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National contact point on responsible business conduct

Information about National contact point of

Kazakhstan on issues of responsible business conduct

 

In June 2017, Kazakhstan became associated member of Committee on investment of Organization of economic cooperation and development (hereinafter-OESD) and became the 48th country, which adhered to the OECD declaration on multinational enterprises.

Within a framework of an entrance to the Committee on investment of OECD, the government of Kazakhstan took number of responsibilities, including disseminating the principles of responsible business conduct in conformity with OECD Guidelines on multinational enterprises (further-Guidelines) by establishing National Contact Point (further – NCP).

Through international investments, companies/investors bring substantial benefits to home and host countries in the form of productive capital, managerial and technological know-how, job creation and tax revenues. At the same time, public concerns exist about the social, economic and environmental impacts of their activities on the societies in which they operate.

The OECD Guidelines for multinational enterprises address these concerns by providing recommendations on voluntary principles and standards for responsible business conduct, consistent with domestic and international laws. The Guidelines represent the only multilaterally-endorsed comprehensive code of conduct that 48 countries including Kazakhstan, have committed to promote. The Guidelines address public concerns about the social, economic and environmental impacts of businesses activities on the societies in which they work (including and beyond OECD area) and provide an important framework for business in advancing Responsible Business Conduct (RBC).

Although endorsed by adhering Governments, the Guidelines are voluntary and are not intended to override local laws and legislation. The Guidelines are not intended to introduce differences of treatment between multinational enterprises and domestic enterprises – they reflect good practice for all business of all sizes, wherever they operate.

The Guidelines are an integral part of the OECD declaration on International Investment and Multinational Enterprises.

NCP should be established in order to disseminate Guidelines.

National Contact Point – is a voluntary, non-judicial grievance mechanism on an activity or inactivity of the enterprises on breaches by them of Guidelines.

NCP organizes a ground for constructive dialogue between the parties of a dispute by making an arrangements and ways of the mutual agreement.

Any person, organization or community (interested parties), who believe, that actions or activities of an enterprise do not correspond to the Guidelines may submit an official request before NCP.

Ministry of investments and development of the Republic of Kazakhstan is defined as NCP of Kazakhstan (government decree dated 31 May 2018, № 306), earlier this function was carried by Investment Committee of Ministry of investments and development of Republic of Kazakhstan.

Additionally, NCP`s working group as a collegiate body was established (decree of MID RK from 12 October 2017, № 696) in order to review complaints.

Working group includes representatives from Ministries of investments and development, national economy, labor and social protection of the population, energy, education and science, internal affairs, agency of Civil Service and Anti-Corruption, the National Center for Human Rights, “Atameken” national chamber of entrepreneurs, non-governmental organizations and trade unions.

The working group meetings are settled as required.

The scope of activity of NCP

Due to the fact that the NCP is aimed at enhancing the effectiveness of the Guidelines, the scope of the NCP's activities are all areas covered in above mentioned document. The main issues identified in the Guidelines are:

• information disclosure;

• human rights;

• labor and industrial relations;

• combating bribery and extortion;

• environmental protection;

• consumer interests;

• science and technology;

• competition;

• taxation.

The main tasks of the NCP

1. NCP should raise awareness of the Guidelines and of procedures for their application through cooperation with interested parties. NCP should ensure that the Guidelines are accessible to all interested parties and provide clarifications when necessary.

2. NCPs are involved in resolving issues arising from the application of the Guidelines, offering a platform for discussion and facilitating stakeholders (government agencies, the business community, trade unions, NGOs, etc.). NCPs should act in accordance with the main criteria of visibility, accessibility, transparency and accountability while considering cases, as recommended in the Guidelines. It should be noted that the function of the NCP is not identical to the functions of the judiciary, it acts as an intermediary between the company that violated the Guidelines and the injured party.

3. NCP annually provides a report containing information on the nature and results of NCP activities, including activities on the application of the Guidelines in specific circumstances.

NCP`s complaint review on violations of the Guidelines

When questions arise in regarding an application of the Guidelines, the following indicative algorithm of actions follows:

1. The party filing a complaint sends to the NCP a complaint with all relevant supporting documents attached;

2. The NCP receives a complaint and checks whether the complaint complies with the competence of the NCP. If the received question is within the competence of the NCP, a thorough examination of a complaint begins. If necessary, the NCP requests additional information and/or documents from the party who filed the complaint;

3. NCP sends a complaint to the responding party;

4. NCP provides consulting support to the parties;

5. NCP serves as a mediator through organizing meetings, by offering a platform for discussion;

6. Upon completion of the procedures and of statements, NCP publishes the results in open access, taking into account the need to protect classified commercial and other information.

Useful links:

https://www.oecd.org/

http://mneguidelines.oecd.org/ncps/

 

 

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