----

(2004/C 78 E/0631)

WRITTEN QUESTION E-3582/03

by Yasmine Boudjenah (GUE/NGL) to the Commission

(5 December 2003)

Subject:   Role of multinational corporations in conflict regions in Africa

The UN Security Council's endorsement of the report by the UN Expert Panel on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo (formerly Zaire) and the publication in the French press of extracts from this report underline the urgent need for greater transparency when investigating the links between the responsibilities of multinational corporations and the pursuit of war in certain countries, particularly on the African continent.

In the light of the European Parliament's adoption of the Howitt report in 1998 on EU standards for European enterprises operating in developing countries: towards a European Code of Conduct and monitoring platform (A4-0508/1998) and the repeated calls for the Commission to impose strict controls on multinational corporations obliging them to treat human beings with respect, to maintain human dignity and proper working conditions and to respect democratic principles and the values of peace, can the Commission state what progress has been made in this area?

More specifically, has the Commission had access to the full text of the UN report? If so, can it state whether or not European private or public companies are implicated in illegal activity in relation to the conflict in the Democratic Republic of the Congo? If so, will action be taken (setting up a committee of inquiry, sanctions) to ensure that no European subsidy is linked to this conflict?

Answer given by Mr Nielson on behalf of the Commission

(14 January 2004)

In relation to the Code of conduct for European enterprises operating in developing countries, the Commission does not believe in a mandatory approach. Rather it is convinced that a voluntary strategic framework, such as the European strategy on Corporate Social Responsibility (CSR), is more appropriate. Moreover, the 1998 Howitt Report itself identifies the voluntary approach as the starting point for any action in this field.

The Commission launched in September 2002 an implementation strategy with respect to CSR following the July 2002 adoption of a Communication (1) on the matter. The main element of the strategy is the CSR Stakeholder Forum, officially launched on 16 October 2002. The Forum promotes CSR through fostering a dialogue between the business community, trade unions, civil society organisations and other stakeholders. The Forum has the aim of raising awareness of and promoting CSR good practice and instruments, taking into account existing Union initiatives and internationally agreed instruments such as the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises and the International Labour Office (ILO) Core Labour Standard conventions.

The international dimension is taken into account in the ‘development round-table’, in which different corporations and non-governmental organisations (NGOs) participate actively. Thematic areas such as health and development, promotion of core labour standards, good governance, social dialogue, financial transparency, implementation of the OECD Guidelines for Multinational Corporations are examined. The Forum will present a report on its work to the Commission before Summer 2004, which shall then assess its results, and decide on its follow-up.

The Commission has received the version of the United Nation's panel of inquiry report which was published on the UN's website and can be consulted freely there. The report offers no specific details concerning the involvement of European private or public companies in illegal activity in relation to the conflict in the Democratic Republic of Congo.

The Commission's development assistance to the DRC cannot be linked to the conflict. It entails projects implemented mainly by local and international NGOs which directly benefit the poorest sections of the community, in particular through the rehabilitation of basic infrastructure, repairs to rural tracks and measures to boost agriculture.

The Commission notes that the Report states that the United Nations Panel was charged with fact-finding but was not a judicial body. In the case of companies listed in the report's annexes, the principles of the OECD Guidelines for Multinational Enterprises were used as an appropriate benchmark of ‘generally accepted international standards of corporate behaviour’.

The OECD Guidelines contain voluntary principles and standards for responsible business conduct in areas including human rights, disclosure of information and anti-corruption. The Commission strongly supports the Guidelines as a key corporate responsibility instrument with global reach. National Contact Points in each adhering country handle enquiries relating to the Guidelines and cases of alleged non-adherence.

The Commission notes that the UN Panel has referred a number of Union-based companies to National Contact Points for clarification as to whether their activities in the DRC have contravened the OECD Guidelines. The Commission considers that it is the responsibility of National Contact Points to investigate all well-founded allegations of conduct inconsistent with the Guidelines.

----

(1)  COM(2002) 347 final.

----