Abstract

Background. Multinational companies are seen as the key players of global markets. Despite the growing power of business and multinational corporations, the state has the role to play in the execution of responsible and lawful behaviour of companies through employment of a variety of measures e.g. legal provisions, judicial mechanisms, and internationally recognised soft law standards.

Research aims. The aim of this article is to discuss the role of the state in providing the framework ensuring responsible business conduct through the implementation of the OECD Guidelines for Multinational Enterprises and effectiveness of functioning of the OECD National Contact Points (NCPs) as tools for observance of corporate behaviour.

Methodology. The argumentation presented is based on literature review, conference materials, documentary and internet sources analysis and synthesis, as well as interviews conducted with representatives of the OECD National Contact Points located in selected CEE countries and Western Europe.

Keywords: corporate social responsibility, foreign direct investment, OECD Guidelines for Multinational Enterprises.

INTRODUCTION

Globalization, internationalisation of business, and the processes of privatisation of the state function, shifted the power from the state to the market, whereas multinational companies (MNC) have been perceived as the primary shapers of contemporary global economy. According to Dylus, the crisis of state structures is caused by unilateral dynamics of economic growth rooted in the lack of proportion between politics, economy, and society. Foreign direct investment (FDI) is considered as a measure of activities of MNC. The state uses various strategies to attract FDI, that plays an important role in development of economies especially in the context of technology transfer, improvement of productivity, creation of workplaces, transfer of managerial skills, and gaining access to global markets. That was also the case of Central and Eastern European (CEE) countries that remain attractive areas to establish business operations. Despite certain benefits associated with MNC's, some shadows also emerge mostly in the area of violations of human rights, tax evasion, environmental pollution, etc. The need for greater transparency and accountability of MNCs seems to be getting high priority in the global debate on socially responsible business, especially in the context of the upcoming legislation on non-financial reporting of enterprises.