Regulating Transnational Corporations through Corporate Codes of Conduct

Abstract

As a result of the failure of transnational corporations (TNCs) to observe minimum standards of human rights in their operations, a number of different legal means for regulating the behavior of TNCs have been suggested and debated over the years. As the title implies, this chapter is concerned specifically with the regulation of TNCs through the adoption and enforcement of a code of conduct. A code of conduct is a written policy or statement of principles intended to serve as the basis for a commitment to a particular conduct (Dubin 1999, p. 42). To be effective as a means of regulation, a code of conduct should not only set out the principles to guide behavior but must also establish mechanisms for implementation, monitoring and enforcement and review of the code.

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