To encourage responsible business conduct, governments can use a smart mix of voluntary and mandatory measures to align business conduct with sustainability outcomes. Policies and regulation can be specifically targeted to specific areas, such as trade, investment, technology, employment, environment, and corporate governance. It is also important that governments lead by example and practice responsible business conduct in their own commercial activities, such as state-owned enterprises or public procurement.
Launched in 2023, the OECD Recommendation on the Role of Government in Promoting Responsible Business Conduct outlines how governments can create this enabling environment. It provides 21 recommendations for governments to design policies, create incentives for business, and lead by example in their own economic activities. A total of 51 countries, as well as the European Union, have adhered to the Recommendation.