Promoting corporate social responsibility through international mandatory code of ethics: a case study of multinational corporations in selected developed and developing countries
Date
2020
Authors
Ama-Njoku, Ada
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Abstract
Multinational companies (MNCs) often act unethically in their dealings and there are no mechanisms in place to hold them accountable for their unethical practices. Currently, there are various international instruments that regulate the ethical activities of MNCs for example, the Organization for Economic Corporation and Development Guidelines for Multinational Enterprises, the 1999 UN Global compact, the UN Guiding Principles and the ISO 14000 series. These instruments often referred to as codes of conducts except the UN Guiding Principles, have no enforcement mechanisms in place and only serve as a guideline for MNCs. As a result, most MNCs get away with unethical practices and do not participate in CSR activities. This thesis proposes an international mandatory code of ethics (IMCE) that will govern the ethical practices of MNCs and impose liability on MNCs for unethical practices. This thesis argues that once MNCs are mandated to be ethical, they will be more conscious and participate more in CSR activities. It uses Nigeria, United States of America (USA) and the United Kingdom (UK) as a case study to determine if the IMCE can be implemented in other countries. The findings are that the IMCE can be implemented in various countries and that MNCs can be mandated to act ethically and comply with CSR initiatives once they are given international recognition as legal persons. Chapter one discusses the importance of the MNCs being actively involved in CSR activities, the inadequacies of various international instruments; and finally discusses the differences and challenges of regulating CSR. Chapter two discusses the sustainability of the IMCE by looking at one critical factor that will be needed before MNCs can be held accountable for their unethical practices such as recognition of MNCs under international law. This chapter is concluded with a discussion on the aspects that will make MNCs sustainable such as uniformity, strong institutional systems and overcoming jurisdictional challenge. Chapter three looks at the provisions that will be contained in the IMCE. Chapter four discusses the application of the IMCE in Nigeria, USA and the UK and argues that if they can be applied in these countries, they can be applied in all countries. Chapter five is the conclusion and contains recommendation for future research
Description
A thesis submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in fulfilment of the requirements for the degree of Doctor of Philosophy (PhD), 2020