working conditions in the foreign operations
TRANSCRIPT
WORKING CONDITIONS IN THE FOREIGN OPERATIONS OF
MULTINATIONAL ENTERPRISES
Paper written by Alexander Hijzen Analysis and Policy Division of the OECD
2008
By William Parra
MNE Key Drivers of the World Economy
• Increase from 8% of world GDP in 1990 to 20% in 2006 of foreign investment
• FDI Since mid-1990 biggest source of external finance for developing countries.
FDI has contributed to their development in emerging and developing economies.
How it works? • Introduction of modern production. • Management Techniques
• Raise productivity in the host country • Promote better wages and working
conditions
• Stimulate local companies to improve wages and working conditions
However... • Practicing unfair competition • Violating human rights and labor conditions
Where are the non-wages working conditions?
What to do? • Initiatives to promote responsible business conduct
• Guidelines for Multinational Enterprises
• OECD Guidelines are playing a role in the improvement of labor conditions worldwide