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The role of national social dialogue institutions in shaping investment policies
This paper examines how national social dialogue institutions can help align foreign direct investment with decent work and sustainable development. Drawing on eleven case studies, it highlights emerging practices, institutional challenges and policy options for strengthening social dialogue in investment and responsible business conduct policies.
Foreign direct investment (FDI) and multinational enterprises (MNEs) can drive skills development, technology transfer and economic growth; however, these benefits are not automatic. Effective public policy and strong social dialogue are essential to ensure FDI contributes to decent work, social inclusion and sustainable development. This study examines how national social dialogue institutions (NSDIs) influence trade, investment and responsible business conduct (RBC) policies to align FDI with national development priorities. Drawing on eleven case studies covering eight countries and one regional bloc, it highlights emerging practices where social partners engage in shaping sustainable FDI strategies through dialogue, institutional collaboration and policy development, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration). The findings reveal both opportunities and challenges in strengthening the role of NSDIs and outline policy options for enhancing their mandates, institutional capacities, inclusiveness and effectiveness.
Foreign direct investment (FDI) and multinational enterprises (MNEs) can drive skills development, technology transfer and economic growth; however, these benefits are not automatic. Effective public policy and strong social dialogue are essential to ensure FDI contributes to decent work, social inclusion and sustainable development. This study examines how national social dialogue institutions (NSDIs) influence trade, investment and responsible business conduct (RBC) policies to align FDI with national development priorities. Drawing on eleven case studies covering eight countries and one regional bloc, it highlights emerging practices where social partners engage in shaping sustainable FDI strategies through dialogue, institutional collaboration and policy development, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration). The findings reveal both opportunities and challenges in strengthening the role of NSDIs and outline policy options for enhancing their mandates, institutional capacities, inclusiveness and effectiveness.
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