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OECD Guidelines on Supply Chains in Latin America and the Caribbean.

Industry Insights

OECD Guidelines on Supply Chains in Latin America and the Caribbean.

The Organisation for Economic Co-operation and Development (OECD) plays a crucial role in promoting ethical and legal standards in supply chains globally. Established in 1961, the OECD has worked tirelessly to ensure that businesses operate responsibly and ethically, especially regarding their international business activities.

In the context of global supply chains, where companies often operate in multiple countries and jurisdictions, compliance standards are essential to ensure that human, labour and environmental rights are respected. The OECD has developed several guidelines and principles to guide businesses in this regard.

One of the most important instruments is the above-mentioned document: “OECD Guidelines for Multinational Enterprises“. These recommendations, designed in 1976 and revised several times since then, provide guidance on responsible business practices in the fight against corruption and poor corporate governance practices. While these guidelines are not legally binding, they provide an ethical and practical framework for companies that want to operate responsibly around the world.

In addition to the guidelines for multinational enterprises, the OECD has also issued specific guidelines to address issues such as tax compliance, due diligence in supply chains (Guidelines 12 to 16) and responsible trade in conflict minerals. Not only do these guidelines help businesses comply with local and international regulations, but they also promote transparency and accountability in their operations.

In terms of legislation, while the OECD does not have the authority to create laws directly, it works closely with its member countries to promote the harmonization of regulations and the implementation of common standards. This is achieved through cooperation in policy-making, research, and exchange of best practices.

A notable example of legislation related to business activities is the active participation of the Chamber of Deputies of Chile, where they review each of the initiatives presented to the general congress with an ethical and evaluation perspective with the guidelines applicable to the OECD, with the aim of visualizing angles for improvement, based on international best practices.

In summary, the OECD plays a key role in promoting supply chain compliance standards and ethical legislation at the international level. Its guidelines and principles provide a robust framework for companies to operate responsibly, respecting human, labour and environmental rights across their global operations.

LAC Network

The Organization for Economic Co-operation and Development’s (OECD) Latin America and Caribbean Network is a regional cooperation platform that seeks to strengthen dialogue and collaboration between global members and countries in this region. This network is a space where LATAM countries can exchange experiences, best practices, and knowledge on public policies in a variety of areas, with the aim of promoting sustainable economic, social, and environmental development.

The creation of the OECD LAC Network dates to 1996, when the OECD-Latin America and the Caribbean Regional Cooperation Programme was established. Since then, collaboration between the OECD and countries in the region has grown significantly, with the participation of governments, international organizations, the private sector, civil society, and academia.

Among the main objectives of the LAC Network are:

1. Facilitate the exchange of knowledge and good practices between the countries of the region and OECD members in areas such as public policies, governance, competitiveness, education, health, environment, among others.

2. Support countries in Latin America and the Caribbean in implementing evidence-based reforms and policies that promote inclusive and sustainable economic growth, as well as social welfare.

3. Contribute to the strengthening of institutional and technical capacities in the countries of the region to address common and emerging challenges, such as improving productivity, reducing inequality, promoting innovation, and protecting the environment.

4. Foster political dialogue between the countries of the region and the OECD, to identify priority areas of cooperation and promote adherence to international standards and recommendations.

The OECD LAC Network organises a variety of activities, including ministerial meetings, seminars, workshops, publications, and technical cooperation projects. These activities allow the countries of the region to learn from each other and benefit from the knowledge and experience accumulated by the OECD and its member countries in various areas of public policy, thus obtaining a comparative assessment of the most vulnerable areas or areas with potential for improvement for development.

In summary, the OECD Latin America and Caribbean Network is an important mechanism of regional cooperation that promotes the exchange of knowledge and experiences between the countries of the region and the OECD, to move towards a more inclusive, sustainable, and equitable development. services. Nowadays it is essential to align financial objectives with the sustainable development goals conceived by the UN in 2015; a holistic vision of organizations, focused on the well-being of society and care for the environment is what is needed.

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