OECD Due Diligence Guidance for Responsible Business Conduct (RBC)

[Updated May 11, 2026]

What. The OECD Due Diligence Guidance for Responsible Business Conduct provides a global framework to help enterprises identify, prevent, mitigate, and account for adverse impacts of their operations, supply chains, and business relationships. It addresses risks related to human rights, labor, environment, and governance, promoting sustainable and ethical business practices.

When. First published in 2011, with a major update in 2018. The guidance is periodically reviewed and forms part of the OECD’s broader framework for responsible business conduct, influencing national and international regulations.

Products. Applies to all sectors and industries, including apparel, mining, electronics, agriculture, and manufacturing. Relevant to any company or value chain where operations may have social, environmental, or governance impacts.

Who. Multinational enterprises, small and medium-sized enterprises (SMEs), financial institutions, and other businesses operating internationally. Suppliers, contractors, and business partners are also expected to align with the guidance.

Overview

The OECD Due Diligence Guidance for Responsible Business Conduct (RBC) is a comprehensive framework designed to assist enterprises in implementing due diligence processes to avoid and address adverse impacts associated with their operations, supply chains, and business relationships. The guidance is aligned with international standards, including the UN Guiding Principles on Business and Human Rights and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

It is non-binding but widely recognized as the international benchmark for corporate responsibility. The guidance is used by governments, businesses, and civil society to shape policies, regulations, and corporate practices worldwide.

How Does the Guidance Work?

The guidance outlines a risk-based due diligence approach structured around six key steps:

1. Embed responsible business conduct into policies and management systems.
2. Identify and assess risks of adverse impacts across operations, supply chains, and business relationships.
3. Cease, prevent, or mitigate impacts where risks are identified.
4. Track performance and effectiveness of due diligence measures through monitoring and verification.
5. Communicate externally on due diligence processes and outcomes to stakeholders.
6. Provide remediation in cases of harm or breaches, ensuring access to effective grievance mechanisms.

The guidance emphasizes continuous improvement and encourages companies to integrate due diligence into their core business strategies and decision-making processes.

Key Requirements and Expectations

The OECD Due Diligence Guidance establishes the following core expectations for enterprises:

• Policy Commitment: Develop and publicly communicate a policy commitment to responsible business conduct, aligned with international standards.
• Risk Identification and Assessment: Systematically identify and assess actual and potential adverse impacts across operations, supply chains, and business relationships.
• Preventive and Corrective Measures: Implement measures to prevent, mitigate, or remediate identified adverse impacts, including disengagement from high-risk suppliers or partners where necessary.
• Monitoring and Verification: Establish mechanisms to monitor the effectiveness of due diligence measures and verify compliance with policies and standards.
• Transparent Reporting: Publicly disclose due diligence processes, findings, and outcomes, ensuring stakeholder engagement and accountability.
• Remediation: Provide access to remedy for affected parties, including grievance mechanisms and corrective actions.

The guidance is sector-agnostic and adaptable to companies of all sizes, from multinational corporations to SMEs. It also serves as the foundation for numerous regulations and frameworks, including:

• London Metal Exchange (LME) Responsible Sourcing Guidelines
• EU Conflict Minerals Regulation (EU 2017/821)
• Swiss Conflict Minerals and Child Labour Due Diligence Legislation
• French Duty of Vigilance Law
• German Supply Chain Due Diligence Act (LkSG).

Implementation and Practical Steps

To implement the OECD Due Diligence Guidance, companies are encouraged to:

1. Develop a Policy Framework: Create a responsible business conduct policy that aligns with international standards and reflects the company’s commitment to due diligence.
2. Map Supply Chains: Identify and map supply chains to understand the flow of goods, services, and business relationships, including sub-tier suppliers.
3. Conduct Risk Assessments: Assess risks of adverse impacts across operations and supply chains, prioritizing high-risk areas such as conflict-affected regions, sectors with labor rights concerns, or industries with environmental risks.
4. Engage Stakeholders: Consult with stakeholders, including workers, local communities, and civil society organizations, to identify risks and develop mitigation strategies.
5. Integrate Due Diligence into Business Processes: Embed due diligence into procurement, sourcing, and investment decisions, ensuring alignment with the company’s policy commitments.
6. Monitor and Report: Establish monitoring mechanisms to track the effectiveness of due diligence measures and report transparently on progress and challenges.
7. Provide Remediation: Develop grievance mechanisms to address adverse impacts and provide access to remedy for affected parties.

The OECD provides sector-specific supplements to the guidance, offering tailored recommendations for industries such as minerals, garments, and agriculture. These supplements help companies address sector-specific risks and challenges.

Risks of Non-Compliance

While the OECD Due Diligence Guidance is non-binding, failure to align with its principles can expose companies to significant risks, including:

• Reputational Damage: Negative publicity, consumer backlash, and loss of trust among stakeholders, including investors, customers, and employees.
• Legal and Regulatory Exposure: Increased scrutiny from regulators, particularly in jurisdictions where OECD-aligned legislation (e.g., EU Conflict Minerals Regulation, German LkSG) is in force. Non-compliance with such laws can result in fines, sanctions, or legal action.
• Operational Disruptions: Supply chain disruptions, loss of contracts, or disengagement by business partners due to failure to meet due diligence standards.
• Financial Risks: Loss of access to financing, investment, or insurance coverage, as financial institutions increasingly integrate ESG criteria into their decision-making processes.
• Stakeholder Pressure: Activism from civil society organizations, trade unions, and affected communities, leading to campaigns, protests, or litigation.

Alignment with the OECD Due Diligence Guidance is increasingly critical for market access, partnerships, and long-term business sustainability. Companies that proactively implement due diligence measures can mitigate risks, enhance their reputation, and contribute to positive social and environmental outcomes.

Supporting Tools and Resources

The OECD provides a range of tools and resources to support companies in implementing the Due Diligence Guidance, including:

• Sector-Specific Supplements: Tailored guidance for industries such as minerals, garments, and agriculture, addressing sector-specific risks and challenges.
• Due Diligence Guidance for Meaningful Stakeholder Engagement: Practical recommendations for engaging with stakeholders in high-risk contexts.
• Responsible Business Conduct for Institutional Investors: Guidance for investors on integrating RBC considerations into investment decisions.
• OECD RBC Country Contact Points (NCPs): National platforms for promoting and implementing the OECD Guidelines for Multinational Enterprises, offering mediation and dispute resolution services.