as of August 2017, the Office of the U.S. NCP participated in 51 events, targeting 2,679 stakeholders through outreach at:

  • 19 events with private sector
  • 5 events with civil society
  • 5 events with attorneys
  • 6 events with academia
  • 9 events with NCP counterparts

Testimonials and Stakeholder Feedback

  • “We had a very favorable experience working with the Office of the U.S. NCP, and we would encourage others to consider the benefits of engaging in constructive dialogue through this process.” --PEPSICO

  • “….Any company subject to an NCP specific instance complaint should fully evaluate the considerable benefits that participating in the NCP process can offer in terms of meeting the corporate responsibility to respect human rights...” --USCIB

  • “The Office of the U.S. National Contact Point (U.S. NCP) has a dedicated and responsive staff, clear procedures, and the ability to call in professional, external mediators. Recent years have seen the U.S. NCP process improve significantly in terms of functionality…” --OECD Watch