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Regulation and Policy

The degree to which workers have a voice in the investment of their retirement funds and in the environmental, social, and governance practices of the companies they invest in, is largely shaped by national and international regulations and norms.

In an evolving policy climate, CWC members are kept informed of key regulatory and policy developments. This includes information on the financial transactions tax, green jobs policies, pension fund governance and investment policy, the accountability of asset management, corporate governance of listed and private equity companies, corporate social responsibility and corporate disclosure, and other relevant issues.

Intergovernmental organisations and institutions, such as European Union institutions, the Financial Stability Board, the International Monetary Fund, and the Organisation for Economic Cooperation and Development are exerting increasing levels of influence in these key policy areas. 

G20/OECD High-Level Principles on Long-Term Investment Financing by Institutional Investors

Climate Change and Green Jobs

OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises are recommendations on responsible business conduct that are drawn up and signed by governments. The Guidelines set out principles and standards in areas ranging from human rights, employment and industrial relations, to information disclosure, environment and taxation. The Guidelines are unique in having a government-backed complaints mechanism – the National Contact Points (NCPs).

The Guidelines, first adopted in 1976, were significantly improved in the most recent update in 2011 (http://www.oecd.org/investment/guidelinesformultinationalenterprises/) , which, inter alia: incorporated reference to internationally-recognised standards; adopted a general recommendation that MNEs should conduct due diligence in order to avoid adverse impacts; clarified that the Guidelines apply to supply chains; introduced a dedicated chapter on human rights; broadened the scope of the Guidelines to apply to contract workers, not just employees.

The 2011 update also strengthened the rules governing the functioning of NCPs, the past performance of which has, with few exceptions, been poor. While TUAC is working with affiliates to ensure that these changes translate into real improvements on-the-ground, overall the revisions fall far short of trade union demands.

Finally, the 2011 update introduced an entirely new element – the ‘proactive agenda’. The aim of the proactive agenda is to work on a multi-stakeholder basis on projects, outside the complaints process, that will help MNEs observe the Guidelines. The first project is now underway and is looking at the meaning of the new due diligence recommendations in the context of the financial sector. Further information is available from TUAC.

Financial Transaction Tax

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