The OECD hosted its annual Forum on Due Diligence in the Garment and Footwear Sector late last month, along with a series of side events on responsible business conduct (RBC) workstreams. This year’s OECD Forum addressed various issues, with a particular focus on living wages and binding company-union agreements in due diligence processes.
In recent years, the OECD has intensified its work in RBC standards and guidance for companies. USCIB, with its in-person engagements and partnership with Business at OECD (BIAC), advocates to ensure that those workstreams, especially those closely related to labor affairs, are consistent with parallel initiatives in other international agencies, such as the International Labor Organization (ILO).
“It is critical that the OECD ensures that new standards are implementable on the ground,” said Jose Arroyo, policy manager for Corporate Responsibility and Labor Affairs at USCIB, who represented U.S. business at the OECD. Arroyo underscored the pioneering role of U.S. businesses in RBC practices and emphasized the importance of clear, concise, and implementable guidance for business. Some of the OECD work includes guidance on responsible purchasing practices and meaningful engagement with workers via due diligence.
Arroyo emphasized the importance of OECD cooperation with other non-OECD countries, particularly in high-risk geographical zones where divestment risks are prevalent. “Meaningful cooperation and implementable standards are essential, ultimately benefiting local communities”, he said.
USCIB will maintain its strong engagement with OECD RBC workstreams.