MNEs are asked <strong>to</strong> respect worker’s rights <strong>to</strong> representation and constructive negotiation;“[c]ontribute <strong>to</strong> <strong>the</strong> effective abolition of child labour”; “[c]ontribute <strong>to</strong> <strong>the</strong> elim<strong>in</strong>ationof all forms of forced or compulsory labour”; and <strong>to</strong> not discrim<strong>in</strong>ate <strong>in</strong> employment onparticular grounds, unless do<strong>in</strong>g so follows government policies <strong>to</strong> promote greater equalityand opportunity. 203The Guidel<strong>in</strong>es do not outl<strong>in</strong>e more specific obligations regard<strong>in</strong>g <strong>the</strong> abolition of childlabour, compulsory labour or non-discrim<strong>in</strong>ation, nor do <strong>the</strong>y direct MNEs <strong>to</strong> relevant<strong>in</strong>ternational standards. 204 The Commentary <strong>to</strong> <strong>the</strong> Guidel<strong>in</strong>es, however, attempts <strong>to</strong>give some mean<strong>in</strong>g <strong>to</strong> <strong>the</strong> provisions and specifically directs MNEs <strong>to</strong> relevant ILO<strong>in</strong>struments. 205The rema<strong>in</strong><strong>in</strong>g substantive sections establish pr<strong>in</strong>ciples primarily address<strong>in</strong>g a MNEsobligation <strong>to</strong> <strong>the</strong>ir own employees. Although only <strong>in</strong>directly relevant <strong>to</strong> CSEC, <strong>the</strong> Scienceand Technology section is noteworthy <strong>in</strong> so far as obligations extend past enterpriseemployees. Like <strong>the</strong> Norms, under this section, MNEs are given a role <strong>in</strong> contribut<strong>in</strong>g<strong>to</strong> technological development <strong>in</strong> host countries. 206 Importantly, MNEs are not simplyasked <strong>to</strong> share technology or use local <strong>in</strong>dustry <strong>in</strong> <strong>the</strong>ir operations, but <strong>to</strong> do so throughpartnerships with local universities and public research <strong>in</strong>stitutions and with a view <strong>to</strong>long-terms development goals of <strong>the</strong> host country. 207 In so far as MNE activities promoteeducational and occupational opportunities for children and families, <strong>the</strong>se obligations arerelevant <strong>to</strong> prevent<strong>in</strong>g CSEC.The Guidel<strong>in</strong>es are supported by two follow-up mechanisms: National Contact Po<strong>in</strong>ts(NCPs) and <strong>the</strong> Committee on International Investments and Mult<strong>in</strong>ational Enterprises(CIIME), and make provision for national and enterprise report<strong>in</strong>g. Adher<strong>in</strong>g governmentsare obligated <strong>to</strong> establish NCPs 208 that are usually, but not always, part of a governmen<strong>to</strong>ffice. NCPs promote and encourage observance of <strong>the</strong> Guidel<strong>in</strong>es with<strong>in</strong> <strong>the</strong> member stateand ensure <strong>the</strong>y are unders<strong>to</strong>od by domestic bus<strong>in</strong>esses. 209 Importantly, NCPs play a role<strong>in</strong> dispute settlement: <strong>the</strong>y receive compla<strong>in</strong>ts aga<strong>in</strong>st MNEs; make an ‘<strong>in</strong>itial assessment’and decide whe<strong>the</strong>r fur<strong>the</strong>r consideration is necessary. 210 If an NCP decides <strong>to</strong> consider<strong>the</strong> compla<strong>in</strong>t fur<strong>the</strong>r, it will offer non-adversarial assistance <strong>to</strong> resolve <strong>the</strong> issue. 211 In all<strong>the</strong>se duties, NCPs are required <strong>to</strong> “… operate <strong>in</strong> accordance with core criteria of visibility,accessibility, transparency and accountability.” 212Whereas <strong>the</strong>re are multiple NCPs, each operat<strong>in</strong>g <strong>in</strong> an adher<strong>in</strong>g state, <strong>the</strong>re is onlyone CIIME, operated by <strong>the</strong> OECD. Although CIIME oversees <strong>the</strong> NCPs and mayconsider cases referred <strong>to</strong> it by NCPs, 213 it is not an appellant body, nor are NCPs and44|Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren
CIIME operat<strong>in</strong>g <strong>in</strong> a hierarchy of authority. Unlike NCPs, CIIME has <strong>the</strong> authority<strong>to</strong> issue clarifications, not just recommendations if parties fail <strong>to</strong> resolve <strong>the</strong>ir dispute. 214Clarifications are not judicial decisions. 215 Fur<strong>the</strong>rmore, CIIME decisions are nei<strong>the</strong>rretrospective <strong>in</strong> application, <strong>in</strong> that CIIME does not ‘enforce’ <strong>the</strong> Guidel<strong>in</strong>es; nor are <strong>the</strong>yprospective <strong>in</strong> application, <strong>in</strong> that decisions are not b<strong>in</strong>d<strong>in</strong>g on future cases. Similar <strong>to</strong> <strong>the</strong>International Labor Office’s <strong>in</strong>terpretations of <strong>the</strong> Tripartite Declaration, nei<strong>the</strong>r CIIME,nor NCPs publicly identify corporations <strong>in</strong>volved <strong>in</strong> <strong>the</strong> <strong>in</strong>terpretation process. 216Although <strong>the</strong> focus of <strong>the</strong> Guidel<strong>in</strong>e’s follow-up is dispute resolution through NCPs andCIIME, <strong>the</strong>re is some provision for report<strong>in</strong>g. While <strong>the</strong> Guidel<strong>in</strong>es do not articulatea specific report<strong>in</strong>g mechanism, governments and corporations are not exempt fromdisclos<strong>in</strong>g <strong>in</strong><strong>format</strong>ion on <strong>the</strong>ir activities. NCPs report on behalf of government’s annuallyon <strong>the</strong>ir state’s progress. 217 For <strong>the</strong>ir part, corporations are asked <strong>to</strong> provide “… timely,regular, reliable and relevant <strong>in</strong><strong>format</strong>ion […] regard<strong>in</strong>g <strong>the</strong>ir activities, structure, f<strong>in</strong>ancialsituation and performance. 218 MNEs are given a significant degree of flexibility, but <strong>the</strong>Guidel<strong>in</strong>es outl<strong>in</strong>e specific <strong>in</strong><strong>format</strong>ion all MNEs should disclose. 219While <strong>the</strong> Guidel<strong>in</strong>es were significantly improved by <strong>the</strong> 2000 Review, many weaknessesstill exist. Weaknesses observed <strong>in</strong> <strong>the</strong> Guidel<strong>in</strong>es have caused <strong>the</strong>m <strong>to</strong> fall somewhat<strong>in</strong><strong>to</strong> disuse and have opened <strong>the</strong>m up <strong>to</strong> criticisms. The majority of critics seem <strong>to</strong> focuson <strong>the</strong> Guidel<strong>in</strong>e’s follow-up procedures, while o<strong>the</strong>rs focus on aspects of <strong>the</strong> Guidel<strong>in</strong>es<strong>the</strong>mselves. Criticisms can be broken down <strong>in</strong><strong>to</strong> three head<strong>in</strong>gs: voluntary vs. b<strong>in</strong>d<strong>in</strong>gobligations; permissive and vague language; and weak follow-up procedures.First and foremost, critics focus on <strong>the</strong> voluntary nature of <strong>the</strong> Guidel<strong>in</strong>es. As with <strong>the</strong>Tripartite Declaration and Global Compact, corporations are not required <strong>to</strong> follow <strong>the</strong>Guidel<strong>in</strong>es, as <strong>the</strong>y are merely recommendations addressed <strong>to</strong> MNEs. While <strong>the</strong>ir voluntarynature ‘facilitated <strong>the</strong>ir adoption,’ <strong>the</strong> non-b<strong>in</strong>d<strong>in</strong>g nature of <strong>the</strong> Guidel<strong>in</strong>es detracts fromits effectiveness. As a non-b<strong>in</strong>d<strong>in</strong>g <strong>in</strong>strument, corporations and governments are no<strong>to</strong>bligated <strong>to</strong> adhere <strong>to</strong> <strong>the</strong> guidel<strong>in</strong>es; or, if <strong>the</strong>y choose <strong>to</strong> observe <strong>the</strong> <strong>in</strong>strument, <strong>the</strong>ymay choose <strong>to</strong> adhere only <strong>to</strong> some provisions. In this way, <strong>the</strong> OECD’s goal of creat<strong>in</strong>ga set of recommendations for responsible bus<strong>in</strong>ess conduct is underm<strong>in</strong>ed; adherents maychoose <strong>to</strong> observe some standards while ignor<strong>in</strong>g those that pose a greater challenge.Compound<strong>in</strong>g this weakness is <strong>the</strong> fact that, like <strong>the</strong> Global Compact, <strong>the</strong> Guidel<strong>in</strong>esare not universally applicable; it only addresses <strong>the</strong> global activities of MNEs based <strong>in</strong>‘adher<strong>in</strong>g states.’ Most adher<strong>in</strong>g states are developed countries with fairly effective domesticlaws <strong>to</strong> regulate TNC activity with<strong>in</strong> <strong>the</strong>ir jurisdiction. In this sense, not only are <strong>the</strong>Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren|45
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law enforcement agencies, but equal
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6. Financial Sub-SectorIt has been
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law enforcement is having trouble u
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encourage cooperation and follow-up
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Another important objective of the
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Endnotes1 Mark Erik Hecht is an aca
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35Canada. Industry Canada. Corporat
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84On 31 Jan. 1999, UN Secretary-Gen
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110Norms, D.111Norms, point 5. (Rea
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143Ibid., “General Policies.” P
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179Ibid., Annex, III: Global Report
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of the Guidelines).212Ibid., Part I
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258Ibid.259UNWTO Report to the UN G
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310Ibid., 12.311Council of Europe,
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Germany and South Africa, ISPs are
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The World Congress III against Sexu