An ‘Instrument of Moral Persuasion’—Multinational Enterprises and International Codes of Conduct in the 1970s

Author(s):  
Thomas Hajduk
2016 ◽  
Vol 26 (3) ◽  
pp. 347-378 ◽  
Author(s):  
Lutz Preuss ◽  
Ralf Barkemeyer ◽  
Ante Glavas

ABSTRACT:The extant literature on cross-national differences in approaches to corporate social responsibility (CSR) has mostly focused on developed countries. Instead, we offer two inter-related studies into corporate codes of conduct issued by developing country multinational enterprises (DMNEs). First, we analyse code adoption rates and code content through a mixed methods design. Second, we use multilevel analyses to examine country-level drivers of differences in code content—specifically, elements of a country’s National Business System (NBS). We find that DMNEs are much more likely to adopt a code of conduct than their domestic counterparts; however, this does not translate into greater code comprehensiveness. We also find support for the ‘substitute view’ of CSR in developing countries, i.e. that MNEs from poorer countries and from countries with lower governance effectiveness tend to express more comprehensive commitments. However, this dynamic does not extend to a country’s labour system; instead, CSR appears here to match the efficiency of a country’s labour market, thus reflecting the ‘mirror view’ of CSR.


Author(s):  
Charlotte E. Blattner

This chapter focuses on whether states can use extended forms of extraterritorial jurisdiction to protect animals abroad, including foreign policy rules, investment agreements, jurisdiction assigned to international bodies, and self-regulation by private actors. These subtler forms of extraterritorial regulation are fully established and widely used in human rights law. When applied to animal law, they yield substantial benefits for states that want to protect animals abroad by reaching beyond traditional command-and-control structures and tapping the expertise of non-state actors. The focus of this chapter is on investment rules, export credit standards, bilateral investment treaties, bilateral free trade agreements, impact assessments, reporting, corporate social responsibility, codes of conduct, and the Guidelines on Multinational Enterprises, issued by the Organization for Economic Co-operation and Development (OECD).


2020 ◽  
Vol 2 (2) ◽  
pp. 35-56
Author(s):  
Cristina Poncibò

While attention for the social and environmental impacts of international business is certainly not new, the past years have seen renewed interest due pressing global problems such as climate change, poverty, and human rights violations. Multinational enterprises (MNEs) are increasingly called upon to play an active role and thus contribute to a more sustainable development. Interestingly, legal scholars are studying how MNEs are adopting codes of conduct advancing sustainable development goals to rule their commercial relationships with their suppliers in global supply chains. Some of these goals are incorporated in contractual terms when the company insert sustainability contractual clauses in international supply agreements. These contractual provisions dealing with public values represent "irritant clauses" for contract theory and pose some challenging questions to contract law scholars. The article considers, in particular, the following research questions: firstly, are these contractual provisions binding and enforceable by the parties or by a third party to the contract? Secondly, are they really "part of the contract" or do they play many functions? Thirdly, do they have an impact in advancing sustainability goals? Finally, the case of sustainability contractual clauses confirms that a new, specifically intergenerational, contract theory is needed.


2006 ◽  
Vol 16 (2) ◽  
pp. 137-165 ◽  
Author(s):  
Linda M. Sama

Effects of globalization have amplified the magnitude and frequency of corporate abuses, particularly in developing economies where weak or absent rules undermine social norms and principles. Improving multinational enterprises’ (MNEs) ethical conduct is a factor of both the ability of firms to change behaviors in the direction of the moral good, and their willingness to do so. Constraints and enablers of a firm’s ability to act ethically emanate from the external environment, including the industry environment of which the firm is a resident, and the host country environment in which it operates. A firm’s willingness to engage in ethical conduct is determined by the effective bundling of internal resources and the commitment of those resources to social ends. The interaction of external and internal conditions carves out categories of expected firm behaviors and suggests interventions that would push these behaviors in a more positive ethical direction. With reference to integrative social contracts theory (ISCT), these categories of firms are examined, and a conceptual model for analysis is developed to explain the drivers of corporate choices in the adoption and implementation of codes of conduct, and the relative power of relevant communities to the process.


2014 ◽  
Vol 9 (4) ◽  
pp. 311-333 ◽  
Author(s):  
Raymond Saner ◽  
Lichia Yiu

Faced with pressures from governments and civil society, multinational enterprises (mnes) have increasingly committed themselves to signing codes, charters and guidelines of good conduct developed, for instance, by the United Nations (the un Global Compact), the Organization for Economic Cooperation and Development (oecd Guidelines for Multinational Enterprises), or multi-stakeholder initiatives such as the Kimberly Process (a joint governmental, industry and civil society initiative to stem the flow of conflict diamonds). The issue of how to implement such commitments requires abilities to engage external counterparts constructively and — equally important — the ability to convince actors within a mne to agree to implement such codes of conduct. This article discusses the challenges of implementing the oecd Guidelines and proposes that mnes consider appointing business diplomats, who the authors consider are best qualified to meet these complex but also increasingly important business challenges. Business diplomats are best qualified to nurture such a business culture that supports, leads and cajoles a mne to orient its business activities towards an overall balance of diverse objectives and respect for obligations. These objectives and obligations are at times in opposition with each other, and at other times coalesce towards achieving a sustained business that is based on publically agreed criteria of good conduct.


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