Code of Conduct on Transnational Corporations - Challenges and Opportunities

Preface

Acknowledgements

Contents

Editor and Contributors

1 Quest for a Global Code of Conduct for TNCs—A Grim Tale

1 Introduction

2 Major Global Frameworks

2.1 The Draft Code of Conduct on Transnational Corporations

2.2 Tripartite Declaration of Principles on Multinational Enterprises and Social Policy

2.3 The OECD Guidelines for Multinational Enterprises

2.4 The Set of Multilaterally Agreed Equitable Principles, and Rules for the Control of Restrictive Business Practices

2.5 The Bilateral Investment Treaty

2.6 The Draft Norms on the Responsibilities of TNCs and Other Business Enterprises with Regard to Human Rights

2.7 The Global Compact

2.8 The Guiding Principles on Business and Human Rights

3 Conclusion

References

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

1 Introduction

2 The Multinational Dilemma

3 Codes of Conduct

4 Aftermath

References

3 TNC Code of Conduct or CSR? A Regulatory Systems Perspective

1 Introduction

2 Background

3 Codes

3.1 What Is a Code of Conduct?

3.2 Codes and Law

4 Understanding Regulation

5 CSR as Regulation

5.1 Understanding CSR

6 Stand-Alone Code: ISO 26000 Case Study

6.1 Background

6.2 Analysis and Critique of the ISO 26000

7 Codes in Context: Success and Failure

8 A New Code?

9 Conclusion

References

4 Behavioral Dynamics and Regulation of Transnational Corporations

1 Introduction

2 The International Social Order Enables Predation

2.1 Institutions of the International Order Lack Sophistication

2.2 Powerful Actors Dominate the International Order

3 The Predatory Potential of a TNC

3.1 Behavioral Adjustment in Different Social Orders

3.2 Characteristics of the TNC and Its Home Social Order

3.2.1 The Predatory Nature of Products and Services of the TNC

3.2.2 The Economic Power of the TNC

3.2.3 The Strategic Importance of the TNC for the Home Social Order

3.2.4 The Power of the Home Social Order

3.3 Analysis of the Predatory Potential of a TNC

3.4 Example of Predatory Behaviors of TNCs

4 The Prey Potential of a Social Order

4.1 Power and Resilience of the Host Social Order

4.1.1 Governance Axis—Innovation Axis

4.1.2 Summary Diagrams of the Prey Potential of a Social Order

4.2 Assessment of the Prey Potential of Some African Countries

4.2.1 Governance: The Ibrahim Index of African Governance (IIAG)

4.2.2 Innovation: The Global Innovation Index (GII)

4.2.3 The Governance-Innovation Relationship for Africa

5 The Risk of Predation

6 Regulating TNCs Behavior Through SD and CSR

6.1 Crypto-Morality

6.2 TNCs’ Cost-Benefit Analysis of Predation

7 Conclusion

References

5 The UN Global Compact for Transnational Business and Peace: A Need for Orchestration?

1 Introduction

2 What is an IGO and What is the Theory of IGO Orchestration?

3 The Role of an Intermediary

4 Who Are the Targets?

5 What Kind of Rules?: Hard Law to Super Soft Law

6 What Are the Tools for Targets?

6.1 Case 1: Creating a Process of Guidance on Responsible Business in Conflict-Affected and High-Risk Areas: A Resource for Companies and Investors (UNGCO 2010)

6.2 Case 2: 25 June 2013 “Business for Peacebuilding” Conference

6.3 Case 3: Business for Peace Document (UNGCO 2013a)

6.4 Case 4: The Oslo Business for Peace Award

7 Concluding Note

References

6 Transnational Corporations’ Social License to Operate—The Third Facet of Corporate Governance

1 Introduction

2 Guidelines for TNCs

2.1 Approaches at the Domestic Level

2.2 Major Approaches at the International Level

2.2.1 UN Code for Transnational Corporations

2.2.2 OECD Guidelines on Transnational Corporations

2.2.3 ILO Guidelines on Transnational Corporations

2.3 Responsibility of Business to Uphold the Human Rights—UN Initiative

3 TNCs Towards Social Sustainability

3.1 Social Sustainability Through Mutually Accepted Trust-Based Guidelines

3.2 Social Sustainability Through ‘Social Licence to Operate’

4 Conclusion

References

7 Enforcement of a Global Code of Conduct on TNC’s Operations

1 Introduction

1.1 International Developments: Business and Human Rights

2 Current Domestic Law Enforcement

2.1 Case Study One—Anvil Mining Ltd

2.2 Case Study Two—Cisco Systems and China

2.3 Case Study Three—Broadspectrum Ltd and Asylum Seekers

2.4 Discussion

3 International Mediation and Arbitration

4 The Creation of an International Court

5 Conclusion: A Multi-pronged Approach

References

8 Converged Approach in Regulation for Socializing Transnational Corporations

1 Introduction

2 Corporate Social Responsibility and Its Principles

2.1 Corporate Social Responsibility

2.2 CSR Principles

3 Voluntary and Mandatory Modes for Implementing CSR Principles

4 Pro-business and Pro-regulation Arguments for Including CSR Principles in Corporate Self-regulation

4.1 Pro-business Arguments

4.2 Pro-regulation Arguments

5 The Converged Approach: Convergence of Pro-business and Pro-regulation Arguments

5.1 Conceptualisation of the ‘Converged Approach’

5.2 Application of the Converged Approach

5.3 Progress of the Converged Approach

6 Conclusion

References

9 Correction to: The UN Global Compact for Transnational Business and Peace: A Need for Orchestration?